nonprofit executive director

Nonprofit chief executives should have a title, President/CEO

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:

  • Build a trust culture between board, management and staff.

    • (more…)

Executive Director: When Is It An Appropriate Title?

Executive Director: When Is It An Appropriate Title?

By Eugene Fram

An Executive Director title compared with a President/CEO title for a nonprofit’s chief operating executive is a debate that still pervades the nonprofit governance discussions. Following is a list of situations when the Executive Director tile is appropriate.

  • When the nonprofit is in a start-up stage, and the board’s management direction, advice, or micromanagement style is needed to stabilize the organization.

    • (more…)

Nonprofit Internal Controls – Are They Being Properly Reviewed?

Nonprofit Internal Controls – Are They Being Properly Reviewed?

By Eugene Fram

One of the responsibilities of either a nonprofit or a for-profit board is to make certain that internal controls in place are adequate.  This task is usually delegated to an audit committee and/or a finance committee.  However, what is meant by internal controls can vary greatly depending of the type of nonprofit and the clients that it services.

Fortunately, De La Rosa Nonprofit Consulting has developed a comprehensive checklist that directors can use to frame internal control questions for the auditors.  (www.gcn.org/files/InternalControlsChecklist.pdf) Using the list, the committee can chose the relevant questions before meeting with the auditors and then be able to delve more deeply into significant topics for their organization. 

TO WHOM SHOULD ADVISORY BOARDS PROVIDE SERVICE?

To Whom Should Advisory Boards Provide Service?

 By: Eugene Fram

 I have established or served on a number of nonprofit advisory boards. Based on these experiences, I suggest that board members, along with the CEO (more…)

BOARD MEMBERS & CEOS INVOLVEMENT WITH FUND-RAISING.

Should All Board Members Be Required to be Involved With Fund-Raising?

By Eugene Fram

No, just those (more…)

How Does A Nonprofit CEO Decline Board Advice?

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

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…)

Can a Board Member Ever Hold a Staff Position in The Same Nonprofit Organization?

Can a board member ever hold a staff position in the same nonprofit organization?

 

By Eugene Fram

Sometimes a board member acts not as a director but as a different kind of volunteer.  For example, Director Z has a particular accounting skill and wants to utilize it to help the nonprofit.  The CEO agrees. 

In this instance the board member is not a board member, but a volunteer working under the direction of the CEO.  (more…)

Assessing Nonprofit CEO Performance

Assessing Nonprofit CEO Performance

By Eugene Fram

CEO assessment should be very thorough and take place annually.  That doesn’t mean that it always has to take place at one time.  In some situations, assessment occurs throughout the year, depending on how the committee members decide to divide their tasks.

After completing the entire review, the assessment committee should make its report to the full board.   If the review takes place periodically throughout the year, board updates follow a similar pattern.
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How Often Should a Nonprofit Audit Committee Meet?

How Often Should a Nonprofit Audit Committee Meet?

By Eugene Fram

            Under “usual” conditions, the audit committee should meet at least twice  a year, once just before the annual audit to understand how the audit is going to be conducted and then after the auditor’s management  letter has been received.  If other major issues arise, such as a major change in the organizations pension plan, more meetings will be required with outside counsel ,  experts  in  the area being discussed. 

Part of each meeting with the external auditors is held in executive session.  This is one of the few times that management is excluded  from a meeting.  Some boards, in recent years, however, devote some part of most meetings to an executive session.   (more…)

Using Imperfect Metrics To Evaluate Organizations & The CEO

 

Using Imperfect Metrics to Evaluate Organization and the CEO.

BY: Eugene Fram

At the beginning of the year, the directors conducting the evaluation and the chief executives agree on jointly developed goals and outcome expectations. The full board must ratify the goals, which should be achievable but challenging. Some goals are clearly quantifiable (e.g. membership data, revenues) and readily available.

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