Welcome back!
At our workshop I pointed to new IRS reporting requirements and California Nonprofit Accountability Law requiring boards of directors of nonprofit organizations to set executive compensation and monitor that expense. In the context of smaller nonprofits we often don't worry about overpaying. But is can be and is a problem. The recent corporate scandals involving the financial sector demonstrates that and the Wall Street Journal says nonprofits need to watch out too!
". . . the IRS has signaled more aggressive oversight of charities as various compensation scandals crop up among nonprofits." Wall Street Journal, Pay at Nonprofits Gets a second look
Your ideas matter here! Please leave a comment.
29 March 2009
BBC reports Obama agrees with me
Welcome back!
The chief executive and chairman of troubled US car maker General Motors will step down at once, at the request of Barack Obama. --BBC
In my workshops with board of directors of community and faith-based organizations I often use boards of equity corporations as examples of both good and bad behavior of boards, CEO's and to illustrate the concept of ownership.
Recently I have been commenting that the CEO's from US automakers and financial institutions who are sitting in front of Senate hearings explaining why their companies have failed to produce a profit or even enough money to sustain ongoing operations demonstrated that boards of directors are not achieving accountability on behalf of stockholders. My understanding that a CEO should lead an equity corporation to achieve increased value of equity for stockholders would be the only criteria for continuing employment.
So, the boards didn't live up to their responsibility, stockholders didn't act at a stockholders meeting, therefore, the Whitehouse took some kind of action. GM's CEO will be stepping down at Barack Obama's request. I'll post more news as I find it. BBC is reporting it here.
Los Angeles Times General Motors CEO Rick Wagoner to step down.
Wall Street Journal: Chrysler CEO Not Likely To Follow GM Wagoner's Fate.
Your ideas matter here! Please leave a comment.
The chief executive and chairman of troubled US car maker General Motors will step down at once, at the request of Barack Obama. --BBC
In my workshops with board of directors of community and faith-based organizations I often use boards of equity corporations as examples of both good and bad behavior of boards, CEO's and to illustrate the concept of ownership.
Recently I have been commenting that the CEO's from US automakers and financial institutions who are sitting in front of Senate hearings explaining why their companies have failed to produce a profit or even enough money to sustain ongoing operations demonstrated that boards of directors are not achieving accountability on behalf of stockholders. My understanding that a CEO should lead an equity corporation to achieve increased value of equity for stockholders would be the only criteria for continuing employment.
So, the boards didn't live up to their responsibility, stockholders didn't act at a stockholders meeting, therefore, the Whitehouse took some kind of action. GM's CEO will be stepping down at Barack Obama's request. I'll post more news as I find it. BBC is reporting it here.
Los Angeles Times General Motors CEO Rick Wagoner to step down.
Wall Street Journal: Chrysler CEO Not Likely To Follow GM Wagoner's Fate.
Your ideas matter here! Please leave a comment.
Books I Recommend to You as a Community Nonprofit Leader
Welcome back!
I made these book recommendations to the group on Saturday:
On board governance model as presented:
The 24-page introduction to the 10 principles that I presented: CarverGuide, Basic Principles of Policy Governance (J-B Carver Board Governance Series) (Vol 1)
The larger text book on Policy Governance: Boards That Make a Difference (J-B Carver Board Governance Series)
The Q & A book with short chapters that answer a bunch of basic questions: Nonprofit Board Answer Book: Practical Guidelines for Board Members and Chief Executives
On business and organizational theory by Jim Collins:
This is a popular book that helps successful companies become more successful: Good to Great: Why Some Companies Make the Leap... and Others Don't
A short follow up, stand alone chapter where Jim Collins addresses some specific issues for social sector organizations: Good to Great and the Social Sectors: A Monograph to Accompany Good to Great
I appreciate complements whenever they come: Colleen Marks told me that our session was "dope" and "out-of-the-bun." So, there you go!
Your ideas matter here! Please leave a comment.
