NONPROFIT FUND-RAISING BY BOARD MEMBERS & CEOS

Sustainability: Hot Nonprofit Governance Issue

 

 

 

Sustainability:  Hot Nonprofit Governance Issue

By: Eugene Fram                  Free Digital Imageid-10098886

In the next four years, nonprofit boards will face exceptional challenges affecting long-term financial and operational sustainability. It is likely that governmental grants will substantially decline. Business/individual donor gifts can be reduced should the economy teeter towards recession or the tax code changes in an unfriendly way. But, as usual, demand for nonprofit services will increase substantially.

Based on national survey data, Alice Korngold, highly regarded nonprofit consultant, concludes that these issues are driving the problems.

  • Demand for services has increased every year since 2008.
  • 50% of nonprofit survey respondents are unable to satisfy demand.
  • Half of the organizations surveyed only have three months of cash readily available.
  • Government contracts don’t provide full costs for programs. *

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Nonprofit Directors/Trustees/ CEOs/ Senior Managers–Improve Board Operations
  •  Have a way to effectively measure “client impact.”
  •  Build CEO/board fundraising capacity.
  • Develop a motivating/friendly process for on-boarding new directors.
  • Reduce # directors/trustees who “micromanage” management.
  •  Develop strategic discussions at meetings.
  •  Develop a broad framework that separates policy & strategy development from operational activities.
  • Have a board/staff relationship that is built on trust.
  • Have task forces that deliver more effective, timely results.

These books can help!    Please share with others who can benefit!

both-books

http://amzn.to/2eVDbxY      http://amzn.to/2fSNW0J

Order Multiple Copies from Createspace Book Store:

https://www.createspace.com/5748081 $4.00 Discount with code 6DLGFAGQ

https://www.createspace.com/3506243 $9.00 Discount with code WXEHFQ7W

Eugene Fram, EdD, Professor Emeritus
Saunders College of Business
Rochester Institute of Technology

frameugene@gmail.com

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Nonprofit Board Discourse: a Meeting of the Minds??

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Nonprofit Board Discourse: a Meeting of the Minds??

By: Eugene Fram            Free Digital Image

Several years ago, a nonprofit director complained to me that there was too little “conflict” at board meetings. Too few hands were raised to challenge or simply question the efficacy of certain important agenda items. Having participated in hundreds of nonprofit meetings, I can vehemently report that this laissez-faire response still typifies the majority of director attitudes, especially for items that deserve vigorous discussion. Why is that? And why is the term conflict perceived as an asset to an organization that is determined to move forward? Below are some answers based on my own experience in the nonprofit environment. (more…)

Once Again: Who Should Be Involved in Fund Development and How?

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Once Again: Who Should Be Involved in Fund Development and How?

Updated & Revised

By Eugene Fram                            Free Digital Photo

This is a perennial issue. Following are suggestions that can clarify questions related  to it. (more…)

Nonprofit Board Recruitment Process Calls For New Approach
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Nonprofit Board Recruitment Process Calls For New Approach

By: Eugene Fram

One thing is certain about nonprofit director turnover is a board completely turns over about every four to six years. * With that fact in mind, both board and management need to act as interim “talent scouts” for potential directors who will be competent to tackle the sometimes unpredictable challenges of the future. Just as unexpected crises will confound the new president elect and his colleagues, those who occupy the nonprofit boardroom must be well equipped to deal with the inevitable issues that are certain to arise.  ** (more…)

Getting The Most From Your Nonprofit Board

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From: Tony Martignetti–Nonprofit Radio     Free Digital Photo

Thanks to today’s guest 10/28/2016, Eugene Fram, professor emeritus at @Rochester Institute of Technology, and author of “Going For Impact: The Nonprofit Director’s Essential Guidebook.” Let’s takeaway!

