Trustees

Two Nonprofits Merge: Synergy or Collision Course?

Two Nonprofits Merge: Synergy or Collision Course?

By: Eugene Fram

Having led a merger committee that resulted in a successful merger with another nonprofit, I thought my field observations might be of interest to others contemplating a merger. These comments center on a merger of two equal partners, which plan to form a new organization, not the acquisition of one nonprofit by another.

Assuming both organizations have merger committees that meet frequently, over an extended time period, the following initial issues need to be reviewed: (more…)

Designating a ‘Lead Director’ Can Help Nonprofit Boards Improve Their Operations- Updated & Reissued

For several years, I have suggested that some NFP boards experiment with the addition of a Lead Director to their rosters, just as for-profit boards successfully have since 2002. This blog is divided into two sections. First is an abstract of an article published I published on the topic in the Chronicle of Philanthropy (June 2, 2011, p.34). This will help the viewer understand how I am adapting a business board process to a nonprofit board. Following that is a field critique of my proposal provided by Mark Soundie. Mark is uniquely qualified to comment. He provides counsel to boards for the following types of nonprofits: social housing providers, voluntary & social enterprise organizations from all sectors and all sizes & types of charities, His essay below provides an excellent summary of the pros and cons. Also, I have noted from a current study that about 37% of a small subgroup of 420 nonprofit directors responding to an NACD study have designated directors on their nonprofit boards. In addition, 88% of the group concluded that their lead directors enhanced board effectiveness.* These nascent results are encouraging news. Finally, a link follows to a comprehensive article on lead directors that appeared in April, 2012 in The International Journal of Not-For-Profit Law, Vol.14, Numbers 1-2.pages 52-57. Lead director article: bit.ly/15s4eVv
(more…)

Once Again: How Should Nonprofits Conduct Board Evaluations?* Updated Reissue

Once Again: How Should Nonprofits Conduct Board Evaluations?*

By: Eugene Fram

Process Expectations Including:
• Value of board materials: board book delivery time prior to meetings, material clarity, meeting notices, etc. Are board books delivered a week ahead of meetings?
• Stakeholder Relations: Board interactions with various nonprofit stakeholders, especially staff. To what extent do directors meet with key stakeholders? To asses this expectation, are records noted of these
interactions? Which directors are most adept at building these relationships?
• Willingness to evaluate qualitative outcomes** To what are data developed that go beyond typical records such as accounting statements and membership records? What about the more difficult data to develop, such as brand
image and impact on the community? Hearsay evidence should not be used to assess these important outcomes.
• Composition of the board in regard to diversity including gender, skills, age, board experiences, etc. Does the organization have a diversity policy? Do current board members have sufficient prior board experiences in
order to act as models for new members without prior board experience?
• Action plans including a summary, for the board minutes, which obligates the board professionally to take action and may have liability implications if plans are not executed. The plan should provide evidence of a robust
evaluation. With luck, some nonprofits may be able to relate their field accreditation processes with the action plans.

Director Evaluation Approaches (more…)

Nonprofits Must Monitor Diversity Opportunities

Nonprofits Must Monitor Diversity Opportunities

By Eugene Fram

Diversity on the boards and staffs of nonprofit organizations is no long a choice; it is a mandate. American demographic trends are clear. The US population is rapidly becoming more diverse, and increased global migrations will require nonprofits and NGOs to serve broader populations. In a 2011 analysis, two Harvard professors have made the following observations: (more…)

Program Reductions Are Mandated—What Can A Nonprofit Do?

Program Reductions Are Mandated—What Can A Nonprofit Do?

The word from management is that the board of directors has decreed there will be program cuts. Regardless of the rationale, be it financial or mission-related, the proposed loss is a source of concern to directors and is a common nonprofit board challenge in the 21st century.
Reactions are varied and I invite you to share your board experience on the topic; here are some deliberations that I have encountered in the past: (more…)

Once Again: What Makes for a Successful Nonprofit Board? – Reissue

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…)

Management Expectations of the Board – The Nonprofit Story – Part II

Management Expectations of the Board – The Nonprofit Story – Part II

I am indebted to Dr. Richard Leblanc of York University for the action headings used in this blog. The blog uses headings developed by Dr. Leblanc for his blog: “What a Board Expects from Management, and What Management Expects from a Board, January 27, 2013, York University Governance Gateway Blog. (rleblanc.apps01.yorku.ca) For reading simplicity, Dr. Leblanc’s specific quotations, which can apply to either FP or NFP boards, are noted in italics.

1. Candor
The board should speak with one voice and not send mixed messages to management (and staff when dealing with nonprofits). Nonprofit boards are usually composed of people with widely diverse backgrounds, as compared with for-profit ones. (more…)

Board Expectations from Management – The Nonprofit Story – Part I

Board Expectations from Management – The Nonprofit Story – Part I

I am indebted to Dr. Richard Leblanc of York University for the action headings used in this blog. The blog uses headings developed by Dr. Leblanc for his blog: “What a Board Expects from Management, and What Management Expects from a Board,” January 27, 2013, York University Governance Gateway Blog. (rleblanc.apps01.yorku.ca) For reading simplicity, Dr. Leblanc’s specific quotations, which can apply to either FP or NFP boards, are noted in italics.

1. No Surprises or Spin
The biggest surprise that I ever a received as a nonprofit board director was in a situation where the executive committee of the board acquired a profit-making business without a full open discussion by the board. The agreement package presented placed the board in an untenable position. I quietly resigned soon after, but the remainder of the board, largely senior business executives, stayed, which was quite a mystery. (more…)

Does Your Nonprofit Board Have Enough Conflict?

Does Your Nonprofit Board Have Enough Conflict?

By Eugene Fram

I recently encountered a human services board director who said he would like to see more conflict take place during board meetings. He was not suggesting civil disobedience, but he felt that the discussion level was modest, and there was too much deference to each other and especially to the board chair. (more…)

Nonprofit Board Recruitment & The Millennials – Challenges Coming?

Nonprofit Board Recruitment & The Millennials – Challenges Coming?

By: Eugene Fram

The millennial generation, those born between roughly 1980 and the early 2000s, is now entering its third decade. As such, they are becoming prime candidates for nonprofit board positions. Most nonprofits would love to have millennial personalities, like Mark Zuckerberg, on their board!! But their behaviors and values are distinctly different from current nonprofit board cohorts, and these differences will certainly impact how they can be recruited for board positions. (more…)