trustee governance

Better Board Governance. Is it the same for both business & nonprofit boards?

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…)

Nonprofit CEO Board Chair Relationships – Anything Works

Nonprofit CEO Board Chair Relationships –Anything Works!!

A recent NPQ Nonprofit Newswire (March 13th 2012), report concludes, that to build good nonprofit CEO-board chair relationships, “Task lists and job descriptions often propose a “one size fits all” recipe for the CEO-Board chair relationship, (but the lists have little to do with real world effectiveness.)” (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…)

What Are Nonprofit Directors’ Duties During Merger, Acquisition or Being Acquired?

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…)

Executive Director: When Is It An Appropriate Title?

Executive Director: When Is It An Appropriate Title?

By Eugene Fram

An Executive Director title compared with a President/CEO title for a nonprofit’s chief operating executive is a debate that still pervades the nonprofit governance discussions. Following is a list of situations when the Executive Director tile is appropriate.

  • When the nonprofit is in a start-up stage, and the board’s management direction, advice, or micromanagement style is needed to stabilize the organization.

    • (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. 

TO WHOM SHOULD ADVISORY BOARDS PROVIDE SERVICE?

To Whom Should Advisory Boards Provide Service?

 By: Eugene Fram

 I have established or served on a number of nonprofit advisory boards. Based on these experiences, I suggest that board members, along with the CEO (more…)

BOARD MEMBERS & CEOS INVOLVEMENT WITH FUND-RAISING.

Should All Board Members Be Required to be Involved With Fund-Raising?

By Eugene Fram

No, just those (more…)

How Does A Nonprofit CEO Decline Board Advice?

How does a president/CEO turn down advice about operations or internal structure from the board.

With difficulty.  It all depends on the type of culture that has been established by the board.  Ideally, the president/CEO should be comfortable saying, (more…)

Can a Board Member Ever Hold a Staff Position in The Same Nonprofit Organization?

Can a board member ever hold a staff position in the same nonprofit organization?

 

By Eugene Fram

Sometimes a board member acts not as a director but as a different kind of volunteer.  For example, Director Z has a particular accounting skill and wants to utilize it to help the nonprofit.  The CEO agrees. 

In this instance the board member is not a board member, but a volunteer working under the direction of the CEO.  (more…)