nonprofit boards. nonprofit directors. nonprofit director term limits

Wanted: Nonprofit Board Candidates With Passion

Wanted: Nonprofit Board Candidates With Passion

By Eugene Fram

Dr. Richard LeBlanc of York University raised the following question to ask those seeking nonprofit board positions: “Do you have an inner passion for what the organization does and stands for (its mission, vision and values), and whom it serves?”
His very pertinent question led me to think of how nonprofits may more easily identify this style of inner passion. Following are my suggestions: (more…)

How is trust developed between the nonprofit board chair and the chief executive? – Upated & Ressiued

How is trust developed between the nonprofit board chair and the chief executive?

By Eugene Fram

First, in order to maintain trust between the board chair and CEO, the chair must be certain that the evaluation of the organization and the performance evaluation of the CEO are inclusive, i.e., cover a balance of the most relevant outcomes. Otherwise, the evaluation outcomes have the potential to damage the trust relationship that’s necessary to drive organizational growth. (more…)

How does a president/CEO turn down advice about operations or internal structure from the board – Update & Reissue

How does a president/CEO turn down advice about operations or internal structure from the board.

by Eugene Fram

With difficulty. It all depends on the type of culture that has been established by the board. Ideally, the president/CEO should be comfortable saying, (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…)

Two Nonprofits Merge: Synergy or Collision Course?

Two Nonprofits Merge: Synergy or Collision Course?

By: Eugene Fram

Having led a merger committee that resulted in a successful merger with another nonprofit, I thought my field observations might be of interest to others contemplating a merger. These comments center on a merger of two equal partners, which plan to form a new organization, not the acquisition of one nonprofit by another.

Assuming both organizations have merger committees that meet frequently, over an extended time period, the following initial issues need to be reviewed: (more…)

Designating a ‘Lead Director’ Can Help Nonprofit Boards Improve Their Operations- Updated & Reissued

For several years, I have suggested that some NFP boards experiment with the addition of a Lead Director to their rosters, just as for-profit boards successfully have since 2002. This blog is divided into two sections. First is an abstract of an article published I published on the topic in the Chronicle of Philanthropy (June 2, 2011, p.34). This will help the viewer understand how I am adapting a business board process to a nonprofit board. Following that is a field critique of my proposal provided by Mark Soundie. Mark is uniquely qualified to comment. He provides counsel to boards for the following types of nonprofits: social housing providers, voluntary & social enterprise organizations from all sectors and all sizes & types of charities, His essay below provides an excellent summary of the pros and cons. Also, I have noted from a current study that about 37% of a small subgroup of 420 nonprofit directors responding to an NACD study have designated directors on their nonprofit boards. In addition, 88% of the group concluded that their lead directors enhanced board effectiveness.* These nascent results are encouraging news. Finally, a link follows to a comprehensive article on lead directors that appeared in April, 2012 in The International Journal of Not-For-Profit Law, Vol.14, Numbers 1-2.pages 52-57. Lead director article: bit.ly/15s4eVv
(more…)

Radio Program on Nonprofit Boards & Governance

Folks:

I thought my followers would like to know I am going to be interviewed by Tony Martignetti on Nonprofit Radio from 1 to 2 pm eastern on Friday, APRIL 26TH. If you would like to listen to the interview later at any time, starting next Monday April 29th, you can find it on iTunes (free), or the same link below will take you to the archive listing of the program.

Nonprofit Radio, April 26, 2013: A Conversation With Eugene Fram http://tony.ma/11AWzAj

Thanks for your interest in my views of nonprofit governance.

Gene

Do Today’s Business Leaders Make Effective Nonprofit Directors?

Do Today’s Business Leaders Make Effective Nonprofit Directors?

By: Eugene H. Fram

The names of the new board nominees have been announced. They include several outstanding recruits from the business community. Will these new formidable directors perform well in the nonprofit environment? William G. Bowen, a veteran director in both the for-profit and nonprofit environments, raised the following questions about such beginnings in a 1994 article:*
Is it true that well-regarded representatives of the business world are often surprisingly ineffective as members of nonprofit boards? Do they seem to have checked their analytical skills and their “toughness” at the door? If this is true in some considerable number of cases, what is the explanation? (more…)

Once Again: How Should Nonprofits Conduct Board Evaluations?* Updated Reissue

Once Again: How Should Nonprofits Conduct Board Evaluations?*

By: Eugene Fram

Process Expectations Including:
• Value of board materials: board book delivery time prior to meetings, material clarity, meeting notices, etc. Are board books delivered a week ahead of meetings?
• Stakeholder Relations: Board interactions with various nonprofit stakeholders, especially staff. To what extent do directors meet with key stakeholders? To asses this expectation, are records noted of these
interactions? Which directors are most adept at building these relationships?
• Willingness to evaluate qualitative outcomes** To what are data developed that go beyond typical records such as accounting statements and membership records? What about the more difficult data to develop, such as brand
image and impact on the community? Hearsay evidence should not be used to assess these important outcomes.
• Composition of the board in regard to diversity including gender, skills, age, board experiences, etc. Does the organization have a diversity policy? Do current board members have sufficient prior board experiences in
order to act as models for new members without prior board experience?
• Action plans including a summary, for the board minutes, which obligates the board professionally to take action and may have liability implications if plans are not executed. The plan should provide evidence of a robust
evaluation. With luck, some nonprofits may be able to relate their field accreditation processes with the action plans.

Director Evaluation Approaches (more…)

A Nonprofit Board Balks at a CEO’s Proposal – How to Try to Move Forward

A Nonprofit Board Balks at a CEO’s Proposal – How to Try to Move Forward Move Forward*

By; Eugene Fram

A small nonprofit whose work was receiving positive community attention was suddenly resistant to its CEO’s most recent proposal, according to a staff member I encountered.
The Board, a conservative one, was unwilling to provide leadership for a proposal that would move the organization in a somewhat new direction in assisting community clients.
The CEO and staff provided arguments that showed ample need for the program’s services and even access to sufficient financial support.
Yet, the Board had rejected the suggested foray into moderately uncharted waters. (more…)