11 Ways to a Stronger Nonprofit Board
By Eugene Fram
There’s lots of advice out there on how to build a strong and smoothly functioning nonprofit Board of Directors. Dr. Richard LeBlanc, York University law professor, had public companies in mind when he recently published 40 proposals to improve board governance. Many of his suggestions I find extremely relevant to NFP boards and their longstanding challenges. Here are some of my adaptations of his proposals. (more…)
Do Nonprofit Boards Have Viable 21st Century Options?
By: Eugene Fram
Based on what has transpired so far in the 21st century, the typical nonprofit board in the United States appears to have acquired more constraints and fewer options to maneuver. Although charitable giving rose moderately in 2012, financial options remained constrained as increased operating costs and increased client needs cloud future prospects. (more…)
Do Nonprofit Board Fundraising Committees Really Work?
By Eugene Fram
Nonprofit boards have struggled for years to develop effective board fundraising committees. According to the BoardSource 2012 Governance Index, 46% of nonprofit CEOs gave their boards “D” or “F” grades for their fundraising efforts.
Simone Joyaux in a current NPQ Newswire* raises some pertinent questions related to the “struggle to get the board to carry out its fund development role.” I have listed her questions below in italics. My overall response to her questions is that fundraising committees are not always necessary for effective fund raising! Where the committee is doing a poor job (graded average or below), it is best to cultivate and support a few board members to drive fundraising. (more…)
Nonprofit Chief Executives Should Have Title: President/CEO, Updated & Expanded
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…)
Harvard Grads Subsidized to Take Nonprofit Jobs: Good, Bad or Irrelevant?
By Eugene Fram
According to the May 31, 2013 issue of Bloomberg Businessweek, the Harvard Business School Leadership Fellows Program, a special MBA program, supplements its grads’ beginning nonprofit salaries of $45,000 with another $50,000. Over the last 13 years only 106 students have been placed with a total of 47 organizations. However, the 19 grads in the 2013 group is the largest one ever.
Is this a “canary in the mine” singing about coming changes in the backgrounds needed for nonprofit management? (more…)
Are Powerful CEOs Right for Nonprofit Organizations?
By: Eugene Fram
David Larcker and Brian Tanya, Stanford University Professors, have come to the following conclusions about CEO power and raise some pertinent questions the role of the board, based on research mainly centered on for-profit organizations.*
The research literature clearly shows that having a powerful CEO creates the potential for him or her to abuse this position to extract personal benefits or engage in excessive risks activities. At the same time, the research also shows that (CE0) power is often critical to the successful completion of tasks and the achievement of corporate objectives (and missions). To this end, powerful CEOs can ultimately be a success or a failure. Are shareholders (stakeholders of nonprofits) better or worse off with a powerful CEO?
While it is the role of the board of directors to oversee management, at some point the board must empower management to make decisions. Where should it “draw the line” between giving its CEO discretion and providing appropriate oversight? How much power is too much power?
My Response Related to Nonprofit Organizations:** (more…)
NcNamara
I disagree with you a bit 🙂
Fram
Carter: Thanks for your comments below. I really appreciate your comments, as they force me to rethink and reconsider my viewpoints.
My replies are in bold
McNamara
You and I have been around the nonprofit world for a long time. We’ve seen where lawyers did Board trainings in the ’70s and early ’80s. Everything back then was determined by what was in your bylaws. If you wanted to change how the organization operated, then a change in bylaws was supposed to accomplish that 🙂 (more…)
When is the Right Time to Change a Nonprofit’s Bylaws?
By Eugene Fram
In listening to a recent Nonprofit Quarterly webinar, I was again reminded that the habit or long standing culture could hinder the capacity building function of a nonprofit organization. One example cited was the tendency of nonprofits to procrastinate in a review of their corporate bylaws. Original board standing committee structures and board/management relationships remain in place long after they are needed to drive mission growth and to improve client services and impacts. (more…)
What Nonprofit Boards Are Not Doing – But Should!
By Eugene Fram
A recent New York Times article* reports that public company directors are coming under scrutiny this proxy season based on what they are not doing. Based on my experiences with dozens of nonprofit organizations, the litany of complaints cited in the Times article, can easily apply to nonprofits, whether they are professional organizations, trade associations, educational institutions or charitable organizations. (more…)
How is trust developed between the nonprofit board chair and the chief executive?
By Eugene Fram
First, in order to maintain trust between the board chair and CEO, the chair must be certain that the evaluation of the organization and the performance evaluation of the CEO are inclusive, i.e., cover a balance of the most relevant outcomes. Otherwise, the evaluation outcomes have the potential to damage the trust relationship that’s necessary to drive organizational growth. (more…)
Nonprofit Management 