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Policy vs. Paper Clips

What’s required to develop a positive nonprofit board culture?

What’s required to develop a positive nonprofit board culture?

 

  1. In order to maintain trust between the board chair and the CEO, the board chair must be certain that the evaluation of the organization and the personal evaluation of the CEO are inclusive, i.e., cover a balance of the most relevant outcomes.
  2. The interpersonal chemistry between the board chair and the CEO must be a positive one.  If the interpersonal chemistry is poor, civil discourse at meetings is hard to maintain.
  3. The CEO needs to be flexible. He or she needs to accommodate to a new boss every year or two and can’t become complacent.  The CEO needs to be alert to the fact the board, often initialed by a new chair, may want to move in a new direction. 

 

Directors & CEO Alert: Never underestimate the power of the established board culture as a barrier when attempting to make changes.  However in some instances culture can be an asset in change management.

 

 

Source: “Policy vs. Paper Clips” Third Edition, 2011, pp. 156-157.

 

 

 

What are the most productive types of relationships between board & staff?

The relationships between the two groups can be productive informally and formally. It’s an important relationship because the staff must understand the board’s depth of commitment to the nonprofit’s mission, mission and values.

Informally, board members need to attend celebrations of organization successes (more…)

Some Nonprofit Directors Never Attend Meetings! What to do?

These absent directors can offer valuable support, and the other directors want more involvement, not their resignation. One approach is to consider moving from a board format requiring director operational involvement to one that focuses (more…)

Nonprofit & Trustee Director’s Alert! Watch your organization’s reputation.

Nonprofit & Trustee Directors Alert!  Watch your organization’s reputation.

In contrast to business firms, nonprofit and trustee boards can be against a brick wall when the reputations of their organizations go south.   In the commercial environment, (more…)

What can a nonprofit board of directors do about “displaced directors”?

What can a nonprofit board of directors do about “displaced directors”?

Displaced directors are board members who can’t adapt to a more modern board model or a new CEO and management group.  Traditionally, they want to be involved in operations, a few, at the extreme, want to micromanage the CEO.

Obviously, some of these people will resign,   but what can a CEO or board chair do (more…)

Crisis Management – What is the proper role for a nonprofit’s board of directors?

Crisis Management – What is the proper role for a nonprofit’s board of directors? 

Changes buffeting nonprofit boards of directors are increasing substantially.  At the top are the widespread budget cuts from foundations and governmental organizations, along with many individual donors reducing their traditional gifts. In addition, a sudden social change, reputation decline, or a fire/flood are events, which may change a board’s engagement style with management, staff and other stakeholders. 

A board’s style in such situations will depend on its seriousness.  (more…)

Nonprofit Board Members & Managers – Are you aware of the Federal Intermediate Sanctions Act?

Nonprofit Board Members  & Managers – Are you aware of the Federal Intermediate Sanctions Act?

 

I have been surprised by the number of people, holding nonprofit board and management positions, who are totally unaware of this piece of legislation. (IRS Code – Section 4958)

The act applies to nonprofit organizations.  As I understand it, the act states (more…)

Better Board Governance. Is it the same for both business & nonprofit boards?

Better Board Governance.  Is it the same for both business & nonprofit organizations?
Both Board Source in 2010 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.  (more…)

Once Again! What Does Nonprofit Board Oversight Mean?

Once Again! What Does Nonprofit Board Oversight Mean?

I have a daily (7 days a week) subscription to Google Alerts on “Nonprofit Management” and “Nonprofit Governance.” Every week, three or four nonprofit case stories surface, in these listings, related to inadequate oversight by nonprofit boards of directors.  Many of the cases result six or seven figure dollar losses to the nonprofits. Following is my personal list of what reasonable board oversight means to attempt to help nonprofit boards of directors to avoid such losses.

  • At least half the board should be able to analyze the monthly or quarterly financial statements.  Have voluntary information sessions available for those who do not have the skills. (more…)

Nonprofit CEO Board Chair Relationships – Anything Works

Nonprofit CEO Board Chair Relationships –Anything Works!!

A recent NPQ Nonprofit Newswire (March 13th 2012), report concludes, that to build good nonprofit CEO-board chair relationships, “Task lists and job descriptions often propose a “one size fits all” recipe for the CEO-Board chair relationship, (but the lists have little to do with real world effectiveness.)” (more…)