non-profit management

A 2012 Agenda for Nonprofit Audit Committees

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?

My Blog Site:  http://bit.ly/yfRZpz

 

  

 

 

 

 

 

Once Again: What Makes for a Successful Nonprofit Board?

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…)

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…)

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…)

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…)

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…)

Once Again! Should a Nonprofit CEO Be a Voting Member of the Board of Directors?

Once Again! Should a Nonprofit CEO Be a Voting Member of the Board of Directors?

I was surprised to read in a Board Source nonprofit report that this board of directors’ question is one of the most frequently asked. From a Google search, I was also surprised to find that, outside of a few vague references that there may be legal issues involved with the decision, (more…)

Nonprofit board term limits – How long should directors serve?

Nonprofit board term limits – How long should directors serve?

By Eugene Fram

I am currently a director of a five person condo board responsible for reserve and operating assets of well over $1million and capital assets probably worth over $25 million. When the condo group was formed over 15 years ago, the bylaws stipulated that each director can only serve for one two year term, but couldn’t be reelected until after a period of one year off the board. 

The logic of this arrangement was that every year either two or three new board members must be replaced. (more…)

How Can A Board Be Kept Involved When It Is Only Making Policy Decisions?

How Can A Board Be Kept Involved When It Is Only Making Policy Decisions?

By Eugene Fram

The name of the game for the CEO is to communicate the important information to board members and to keep them abreast of significant operational developments. This involves: (more…)

Nonprofit chief executives should have a title, President/CEO

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:

  • Build a trust culture between board, management and staff.

    • (more…)