nonprofit foundation director. board of trustees

What’s in a Name? Benefits of the Nonprofit Executive Director Title.

What’s in a Name? Benefits of the Nonprofit Executive Director Title.

By Eugene Fram

The most viewed blog on my nonprofit governance site is an article I wrote in 2008, “What’s in a Name? Benefits of the President/CEO Title. This article has had a stream of national and international viewing, sometimes as many as 50 daily. (Note this is four years after original publication.)

Recently, I read a review of the article, suggesting I didn’t cover the benefits of the nonprofit Executive Director title, probably the more common title for the chief executive of nonprofits. Following is a brief listing when the title is useful. (more…)

Nonprofit & Trustees Personal Liabilities: Another Penn State Impact

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.

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…)

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…)

Once Again! Should a Nonprofit CEO Be a Voting Member of the Board of Directors?

Once Again! Should a Nonprofit CEO Be a Voting Member of the Board of Directors?

I was surprised to read in a Board Source nonprofit report that this board of directors’ question is one of the most frequently asked. From a Google search, I was also surprised to find that, outside of a few vague references that there may be legal issues involved with the decision, (more…)

What Are Nonprofit Directors’ Duties During Merger, Acquisition or Being Acquired?

What Are Nonprofit Directors’ Duties During Merger, Acquisition or Being Acquired?

By Eugene Fram

Craig Leonard, Morrison & Foerster, LLP has a comprehensive article in the February 25, issue of Board Member.com covering director duties of for-profit organizations when a takeover occurs.  Many of his topics listed also can be applied to nonprofits, (more…)

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…)

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. 

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 Is Trust Developed Between The Nonprofit Board Chair And The Chief Executive?

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…)