I made these book recommendations to the group on Saturday:
On board governance model as presented:
The 24-page introduction to the 10 principles that I presented: CarverGuide, Basic Principles of Policy Governance (J-B Carver Board Governance Series) (Vol 1)
The larger text book on Policy Governance: Boards That Make a Difference (J-B Carver Board Governance Series)
The Q & A book with short chapters that answer a bunch of basic questions: Nonprofit Board Answer Book: Practical Guidelines for Board Members and Chief Executives
On business and organizational theory by Jim Collins:
This is a popular book that helps successful companies become more successful: Good to Great: Why Some Companies Make the Leap... and Others Don't
A short follow up, stand alone chapter where Jim Collins addresses some specific issues for social sector organizations: Good to Great and the Social Sectors: A Monograph to Accompany Good to Great
I appreciate complements whenever they come: Colleen Marks told me that our session was "dope" and "out-of-the-bun." So, there you go!
Your ideas matter here! Please leave a comment.
25 March 2009
Twenty things to do through the crises (and all the time for that matter)
Welcome back!
A panel of nonprofit and community organization leaders got together last week and talked about what people need to know and what they are doing and consider the way through the current situation and beyond. Here are some highlights:
Your ideas matter here! Please leave a comment.
A panel of nonprofit and community organization leaders got together last week and talked about what people need to know and what they are doing and consider the way through the current situation and beyond. Here are some highlights:
- Assess where you are today—board, staff, programs, think strategically
- Evaluate things you already have available volunteers, clients (can help solve problems), board members, donors, who else?
- If already in trouble, don’t panic, get help
- Make changes
- Communicate and increase donorship and stewardship
- Get everyone involved in fundraising—get everyone at the table
- Focus on mission (production of ends) and beneficiaries
- There are no problems that are new or unique—someone has survived this problem before you.
- “Credit is a ghost, dead and gone” –Merrill Lynch (Bank of America)
- Transparency and accountability—have a communication policy and plan
- Siloing and adversarial relationships are not helpful.
- Be proactive, not reactive
- “Shop outside of your own closet” encourage communication
- Ask why board members endorse your organization—do more of that (hedgehog)
- Demonstrate credibility with consistent and clear marketing and market position.
- Crisis is an opportunity. Get the message out how now is the time for your donors, volunteers, and others to engage
- New opportunity for volunteer service—new funding coming down for National Service Corporation
- Be aware of new IRS accountability and reporting. Changes on charitable giving
- Make a plan for planned giving
- Use this as a mobilizing moment—how important is it that we will keep doing what we are doing? Engage others in this passion.
Your ideas matter here! Please leave a comment.
23 March 2009
Free Board Governance Workshop in Whittier on March 28
Welcome back!
This is the first time I have offered this free of charge to participants. Three and a half hours of board governance introduction and it includes lunch! Thanks to the great people at Whittier Area Community Church and their Serve Weekend project.
Your ideas matter here! Please leave a comment.
This is the first time I have offered this free of charge to participants. Three and a half hours of board governance introduction and it includes lunch! Thanks to the great people at Whittier Area Community Church and their Serve Weekend project.
Good Governance--Leadership Excellence
Trainer: Glen Peterson
Whittier Area Community Church
Saturday, March 28, 2009
9 am - 1 pm
Lunch included
We can bring this workshop and
others to your geography.
Let's work on something together.
Trainer: Glen Peterson
Whittier Area Community Church
Saturday, March 28, 2009
9 am - 1 pm
Lunch included
We can bring this workshop and
others to your geography.
Let's work on something together.
Your ideas matter here! Please leave a comment.
19 March 2009
House Passes Bipartisan Legislation to Expand and Strengthen National Service
Welcome back!
Washington D.C. – The U.S. House of Representatives today passed the most significant overhaul and expansion of national service programs in 16 years, acting on President Obama’s call to increase service opportunities for Americans of all ages to help address the economic crisis and usher in a new era of service and responsibility for our nation.
For more look here.
Your ideas matter here! Please leave a comment.
Washington D.C. – The U.S. House of Representatives today passed the most significant overhaul and expansion of national service programs in 16 years, acting on President Obama’s call to increase service opportunities for Americans of all ages to help address the economic crisis and usher in a new era of service and responsibility for our nation.
For more look here.
Your ideas matter here! Please leave a comment.
17 March 2009
Board of Directors or Booster Club?
Welcome back!
Last week I was at an educational event for leaders of nonprofit organizations where I heard that the fundamental work of a board of directors must now be that of fundraising because some nonprofit organizations may fail because of recent adjustment of the worldwide economy. In an environment where support and resources will be in short supply, it seemed that some are saying that boards no must become booster clubs to attract diminishing sources of support.
There is a foundational disconnect with this idea that dismisses the reality that the board has real work to do that is really governance and is an essential value added to the organization.
