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.

Assessing Nonprofit CEO Performance

Assessing Nonprofit 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.
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How Often Should a Nonprofit Audit Committee Meet?

How Often Should a Nonprofit 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 been 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.   (more…)

Using Imperfect Metrics To Evaluate Organizations & The CEO

 

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.

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Should a Nonprofit 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.”  (more…)

What’s In a Name? Benefits Of The Nonprofit 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 Title

Insights into Nonprofit Governance and Nonprofit Management

BY 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. (more…)

How Is Trust Developed Between The Nonprofit Board Chair And The Chief Executive?

How is trust developed between the nonprofit 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.  (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. (more…)

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.  This distinction is easy to understand if you think about the example of a Boy Scout leader who also serves as a board member on a Boy Scout regional council. As scoutmaster, he follows scouting guidelines and directives provided by the organization’s professionals. As a council director, he helps to set policy for the Scout movement in the geographic area.  In only one instance does he act as a director. 

Whether or not he/she should receive a payment for the work is subject to various state law nonprofit laws and approval of the board.

Source: Policy vs. Paper Clips, Third Edition, 2011, pp.231-232.

 

HOW DOES A CEO DECLINE BOARD ADVICE?

How does a president/CEO turn down advice about operations or internal structure from the board.

by Eugene Fram

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, (more…)

Limits on President/CEO’s Fiscal Discretion

Do boards set a dollar limit on the president/CEO’s fiscal discretion?

The chief executive should have  complete discretion as long as he or she works within the budget and budgetary  guidelines.  However, if any major changes are needed, the board must approve them.  For example, (more…)