nonprofit governance

Why Are Dysfunctional Nonprofit Boards Interesting?

Why Are Dysfunctional Nonprofit Boards Interesting?

By: Eugene H. Fram

My blog (http://bit.ly/yfRZpz) has been drawing an unusual number of views related to dysfunctional nonprofit boards.  Is it because:

  • Nonprofit evaluations has become a prime media interest?
  • Dodd-Frank passage has alerted a greater number of nonprofits to really review their charters?  
  • More boards have found board problems arising as a result of reviewing the expanded 990-form section on governance?
  • More audit committees are being given expanded responsibilities?  

Can a nonprofit organization focus on its mission vision and values if it has a dysfunctional nonprofit board?  I have seen this accomplished in situations where the CEO is managerially oriented and can live with the board’s problems or foibles.  For example, one nonprofit I encountered had an eleven person board, four of which never attended meetings and several others were sometimes absent for personal reasons.  Meeting minutes clearly showed a focus on operational detail. However a strong CEO was able to focus well, and the organization prospered. On the other hand,the CEO openly complained that she was overworked, needed board assistance and could become a “dictator” for the nonprofit!!

In another situation I encountered, the board chair and ED were very strong, but the board governmentally weak. Work and family pressures constrained the time directors could devote to their governance responsibilities. While the organization performed reasonably well, performance problems and board liability issues might arise, if either the chair or ED retired or resigned.
 

If you have any other insights as to why I am getting so many views related to dysfunctional nonprofits, I and other viewers would be delighted to have your comments.

 

 

 

 

In another situation I encountered, the board chair and ED were very strong, but the board governmentally weak. Work and family pressures constrained the time directors could devote to their governance responsibilities. While the organization performed reasonably well, performance problems and liability issues might suddenly occur, if either the chair or ED retired or resigned.

Do Nonprofit Board and For-Profit Boards Face Similar Major Challenges?

Do Nonprofit Board and For-Profit Boards Face Similar Major Challenges?

By: Eugene Fram

The answer is Yes!  Following is a current list of four major commercial board challenges, published by Deloitte Consulting.   The italicized comments show the nonprofit similarities. (more…)

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…)

Can Lead Directors Help Improve Not-For-Profit Board Performance?

International Journal of Not-for-Profit Law / vol. 14, nos. 1-2, April 2012 / p.57

Some blog followers may be interested in this article.  .

 

Eugene Fram

 

The Best Attributes of an Effective Nonprofit Board Chair- Updated 7/9/2012

The Nonprofit Quarterly Newswire (July 8th) reprinted a 2007 study showing “ The Best and Worst of Board Chairs.” Based on personal interview and online surveys, conducted by Yvonne Harrison & Vic Murphy, the study showed five major clusters for effective nonprofit chairs and one cluster for ineffective behavior. Effective chairs had; 1. Relationship Competencies; 2. Commitment & Action Competencies, 3. Analytical Skill Competencies; 4. “Willingness to Create” Competencies; 5. Ability to Influence Competencies. Ineffective Chairs had: Dominating Behavior.

I thought it would be helpful to show this leadership characteristic information along with the action attributes from previous blog. The action attributes Were developed from my field insights into the action attributes of effective chairs.

 The Best Attributes of an Effective Nonprofit Board Chair

By: Eugene Fram

A nonprofit CEO’s professional attributes are the topic of dozens, perhaps even thousands, of articles.  However this is not the case with Board Chairs. 

Following are my views of the professional attributes a nonprofit Board Chair needs to have to operate effectively.

  • Has significant mission centered interest in the organization.  Although the chair’s professional efforts may be far afield from the nonprofit’s objectives, he or she must be able to perceive substantial value in the outcomes of the staff and board efforts. < (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…)

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…)

How Nonprofit Board Members/Management Can Make Sense of Sustainability

How Nonprofit Board Members/Management Can Make Sense of Sustainability

By: Eugene Fram

I recently read an article published in April, 2011 issue of the “Nonprofit Quarterly” by Jeanne Bell, titled “Beyond Financial Oversight: Expanding the Board’s Role in the Pursuit of Sustainability.’ I think the suggestions in it will be of interest to nonprofits whose budget expenditures are mainly centered around staff and programs and less on maintaining material & real estate.

First, the article calls (more…)

Att: Nonprofit Board Members, Trustees & Managers: Complimentary Leader’s Guide for Policy vs. Paper Clips
I thought some followers might be interested in the Leader’s Guide for my Book Policy vs. Paper Clips Third Edition (2011).   The book is available in paperback and kindle formats on Amazon.com 
 

Leader’s Guide for Policy Vs Paper Clips–Third Edition

by Dr. Eugene H. Fram, Professor Emeritus

E. Philip Saunders College of Business Rochester Institute of Technology
1 West Edith Ave (A103)
Los Altos, California 94022 eugenefram@yahoo.com | 650-209-5724)

 
While Dr. Fram is certainly an advocate for the Corporate Governance model, you don’t have to be a believer to find a number of gems applicable to all nonprofit governance issues contained now in his just-released third edition of Policy vs. Paper Clips.
Mike Burns

President of BWB Solutions, “Nonprofit Board Crisis,” April 5, 2011

Copyright 2011 by Eugene Fram

 

Using This Guide

The third edition of Policy vs. Paper Clips can be effectively used as a discussion vehicle for one-day executive seminars on NONPROFIT GOVERNANCE targeted to chief executives and board directors.

The book’s strength is based on recognizable problems and opportunities covered within a compelling storyline. (more…)