Why are nonprofit CEOs resigning in record numbers? In their research for Leadership Lost: A Study on Executive Director Tenure and Experience, Timothy Wolfred and Jan Masaoka concluded that board dysfunction or lack of board support are either the “first or second reason” why CEOs are leaving organizations. They contend that four key issues may be at the root of this conflict between boards and their CEOs. The organization’s mission The organization’s values Agreement on how success should be measured Agreement on who should do what – the board or the staff Agreement on these points goes a long way toward developing a harmonious and productive relationship. A sustainable organization will have a competent CEO, along with a skilled board that actively complements, challenges, and supports the CEO. The board… Read more »

We’ve been pleased with the number of people who find Focus on Sustainability: A Nonprofit’s Journey helpful for their organizations. Recently, Patty Ginsburg shared her thoughts on the book on the Rasmuson blog. You can read her review here. If you want to order a copy, you will find it on Amazon.com. We welcome any comments you want to share with us…. Read more »

What makes a strong nonprofit leader? Good leaders possess many characteristics. A willingness and ability to share power is essential. Too often boards mistake strong, charismatic leaders for competent CEOs. While a CEO may be knowledgeable about the organization, proficient in financial management, a good manager, and a good community leader, that person must also be able to work as a partner with the board and successfully share power to truly be a successful nonprofit leader. Often, boards will acquiesce to a dominate CEO and assume all is well because this strong leaders says so. This is a major mistake, as the United Way of America learned in the early 1990s. Bill Aramony, the organization’s former CEO had at one time been a significant nonprofit leader. He built coalitions. He… Read more »

While most nonprofits are founded by volunteers and can be maintained by volunteers for years, I’ve concluded that eventually, if a nonprofit is to survive the transition away from its founder, the board must hire staff to maintain momentum. The first staff to be hired is typically the CEO, and it is the only staff person the board hires. At The Foraker Group we have witnessed many situations where organizations that have been in business for decades fall apart. One of the common characteristics is the departure of the founder with no professional staff to continue momentum. The founder’s zeal may have masked the nonprofit’s capacity. When determining if an organization’s staff consists of the right people, this question must be asked: Is the organization being supported because of its… Read more »

It’s a pretty good bet that most nonprofit organizations have a board of directors. These volunteers serve as guardians of organizational and community assets. Unfortunately, after analyzing data from 4,000 nonprofit boards across the country in 1996, Barbara Taylor, Richard Chait, and Thomas Holland found that “effective governance by a board of trustees is a relatively rare and unnatural act. Only the most uncommon of nonprofit boards function as it should by harnessing the collective efforts of accomplished individuals to advance the institution’s mission and long-term welfare.” Still Taylor, Chait, and Holland assert that boards are necessary to guide nonprofit performance. “A board’s contribution is meant to be strategic, the joint product of talented people brought together to apply their knowledge and experience to the major challenges facing the institution.”… Read more »

Many of you know Simone Joyaux from the trainings she’s given in Alaska for AFP. We’re pleased she was interested in reading Focus on Sustainability: A Nonprofit’s Journey. And we certainly appreciate her kind comments. Check out her blog, click here…. Read more »

Defining the right people for your organization is more than simply meeting a list of criteria or qualifications. The right people are those who can use the values and culture of the organization to move it in the direction articulated in its plan. The right people aren’t all the same. In fact, the board and staff are likely to make better decisions if a diversity of perspectives exists. Recruiting and retaining the right people ensures that each person believes in and is connected to the purpose and values of the organization, is aligned with them, and has a passion for the mission. That is the glue that holds them together. Since nonprofits require a board, and if sustainable, a staff, then all individuals must agree on what should be done… Read more »

While a nonprofit’s focus can become hazy through a lack of clear direction, organizations can also lose focus because of success. This happens when an organization is approached by other nonprofits, government entities, or funders to take on a project simply because it is a successful organization – whether or not the project is within the organization’s focus. For example, a food bank known for its outstanding work might be asked to take on a struggling farmers market. The board of the food bank might discuss this option and be tempted by potential revenue and the opportunity to meet a community need. Still, this move could pull from the original focus of the food bank. The board then needs to decide if taking on the farmers market would threaten the… Read more »

Strategic thinking is important for all nonprofit leaders. It’s how they know what success looks like. Many put more emphasis on developing a strategic plan than on having ongoing strategic discussions. Looking ahead and adapting to the emerging environment is a critical behavior for sustainability. But in addition to ongoing discussion and reflection about the future, you also need a written strategic plan at least every five years. The strategic plan we develop typically fits on one page. Brevity makes a plan more useful, memorable, and therefore more relevant to the actual operations of the organization. We believe it is critical that everyone is on the same page. The shorter the plan, the less likely the organization will stray from its core ideology. Our strategic plan includes three sections: core… Read more »

An organization’s core purpose is described simply and succinctly, in just a few words. If you are a soup kitchen, your core purpose may be to feed the hungry. Core purpose does not try to differentiate your organization from others. In fact, many nonprofits have the same core purpose, but differ in their core values and activities. Core values clarify purpose and make each organization unique. Using the soup kitchen example, the core values could be compassion, respect, and dignity. An organization’s core values usually revolve around what drove the founder to create the nonprofit in the first place. They go beyond organizational aspirations. A value is considered “core” when it remains true through the years and motivates the entire organization. To use a bowling reference, if one envisions the… Read more »