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”?
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?
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 Members & Managers – Are you aware of the Federal Intermediate Sanctions Act?
I have been surprised by the number of people, holding nonprofit board and management positions, who are totally unaware of this piece of legislation. (IRS Code – Section 4958)
The act applies to nonprofit organizations. As I understand it, the act states (more…)
Better Board Governance. Is it the same for both business & nonprofit organizations?
Both Board Source in 2010 and the Charted Global Management Accountant (CGMA) in 2012 have issued reports on improving board governance. The former group focuses on nonprofit boards and the latter focuses on business boards globally. (more…)
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…)
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…)
How Can A Board Be Kept Involved When It Is Only Making Policy Decisions?
By Eugene Fram
The name of the game for the CEO is to communicate the important information to board members and to keep them abreast of significant operational developments. This involves: (more…)
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
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:
Nonprofit Management 