nonprofit boards. nonprofit directors. nonprofit director term limits

Board Expectations from Management – The Nonprofit Story – Part I

Board Expectations from Management – The Nonprofit Story – Part I

I am indebted to Dr. Richard Leblanc of York University for the action headings used in this blog. The blog uses headings developed by Dr. Leblanc for his blog: “What a Board Expects from Management, and What Management Expects from a Board,” January 27, 2013, York University Governance Gateway Blog. (rleblanc.apps01.yorku.ca) For reading simplicity, Dr. Leblanc’s specific quotations, which can apply to either FP or NFP boards, are noted in italics.

1. No Surprises or Spin
The biggest surprise that I ever a received as a nonprofit board director was in a situation where the executive committee of the board acquired a profit-making business without a full open discussion by the board. The agreement package presented placed the board in an untenable position. I quietly resigned soon after, but the remainder of the board, largely senior business executives, stayed, which was quite a mystery. (more…)

Once Again: How Should Nonprofits Conduct Board Evaluations?*

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 more diffcult datga 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 sufffient prior boartd experteinces 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…)

Does Your Nonprofit Board Have Enough Conflict?

Does Your Nonprofit Board Have Enough Conflict?

By Eugene Fram

I recently encountered a human services board director who said he would like to see more conflict take place during board meetings. He was not suggesting civil disobedience, but he felt that the discussion level was modest, and there was too much deference to each other and especially to the board chair. (more…)

Strategic Planning: Nonprofit Board Orphan??

Strategic Planning: Nonprofit Board Orphan??

According to a 2012 BoardSource study, nearly half of over 1300 nonprofit chief executives gave their boards a C, D or F grade in strategic development efforts. This is further evidenced in the frequent absence of long range planning items on nonprofit board agendas. What are the root causes of such a deficit in an area that is of critical importance to the future of the organization? One or more of the following challenges may apply: (more…)

Bridging Effectiveness Gaps in Nonprofit Organizations

Bridging Effectiveness Gaps in Nonprofit Organizations*

By: Eugene Fram

Like for-profit boards, nonprofit, “Effective board oversight demands information that is as current and relevant as possible. There are, however, natural gaps between what management communicates and what the board needs to know. “ The purpose of this blog is to highlight major gap areas, cited in the NACD report listed below, and to show their relations to nonprofit governance. (more…)

Does A New Nonprofit Board Director Really Understand Your Organization?

Does A New Nonprofit Board Director Really Understand Your Organization?

By: Eugene Fram

The careful nurturing of a board member, whether for-profit or nonprofit, is critical. The pay-off of a robust orientation process is an informed and fully participating board director. The following are very similar occurrences in both for-profit and nonprofit boards:

The CEO of a transportation firm agrees to become a board director of a firm developing computer programs. He has risen through the transportation ranks with a financial background, but he knows little about the dynamics of the computer industry.*

A finance professor is asked to serve on the board of a nonprofit school serving handicapped children. She has no children of her own and has never had any contact with handicapped children, social workers or teachers serving handicapped children.

In these similar cases, the new director needs to become reasonably conversant with a new industry or a new human service field in order to be able to better apply policy development skills, strategic planning skills and to allow generative thinking.

On nonprofit boards, the problem is exacerbated when the new director often is asked to immediately join a specific board committee without being able to understand the board perspectives and the organization’s mission vision and values. Following are ways in which the nonprofit board can resolve this problem:

• Don’t appoint the new board member to committee until she has completed a board orientation program including a review of board procedures, attending several board meetings, has had visits with the staff, as they normally operate, and becomes alert to the major trends in the field. This ideally should take about six months assuming the director is employed full-time elsewhere.
• During this time, the chief executive and board president should be available to the new director as frequently as she wants in order to respond to questions.
• Hopefully, the chief executive would informally meet the new director (and each established director) quarterly to review current issues and opportunities. ** In addition, to the information presented at the board meetings, this will provide a better perspective of the board’s mission, vision and values.
• Ideally, the board volunteer should attend one staff meeting and one outside professional meeting to acquire a feeling for the topics reviewed at these gatherings and the field terminology.

If most of these actions can be accomplished within a six-month period, major blind spots are removed, and the new board member can then join a standing board committee. Now, reasonably understanding the organization and her own participation on the board, she has a background to make a substantial contribution for years to come.

• *Robert Frisch, Managing Partner of The Strategic Offsites Group, presented this type of example as a common one for business boards. SVNACD Meeting January 17th, 2013, Rock Center for Corporate Governance, Stanford University.
• ** For more details, see my book and blog site:
Blog: http://bit.ly/yfRZpz

Book: http://amzn.to/eu7nQl

Post Newtown: The Power of the Nonprofits

Post Newtown: The Power of the Nonprofits

By Eugene Fram

An ABC press release dated two days ago (1-14-2013) by Kevin Dolak (@kdolak) reported the formation of a new nonprofit organization by the parents and neighbors of the children who perished at Newtown, Connecticut.

