Nonprofit board stucture

A 21st Century Nonprofit Reality – The Chief Executive Needs to be a President/CEO

A 21st Century Nonprofit Reality – The Chief Executive Needs to be a President/CEO

By: Eugene Fram

Many of my viewers* know that I strongly favor nonprofit boards, which develop a budget level of more than $1 million (US) and employ about 10 full and part time people, should designate their chief executive as the President/CEO. A volunteer director then becomes the board chair. Below, in italics, is a response I received to my viewpoint listed on the Board Source blog site:

Interesting points. However, where I come from, executive director is the recognized title for the heads of non-profits, with the possible exception of multimillion-dollar agencies. Everyone understands it. Even when the ED is recognized (in bylaws and/or policies) as the CEO of the agency, they still tend to use the ED title, The CEO title smacks of the for profit sector, which may be off-putting to the social service sector, perhaps a tinge of “playing out of your league.” President is definitely from the for profit sector, and could be confusing from the perspective that some boards still refer to their chairs as “presidents. (more…)

What’s in a Name? Benefits of the Nonprofit Executive Director Title.

What’s in a Name? Benefits of the Nonprofit Executive Director Title.

By Eugene Fram

The most viewed blog on my nonprofit governance site is an article I wrote in 2008, “What’s in a Name? Benefits of the President/CEO Title. This article has had a stream of national and international viewing, sometimes as many as 50 daily. (Note this is four years after original publication.)

Recently, I read a review of the article, suggesting I didn’t cover the benefits of the nonprofit Executive Director title, probably the more common title for the chief executive of nonprofits. Following is a brief listing when the title is useful. (more…)

Identify Nonprofit Staff Groups To Help Drive Organizational Change

Identify Nonprofit Staff Groups To Help Drive Organizational Change

By Eugene Fram

Nonprofit executive directors tend to think of the staff professionals as individual contributors. These individuals are persons who mainly work on their own and not as team players – for instance, counselors, health care professionals, curators and university faculty. However, many executive directors fail to recognize that these individual contributors can be grouped according to identifiable types, with differing work value outlooks. Each group needs to be managed differently to drive change in today’s fast moving social, political and technological environments. (more…)

Reissue: Nonprofit chief executives should have a title, PRESIDENT/CEO

The overwhelming international response that I have had to my blog, “What’s in a name? Benefits of the President/CEO Title,” has motivated me to reissue this blog, which originally appeared in March, 2012

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: (more…)

Is Your Nonprofit Chief Executive An Effective Fund Raiser?

Is Your Nonprofit Chief Executive An Effective Fund Raiser?

By Eugene Fram

In the past, many nonprofit chief executives, whether they be executive directors or president/CEOs, did not have fund raising responsibilities. They were considered mission specialists by their boards. These specialists did not have enough higher-level community contacts or were not aggressive enough to seek development assets. (more…)

How does a CEO turn down advice about operations from the board?

How does a CEO turn down advice about operations from the board?

By: Eugene Fram

With difficulty! It all depends on the kind of culture that has been established on the board. Ideally the CEO should be comfortable (more…)

How Can Nonprofit Boards More Clearly Define Operational Responsibilities?

How Can Nonprofit Boards More Clearly Define Operational Responsibilities?

By Eugene Fram

My experience shows that well functioning nonprofit boards establish and monitor the organization’s policies. The board operates through the president/CEO. In turn, the CEO executes policy and is responsible for the prudent and creative operations of the organization. In this role, the CEO exercises leadership resulting in the effective and efficient use of board and of other volunteer time.

Although defining what are policy issues and what are operation issues is not always clear, for both for-profit and nonprofit organizations, following is a useful set of guidelines (more…)

Do Nonprofit & Trustee Boards Need A Conflict of Interest ‘Parliamentarian”? –Second in a series of two.

Do Nonprofit & Trustee Boards Need A Conflict of Interest ‘Parliamentarian”? –Second in a series of two.

By Eugene Fram

There is ample news about conflict of interest on nonprofit and trustee boards. Based on several decades of board experience, I can’t remember a single instance where the topic has become a material issue. However, Google, taking only .29 seconds, lists over about 422,000 placements, related solely to nonprofit and trustee boards. (more…)

Interesting Conflict? Two Nonprofits Boards, Seeking Same Funding & Clients, Has One or More Board Directors Who Are the Same? — First of a series of two.

Interesting Conflict? Two Nonprofits Boards, Seeking Same Funding & Clients, Has One or More Board Directors Who Are the Same? — First of a series of two.

By Eugene Fram

It is not unusual to for two “competing” nonprofit’s to have a person(s) who fills a position on both boards. Examples: universities, and health care agencies. This dual volunteer deployment (more…)

Can A Nonprofit Organization Have A President/CEO & An Executive Director?

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…)