A frank discussion of the overhead myth may impact the very survival of nonprofits. Article in the September-October issue of Nonprofit World?
non-profit management
Fundraising Foundations: Important Nonprofit Tools for the 21st Century?
Fundraising Foundations: Important Nonprofit Tools for the 21st Century?
By: Eugene Fram
Nonprofits for decades have established – or want to establish their own own fundraising foundations. However many have backed away from them because of the complexity involved, the potential loss of control and the feeling they have a proactive board fundraising committee. In terms of board fundraising effectiveness, a 2012 BoardSource study shows that only 24% of CEO respondents gave their boards and “A” or “B” grade for fundraising, the lowest evaluation among ten board responsibilities listed by the study. * (more…)
The Nonprofit Overhead Myth – Devil Is In the Details?
The Nonprofit Overhead Myth – Devil Is In the Details?
By: Eugene Fram
Do nonprofits have to consistently report low overhead percentages for administration and marketing to satisfy donors? Do these modest overhead percentages do more long-term damage to the nonprofit’s ability to fulfill it mission than short-term good? * (more…)
Nonprofit Board Responsibility Social Media – What Needs To Be Done? Revised & Updated
Nonprofit Board Responsibility Social Media – What Needs To Be Done? Revised & Updated
By: Eugene Fram
Nonprofit boards, for several years, have been struggling to find proper uses for social media. Many of the decisions on this issue will become strategic board decisions because they will require using alternative promotional strategies, experimental trials and infusion of capital and human resources. The December 8, 2012 issue of the NACD Directorship* cites a Stanford study concluding that for-profit boards should develop a better understanding of this new phenomenon. Following are how I think the steps should be applied to smaller and medium sized nonprofit board decisions:
Assess current capabilities. (more…)
Attn: Nonprofit Directors – Overview Points of Engagement
Attn: Nonprofit Directors – Overview Points of Engagement
By: Eugene Fram
Any nonprofit organization has a series of critical points of engagement. The nonprofit board has to make sure it is carefully over-viewing the most important ones. >
Spreading the Good Word: Nonprofit Board Protocol Needed?
Spreading the Good Word: Nonprofit Board Protocol Needed?
By: Eugene Fram
One of the pleasures of nonprofit organizational accomplishments is to communicate the very favorable impacts to their communities or trade/professional associations they serve. Yet frequently these positive results are hidden behind the proverbial bushel! The board and management lose sight of the progress made over a long time period, and the year-to-year successes are construed as routine occurrences internally and externally. (more…)
Are Powerful CEOs Right for Nonprofit Organizations?
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…)
Gold Standards for a Strategic Mission Focused Nonprofit
Gold Standards for a Strategic Mission Focused Nonprofit
By Eugene Fram
The following is Google’s mission statement:
To organize the world’s information and make it universally assessable and useful.
This twelve-word expression of purpose should serve as a shining example to nonprofit boards that wrestle with the development of their own mission statements. Typically the process takes huge amounts of time as boards struggle to accommodate a wide range of viewpoints.* Too often the resulting statements tend to be complex and hard to understand.
Here are some approaches that are of fundamental importance to building strategic strength in a mission-focused nonprofit: (more…)
Recruiting a Nonprofit Digital Board Director: Limitations & Alternatives
Recruiting a Nonprofit Digital Board Director: Limitations & Alternatives
By Eugene Fram
Both FP and NFP organizations are feverishly looking to add persons with digital experiences to their boards in order to be able to understand policy and strategic issues related to their organizations. Betsy Atkins, a veteran director with extensive FP and NFP experiences, makes the following observations about what is becoming a “digital director recruitment chase.” (more…)
Should The CEO Lead or Follow the Board in Development? Updated & Reissued
Should The CEO Lead or Follow the Board in Development?
By Eugene Fram
The CEO is the advance guard when it comes to fund-raising. First and foremost, he/she has to be alert to all places where the CEO can raise funds on his/her own initiative. (more…)
Nonprofit Management 