Board fundamental job remains the same.
It is clear that the above tasks may require certain skills of individual board members who may or may not also possess those characteristics required to be a part of this new requirement of promoting the cause to prospective funders and supporters. I highly recommend that within operations, and that may include people who also serve as board members, as many people with the right skills and attitudes be empowered and encouraged to apply all of their skills and energy into efforts that will bring the required resources to the table for organizations to continue their important work of creating a difference in the communities where they work.
The fundraising efforts and the board governance work both must be done and one cannot be achieved without the other. Capacity partnership Group provides training, assessment and evaluation and technical assistance for implementation of a complete system of board governance that equips boards of directors to accomplish the 3 job outputs listed above. These job outputs work for nonprofit organizations and for equity corporations. If boards of directors had done this work, in the financial sectors, there would be much less news about bailouts and bonuses today.
Your ideas matter here! Please leave a comment.
Last week I was at an educational event for leaders of nonprofit organizations where I heard that the fundamental work of a board of directors must now be that of fundraising because some nonprofit organizations may fail because of recent adjustment of the worldwide economy. In an environment where support and resources will be in short supply, it seemed that some are saying that boards no must become booster clubs to attract diminishing sources of support.
There is a foundational disconnect with this idea that dismisses the reality that the board has real work to do that is really governance and is an essential value added to the organization.
Board fundamental job remains the same.
- Articulation of board level values that describe what difference the organization will make in the world, who will benefit from that change and at what cost that change will be worth the investment
- Hold the organization accountable for achieving that change without violating prestated situations and circumstances that are unacceptable
- Linkage to the moral ownership or membership or the community on behalf of which the organization accomplishes #1 above.
It is clear that the above tasks may require certain skills of individual board members who may or may not also possess those characteristics required to be a part of this new requirement of promoting the cause to prospective funders and supporters. I highly recommend that within operations, and that may include people who also serve as board members, as many people with the right skills and attitudes be empowered and encouraged to apply all of their skills and energy into efforts that will bring the required resources to the table for organizations to continue their important work of creating a difference in the communities where they work.
The fundraising efforts and the board governance work both must be done and one cannot be achieved without the other. Capacity partnership Group provides training, assessment and evaluation and technical assistance for implementation of a complete system of board governance that equips boards of directors to accomplish the 3 job outputs listed above. These job outputs work for nonprofit organizations and for equity corporations. If boards of directors had done this work, in the financial sectors, there would be much less news about bailouts and bonuses today.
Your ideas matter here! Please leave a comment.
12 March 2009
Madoff Affect
Welcome back.
Today, Bernie Madoff pled guilty for some outrageous criminal behavior related to other peoples money. This will have a deleterious affect on anyone who is in a business that requires trust and transparency. Fundraisers who raise money for very many worthwhile causes may be looked at with a more wary eye in the Madoff aftermath.
Nonprofits should practice transparency in their reporting far beyond what is merely required in difficult time such as these. Donors should pay attention to where their dollars are donated and invested into projects, programs and organizations that make communities and the world a better place.
Your ideas matter here! Please leave a comment.
Today, Bernie Madoff pled guilty for some outrageous criminal behavior related to other peoples money. This will have a deleterious affect on anyone who is in a business that requires trust and transparency. Fundraisers who raise money for very many worthwhile causes may be looked at with a more wary eye in the Madoff aftermath.
Nonprofits should practice transparency in their reporting far beyond what is merely required in difficult time such as these. Donors should pay attention to where their dollars are donated and invested into projects, programs and organizations that make communities and the world a better place.
Your ideas matter here! Please leave a comment.
Two day Tax and Election Law Training for Nonprofits
. . . is offered in San Francisco, March 19-20.
The Alliance for Justice is offering:
More information is here.
Your ideas matter here! Please leave a comment.
The Alliance for Justice is offering:
Tax & Election Law for Nonprofits
What Every Nonprofit Lawyer or Accountant Needs to Know About Advocacy
What Every Nonprofit Lawyer or Accountant Needs to Know About Advocacy
More information is here.
Your ideas matter here! Please leave a comment.
18 February 2009
The Secret of Success
Welcome back!
"There are no secrets to success
It is the result of preparation, hard work, and learning from failure"
~Colin Powell, former Secretary of State
Your ideas matter here! Please leave a comment.
