Nonprofit governance and management practices can have a long term negative impact when not well managed, at least according to the accrediting body called the Western Association of Schools and Colleges.
According to the <a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/12/BAPOV0C6G.DTL&hw=western+association+of+schools&sn=001&sc=1000">San Francisco Gate</a>, this Association cited the University of California for a number of bad practices that included:
<blockquote>A decentralization of the university's administration, with many important decisions being made by top executives case by case without review or approval from the governing Board of Regents, allowed violations of UC compensation policies, the report says. In addition, the report says, there is confusion about the roles and responsibilities of the university president, the regents and the 10 campus chancellors with no clear lines of authority and boundaries. There was no consistent annual evaluation of executives and no self-assessment or training for the regents, the report said. In addition, there is no clarity on how regents should make official statements or decisions on behalf of the board.</blockquote>There are lessons here for all nonprofits underscoring the importance of good governance and management practices.