Both corporate governance and nonprofit organizations ( NPO ) have gained worldwide theoretical and practical importance. The implementation of efficient corporate governance into nonprofit organizations is an important political and economic matter, but has not been a focus in research. To understand the dimension of the problem, it is necessary to describe the current state of research on corporate governance in general as well as the current situation of NPOs in Austria. Subsequently, concepts and solutions for better corporate governance of nonprofit organizations are discussed. In conclusion, it must be emphasized that there is currently no adequate corporate governance system for NPOs in Austria. Although various approaches exist (eg the Austrian Corporate Governance Code; the ?Spendengütesiegel?, Swiss NPO-Code, etc), these models cannot be directly applied to the Austrian NPO sector. By forming a representative committee aiming at creating a specific Austrian corporate governance code for nonprofit organizations, it will be possible to improve corporate governance in the NPO sector dramatically.