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Nonprofit Board Harm

What should happen when a nonprofit board learns that its CEO does not actually have the credentials he claims?

Recently in Hartford, CT the 17-year CEO of a nonprofit charter school enterprise resigned pretty much on short-notice.  The reporting source, WFSB on-line, tells that word had circulated that the CEO was not a PhD.  According to the report it's not clear that this is the sole reason for the resignation but for sure, impersonating a PhD can create a number of challenges for an academic institution.

While the CEO's resignation reduces the ability of the nonprofit board to take action, it feels appropriate to indeed ask the question: what would action have looked like if the board did learn that it's CEO was not all he/she claimed to be?  Should a board take immediate action citing that such misrepresentation is not ever acceptable and just fire the individual?  Or, and I don't know the rules, but let's say that 17 years ago when the board hired the CEO, it knew the individual was a PhD candidate and understood that pursuit of completing the degree was eventual.  Maybe the board even accepted use of the title believing it would help in developing the schools and because intention was good, no harm was being done.

But isn't this the crux of the question: has harm been done by using a title that is not valid?  If credentialling bodies consider having a CEO who is a PhD more valuable and they certify accordingly, is this incorrect.  And, if students and parents learn that the head of the school isn't who they think it is, is this ok -- does it not convey a message about "how to get ahead".

A nonprofit board must establish the organization's values and live by these.  If it's CEO turns out to have fabricated their worth via a false representation of their academic status, it would strike me as correct to remove that individual.  And, if the individual removes themselves, does this not also mean that the board's obligations to the individual are lesser as well?  

Yes, harm has been done but is it not offset by the good that was done -- an amazing educational center with significant numbers of children who have performed better than they would have had they not experienced this school and this CEO?

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Every Sunday night, West Haven family child care provider Yanerys Aziz strategizes for the coming week. She thinks about the materials she’ll lay out for children on her theme table, the arrangement of her child care space, and the activities she’ll propose in the days to come. The children she cares for will arrive early the next morning, and Yanerys wants to be prepared to offer them experiences that nurture their curiosity and help them grow and learn. Since 2007, when she opened the doors to her family child care program, Yanerys has exemplified the creativity, perseverance, and commitment to continuous learning that so many of All Our Kin’s providers share.

Continue reading on All Our Kin's blog, All Our Words.13358887090?profile=original

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Nonprofit Board & CEO Retirement Policies

It is pretty much the practice of nonprofits to establish board term limits. Most common among these practices is the 2-3 year term and 1 year off rule recognizing that for large organizations, 3-3 year terms takes into account the learning curve that may be needed to create effective boards. Admittedly, there are quite a number of nonprofit boards that I have encountered that do not implement their term limits for all kinds of lame reasons: we don't want to lose our invaluable member (what, once they aren't a board member they will never talk to the organization again?) and, it's too hard to find qualified and capable members (how well have you looked?). But pretty much it is understood that terms and term limits. when practiced, produces better outcomes for the board and organization.

But what about execs? I have been and will continue to maintain that the "habit" of many nonprofits to not establish a "term limit" on the exec can produce its own negative results. A recent Conference Board report illustrates what for-profits are doing around this issue. And one statement is particularly noteworthy to me:

With longevity, the CEO can cultivate closer ties with directors, which may hinder the independence of board oversight and weaken the objectivity of the performance evaluation process. When adequately used, policies on CEO retirement based on age or term limits may offer an additional safeguard to existing governance practices and serve as an integral component of CEO succession planning.

I think the lessons from this report apply equally to nonprofits and nonprofit boards should consider the question of ceo term limits which can in the end, compliment and be a sound part of succession planning. Note, I'm not needing to see all nonprofit execs retire, I'm just, saying that staying forever is not in the long range best interest of the nonprofit.

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Nonprofit Board Values and Ethics

A recent shake-up in a nonprofit dependent on its credibility and adherence to high ethical standards can serve to remind nonprofit board and staff that conflicts of interest are not specific to board members alone.

"The CFA Institute (Chartered Financial Analyst Institute) is best known for administering the Chartered Financial Analyst exams, a rigorous test of financial analysis and ethics. This year, nearly 150,000 candidates from 179 countries registered to take one of the exams, often after years of study, on June 7. The organization has 119,000 members. CFA has an annual budget of $231 million. Its executive was paid $1.4 million in fiscal year 2013.

