Archive for the ‘Uncategorized’ Category
NONPROFIT BOARD RELATIONSHIPS – HOW DOES A CEO DECLINE BOARD ADVICE?
How does a president/CEO turn down advice about operations or internal structure from the board.
With difficulty. It all depends on the type of culture that has been established by the board. Ideally, the president/CEO should be comfortable saying, Read more »
NONPROFIT BOARD RELATIONSHIPS – CAN A BOARD MEMBER EVER HOLD A STAFF POSITION IN THE SAME NONPROFIT ORGANIZATION?
Can a board member ever hold a staff position in the same nonprofit organization?
By Eugene Fram
Sometimes a board member acts not as a director but as a different kind of volunteer. For example, Director Z has a particular accounting skill and wants to utilize it to help the nonprofit. The CEO agrees.
In this instance the board member is not a board member, but a volunteer working under the direction of the CEO. Read more »
NONPROFIT BOARD RELATIONSHIPS – THREE STANDING BOARD COMMITTEES ARE ENOUGH
Nonprofit Board Relationships – Three Standing Board Committees Are Enough
By: Eugene Fram
Nonprofit boards are often known for the proliferation of board standing committees. Current thinking is to reduce the number substantially. Following is one model, with only three standing committees which has been used by thousands of nonprofit organizations for over 20 years. Ad hoc committees are used when needed for investigation of policy decisions and other major issues such as changes in pension plans.
- Executive Committee – It consists of the CEO, corporate officers and an at-large member elected by the board. The committee acts for the board between meetings, subject to later board ratification; sets the meeting agendas, reviews reports for board discussion; and appoints all standing committees and ad hoc committees.
NONPROFIT BOARD RELATIONSHIPS – ASSESSING CEO PERFORMANCE
Nonprofit Board Relationships – Assessing CEO Performance
By Eugene Fram
CEO assessment should be very thorough and take place annually. That doesn’t mean that it always has to take place at one time. In some situations, assessment occurs throughout the year, depending on how the committee members decide to divide their tasks.
After completing the entire review, the assessment committee should make its report to the full board. If the review takes place periodically throughout the year, board updates follow a similar pattern.
Read more »
NONPROFIT BOARD RELATIONSHIPS – HOW OFTEN SHOULD AN AUDIT COMMITTE MEET?
Nonprofit Board Relationship – How Often Should an Audit Committee Meet?
By Eugene Fram
Under “usual” conditions, the audit committee should meet at least twice a year, once just before the annual audit to understand how the audit is going to be conducted and then after the auditor’s management letter has ben received. If other major issues arise, such as a major change in the organizations pension plan, more meetings will be required with outside counsel , experts in the area being discussed.
Part of each meeting with the external auditors is held in executive session. This is one of the few times that management is excluded from a meeting. Some boards, in recent years, however, devote some part of most meetings to an executive session. Read more »
NONPROFIT BOARD RELATIONSHIPS – USING IMPERFECT METRICS TO EVAUATE ORGANIZATIONS & THE CEO
Nonprofit Board Relationships – Using Imperfect Metrics to Evaluate Organization and the CEO.
BY: Eugene Fram
At the beginning of the year, the directors conducting the evaluation and the chief executives agree on jointly developed goals and outcome expectations. The full board must ratify the goals, which should be achievable but challenging. Some goals are clearly quantifiable (e.g. membership data, revenues) and readily available.
NONPROFIT BOARD RELATIONSHIPS – SHOULD THE BOARD MEET WITHOUT THE EXECUTIVE DIRECTOR BEING PRESENT?
By: Eugene Fram
The CEO’s involvement is central to the success of the organization. Here’s where that issue of trust comes into play. For the full board to meet without its top executive really says, “We can’t trust you to run this place.” Read more »
NONPROFIT BOARD RELATIONSHIPS – WHAT’S IN A NAME? BENEFITS OF THE PRESIDENT/CEO TITLE
Note: This article has received constant attention since being published in May 2010. I am reissuing it here in the event some new readers might have missed it.What’s in a Name? Benefits of the President/CEO TitleInsights into Nonprofit Governance and Nonprofit ManagementBY EUGENE FRAM Over the last 100 years, senior managers of nonprofits typically have held the executive director title. For about the last 30 years, many nonprofits have changed the title to president/CEO, following a common business practice. Many more nonprofits need to consider the same change to obtain some subtle but useful organizational benefits. A recent study reports that only 22 percent of trade association chief staff officers hold the president/CEO title. For professional societies, the proportion is only 9 percent.1 Many chief staff officers in larger faith-based human service and health-related organizations still hold the executive director title. Even the senior manager of Carnegie Hall in New York City still carries the executive director title. A wide range of nonprofits use the executive director title: churches, human service agencies, trade associations, and medical facilities. Read more » |
NONPROFIT BOARD RELATIONSHIPS – HOW IS TRUST DEVELOPED BETWEEN THE BOARD CHAIR AND THE CHIEF EXECUTIVE
How is trust developed between the board chair and the chief executive?
By Eugene Fram
First, in order to maintain trust between the board chair and CEO, the chair must be certain that the evaluation of the organization and the performance evaluation of the CEO are inclusive, i.e., cover a balance of the most relevant outcomes. Otherwise, the evaluation outcomes have the potential to damage the trust relationship that’s necessary to drive organizational growth. Read more »
NONPROFIT BOARD RELATIONSHIPS: SHOULD THE CEO FOLLOW OR LEAD THE BOARD IN FUND-RAISING?
Who in a nonprofit organization is responsible for fund-raising? Should the CEO follow or lead the board?
By Eugene Fram
The CEO is the advance guard when it comes to fund-raising. First and foremost, he/she has to be alert to all places where the CEO can raise funds on his/her own initiative. Read more »
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