Once Again: Who Should Be Involved in Fund Development and How?
Updated & Revised
By Eugene Fram Free Digital Photo
This is a perennial issue. Following are suggestions that can clarify questions related to it. (more…)
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Once Again! Do Nonprofit Directors Face Cyber Security Risks?
Once Again! Do Nonprofit Directors Face Cyber Security Risks?
By: Eugene Fram Free Digital Photo
Viewer Favorite: Updated & Expanded
The cyber security (CS) debacles faced by Target, Sony Pictures and others may seem far afield from the concerns of nonprofit directors, except for the giants in the area, like AARP. However, think about this hypothetical scenario.
A group of high school students hacked into the computer system of a local nonprofit offering mental health services and gain access to records of clients, perhaps even placing some of the records of other teenagers on the internet.
What due care obligations did the board need to forestall the above situation? A move to recruit directors with special expertise in information technology or cyber security would be nonproductive. A nonprofit director has broader responsibilities such as the overview of management, approval of budgets, fostering management and staff growth etc. Similarly, when social media became a prominent issue a few years ago, boards debated the advisability of seeking directors with that specific kind of background. Today, a consultant with management experience in the area is likely needed to provide guidance to directors on these social media issues.
Nonprofit Board Recruitment Process Calls For New Approach
Free Digital Photo
Nonprofit Board Recruitment Process Calls For New Approach
By: Eugene Fram
One thing is certain about nonprofit director turnover is a board completely turns over about every four to six years. * With that fact in mind, both board and management need to act as interim “talent scouts” for potential directors who will be competent to tackle the sometimes unpredictable challenges of the future. Just as unexpected crises will confound the new president elect and his colleagues, those who occupy the nonprofit boardroom must be well equipped to deal with the inevitable issues that are certain to arise. ** (more…)
Board and executive director trust issues? Look at these problem areas
- Each party may occasionally step on the other’s toes
- Over aggressive directors can go too far
- There must be a fair but robust CEO evaluation process
- Does the board provide growth opportunities for the CEO?
Click link for insights: goo.gl/akvlE7
Getting The Most From Your Nonprofit Board
From: Tony Martignetti–Nonprofit Radio Free Digital Photo
Thanks to today’s guest 10/28/2016, Eugene Fram, professor emeritus at @Rochester Institute of Technology, and author of “Going For Impact: The Nonprofit Director’s Essential Guidebook.” Let’s takeaway!
- strive for excellence; your board & CEO should avoid mediocrity
- avoid excess deference to CEO, board chair & major donor board members
- be explicit about board members’ responsibilities & expectations, don’t turn it into into legalese
- bad news must rise to management & the board
- have a vibrant recruiting process, don’t dumb it down
- your board’s most important job is hiring and overviewing the CEO and developing robust assessment processes
- develop high levels of trust between Board-Management-Staff
- understand the big differences between outcome and impact.
- so much more, listen!
http://podcast.mpgadv.com/2016/10/313-get-the-most-from-your-board-tony-martignetti-nonprofit-radio/
A Special Relationship: Nurturing the CEO-Board Chair Bond*
A Special Relationship: Nurturing the CEO-Board Chair Bond
By Eugene Fram Free Digital Photo
Viewer Favorite – Updated & Revised
Here are tips to assure the best possible partnership between the board chair and CEO.
Keeping boards focused on strategic issues is a major challenge for nonprofit leaders. This leadership crisis is intensified by the fact that board chairs tend to have short terms (according to BoardSource, 83% stay in office only one or two years). Thus, nonprofit CEOs and board chairs need to bond quickly. For the good of the organization, they must come together swiftly and create a partnership that works. Here are golden rules for the CEO and board chair to follow: (more…)
Better Board Governance. Is it the same for both business & nonprofit organizations?
Better Board Governance. Is it the same for both business & nonprofit organizations?
By: Eugene Fram Free Digital Photo
Viewer Favorite: Updated & Enhanced
Both BoardSource in 2015 and the Charted Global Management Accountant (CGMA) in 2012 have issued reports on improving board governance. The former group focuses on nonprofit boards and the latter focuses on business boards globally.* Both the nonprofit and business organization reports listed the following prime areas for board improvement or focus: The CGMA report called for improved strategy development & risk analysis; better boardroom behaviors; better relationships between board & management. The BoardSource report asked for improved focus on strategy, with much less emphasis on operations; more board commitment, engagement, & attendance; better self-assessment, recruitment & development.
Although the CGMA report does not differentiate the types (strategic vs. operational strategy) the “risk oversight” notation can indicate there is a need for greater board focus on long-term strategy. For nonprofit boards, the strategic side of planning is often neglected. There has been a decades-long board culture support for directors’ involvement in operational decisions, often leading to board micromanagement and less strategic interest.
Establish a board culture that limits micromanagement
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Nonprofits need substantial trust between board members and management. If all board members and the CEO understand the board mandated boundary line for governance versus operations decision-making, both sides will recognize their responsibilities with limited board micromanagement. This is not to say that each may overstep the boundary line on rare occasions, but infractions must be approached professionally with partnership civility.
Common Practices Nonprofit Boards Need To Avoid
Common Practices Nonprofit Boards Need To Avoid
By: Eugene Fram Free Digital Photo
Viewer Favorite: Revised and Updated
Peter Rinn, Breakthrough Solutions Group,* published a list of weak nonprofit board practices. Following are some of the items listed and my estimation of what can be done about them, based on my experiences as a nonprofit board director, board chair and consultant.
• Dumbing down board recruitment.Trumpeting the benefits and not stressing the responsibilities of board membership.
Board position offers frequently may be accepted without the candidate doing sufficient due diligence. At the least, the candidate should have a personal meeting with the executive director and board chair. Issues that need to be clarified are meeting schedules, “give/get” policies and time expectations. In addition, the candidate, if seriously interested, should ask for copies of the board meeting minutes for one year, the latest financials, and the latest IRS form 990.
How Do Nonprofit Boards Keep Stakeholders Engaged?
How Do Nonprofit Boards Keep Stakeholders Engaged?
By: Eugene Fram Free Digital Photo
First, exactly who are the “stakeholders” in the nonprofit environment? Most directors would readily define the term as clients, staff and board members. But what about other participants such as external auditors and significant vendors? Surely a nonprofit that depends on a vendor to supply groceries can be hobbled if the food is not delivered properly. And, last but not least, the backbone of the organization — the volunteers! Many cogs in the wheel make the nonprofit world go around and need consistent and careful attention. Following are some guidelines for engaging all types of stakeholders:
Nonprofit Management 