Agency conflicts and corporate governance issues are typically discussed within the context of a for-profit firm with conflicts between stockholders and management. However, the same conflicts and issues can be found within a nonprofit organization, such as a church, charity, or institutions of higher education.
1) Describe how agency conflicts might occur between the managers of a nonprofit and its constituents.
2) Find an example of a situation in which a nonprofit organization has been harmed due to poor governance or an apparent agency conflict.
3) How might this situation have been prevented? Why do these situations seem so egregious when they occur in a nonprofit setting?