Ebenezer Scrooge has given the business world a bad rap. Contrary to popular perception, business-people can be benevolent. For example, studies show that more than 90% of current Harvard Business School students are on the boards of a variety of nonprofit organizations. And polls of HBS classes suggest that the overwhelming majority of those students will stay meaningfully involved with nonprofits after graduation. One recent study found that four-fifths of all HBS graduates are involved with nonprofits, with more than half serving on boards. And when you exclude graduates in their early career-building years (generally up to ten years after graduation), the numbers jump even higher. It seems that volunteerism and community activism are still deeply rooted in America. And that’s good news.
Don’t Assume the Shoe Fits
Most businesspeople will serve on the board of a nonprofit organization at some point. But the governance of nonprofits can differ dramatically from the governance of businesses. Even the best intentions can prove disastrous when new board members fail to understand that their traditional business experience can carry them only so far.
A version of this article appeared in the November–December 1999 issue of Harvard Business Review.