Nonprofit Alert: How Nonprofit Directors Can Acquire Independent Assurances.
According to Dr. Richard Leblanc, York University Law School, “Canada’s bank regulators recommended last week that independent third party reviews of (i) of the institution’s board and committee practices; (ii) the institution’s oversight functions and processes.” He and I feel this can set the tone for non-banks and even for nonprofits (more…)
This article on nonprofit evaluation has appeared in a shortened version in a previous blog. However, based on the attention it has received from all over the world, I thought that some viewers might like a direct link to the full article.
A 21st Century Nonprofit Board of Directors – A Volunteer Director’s View
By: Eugene Fram
Following are my estimates of the attributes a nonprofit board needs to be considered a high performing board in the 21st century.
Has organizational professionalism, flexibility & efficiency
• Operating managers consider themselves (more…)
Nonprofit & Trustees Personal Liabilities: Another Penn State Impact
By Eugene Fram
All nonprofit organizations should continue to follow the news from Penn state, especially with the insurer’s negative reactions to paying claims related to directors & officers personal liability for the Sandusky’s misdeeds.*
To what extent should nonprofits carry Director & Officers (D&O) insurance?
For example, I recently encountered a nonprofit board (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.
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…)
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
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!!
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…)
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?
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 Management 