The JDCA’s latest report focuses on a subject we have not really touched upon before – corporate governance.
To provide a brief summary, corporate governance helps to ensure that stakeholder interests are aligned with those of management through transparency and disclosure.Contributions to diabetes foundations have reached levels commensurate with public companies that seek and maintain capital influxes. In such a case, we believe that the SEC standards used by public companies (PCs) should serve as a baseline for the foundations’ annual updates.
The JDCA believes that in order to increase transparency in the field, we need to advocate for the not-for-profits (NFPs) to adapt SEC standards, which would also help them to better align their goals with donor intentions. What is more, employing such a formula would give donors more assurance that their contributions are being used properly, which would encourage them to donate more and increase the donor base.
We have always viewed contributors to NFPs as stakeholders. They have a vested interest in how their dollars are utilized and look for a return on their donation in the form of progress towards a type 1 cure. NFPs should therefore be held to an improved standard equivalent to a public company.
Read our Full Report here: Utilizing Corporate Governance to Align Agendas, and let us know what you think! We will explore the report deeper in tomorrow’s blog.
– Stoyan
