1. Italian Bank Foundations and Governance

Italian bank foundations are a particular kind of nonprofit organization, operating in the exclusive interest of a territory, especially in the fields of art, culture, health, and social assistance. Although they share in substance the common idea of foundations, their governance structure presents some peculiarities that distinguish them from typical nonprofit organizations. Bank foundations’ governance structures comprise two different boards with different but complementary functions. The Board of Trustees is in charge of the foundation’s direction; it defines objectives, strategies, and long-term programs. The Board of Directors has more of an administrative function, translating long-term plans into short-term programs of action. Defined as such, this board structure allows the foundation to overcome the rigidity that typically characterizes the dual governance model. It acknowledges a deeper connection between the policy-making body and management and thereby ensures a closer link between strategy formulation and strategy implementation.