What Makes A Great Nonprofit Board Member? Some Unique Suggestions!!!
By: Eugene Fram Free Digital Photo
Viewers may question my taking time to develop this post when a Google search, using the above title, shows about 22 million listings recorded in 0.96 of second! The answer is that I located a board article with a few interesting insights, relating to for-profit boards, that also can be useful to the selection of nonprofit directors. * Following are some of the unusual ideas. (more…)
Too Much Information Can Cloud Nonprofit Board’s Decision Making–Tread With Care
By Eugene Fram Free Digital Image
In this age of information overload, nonprofits need to continually scrutinize the quality and source of the material received in preparation for major decisions. Since directors often come without broad enough experience in the nonprofit’s mission arena, they may not be prepared to properly assess its progress in moving forward–and not equipped to make relevant comparisons with similar nonprofits. In addition, naive or unscrupulous CEOs and highly influential directors may inundate their boards with information and data as a distraction tactic to keep them busy in the “weeds,” reviewing what has been presented. Board members need to avoid donning “rose-colored glasses” when assessing proposals from these sources.
I once encountered a nonprofit whose board was about to acquire a for-profit organization, headed by its founder. Pushing for the “deal” were the nonprofit CEO and an influential board member who were not, it turned out, capable of the due diligence needed for a project of this complexity. But the board accepted their work without question. When the acquisition was consummated, the founding CEO of the subsidiary refused to take directions from the CEO of the nonprofit. In addition, although the normal financial settlement of the project requires that a portion of the price be withheld pending adequate performance, the nonprofit had paid cash for the acquisition. Based on a lack of performance, the operation was finally closed with a substantial loss. (more…)
Nonprofit Boardroom Elephants and the ‘Nice Guy’ Syndrome: A Complex Problem
By: Eugene Fram Free Digital Image
At coffee 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.
In specific, the board failed to take any action to remove a director who wasn’t attending meetings, but he refused to resign. His three-year term had another 18 months to go, and the board had a bylaws obligation to summarily remove him from the board. However, a majority of directors decided such action would hurt the director’s feelings. They were unwittingly accepting the “nice-guy” approach in place of taking professional action. (more…)
Nonprofit Managers: Be Careful Who to Invite to a Meeting!
By: Eugene Fram Free Digital Image
Most nonprofit CEOs would agree with the findings of a recent McKinsey survey that attempts to gauge the productivity of business organizations’ meetings. * The results of the probe showed that 61% of the respondents thought that at least half of the time spent around the table was non-productive.
Nonprofits can benefit from the study by considering the various roles played by the participants while attending operational (not board) meetings. They advise the committee nonprofit chair to think twice before inviting people to attend. Following in italics are the roles recommended in the survey. After each, I project how these can be useful in identifying who should be present at nonprofit meetings. (more…)
How Can Nonprofit Boards Overcome the Inertia of Certain Directors?
By: Eugene Fram
Making major changes in mission, board structure, management or other significant matters are difficult. The typical nonprofit board will be divided into several groups on the issue: 1) directors who want change, 2) directors opposed to change, some strongly opposed and 3) what I call “process directors,” persons uncomfortable with major decisions who always want more data or information before voting. (more…)
Going For Impact: A Non-Profit Blueprint For the Second Half of the Year
By Eugene Fram Free Digiatl Image
For organizations and individuals, the end of the calendar year is the traditional planning period – the time used for self-assessment, strategizing and putting in place “game plan” for improvement and growth for the 12 months to come.
For many nonprofits, June 30th is the end of the fiscal and planning year. Yet the blueprint also offers the same opportunities to focus on improvement and growth.
But in today’s volatile, hyper-competitive and uncertain environment, this one-a-year exercise isn’t enough.
It just isn’t. Especially for nonprofits. And their boards of directors.
Here’s the good news: The year’s midpoint – upon us now – is a great point for an interim review. It’s a good time to review your game plan. Develop a vision goes beyond reviewing current budget projections against actuals and other compliance requirements.
I have identified five areas of focus – the last being a kind of “action plan” you can use to implement what’s of interest. Adopting just one of the many suggestions can yield a substantial return on investment. They are:
Can A Board Member Ever Wear Two Hats?
By Eugene Fram
Although this is not a good idea for nonprofit organizations, it is not an unusual occurrence, especially among start-ups. A director in a start-up nonprofit will need to assume some staff responsibilities as a volunteer. But he/s will need to organizationally report to the CEO. (more…)
Nonprofit Board Members—Are They Aware of Their Independent Director Duties?
By Eugene Fram Free Digital Image
The vast majority of nonprofit board members serve as independent directors. They are not members of management, have other occupations as their major focus, but have some significant responsibilities to a community, profession, government or professional/trade association. Mary Jo White, Former Chair, U.S. Securities & Exchange Commission, outlined the responsibilities of fund board members who also are independent directors to overview the investment dollars made by 53 million U.S. households. Many of her comments, in 2016, easily apply to nonprofit board members and their responsibilities as Independent directors. Note: The italicized materials following are White’s direct quotations. * (more…)
Nonprofit Chief Executives Should Have Title: President/CEO
By Eugene Fram
This post, over several years, has developed a record of continued viewing interest. Rarely a day passes in which the data doesn’t include one or two views, or occasionally a day in which the viewer’s data can rise to five. For example, when previously updated in 2016 there were 525 post views and counting. Perhaps the controversial nature of topic causes the longevity of interest
When nonprofit organizations reach a budget level of over $1 million and have about 10 staff members it is time to offer the chief operating officer the title of PRESIDENT/CEO. In addition, the title of the senior board volunteer should become CHAIRPERSON OF THE BOARD, and the title of EXECUTIVE DIRECTOR needs to be eliminated. Experience has shown that with a reasonably talented PRESIDENT/CEO at the helm, he/she can provide the following benefits: (more…)
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Are Your Board and Staff Ready For Change?
By: Eugene Fram
“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:
Nonprofit Management 