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
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…)
Nonprofit Chief Executives Should Have Title: President/CEO, Updated & Expanded
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…)
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?
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?
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
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
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…)
NcNamara
I disagree with you a bit 🙂
Fram
Carter: Thanks for your comments below. I really appreciate your comments, as they force me to rethink and reconsider my viewpoints.
My replies are in bold
McNamara
You and I have been around the nonprofit world for a long time. We’ve seen where lawyers did Board trainings in the ’70s and early ’80s. Everything back then was determined by what was in your bylaws. If you wanted to change how the organization operated, then a change in bylaws was supposed to accomplish that 🙂 (more…)
When is the Right Time to Change a Nonprofit’s Bylaws?
By Eugene Fram
In listening to a recent Nonprofit Quarterly webinar, I was again reminded that the habit or long standing culture could hinder the capacity building function of a nonprofit organization. One example cited was the tendency of nonprofits to procrastinate in a review of their corporate bylaws. Original board standing committee structures and board/management relationships remain in place long after they are needed to drive mission growth and to improve client services and impacts. (more…)
Nonprofit Management 