nonprofit governance

What’s required to develop a positive nonprofit board culture?

What’s required to develop a positive nonprofit board culture?

 

  1. 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.
  2. 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.
  3. 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.

 

 

 

Nonprofit & Trustee Director’s Alert! Watch your organization’s reputation.

Nonprofit & Trustee Directors Alert!  Watch your organization’s reputation.

In contrast to business firms, nonprofit and trustee boards can be against a brick wall when the reputations of their organizations go south.   In the commercial environment, (more…)

What can a nonprofit board of directors do about “displaced directors”?

What can a nonprofit board of directors do about “displaced directors”?

Displaced directors are board members who can’t adapt to a more modern board model or a new CEO and management group.  Traditionally, they want to be involved in operations, a few, at the extreme, want to micromanage the CEO.

Obviously, some of these people will resign,   but what can a CEO or board chair do (more…)

Crisis Management – What is the proper role for a nonprofit’s board of directors?

Crisis Management – What is the proper role for a nonprofit’s board of directors? 

Changes buffeting nonprofit boards of directors are increasing substantially.  At the top are the widespread budget cuts from foundations and governmental organizations, along with many individual donors reducing their traditional gifts. In addition, a sudden social change, reputation decline, or a fire/flood are events, which may change a board’s engagement style with management, staff and other stakeholders. 

A board’s style in such situations will depend on its seriousness.  (more…)

Nonprofit board term limits – How long should directors serve?

Nonprofit board term limits – How long should directors serve?

By Eugene Fram

I am currently a director of a five person condo board responsible for reserve and operating assets of well over $1million and capital assets probably worth over $25 million. When the condo group was formed over 15 years ago, the bylaws stipulated that each director can only serve for one two year term, but couldn’t be reelected until after a period of one year off the board. 

The logic of this arrangement was that every year either two or three new board members must be replaced. (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. 

Are Three Standing Nonprofit Board Commmittes Enough?

Are Three Standing Nonprofit Board Committee Enough?

By: Eugene Fram

Nonprofit boards are often known for the proliferation of board standing committees. Current thinking is to reduce the number substantially.   Following is one model, with only three standing committees which has been used by thousands of nonprofit organizations for over 20 years. Ad hoc committees are used when needed for investigation of policy decisions and other major issues such as changes in pension plans.

  1. Executive Committee –  It consists of the CEO, corporate officers and an at-large member elected by the board.  The committee acts for the board between meetings, subject to later board ratification; sets the meeting agendas, reviews reports for board discussion; and appoints all standing committees and ad hoc committees.

    2. (more…)