Dysfunctional nonprofits

Board Member Networking Pays Off for Nonprofits

Board Member Networking Pays Off for Nonprofits

By Eugene Fram    Free Digital Image

Over decades of nonprofit board membership and consulting, I have rarely observed volunteer board members effectively networking with their peers to develop best board practices. Also rarely do I see them accompany management to regional or national conferences related to the nonprofit’s mission. These types of exposures are necessary to have groups of board members capable of making generative suggestions.

For directors who are willing and able to network, I suggest the following: * (more…)

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Major Donor Has Remorse — Nonprofit Board/CEO Failed to Meaningfully Engage Him?

Major Donor Has Remorse — Nonprofit Board/CEO Failed to Meaningfully Engage Him?

After the gift is received, announced and celebrated, where does a nonprofit board and its management go from there? And whose job is it to see that the donor remains engaged and involved in the organization? These are questions that I have been thinking about after a friend brought facts of his donor experience to my attention.

A sad donor story begins with this friend who had been a longtime participant on the board of a nonprofit, eventually serving as board chair; he was also a modest contributor to the organization. During his tenure on the board, he developed a close professional relationship with the very innovative chief operating executive. Even after his term of board service had ended, the friendship between the two continued — as did the former director’s modest gifts to the nonprofit. In a decision to more generously support the organization’s innovative mission the now ex-board member made a substantial financial pledge — unrestricted — to be paid over several years. During the second year of the sustainable pledge the CEO left the organization and moved on to another job; the donor, unfortunately, was never contacted by the CEO’s successor. The donor’s calls to request phone appointments were returned weeks later and abruptly terminated. A staff member was delegated to service the donor, and other than letters of thanks for his annual contribution and copies of routine communications, there was no personal contact.

End of story. My friend, a business consultant, was suffering from donor’s remorse, more formally known as cognitive dissonance. He has not remained in touch with the nonprofit and knows little about any innovative activities. No surprise ending here — his strong support is now welcomed at a number of other nonprofits.

Whose job is it anyway??

After a major grant or gift has been received, many nonprofit delegate relations with the donors to the CEO, other senior officers or a development director. But there’s many a slip between cup and lip — and nonprofit boards have to be sure that future funding is not jeopardized. My thought is that a plan of board oversight might be a solution to unusual situations such as the one described above where the necessity of donor meaningful engagement probably slipped through the cracks. Here are my further thoughts on the subject:

• Since it is widely known that “people give to people, not causes,” the board should have policies or guidelines relating to interpersonal contacts with major donors. Who in management and/or board should be responsible for these contacts? How frequently should the contacts take place? And whose problem is it if things go wrong?

• The topic of major givers should be on the board agenda every three or six months at which time the contact person can update the board on the interaction or any problems that might occur.

• If the contact is a board member, he/she must be thoroughly briefed on the mission and management challenges. If it is a development director, he/she must be articulate on every subject relating to the organization.

• The CEO needs to make qualitative assessments of contact progress. When there is a change in executive leadership, the new CEO must immediately be briefed on the interpersonal status of relations with all major donors.

Donor Remorse should be nonexistent in nonprofit organizations — it can affect both current and future funding. In my opinion, the board should take a more active strategic and policy oversight role in this area. I recommend inclusion of the topic on your upcoming agenda.

Should Mature Nonprofits Allow Board Micromanagement?

Should Mature Nonprofits Allow Board Micromanagement?

By: Eugene Fram              Free Digital Image

Accepted View of Micromanagement: “…Directors spend more time with the details of the operations instead of planning its short-term and long-term growth strategies. …
(http://linkd.in/1q84pMm)

The Need for a Micromanaging Board
Board micromanagement is an appropriate approach when a nonprofit is in a start-up stage. Financial and human resources are modest, and the volunteer directors must assume some responsibilities normally executed by compensated staff. The chief executive often has managerial responsibilities as well as a list of clients to service. It is not unusual to promote a person who is only familiar with direct service to become the first chief executive of the organization. In turn , this neophyte manager has to depend on board members for managerial counsel and direction. A culture of board dependency is created out of necessity. (more…)

Do Today’s Business Leaders Make Effective Nonprofit Directors?

Do Today’s Business Leaders Make Effective Nonprofit Directors?

By: Eugene H. Fram

The names of the new board nominees have been announced. They include several outstanding recruits from the business community. Will these new formidable directors perform well in the nonprofit environment? William G. Bowen, a veteran director in both the for-profit and nonprofit environments, raised the following questions about such beginnings in a 1994 article:* Is it true that well-regarded representatives of the business world are often surprisingly ineffective as members of nonprofit boards? Do they seem to have checked their analytical skills and their “toughness” at the door? If this is true in some considerable number of cases, what is the explanation? (more…)

How Seriously Does Your Nonprofit Board Take the Matter of Ethics?

How Seriously Does Your Nonprofit Board Take the Matter of Ethics?

By Eugene Fram                           Free Digital Photo

Most board members are aware of their obligation to ensure their nonprofit’s compliance with certain standard regulations e.g. making tax payments, submitting IRS Form 990s and/or avoiding potential fraud. But what I have found missing in the nonprofit environment is a sense of board member responsibility to provide for and sustain a viable ethics program. (more…)

Stay on That Nonprofit Board!

Stay on That Nonprofit Board!

By: Eugene Fram

Gene Takagi, noted San Francisco attorney, who specializes in nonprofit organizations published an article listing 12 reasons for resigning from a nonprofit board. It is worth reading. (http://bit.ly1r2M5Hi)

BUT

Nonprofit directors often become impatient with the slow pace of progress toward positive change. Here are some actions that may change the situation, improve service to clients and prepare the organization for any long-term mission disruptions. (more…)

What Can A Nonprofit Chair Do To Fix A Dysfunctional Board?

What Can A Nonprofit Chair Do To Fix A Dysfunctional Board?

By: Eugene Fram             Free Digital Image

There are times when the governing body of any organization may appear to be “broken.” The directors, whether for profit or nonprofit, may be polarized—progress is stunted – apathy and confusion replace purpose and efficiency.
A listing of ways to resuscitate dysfunctional business firms prompted me to expand on actions for nonprofits in similar condition. When a nonprofit is in trouble, any chair, who is aware of his/ her leadership responsibilities, should aspire to be the “fixer “of the fractured board. But there is just so much he/s can do. Some failures have deep endemic roots such as outdated structure, personality conflicts etc. The following actions are within the chair’s capability, and they can be useful in repairing board disruption. (more…)