The 21st Century Nonprofit President/CEO
Nonprofit presidents/CEOs in the 21st century should have much more responsibility for their organizations than do executive directors in traditional nonprofit groups. (more…)
nonprofit executive director
A 2012 Agenda for Nonprofit Audit Committees
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?
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A Nonprofit Director Board or A Nonprofit Trustee Board?
A Nonprofit Director Board or A Nonprofit Trustee Board?
By: Eugene Fram
Nonprofit organizations refer to their board members as “ Directors” or as “Trustees.” I recently encountered one nonprofit board that referred to it board members as directors, but the charter, when referenced, clearly stated it was a trustee board. Do these board titles make a difference? (more…)
The Nonprofit Board As a Stereotype For Its Organization
The Nonprofit Board As a Stereotype For Its Organization
By: Eugene Fram
How stakeholders and potential donors view a nonprofit board can easily be used to stereotype the entire nonprofit, even if it is offering good service! Following are some major differences between what might be called a “modern” board, one that has grown and has exited its start-up stage and a “conservative” board, one that has grown, but the board still operates as if it were a start-up stage. (more…)
Changing Nonprofit Board Structures: The Place of Process Directors
Changing Nonprofit Board Structures: The Place of Process Directors
By: Eugene Fram
When changing, or even just modifying, a nonprofit’s board structure, the typical nonprofit board will be divided into several groups on the issue: 1) directors who want change, 2) directors opposed to change, some strongly opposed and 3) what I call process directors.
Process directors like to sit back and examine issues. (more…)
Once Again: What Makes for a Successful Nonprofit Board?
Once Again: What Makes for a Successful Nonprofit Board?
By: Eugene Fram
Successful nonprofit boards come in a variety of organizational structures and sizes, largely determined by the their mission, vision and values. However, Carter Burgess, Managing Director & Head of the Board Practice at RSR Partners, an executive recruiting firm, suggests three of the most prominent success factors. Although his article is directed to for-profit boards, there are many suggestions that apply to nonprofit boards. (more…)
Volunteers Alert: Are You President/CEO of a Nonprofit?
Volunteers Alert: Are You President/CEO of a Nonprofit? Charity boards
By: Eugene Fram
Nonprofit volunteer directors who hold the title of President/CEO and then have the chief operations officer listed as the Executive Director may be in for a surprise. (more…)
Changing Nonprofit Boards – Overcoming Nostalgia.
Changing Nonprofit Boards – Overcoming Nostalgia.
By: Eugene Fram
In many US locations, there are several nonprofit organizations that are over a century old. In contrast, only a handful of the Fortune 500 companies claim this longevity level. However, when it comes to making organizational changes on nonprofit boards, < –more — > such as the board should set policy an leave operations entirely to management, board veterans often just don’t buy the idea.
These persons feel that board members have to know operational details if the board is to assist the chief executive to achieve the organization’s mission.Some of these board veterans have nostalgic visions of how things used to be when the organization was a small one. Others fear that if they give up their operational roles, the organization will not be the “family” or caring organization they perceived they knew.
If these directors are continuing to make good board contributions, the board chair and CEO need to try to persuade them that with growth, there has to be movements to meet changing times and to hire qualified managers and staff. New policy challenges need to be developed for these veteran directors. However, don’t be surprised if a few simply resign their board positions.
Source: Policy vs. Paper Clips, Third Edition, (2011), pp. 99-100
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What’s required to develop a positive nonprofit board culture?
What’s required to develop a positive nonprofit board culture?
- In order to maintain trust between the board chair and the CEO, the board chair must be certain that the evaluation of the organization and the personal evaluation of the CEO are inclusive, i.e., cover a balance of the most relevant outcomes.
- The interpersonal chemistry between the board chair and the CEO must be a positive one. If the interpersonal chemistry is poor, civil discourse at meetings is hard to maintain.
- The CEO needs to be flexible. He or she needs to accommodate to a new boss every year or two and can’t become complacent. The CEO needs to be alert to the fact the board, often initialed by a new chair, may want to move in a new direction.
Directors & CEO Alert: Never underestimate the power of the established board culture as a barrier when attempting to make changes. However in some instances culture can be an asset in change management.
Source: “Policy vs. Paper Clips” Third Edition, 2011, pp. 156-157.
Some Nonprofit Directors Never Attend Meetings! What to do?
These absent directors can offer valuable support, and the other directors want more involvement, not their resignation. One approach is to consider moving from a board format requiring director operational involvement to one that focuses (more…)
Nonprofit Management 