| AU leaders call Senate Finance meeting on governance worthwhile BY MIKE UNGER AU administrators, faculty, staff, students, and board members joined leaders from the American Red Cross and other nonprofit organizations Friday for a wide ranging discourse on governance issues at a roundtable discussion on the subject held by the U.S. Senate Finance Committee staff. The daylong forum examined both the best practices of and mistakes made by nonprofits in shaping their governing boards. Under the leadership of Chairman Charles Grassley, R-Iowa, the Finance Committee has been engaged in a review of nonprofits and their tax exempt status, and an exploration of whether reforms are needed. It began looking into AU’s governance after the departure of former president Benjamin Ladner last fall. AU Interim President Neil Kerwin said he felt the meeting was productive. “I think it showed that these issues are prevalent across nearly all professions,” he said. “There are questions of transparency and voice that seem to be universal.” Bishop John Schol, a member of AU’s Board of Trustees, told the committee staff that the board is determined to institute change. “In the midst of the . . . issues that American University has faced, it has remained steadfast in making sure students continue getting a good education,” he said. “Our sole desire is to work with the community to make American University the best university it can be.” Schol told the committee staff that the field of candidates for six board vacancies has been whittled down to about 20. The contenders were nominated by students, faculty, and a broad spectrum of the university community. He listed a host of reform measures—including altering the role of the executive committee and instituting more transparency—that the board currently is examining. “This board has had a serious wake-up call,” he said. Board chairman Gary Abramson, who has been leading the board during this period of governance reform, also found Friday’s meeting informative. “It was a good, open dialogue on all the issues a number of nonprofits have been facing,” he said. “Part of the reason for this was to have a forum for new ideas, and I think it was a good discussion.” The first of the day’s three segments featured conversation on general issues surrounding nonprofit boards. In the afternoon the focus shifted to the American Red Cross, which has been embroiled in controversy surrounding its governance. The session closed with a discussion of governance at AU. In addition to Schol, others, including Professor Mary Gray, student government leader Kyle Taylor, Faculty Senate chair Tony Ahrens, and outside experts, addressed the attendees. Later, Ahrens and Professor Stephen Silvia, cochairs of the Faculty Senate Committee on Governance, expressed their optimism that the board reform process will have a successful outcome and supported the experts’ consensus that Congress should not intervene at AU in the matter at this juncture. Taylor was highly critical of the board, asking the committee staff to consider radically altering the composition and reserving positions for three student and three faculty members. At the meeting, the board released a report updating its ongoing governance reform process. The report “conveys the seriousness of purpose and urgency we attach to governance reform,” it states. “We are acutely aware and understand the concerns expressed by many regarding lapses in the board’s conduct of its fiduciary obligations. But, we have learned much from our mistakes and are determined to move forward.” To access the full report, visit www.american.edu/governance. |
