Article at a glance:
Stock market declines have pummeled the assets of US foundations, while reports of mismanagement at some of the largest and most respected nonprofits have eroded public trust. The US Congress is considering legislation that would force foundations to disburse more of their money each year in grants. In this interview, Ralph Smith, a senior executive at the Annie E. Casey Foundation, discusses why the bill misses the mark and suggests ways for the nonprofit sector to use its resources more efficiently.
The take-away
Nonprofit organizations are under pressure to make their finances more transparent and their performance more agile. Board members should become more active, and a nonprofit capital market could help nurture new organizations.