Author Type

Graduate Student

Date of Award

Summer 7-4-2026

Document Type

Dissertation

Publication Status

Version of Record

Submission Date

July 2026

Department

Management Programs

College Granting Degree

College of Business

Department Granting Degree

Management Programs

Degree Name

Doctor of Philosophy (PhD)

Thesis/Dissertation Advisor [Chair]

Yannick Thams

Abstract

Board independence is central to the governance of nonprofit organizations and is widely recommended by regulators and governing bodies to strengthen accountability and performance. However, little is known about its impact on nonprofit organizations and particularly their operational efficiency, an important facet of performance reflected in fundraising and administrative cost ratios, key metrics that donors and other stakeholders rely on to assess whether a nonprofit is a responsible steward of contributed resources. Drawing on agency and institutional theories, this study examines the link between board independence and performance and the extent to which organizations’ broader socioeconomic context moderates this link. Using a longitudinal and rich panel dataset of U.S. nonprofit organizations in the Food, Agriculture, and Nutrition sector from 2015 to 2024, this study employs fixed effects regression models to analyze the relationship between board independence and two performance measures: fundraising cost ratio and administrative cost ratio. The findings provide partial support for the proposed relationship, revealing that greater board independence is associated with greater administrative cost efficiency but has no effect on fundraising cost efficiency. In addition, the results show that state-level education attainment strengthens the relationship between board independence and administrative cost efficiency; however, state-level poverty and unemployment have no significant effect on either administrative cost ratios or fundraising cost ratios. These findings contribute to existing nonprofit board governance research by demonstrating that a higher level of board independence may increase cost efficiencies and thus enhance organizational performance. The results further suggest that nonprofit leaders and policymakers should consider socioeconomic conditions in governance practices, as the effectiveness of board independence may be contingent upon the environment in which a nonprofit operates.

Download

Included in

Business Commons

Share

COinS