Can A Nonprofit Organization Have A President/CEO & An Executive Director?
By: Eugene H. Fram
Yes, if the organization has the following structure:
Board With A Volunteer Chairperson
President/CEO With Full Authority for Operations
Executive Director for Division A
Executive Director for Division B
However this structure (more…)
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
Nonprofit & Trustee Boards: Any Side Effects From Health Care Act?
By: Eugene Fram
Obviously the Supreme Court’s health care decision will have significant impacts on nonprofit and trustee boards of health related organizations. However, like any large dose of medicine, the dose from the health care act will have kinetic effects on the cultures and operations of other types of nonprofit and trustee boards. They can range from Animal shelters to Zoos. Here are some, which I think are the most obvious. (more…)
A 2012 Agenda for Nonprofit Audit Committees
By: Eugene Fram
Nonprofit audit committee members might want to view a video presentation at the Corporate Board Member Website (June 9th) for a list of top issues being faced by for-profit audit committees. Catherine Bromillow, PwC Center for Board Governance, presents the list.
Following, in her order of importance (high to low), are those that I feel can apply to nonprofit organizations.
RISK MANAGEMENT – Focusing on the known risks and estimating the unknown ones. For example, how will the greater use of psychiatric drugs impact nonprofit counseling organizations?
INCREASED USE BY REGULATORS – What use will the IRS make of the governance information now being collected annually via the expanded 990 Forms? Do volunteer directors know the potential impact of the Intermediate Sanctions Act?
CHANGES IN REGULATIONS & ACCOUNTING STANDARDS – What impact, if any, will Dodd-Frank have on nonprofits? (Although not directed to nonprofits, Sarbanes-Oxley has had some indirect impacts.) What changes in accounting standards need to be reviewed by a nonprofit audit committee?
TURBULENT ECONOMIC CONDITIONS – What plans are in place to survive more turbulence in the world economy?
INTERNAL CONTROL STRUCTURE – How does the internal control structure need to be changed after a merger or acquisition transaction between two nonprofits?
TAX COMPLEXITY- How do changes in state or federal tax regulations impact a nonprofit organization’s business plan?
OPERATION COMPLEXITY – For those nonprofits that operate from multiple sites, the audit committee needs to understand key issues for each site. Visits to all sites by the committee or individual directors are important.
COMMITTEE EFFECTIVENESS – With frequent rotating membership, how do nonprofit audit committees go about improving their operations?
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Once Again: What Makes for a Successful Nonprofit Board?
By: Eugene Fram
Successful nonprofit boards come in a variety of organizational structures and sizes, largely determined by the their mission, vision and values. However, Carter Burgess, Managing Director & Head of the Board Practice at RSR Partners, an executive recruiting firm, suggests three of the most prominent success factors. Although his article is directed to for-profit boards, there are many suggestions that apply to nonprofit boards. (more…)
How to know when a nonprofit board has achieved a positive culture?
Nonprofit board culture is really about having chemistry that works. Is there transparency and openness? It is an intangible, but it is critical. Is there a spirit of inquiry? That means, for example, that one director can disagree with another director or with the CEO without being hostile or being viewed as hostile for having an opposing opinion. (more…)
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…)
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…)
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…)
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…)
Nonprofit Management 