Social capital and nonprofit governance effectiveness

Abstract This article examines the important role of social resources in enhancing the effectiveness of nonprofit boards of directors, paying particular attention to the positive implications of social capital. Using data collected from a survey of 234 organizations operating in the Canadian nonprofit sector, we model the relationship between a three‐factor model of social capital and a multidimensional measure of governance effectiveness. Our results demonstrate the positive contribution that social capital makes to the capacity to govern effectively. Findings of our study support the need for renewed attention to social and relational considerations inside the boardroom.