Chicago City Wire

Boards of directors in Chicago's nonprofit sector are facing scrutiny for alleged failures in governance, as highlighted by several case studies. These examples suggest that some boards may have prioritized progressive ideologies over their legal and fiduciary responsibilities.

The Art Institute of Chicago faced backlash after dismissing its long-serving docents to prioritize diversity, which critics argue deviated from the museum's mission. This decision raised potential duty of obedience issues, as it may have introduced ideological considerations contrary to the institution's goals.

At Francis W. Parker School, a guest speaker discussed sex toys with middle school students without prior parental notification. The incident raised questions about whether the board adequately vetted such programming and adhered to its educational mission.

The Newberry Library announced that diversity, equity, and inclusion (DEI) would guide all aspects of its operations. Observers noted this shift could lead to mission drift concerns if donor-restricted funds were redirected inconsistently with original intentions.

Victory Gardens Theater struggled with prioritizing demographic considerations over artistic qualifications in hiring decisions. The resulting operational challenges led to institutional collapse, highlighting potential duty of care failures.

Lurie Children's Hospital expanded into gender-affirming treatments for minors without comprehensive board oversight. Legal observers questioned whether this expansion aligned with the hospital's core pediatric care mission.

The American Library Association faced financial repercussions after its president made a controversial public statement on social media. This incident underscored potential duty of care lapses regarding reputational risk management.

Benet Academy experienced governance turmoil following hiring decisions inconsistent with its founding Catholic principles. The departure of their abbey sponsor highlighted potential duty of obedience concerns related to religious alignment.

These cases illustrate broader issues within nonprofit governance where boards might have neglected their duties in favor of ideological pursuits. Experts suggest improved training on legal obligations and stronger bylaws as remedies for ensuring adherence to missions and legal frameworks.