Charity Governance

American University: The Intermediate Sanctions and Other Governance Mandates Protect Not Only the Non-Profit, But Also the Chief Executive

This past summer a major controversy erupted on the campus of American University over its president's compensation package.[i] According to the Washington Post, an anonymous letter sparked an investigation by the University into the president's personal and travel expenses.[ii] The board commissioned an audit,[iii] which was subsequently leaked to the press.[iv] Stories about elaborate dinners,[v] a personal chef,[vi] and extravagant travel[vii] began to circulate.

American University President Benjamin Ladner has mounted a strong defense of his action, strongly denying...

PART 1—RECOMMENDATIONS FROM THE PANEL ON THE NON-PROFIT SECTOR

The Independent Sector organized the Panel on Nonprofit Sector in October 2004 to respond to the proposals issued last Spring by the Staff of the U.S. Senate Finance Committee. The panel is comprised of 24 nonprofit and philanthropic leaders. The Panel has created an eight-member Expert Advisory Group, a nine-member Citizens Advisory Group, and five working groups to assist provide the Panel with assistance and expertise. The Work Groups have now made a number of recommendations, and the Panel is encouraging public comment.

To improve transparency, the Transparency and Financial Accountability Work Group is recommending that...