Speaking at a press conference at Newtown, Conn., this morning, Tom Bittman, co-founder of Sandy Hook Promise, outlined three discussion points that the organization hopes will bolster a national discussion and affect change in communities: gun responsibility, mental health and making public spaces safer. (more…)

Enhance New Directors’ On-boarding Orientations: Give Copies of Reader Friendly “Policy Vs. Paper Clips” (2011)

Enhance New Nonprofit Directors’ On-boarding Orientations: Give Copies of Reader Friendly “Policy Vs. Paper Clips” (2011)

By it at a Discount Price

Nonprofit Organization Mergers: What to Do.

Nonprofit Organization Mergers: What to Do.

By Eugene Fram

A Fast Company article by Alice Korngold about nonprofit mergers lists seven steps for a successful nonprofit merger. * Korngold used these steps to describe nonprofit merger activity with which she had been involved.

In October 1998, Family Service America (FSA) merged with the National Associations of Homes and Services to Children (NAHSC) to form the Alliance for Children & Families. I chaired the FSA investigating committee in the merger process and later served as co-chair of the Alliance board during a two-year transition period. This article adds another experience example to the model described by Alice Korngold. (more…)

Attn: Nonprofit Directors, Trustees & Mangers – New Reviews of “Policy vs. Paper Clips: Applying the Corporate Model to Nonprofit Boards”

Positive reviews continue to arrive for my recently updated & expanded nonprofit governance book. Click on this link for a story about the book.
Policy vs. Paper Clips See the latest reviews below.

Must Read for Nonprofit Boards, December 9, 2012
By: Casey Wheeler

This review is from: POLICY vs. PAPER CLIPS – THIRD EDITION: How Using the Corporate Model Makes a Nonprofit Board More Efficient & Effective (Paperback)
This book was an informative and entertaining read. The author uses the techniques of a series of emails between two individuals to explain how using the corporate model for nonprofit boards is beneficial to the organization. The exchange of emails takes the reader through the process from needs assessment to implementation.

What I enjoyed most about the book is that it was written so that the concepts are easily understood through the question and answers presented in each set of emails. In addition, the concept has been successfully implemented in a number of nonprofits around the country that are mentioned in the introductory section of the book and examples in the emails exchanges.

At the end of the book an additional series of questions and answers with suggestions on how to successfully implement the corporate model. An added benefit is that a Leader’s Guide is available for use to facilitate a discussion of the corporate model process.

I must admit that nonprofits that are totally volunteer operated or with a limited staff may find the overall process unachievable, but there are many useful ideas within the email exchanges from which small organizations can benefit.

I strongly recommend this book to any nonprofit CEOs or Board Members who feel that too much time is spent on operational issues and not enough spent on planning and policy.
Help other customers find the most helpful reviews

Fram Nails It! November 16,2012
By Philip G. Bookman (Los Gatos, CA)

This review is from: POLICY vs. PAPER CLIPS – THIRD EDITION: How Using the Corporate Model Makes a Nonprofit Board More Efficient & Effective (Paperback)
When I joined the not-for-profit board that I now have the honor of chairing, I struggled with how to apply my business experience to a non-profit. I was often heard saying, in frustration, “We should be discussing policy and strategy, not counting paper clips!” Then I came across this book with a title that I obviously could not resist, and found that Fram has formalized what I was struggling to figure out. And his approach works.

As with any model, you need to pick and choose which parts of it your organization needs to adopt, and in what order. But he sure gets you to think about the important things the board needs to address. This is a must read for any non-profit board leader who wants to make the organization more effective in meeting community needs.

A Little Book that Yields Big Results, November 18,2012
By: A. Hopf (Geneseo, New York United States)

This review is from: POLICY vs. PAPER CLIPS – THIRD EDITION: How Using the Corporate Model Makes a Nonprofit Board More Efficient & Effective (Paperback)
Our Board applied the principles in Policy Vs. Paper Clips after the first edition came out many years ago. We were fortunate to have the author himself consult with us. I can unequivocally state that the Corporate model spelled out in this book works and is responsible for the incredible growth and success my not for profit has experienced over the last 15 years. More importantly the Board members love it because they are engaged at a strategic level that allows them to use their brains and contribute in a meaningful way. Every not for profit CEO and Board member should read this book regardless of size or scope of the organization. Its how Boards need to work in the 21st century.