Eliminating the Nonprofit Board’s Addiction to Micromanaging
By: Eugene Fram
Micromanaging is the DNA of many nonprofit boards. It all starts with the community model culture of start-up periods. Board members have to assume staff roles to drive the nonprofit operations. But it often continues long after an adequate staff is in place. By habit, the board still focuses on operational details—also known as “reviewing the weeds.” I recently observed a board that was making a policy decision about the change in timing of an annual development event. Once the decision was made, the directors continued a “weed type” discussion about about table locations, invitations and other issues that were in the job of management to implement. The nonprofit is about 50 years old and has a budget of $10 Million with a 100 person staff. (more…)
Nonprofit CEOs & Board Directors: How Expert Is Your CFO?
By: Eugene Fram
When hiring a chief financial officer (CFO), nonprofit organizations often find themselves with a major challenge, since many financial and accounting functions are identical. To compete, the organization may need to offer higher salaries that are somewhat competitive with for-profit organizations. Consequently, some trim the level of expertise required to fill the position. This is a dangerous move, especially if the organization is growing. Also the current CFO, if hired five or ten years ago, may not be up to date and make a major error that will harm the organization’s reputation, leading to a board restructuring and/or firing the CEO. (more…)