According to the Wall Street Journal, the executive "stepped down" after a board review that followed its learning about the executive's relationship with a senior staff member. The Journal notes that "While the organization's code of conduct doesn't prohibit relationships between staff, a concern on the board was that potential conflicts from the relationship could open CFA Institute to litigation or public criticism, people familiar with the situation said."

Whew! I understand rigor and all and the duty by the board to ensure that its biggest asset, rigor to high standards, is preserved but I for one wonder that this action doesn't stretch the meanings. I however do recognize that when an inner office relationship between a supervisor and supervisee shifts to something of an amorous nature, power dynamics can also change and perhaps in turn, risks to outcomes. At the same time I would expect that an organization like the CFA would have instituted enough checks and balances that inner-office dynamics would not directly affect the quality of its product. Might word of a relationship affect perceptions of quality by members? This of course becomes the basis for the board's action. I would expect though that the board must adjust its code of conduct to reflect its own sense of the impact of inner-office relationships.

At this point, based on its action, I'm led to wonder whether the board didn't have previous issues with its exec to reach this end result. This for me would be the only reason to take an action that did not otherwise have institutional documentation. Food for thought.

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IRIS – Integrated Refugee & Immigrant Services (www.irisct.org), a dynamic nonprofit organization in New Haven CT, has an immediate opening for the full-time position of Health & Wellness Program Coordinator. IRIS helps refugees and asylees— people fleeing persecution in their home countries who are invited to the US by the federal government—to start new lives and become self-sufficient, contributing members of their communities. IRIS currently serves clients from countries such as Iraq, Afghanistan, Cuba, Congo, and Sudan.

The goal of IRIS's Health & Wellness Program is for refugees to have prompt access to high quality, culturally and linguistically competent medical care.  Refugees' health needs will be addressed and they will receive health education, to enable them to become healthy, productive members of the community.

 

The Health and Wellness Program Coordinator (HWPC) will coordinate healthcare and health education for newly-arrived refugees (approximately 200/year) and other IRIS clients.  The HWPC will provide refugees and asylees with medical case management, and will orient them to New Haven and the healthcare system.  The HWPC will also advocate on behalf of clients and engage with the medical community on issues related to refugee and immigrant health and health care.  The HWPC will coordinate with other IRIS staff members to help clients overcome health-related barriers to employment or education, and to help them achieve self-sufficiency soon after arriving in the US.

This job is a mix of direct service and administrative work. 

Candidates must have relevant experience; strong writing, communication and organizational skills; and ability to handle multiple demands and shifting priorities in a fast-paced environment.  Candidates must have a demonstrated commitment to the mission of IRIS and awareness and sensitivity to multicultural issues.  Candidates must be fluent in English. Proficiency in another language is desirable, especially Arabic, Spanish, French, Swahili, or Tigrinya.  Candidates must be able to work occasional evenings.  Ideally, candidates would have driver’s license and be willing to drive clients in personal vehicle to appointments in the area. 

 

To apply, send an email to Kelly Hebrank, Deputy Director, at humanresources@irisct.org by June 27th with the following:

  • Subject line MUST say “HEALTH & WELLNESS PROGRAM COORDINATOR: [Candidate first and last name]”
  • Cover letter describing your relevant skills and experience, and why you are interested in this position
  • Attached resume
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Nonprofit Board Diversity

How much does diversity really matter to an organization--externally?  

A New York Times article took a look at how today's organizations may have even put into their policies a commitment to diversifying their boards but have very little to show to this commitment.  The Times asks: Companies today earn points for listening to their shareholders and agreeing to change governance practices that are seen as unenlightened or troublesome. But is there a penalty if a company reneges on its promise of change?  And further into the article: The continuing problem of homogeneity in corporate boards is a case in point. Despite shareholder efforts to bring more diversity to these posts, women and minorities are still few and far between in the boardroom. These hushed precincts still fit the description given by one governance expert: “male, pale and stale.”

As the rest of the article points out, organizations that pay attention and act to diversify the composition of their board can improve their results (e.g. the value of the company worth).  But making these changes can clearly be perceived as too much work.  Really?  And while we are predominantly discussing for-profits, what about nonprofits?  Just how diverse are they?  And what is the impact of diversifying the composition of a nonprofit's board?  I'd welcome hearing about folks' experiences about their non-diverse and diverse boards; the processes used to diversify; and what has been the impact when diversity was a focus.

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