11 Ways to a Stronger Nonprofit Board
By Eugene Fram
There’s lots of advice out there on how to build a strong and smoothly functioning nonprofit Board of Directors. Dr. Richard LeBlanc, York University law professor, had public companies in mind when he recently published 40 proposals to improve board governance. Many of his suggestions I find extremely relevant to NFP boards and their longstanding challenges. Here are some of my adaptations of his proposals. (more…)
Fundraising Foundations: Important Nonprofit Tools for the 21st Century?
By: Eugene Fram
Nonprofits for decades have established – or want to establish their own own fundraising foundations. However many have backed away from them because of the complexity involved, the potential loss of control and the feeling they have a proactive board fundraising committee. In terms of board fundraising effectiveness, a 2012 BoardSource study shows that only 24% of CEO respondents gave their boards and “A” or “B” grade for fundraising, the lowest evaluation among ten board responsibilities listed by the study. * (more…)
Target More Specific Skills in Nonprofit Board Recruitment Plans
By: Eugene Fram
When the nominating committee sits down each year to fill vacant or termed-out board slots, their challenge is to identify the “right” directors for the organization. Typically, the group will work with a grid to define the types of skills they deem valuable to the board composition. While this kind of generic search (e.g. marketing, financial, human resource,) is adequate in many cases, the committee would do well to narrow the probe with an approach more focused on a candidate’s specific experience and skills. (more…)
Absenteeism at Nonprofit Board Meetings On the Rise? Technology Can Help
By: Eugene Fram
Dear Fellow Board Members: as you know, we have had to cancel recent board meetings due to a lack of quorum. It is imperative that we take certain annual administrative actions that require a duly called meeting and quorum of our board. To date we have been unable to do so due to our lack of attendance….
Twenty-four directors recently received this note from the organization’s volunteer president at the end of June. His sense of frustration was obvious. Lack of a quorum had precluded action on a number of important issues. And although no meetings are scheduled during the summer months, the president felt impelled to call one to take care of unresolved business.
From my experiences with a variety of nonprofits, this single case is indicative of continuing problems. What are the expectations of board attendance at these meetings? And why should it matter when directors have poor attendance records? Finally, what can be done to get a majority of the directors to the boardroom for what is usually no more than nine two-hour sessions a year? How can technology best assist? (more…)
Do Nonprofit Boards Have Viable 21st Century Options?
By: Eugene Fram
Based on what has transpired so far in the 21st century, the typical nonprofit board in the United States appears to have acquired more constraints and fewer options to maneuver. Although charitable giving rose moderately in 2012, financial options remained constrained as increased operating costs and increased client needs cloud future prospects. (more…)
Do Nonprofit Board Fundraising Committees Really Work?
By Eugene Fram
Nonprofit boards have struggled for years to develop effective board fundraising committees. According to the BoardSource 2012 Governance Index, 46% of nonprofit CEOs gave their boards “D” or “F” grades for their fundraising efforts.
Simone Joyaux in a current NPQ Newswire* raises some pertinent questions related to the “struggle to get the board to carry out its fund development role.” I have listed her questions below in italics. My overall response to her questions is that fundraising committees are not always necessary for effective fund raising! Where the committee is doing a poor job (graded average or below), it is best to cultivate and support a few board members to drive fundraising. (more…)
The Nonprofit Overhead Myth – Devil Is In the Details?
By: Eugene Fram
Do nonprofits have to consistently report low overhead percentages for administration and marketing to satisfy donors? Do these modest overhead percentages do more long-term damage to the nonprofit’s ability to fulfill it mission than short-term good? * (more…)
Nonprofit Board Responsibility Social Media – What Needs To Be Done? Revised & Updated
By: Eugene Fram
Nonprofit boards, for several years, have been struggling to find proper uses for social media. Many of the decisions on this issue will become strategic board decisions because they will require using alternative promotional strategies, experimental trials and infusion of capital and human resources. The December 8, 2012 issue of the NACD Directorship* cites a Stanford study concluding that for-profit boards should develop a better understanding of this new phenomenon. Following are how I think the steps should be applied to smaller and medium sized nonprofit board decisions:
Assess current capabilities. (more…)
Nonprofit Chief Executives Should Have Title: President/CEO, Updated & Expanded
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: (more…)
Attn: Nonprofit Directors – Overview Points of Engagement
By: Eugene Fram
Any nonprofit organization has a series of critical points of engagement. The nonprofit board has to make sure it is carefully over-viewing the most important ones. >
Nonprofit Management 