Can Nonprofit Management Usurp Board Responsibilities?
By Eugene H. Fram
On balance management will always have more information about the organization than volunteer board members. As a result, directors must be proactive in seeking information from management and a variety of other sources, even if they must involve employees other than senior management. Following are three field examples showing what has happened when boards failed to be proactive (more…)
Maintaining World Class Integrity in a Nonprofit Boardroom: Guides for Action
By: Eugene Fram
There is little question that boards have overall responsibility for ensuring a nonprofit’s integrity. Take, for example, the case of a nonprofit where the former executive director and a board member conspired to steal $4 million of the organization’s funds. While the board did operate within its fiduciary duties and had no personal liabilities, an attorney in the case reported: This does not prevent a state’s attorney from laying blame on the board, however. Although there may be no personal financial loss, the board its individual directors and the organization can suffer significant repetitional loss when integrity issues arise. http://bit.ly/REmSoC (more…)
Nonprofit Management 