"There are no secrets to success
It is the result of preparation, hard work, and learning from failure"
~Colin Powell, former Secretary of State
Your ideas matter here! Please leave a comment.
04 February 2009
Workshop on Policy Governance in Whittier
Welcome back!
Save the date for a workshop on Policy Governance (3-hour version) in Whittier, CA on March 28, 2009, 9 am to noonish. If this one fills up, we'll do it again.
Watch this space for further information.
Your ideas matter here! Please leave a comment.
Save the date for a workshop on Policy Governance (3-hour version) in Whittier, CA on March 28, 2009, 9 am to noonish. If this one fills up, we'll do it again.
Watch this space for further information.
Your ideas matter here! Please leave a comment.
09 December 2008
Simply Inexcusable
Welcome back!
In a study from Indiana University’s Center on Philanthropy, initiated by Bank of America
Your ideas matter here! Please leave a comment.
In a study from Indiana University’s Center on Philanthropy, initiated by Bank of America
The #1 reason, cited by almost 60% of respondents, is that they were "no longer feeling connected to the organization."
And how many stopped giving? 38% of wealthy donors stopped giving to one organization in 2007; 26% stopped giving to at least two organizations.
HT: The AgitatorYour ideas matter here! Please leave a comment.
01 December 2008
Looking Ahead: Leadership Strategies for Turbulent Times
Welcome back!
The Center for Nonprofit Management will present a moderated panel discussion on nonprofit strategies during the current financial crisis, Looking Ahead: Leadership Strategies for Turbulent Times, on Tuesday, December 9, 2008, 3 pm - 6 pm. More information and registration here.
Your ideas matter here! Please leave a comment.
The Center for Nonprofit Management will present a moderated panel discussion on nonprofit strategies during the current financial crisis, Looking Ahead: Leadership Strategies for Turbulent Times, on Tuesday, December 9, 2008, 3 pm - 6 pm. More information and registration here.
Your ideas matter here! Please leave a comment.
27 October 2008
What is the definition of Governance?
Welcome back!
I often try to answer questions that come up in our workshops and presentations. On one of the evaluation forms, someone stated the need for a definition of governance. I believe that is definition is extremely important and is foundational to a clear understanding of what the board's job outputs need to be and what the board should expect to do.
Here is the definition:
By making policy, the board governs proactively through explicit statements of values rather than reactively or through event-specific decisions. Boards must be at least as disciplined as they expect their staffs to be.
This definition is clearly different that how many boards define their work. Many boards with which I have worked have started without any clear definition of the work that they are to do. Then act as though the believe that there work is in competition with the role of their chief executive officer or executive director. The role of governance is not management with a megaphone. The role is strategic leadership about the difference the organization is to make in the world, outside the walls of the organization. It is to assure that the difference is made and that unacceptable situations and circumstances are avoided. It is to link the organization to its membership or moral ownership and act on its behalf.
Your ideas matter here! Please leave a comment.
I often try to answer questions that come up in our workshops and presentations. On one of the evaluation forms, someone stated the need for a definition of governance. I believe that is definition is extremely important and is foundational to a clear understanding of what the board's job outputs need to be and what the board should expect to do.
Here is the definition:
The job of the group granted full accountability and full authority for value produced on behalf of those who morally if not legally own the organization. The servant-leadership work of the highest and initial authority within the organization.
By making policy, the board governs proactively through explicit statements of values rather than reactively or through event-specific decisions. Boards must be at least as disciplined as they expect their staffs to be.
This definition is clearly different that how many boards define their work. Many boards with which I have worked have started without any clear definition of the work that they are to do. Then act as though the believe that there work is in competition with the role of their chief executive officer or executive director. The role of governance is not management with a megaphone. The role is strategic leadership about the difference the organization is to make in the world, outside the walls of the organization. It is to assure that the difference is made and that unacceptable situations and circumstances are avoided. It is to link the organization to its membership or moral ownership and act on its behalf.
Your ideas matter here! Please leave a comment.
23 October 2008
Alternative Board Governance Workshop Title
Welcome back!
A friend just sent me this suggestion for the name of my workshop:
"Boards, Bar Fights, and Beautiful Music: A case study in how to avoid the one, and make lots of the other."
I am going to use it in my introduction.
Your ideas matter here! Please leave a comment.
