Trustee Boards

How Competent Are Nonprofit Boards In Strategic Planning?

How Competent Are Nonprofit Boards In Strategic Planning?

By: Eugene Fram

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“Unfortunately, boards of directors have no clear model to follow when it comes to developing the strategic roles that is best suited to the (organization) they oversee. … More importantly, the board must play a role that matches the strategic needs of the (nonprofit) and the state of its (mission’s) sector.” (http://bit.ly/16e4kT8) For both nonprofits and for-profits the strategic plan needs to be updated or revised every three to five years in a 21st century environment. (more…)

A Nonprofit’s Reputation Rests on the Quality of its Directors

A Nonprofit’s Reputation Rests on the Quality of its Directors

By: Eugene Fram

Reputations are universally seen as valuable, but reputation risk is poorly understood. As a result, reputations are left unnecessarily at risk.*

Reputation matters in the nonprofit world. Few nonprofit boards exist today that don’t worry about how they are perceived in the communities or associations they serve. And to make sure their images remain pristine, many turn to crisis consultants and other forms of expert assistance. A tarnished reputation can have a huge impact on a vast network of stakeholders as confidence in the organization ebbs and support starts to dwindle. Nonprofit board members must be sensitive to signals of impending reputation risk and immediately roll up their sleeves in an attempt to rebuild confidence. (more…)

Strategic Planning: Nonprofit Board Orphan?

Strategic Planning: Nonprofit Board Orphan?

By: Eugene Fram

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According to a 2015 BoardSource study, nearly 35% of over 836 nonprofit chief executives gave their boards a C, D or F grade in strategic development efforts. In addition, only 35% reported, extensive use of “meetings focused on strategy and policy.” * This is further evidenced in the frequent absence of long range planning items on nonprofit board agendas. What are the root causes of such a deficit in an area that is of critical importance to the future of the organization? One or more of the following challenges may apply: (more…)

Do Nonprofit Directors Face Cyber Security Risk?

Do Nonprofit Directors Face Cyber Security Risk?

By: Eugene Fram

The cyber security (CS) debacles faced by Target, Sony Pictures and others may seem far afield from the concerns of nonprofit directors, except for the giants in the area, like AARP. However, think about this hypothetical scenario.

A group of high school students hacked into the computer system of a local nonprofit offering mental health services and gain access to records of clients, perhaps even placing some of the records of other teenagers on the internet. (more…)

Nonprofit Boards Prepare – The Millennial Workforce Is Coming!!

Nonprofit Boards Prepare – The Millennial Workforce Is Coming!!

By: Eugene Fram

In January, I presented a well-viewed post on the potential impact on the nonprofit board if a new CEO is a millennial – born roughly between 1980 and 2000. (http://huff.to/1zMGi9N) This current post broadens the discussion. Unlike for-profit directors, nonprofit directors are more likely to have contact with millennial staff personnel on task forces and on special projects. (The staff organizationally can be only several levels below the board in nonprofits.)

There is no question that the nonprofit workforce mirrors or exceeds the national workforce in percentages of millennials — expected to be 50% in 2020 and 75% in 2025. Their values center on finding meaningful work, being respected/praised for their accomplishments and having a flexible work environment. Although these working requirements and values, at first, will puzzle older board cohorts, millennials’ dedication to the mission will be outstanding. But nonprofit directors and the public will have to adjust their views because a new generation’s working styles will require changes. (more…)

Once Again: How Should Nonprofits Conduct Board Evaluations?

Once Again: How Should Nonprofits Conduct Board Evaluations?

By: Eugene Fram

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Recent (2015) data from BoardSource show that only about 52% of boards have had “formal, written self-assessment of board performance in the last three years.” (http://bit.ly/1xJvf6x) With the rapid turnover of directors that nonprofit boards traditionally experience, this seems inexcusable. As a “veteran” nonprofit director, following is what I think can be done to improve the situation. (more…)

Nonprofit & Business Directors Must Be Vigilant – Board Liability Costs Could Be $2.2 Million!

Nonprofit & Business Directors Must Be Vigilant – Board Liability Costs Could Be $2.2 Million!