  • strive for excellence; your board & CEO should avoid mediocrity
  • avoid excess deference to CEO, board chair & major donor board members
  • be explicit about board members’ responsibilities & expectations, don’t turn it into into legalese
  • bad news must rise to management & the board
  • have a vibrant recruiting process, don’t dumb it down
  • your board’s most important job is hiring and overviewing the CEO and developing robust assessment processes
  • develop high levels of trust between Board-Management-Staff
  • understand the big differences between outcome and impact.
  • so much more, listen!

http://podcast.mpgadv.com/2016/10/313-get-the-most-from-your-board-tony-martignetti-nonprofit-radio/

 

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Pressure Test Your Nonprofit’s Fund Development Efforts

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Pressure Test Your Nonprofit’s Fund Development Efforts

By: Eugene Fram

It’s no secret that nonprofits do not excel in the craft of fundraising. A 2015 study reported that 65% of CEOs gave their boards academic grades of “C” or below for efficacy on this front. Yet most will agree that without the continuous influx of financial support, the mission to which the directors have committed themselves will fail!

I clearly remember examples of this deficit from my own board experience—one in which I served on the fund development committee for a small nonprofit which met monthly for about a year. A sincere and hardworking board chair headed it, but the meetings took place without the presence of the CEO.   Many ideas with merit were exchanged such as developing a reserve fund, “get or give” board requirements etc. There was a lot of talk but no implementation, and after a year of pure discussion, a new president, who convened a new committee, disbanded the group.

A review of the pressure points in key fundraising activities would have taken the group from talk to action and further implementation. Here are three activities and their variations that I consider most critical to nonprofit development processes:
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Improve Your Nonprofit Director Onboarding Process

Improve Your Nonprofit Director Onboarding Process using Going For Impact

New guidebook covers

What to Know, Do and Not Do

As a veteran director with extensive experience on 12 nonprofit boards I have been “treated” to a wide variety of on-boarding sessions for new directors.

They’ve ranged from asking:

  • Every new director to read a 2.5 inch policy manual.  (I checked the size!)
  • Having experienced board members sit next to new ones at meetings.
  • Listening to the CEO review the entire policy manual.

Going For Impact: The Nonprofit Director’s Essential Guidebook lets you improve such sessions by making on-boarding governance material more meaningful and interesting. For example:

  • Use the book’s 150-item Index Strategically: Ask new directors to read specific topics (e.g., micromanaging; outcome vs. impact data; responsibilities of the board) and relate the readings to their new board.
  • Select Key Chapters in the Book: Choices include topics such as Nonprofit Culture Presents Challenges or There’s a Boundary Line That Shouldn’t Be Crossed. Then later – in either formal or informal sessions – have the CEO and/or board panels discuss the topics with the new directors.
  • Give All New Directors a Copy of the Book: Ask them to skim or read the book’s content, which encompasses 112 pages, and list topics of greatest interest.   Then hold three or four informal on-boarding sessions, led by experienced directors that relate to the selected topics.

Going for Impact can also be utilized by creative boards and CEOs to develop retreat agendas that can help enhance their board’s governance perspectives!

“Going for Impact” ©2016 https://goo.gl/Dwa9le

Nonprofit Board And Internal Working Environments—No Pieces of Cake!

Nonprofit Board And Internal Working Environments—No Pieces of Cake!

By: Eugene Fram

People who work in the business community sometimes view nonprofit organizations as “cushy” places to work. The truth is that today’s nonprofits have challenges that are very different from those of the corporate world–and typically struggle to accommodate parameters such as restricted finances, increasing wage costs that must aligned with ever expanding client needs. In addition, board members must be concerned about personal liabilities under special legislations such as completing the IRS Form 990 and The Intermediate Sanctions Act. * Not easy!

A recent article in the Wall Street Journal discusses the hypothetical release from “grind” pressures a business executive might experience when moving employment to a nonprofit. ** Following are some of the specific advantages cited by the article (in bold) followed, by some of my real world observations.

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Once Again! What Does Nonprofit Board Oversight Mean?

Once Again! What Does Nonprofit Board Oversight Mean?

By: Eugene Fram

Updated & Revised

I have a daily (7 days a week) subscription to Google Alerts on “Nonprofit Management” and “Nonprofit Governance.” Every week, three or four nonprofit case stories surface, in these listings, related to inadequate oversight by nonprofit boards of directors.  Many of the cases result six or seven figure dollar losses to the nonprofits. Following is my personal list of what reasonable board oversight means to attempt to help nonprofit boards of directors to avoid such losses. (more…)