“Ideally, change takes place only when is “a critical mass of board and staff want … it. A significant … portion of leadership must realize that the status quo won’t do” * Based on my experiences, this ideal is rarely achieved because:
The CEO needs to support the changes being suggested and/or mandated by a majority of the board. But, if not fully invested in the change, he/s can accede to board wishes for action but move slowly in their implementations. The usual excuse for slow movement is budget constraint.
Must Nonprofits Develop Employee Benefits That Substitute For Annual Raises?
By: Eugene Fram Free Digital Image
An analysis in the Washington Post reports that a tsunami-style change has been taking place in the manner in which United States employees are being paid—benefits are being offered in place of annual salary increases. (http://wapo.st/1MwoIBZ) Driving the change are the needs of a substantial portion of millennials who appreciate immediate gratifications in terms of bonuses and perks, such as extra time off and tuition reimbursement. Employers like the arrangement because they can immediately reward their best performers without increasing compensation costs. Example: One sales employee spent weeks reviewing dull paperwork, was very diligent in the process and was given three extra days of paid leave. She said, “I think everybody would like to make more, but what I liked about it was the flexibility.”
How Prepared Are Board Members for the Challenges of the Nonprofit Culture?
By: Eugene Fram Free Digital Image
Given that the typical tenure of a new board member is six years. In addition,a new director’s intention may beto make his/her unique contribution to the organization’s progress before he/s rotates off the board and is supplanted by another “new” director. With these factors in mind, I estimate that many volunteers enter the boardroom with little understanding of nonprofit culture. Even those who have served previously on business boards may initially spend valuable time in accommodating to the nuances of nonprofit practices and priorities before being poised to make contributions to the “greater good” that nonprofit create. Following are some areas that are endemic to nonprofits:
Good News for Nonprofit Board Members & CEOs—Examples From The Behvorial Sciences
By Eugene Fram Fee Digital Image
Behavioral economics, finance and marketing apparently are making significant strides in helping nonprofits to understand how to maximize their development efforts. Following are three studies that appear to have significant nonprofit interest.
Once Again: Who Should Be Involved in Fund Development and How?
By Eugene Fram Free Digital Photo
This is a perennial issue. Following are suggestions that can clarify questions related to it.
The Board of Directors • Board members should provide an annual donation, be able to generate contributions from other sources or donate time. (“give or get” policy). • Even if cash donations are modest, 100% of board members should make a financial and/or support contribution each year. Funders look at this percentage as a surrogate measure of board interest and involvement in the organization. • Two type of of board members should be directly involved in development. One is the talented person who is highly comfortable with the development process. The other is the person who may lead other board members to unknown sources. For example: relatives, neighbors, college friends, etc. who can contribute. At least three or four board members need to be in the former category. All board members are obligated to alert the CEO to other leads they may encounter and assist with introductions, if appropriate.
The CEO and the Board • There needs to be a robust partnership between the board and CEO if there is to be effective and efficient fund-raising. The CEO should act as a lookout for fund development potentials and then alert board chair to support his/her activities, after the board has approved the project and is prepared to make a proposal. • If the CEO is going to assume the lead role in approaching prospects, it may important that the person have the president/CEO title.
A Foundation • With the aid of legal counsel, establish a development foundation. It needs to have its own small board and a volunteer as its leader. The board needs to have full understanding that the parent board is responsible for fund expenditures. Otherwise conflicts can arise between the two boards on fund deployments. A foundation can also be helpful current traumatic conditions because its total focus is on fund development.
How Prepared Are Board Members for the Challenges of the Nonprofit Culture?
By: Eugene Fram Free Digital Image
Given that the typical tenure of a new board member is six years. And assuming that a new director’s intention is to make his/her unique contribution to the organization’s progress before he/S rotates off the board and is supplanted by another “new” director. With these factors in mind, I estimate that many volunteers enter the boardroom with little understanding of nonprofit culture. Even those who have served previously on business boards may initially spend valuable time in accommodating to the nuances of nonprofit practices and priorities before being poised to make contributions to the “greater good” that nonprofit create. Following are some areas that are endemic to nonprofits: (more…)
Should All Board Members Be Required to be Directly Involved With Fundraising?
By Eugene Fram Free Digital Image
Based on my experiences, it should be those who have successfully done it previously or are willing, with some coaching, to try it. However, board members also need to maximize their colleagues’ contacts. That may involve teaming someone who does not usually get involved in fundraising with an experienced hand, especially if the inexperienced person knows a potential donor.
The CEO will also need to be an assertive leader when it comes to fundraising, but all board members will need to play sone supportive role. Neither board members nor CEOs can abdicate their fundraising roles.
Everyone on a nonprofit board should make an annual contribution. This is often managed through a Give and Get Policy. * Certainly, the amount depends on each director’s personal situation, but even a token amount or other contribution is significant. When developing funding grant proposals for foundations or corporations, 21 century funders often want to know whether or not all members of the board are are behind the organization in some personal manner.
Nonprofit Management 