BOARD COMPENSATION AND CONFLICT OF INTEREST IN PRIVATE NON-OPERATING FOUNDATIONS

Abstract

This study investigates the board composition, compensation, and conflict of interest issues in 40 of the largest United States Not for Profit private non-operating foundations. A private foundation is one, which does not seek support from the general public and is generally a family or corporate foundation. A non-operating foundation is a foundation that makes grants to other not for profit entities and to individuals but is not directly involved in the activity.

Fourteen of the 40 foundations paid compensation to board members. Further, four specific instances of apparent conflict of interest are reported: two involving board members who were attorneys, one involving a board member who was a CPA, and one involving board members relationship to the foundation’s investment advisor.