By: Eugene Fram

The personal cost of director inattentiveness is made painfully clear in an important federal appeals court decision. The U.S. Court of Appeals decided the decision, in re Lemington Homes, on January 26, 2015 for the Third Circuit. … [T]hese difficult facts arose from a small, nonprofit organization. … (more…)

Thorough Vetting Needed When Hiring Nonprofit Consultants

Thorough Vetting Needed When Hiring Nonprofit Consultants

By: Eugene Fram

Many nonprofit boards engage a consultant to ferry them through challenging times and/or projects. After years of experience as a nonprofit board director, board chair and advisor, I have come to question the impact of these initiatives. From what others and I have observed, the board too often selects a person for the job without adequately researching his/her “fit” to the requisite challenge. A failure to appropriately vet a candidate can result in a weakened process and disappointing results. (more…)

What’s Needed To Become a Nonprofit Board Change Agent?

What’s Needed To Become a Nonprofit Board Change Agent?

By Eugene Fram

Nonprofit board members with business backgrounds often become frustrated with the moderate pace for change that is characteristic of nonprofit boards. Most resign or remain on the board as passive directors, not wanting to create internal conflict in organizations that are dedicated to developing positive social programs. Here are some qualifications for unusual board members that want to become change agents and lead boards and/or organizations to making substantial positive changes. * (more…)

Do Directors View Their Nonprofit Boards Through Rose-Colored Glasses?

Do Directors View Their Nonprofit Boards Through Rose-Colored Glasses?

By: Eugene Fram

Being asked to join a nonprofit board is, in itself, an honor. To be working alongside other honorees for a cause that addresses world, community, professional or association needs commonly evokes in directors a mix of pride, loyalty and reverence. Call it the nonprofit “mystique” if you will. Having served as a volunteer director, board chair and consultant, I am often tempted to call it the nonprofit “mistake.” It is, in some instances, a perception that may blindside the director and stunt the growth potential of the organization.

Following are some commonly misplaced assertions that I have encountered through my years with nonprofits:

Our board of directors is like a family—this was the response of a director (who happened to be an attorney) to a proposal that called for a restructuring of the board. He warned that the change would negatively impact his emotional attachment to the board, i.e. his “family”

It was clear that the board was far from a family environment. It was a fairly large board of circa 20 people who met for two hours monthly from September through June. Directors’ tenures were limited to two three-years terms, with some directors opting out after one year before resigning because of work/personal pressures. In this eclectic setting, the only family connection appeared to be “dysfunctional!”

Our board is doing a great job—yes, the board is meeting goals and verifying all the compliance policies and impacts. But is this satisfaction with the status quo dissuading the board (and subsequently the organization) from setting stretch goals? Is it motivating management and staff to maximize client service? “Doing a great job” is often a mantra for an organization’s failure to reach its potential.

Our worries are over—we just hired a great new Executive Director—the board needs to monitor the new CEO who may not be “great” if the board is satisfied to set low standards allowing the him/her to simply “mind the store.” Too many boards seem to be content with this modest level of incremental growth– deferring the creative and entrepreneurial efforts until the next strategic planning cycle and then letting them slip between the cracks. A robust evaluation of the new hire should be held annually and never left to the whims of the board chairs or a simple board checklist survey.

When push comes to shove, our board can raise big $$–this may be true but 2015 national statistics show just the opposite. Sixty-five percent of nonprofit CEOs gave their boards academic grades of “C” or below for their fundraising efforts –in this age of rampant grade inflation! * Boards are hesitant to fully partner with the CEO in developing resources for the organization. They often abdicate the responsibility to the CEO or, on occasion, ignore him/h.

Our programs are superior to other similar nonprofits—systematically prove that statement! Actually make the point-by-point comparison. This “comparison-shop” is something an alert board should do every three years. It will provide a clearer picture of the organization’s strengths and weaknesses. In the case of the nonprofit’s relative under-performance, it will generate a relevant discussion on what to do about the gap in standards.

It’s entirely appropriate for a director to act as cheerleader for his nonprofit—that’s what directors are supposed to do. But first they must remove the tinted glasses and take a hard look at what’s happening on the inside— then enlist their esteemed cohort in an effort to right all possible wrongs or seize the potentials for improved client services. That accomplished, he/s will have a compelling reason to spread the word!

* BoardSource (2015) “Leading With Intent – A National Index of Nonprofit Board Practices,” January