A friend just sent me this suggestion for the name of my workshop:
"Boards, Bar Fights, and Beautiful Music: A case study in how to avoid the one, and make lots of the other."
I am going to use it in my introduction.
Your ideas matter here! Please leave a comment.
21 October 2008
Policy Governance Workshop in Los Angeles, October 28
Welcome back!
I will be giving a workshop at the Southern California Center for Nonprofit Management in Los Angeles. I hope you can come and learn about the most comprehensive system of board governance that installs accountability as an organizational characteristic and adds value to the organization.
More information is here.
Your ideas matter here! Please leave a comment.
I will be giving a workshop at the Southern California Center for Nonprofit Management in Los Angeles. I hope you can come and learn about the most comprehensive system of board governance that installs accountability as an organizational characteristic and adds value to the organization.
More information is here.
Your ideas matter here! Please leave a comment.
19 October 2008
Workshop/Talk about board governance in Miami, Florida
Welcome back! I will be in Miami, Florida talking about Policy Governance.
Friday, October 24: 3:00 - 4:15 PM
Miami, Florida
SHALOM IN THE BOARDROOM
A board of directors needs to know its job and have the right tools. The job of governance is about values, vision, empowerment of both board and staff, and the strategic ability to lead leaders. This workshop looks at a case study of how one board brought added value to a new organization; helps everyone from beginners to veterans.
Co-presenter: GABE VEAS
Room: Granada
The event is: CCDA's 19th ANNUAL CONFERENCE
OCTOBER 22-26, 2008
HYATT REGENCY MIAMI & JAMES L. KNIGHT CENTER
MIAMI, FL
www.CCDAMiami08.org
There is also a workshop coming up the following week in Los Angeles at the Center for Nonprofit Management.
Your ideas matter here! Please leave a comment.
Friday, October 24: 3:00 - 4:15 PM
Miami, Florida
SHALOM IN THE BOARDROOM
A board of directors needs to know its job and have the right tools. The job of governance is about values, vision, empowerment of both board and staff, and the strategic ability to lead leaders. This workshop looks at a case study of how one board brought added value to a new organization; helps everyone from beginners to veterans.
Co-presenter: GABE VEAS
Room: Granada
The event is: CCDA's 19th ANNUAL CONFERENCE
OCTOBER 22-26, 2008
HYATT REGENCY MIAMI & JAMES L. KNIGHT CENTER
MIAMI, FL
www.CCDAMiami08.org
There is also a workshop coming up the following week in Los Angeles at the Center for Nonprofit Management.
Your ideas matter here! Please leave a comment.
05 October 2008
Transparency and Accountability
Welcome back!
The IRS has been in the process of updating its reporting requirements for nonprofit organizations. Specifically, on the filing of Form 990. We had thought that by now the process of changing the form and pubic comment would have been completed. However, they seem to still be in the process of revision and completion of that work. They do have some new items posted for nonprofit including this, on transparency and accountability:
--Governance and Related Topics - 501(c)(3) Organizations, Posted February 4, 2008. irs.gov
For a board that uses the Policy Governance system, the board level policy document will nicely serve as one of the governance process documents to be made publicly available.
Your ideas matter here! Please leave a comment.
The IRS has been in the process of updating its reporting requirements for nonprofit organizations. Specifically, on the filing of Form 990. We had thought that by now the process of changing the form and pubic comment would have been completed. However, they seem to still be in the process of revision and completion of that work. They do have some new items posted for nonprofit including this, on transparency and accountability:
By making full and accurate information about its mission, activities, finance, and governance publicly available, a charity encourages transparency and accountability to its constituents. The Internal Revenue Code requires a charity to make its Form 1023 exemption application, Form 990, and Form 990-T, available for public inspection. The Internal Revenue Service encourages every charity to adopt and monitor procedures to ensure that its Form 1023, Form 990, Form 990-T, annual reports, and financial statements, are complete and accurate, are posted on its public website, and are made available to the public upon request. Organizations that file Form 990 will find that Part VI, Section C, Lines 18 and 19, ask whether and how an organization makes its Form 1023, Form 990 and Form 990-T, governing documents, conflict of interest policy, and financial statements available to the public.
--Governance and Related Topics - 501(c)(3) Organizations, Posted February 4, 2008. irs.gov
For a board that uses the Policy Governance system, the board level policy document will nicely serve as one of the governance process documents to be made publicly available.
Your ideas matter here! Please leave a comment.
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