Author: eugenefram

Dr. Eugene Fram has over 25 years experience as a non-profit board member, consultant, and author. His model of nonprofit governance has been adopted by thousands of organizaations.

When Will Nonprofit Boards Learn to Plan for Succession?

When Will Nonprofit Boards Learn to Plan for Succession?

By: Eugene Fram

The CEO has resigned with two weeks notice. Whatever the scenario, the pace of the organization will likely slow. Some senior managers may vie for the position or, in self-interest begin to look for new positions, as insurance. Staff members begin to speculate about the future of their department and their positions.

A search committee is cobbled together to explore possibilities for a replacement. According to a recent study, such turmoil is not unusual among nonprofits in transition periods. (more…)

Does the Nonprofit CEO Need to Go??

Recognizing and acknowledging that the current CEO is no longer helpful to the nonprofit organization is never easy to come by. Beyond malfeasance and under-performance, obvious reasons for initiating such a discussion, there are often other indicators: his/her modest leadership skills, ineffective discussions between the CEO and the board chair, criticism from external stakeholders, overemphasis on tactics unbalanced by a focus on strategies, etc. Volunteer directors are loathe to be confrontational when a CEO has been marginally satisfactory for a number of years, preferring to avoid the “drama” that inevitably accompanies the “changing of the guard.” Yet this type of change can’t be accomplished in a clear and pristine manner.

http://www.huffingtonpost.com/eugene-fram/does-the-nonprofit-ceo-ne_b_5019360.html

Is Your Nonprofit Board Fundraising Committee Strategically Oriented? – Revised & Updated

Is Your Nonprofit Board Fundraising Committee Strategically Oriented? – Revised & Updated

By Eugene Fram

Nonprofit boards have struggled for years to develop effective board fundraising committees and strategies. According to the BoardSource 2012 Governance Index, 46% of nonprofit CEOs gave their boards “D” or “F” grades for their fundraising efforts and fundraising is the lowest ranked of 10 board board responsibilities.

Simone Joyaux in a NPQ Newswire* raised some pertinent questions related to the “struggle to get the board to carry out its fund development role.” I have listed her questions below in bold. My overall response to her questions is that fundraising committees are not always necessary for effective fund raising! Where the committee is doing a poor job (graded average or below), it is best to cultivate and support a few board members to drive fundraising. After all, not all nonprofit directors have a strategic orientation. (more…)

Imagine Warren Buffett and/or Charlie Munger on Your Nonprofit Board…

Buffet and Munger, close partners for 54 years are sometimes described as “being joined at the hip.” Two Stanford professors have developed an analysis of Munger’s comments on good corporate governance. (http://stanford.io/1fP454c) Using Munger’s words, abstracted in italics from the Stanford analysis, here is what I estimate might motivate either of them to join a nonprofit board.

http://www.huffingtonpost.com/eugene-fram/your-nonprofit-board_b_4975787.html

The Executive Session: an underused forum for Nonprofit Boards?

The Executive Session: an underused forum for Nonprofit Boards?

By: Eugene Fram

Nonprofit boards have always used “executive sessions” to advantage. Meeting without the presence of management offers the opportunity for directors to openly discuss such topics as audit committee concerns, CEO compensation and the unexpected demands of terminations or succession. Prior to the passage of Sarbanes-Oxley I felt that such privately held meetings should be held infrequently.

However, the nonprofit governance environment of the 21st century has convinced me, and many others, that more frequent utilization of the ES can have benefits for the nonprofit. (more…)

Nonprofit Boardroom Elephants and the “Nice Guy” Syndrome: A Complex Problem

At coffee recently a friend serving on a nonprofit board reported plans to resign from the board shortly. His complaints centered on the board’s unwillingness to take critical actions necessary to help the organization grow.

http://www.huffingtonpost.com/eugene-fram/nonprofit-boardroom-eleph_b_4916469.html

Nonprofit Audit Committee Members Must Take Vigorous Actions

Nonprofit Audit Committee Members Must Take Vigorous Actions

By: Eugene Fram

Many nonprofit board members overtly adopt a “nice guy” syndrome. Because of their community or industry connections, they inherently avoid internal or external conflict and consciously sweep red flags under the rug. (Remember Penn State.) (more…)

A Nonprofit Board’s Most Important Job!

Many people believe as I do that a nonprofit board’s job is to find the best possible person to act as CEO of the organization, then stand back and let that person manage. If your board is in agreement, here are guidelines for action:

Topics Covered
* Recruit Widely
* Understand the Partnership
* A Nonprofit Board Has an Overview Responsibility
* Organization and CEO Measurement
* Nobody Does His/Her Job Perfectly
* The Board and CEO Must Partner on Fundraising

http://www.huffingtonpost.com/eugene-fram/a-nonprofit-boards-most-i_b_4839012.html

Nonprofit Board Recruitment: Can Google’s Process Apply to NFPs?

Nonprofit Board Recruitment: Can Google’s Process Apply to NFPs?

Following are Google’s hiring attributes that might be helpful to consider, if applied to nonprofit board recruitment as well as employee recruitment. * Nonprofits should especially consider them for board recruitment. Although nonprofits traditionally use an attribute matrix emphasizing skills such as finance, marketing and accounting, here are some others to consider. (more…)

Is Your Nonprofit Strategically Deprived? Updated & Revised

Is Your Nonprofit Strategically Deprived? Updated & Revised

By: Eugene Fram

A vital concern to the future of any nonprofit organization is frequently neglected. Responsibility for the lack of strategic planning must reside with the chief executive, board members and the tactical challenges that inevitably flow to the board.

Before a nonprofit board can begin successful strategic planning, it must: (more…)