Governance Mechanisms Fostering a Legitimate Representation in Nonprofit Organizations

Abstract

ABSTRACT A sound governance fosters the capacity of a nonprofit to meet the needs of the community by allowing local stakeholders to be represented on boards and to participate in decision-making through different mechanisms. This study explores the possible combinations of these mechanisms that lead to a high capability of acting for the community (substantive representation). To achieve this aim, a fuzzy set Qualitative Comparative Analysis is developed to analyze a group of grant-making foundations located in Italy. The results show that a high involvement of community representatives in organizational activities, a board that is largely rooted in the territory because of the residence of board members and a strong perception that the nonprofit is a legitimate representative of the community are necessary conditions associated with high levels of substantive representation.