Developing nonpofit management trust

What To Do About Weak Nonprofit Board Practices

What To Do About Weak Nonprofit Board Practices

By Eugene Fram

Peter Rinn, Breakthrough Solutions Group, recently published a list of weak nonprofit board practice. * 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. (more…)

A 21st Century Nonprofit Reality – The Chief Executive Needs to be a President/CEO

A 21st Century Nonprofit Reality – The Chief Executive Needs to be a President/CEO

By: Eugene Fram

Many of my viewers* know that I strongly favor nonprofit boards, which develop a budget level of more than $1 million (US) and employ about 10 full and part time people, should designate their chief executive as the President/CEO. A volunteer director then becomes the board chair. Below, in italics, is a response I received to my viewpoint listed on the Board Source blog site:

Interesting points. However, where I come from, executive director is the recognized title for the heads of non-profits, with the possible exception of multimillion-dollar agencies. Everyone understands it. Even when the ED is recognized (in bylaws and/or policies) as the CEO of the agency, they still tend to use the ED title, The CEO title smacks of the for profit sector, which may be off-putting to the social service sector, perhaps a tinge of “playing out of your league.” President is definitely from the for profit sector, and could be confusing from the perspective that some boards still refer to their chairs as “presidents. (more…)

What’s in a Name? Benefits of the Nonprofit Executive Director Title.

What’s in a Name? Benefits of the Nonprofit Executive Director Title.

By Eugene Fram

The most viewed blog on my nonprofit governance site is an article I wrote in 2008, “What’s in a Name? Benefits of the President/CEO Title. This article has had a stream of national and international viewing, sometimes as many as 50 daily. (Note this is four years after original publication.)

Recently, I read a review of the article, suggesting I didn’t cover the benefits of the nonprofit Executive Director title, probably the more common title for the chief executive of nonprofits. Following is a brief listing when the title is useful. (more…)

ATTN: Nonprofit Directors & Trustees – Find Value From Business Successes.

ATTN: Nonprofit Directors & Trustees – Find Value From Business Successes.

By: Eugene Fram

According to a blog appearing in the September 22, 2012 issue off Board Member. Com, Value Bridge Advisors identified only 34 of 500 S&P members who, “had growth over 3% plus year average annual revenue growth over 10%.” For this highly successful group, the blog also identified what they had in common to achieve a top rating. Following are only the board related items that may be readily adapted by nonprofit and trustee boards. (more…)

What Nonprofit & Trustee Directors Have a Right to Know

What Nonprofit & Trustee Directors Have a Right to Know.

By Eugene Fram

A recent blog was published, “raising some (directors’) questions that go beyond the rules…” (See below) Developed by an international for-profit & nonprofit board expert, they are primarily targeted toward for-profit boards. Following are my suggestions how these questions could apply to nonprofit and trustee boards. In addition, field examples show what happened when they had to be raised in crises situations.

Does bad news rise in your organization?
“You may be the last to know.” For example, the board of a human services organization knew that the professional staff was not happy with a new ED, but the board needed to give him a chance to solve the problem. Directors didn’t know that the staff had been meeting with a union organizer for nine months.
An labor election resulted, with the professionals agreeing to work under a trade union contract. (more…)

Reissue: Nonprofit chief executives should have a title, PRESIDENT/CEO

The overwhelming international response that I have had to my blog, “What’s in a name? Benefits of the President/CEO Title,” has motivated me to reissue this blog, which originally appeared in March, 2012

Nonprofit chief executives should have a title, PRESIDENT/CEO

By Eugene Fram

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…)

How To Develop A Trusting Nonprofit Governance Model

How To Develop A Trusting Nonprofit Governance Model

By: Eugene Fram

A nonprofit governance model that provides a significant amount of trust between board and staff can lead to an entirely new working environment. It calls for a working relationship based on respect for all involved, especially respect for management personnel by the board. (more…)

How Can Nonprofit Boards More Clearly Define Operational Responsibilities?

How Can Nonprofit Boards More Clearly Define Operational Responsibilities?

By Eugene Fram

My experience shows that well functioning nonprofit boards establish and monitor the organization’s policies. The board operates through the president/CEO. In turn, the CEO executes policy and is responsible for the prudent and creative operations of the organization. In this role, the CEO exercises leadership resulting in the effective and efficient use of board and of other volunteer time.

Although defining what are policy issues and what are operation issues is not always clear, for both for-profit and nonprofit organizations, following is a useful set of guidelines (more…)

Attn: Nonprofit Directors & Trustee Directors – Some History to Ponder

Although this article may focus on for-profit boards, there is a great deal in it for nonprofits to ponder. It again shows that although the mission vision and values differ between the two types of boards, operationally there is much that can be learned from each other

http://www.rbj.net/article.asp?aID=191537

Nonprofit Directors & Trustees – Are they adequately personally protected?

There isn’t a nonprofit director or trustee who wants to be personally financially liable for his or her association with a nonprofit director led or trustee led organization.  Those persons currently holding one or more of these positions, or is considering one, should be able to answer the following questions (more…)