Blog

I believe in context. Organizations should situate themselves, whether in the external financial environment, governance/accountability best practices, or senior executive compensation benchmarking. Except when an organization faces a governance/accountability challenge. Then, whatever the context, all eyes belong on the organization. I also believe in expert communication. Except when an organization faces a governance/accountability challenge. Then, however necessary and outstanding the media expertise for a current challenge may be, all eyes belong on the organization’s first in class, previously-implemented governance/accountability policies and practices. (more…)

As the financial crisis hits yet the number of non-profit organizations continues to increase in many countries, questions of whether and how certain organizations should continue to exist have become front and center. When is a merger the most effective and/or ethical solution? When should an organization shut its doors? When is a third contractual option such as alliances or partnerships (as opposed to institutional restructuring) most effective? As discussed below, these questions are relevant to all organizations as a matter of on-going oversight, even the most successful. (more…)

Reading through the mainstream press and non-profit sector literature, lists have become the fashion. Top 10 best or worst [you fill in the blank], most highly paid, most effective, most underrated….most….least….. Perhaps this is in part due to the culture of immediacy resulting from a twitter/social medial/internet giving culture. Perhaps we are just increasingly impatient, or dare I say lazy, as a sector.  Either way, in most cases lists do not serve the interests of donors, organizations, or the beneficiaries of non-profit services.  Please note that this blog is not intended as an attack on individuals or organizations generating lists,...

This blog offers practical recommendations on the hot topic of the use of ratios to assess non-profit organizations. Part II of this blog will address current research on the relevance (or irrelevance!) of ratios. The non-profit sector, including rating and certification agencies, has become increasingly focused on two key ratios: (i) the cost of fund-raising (i.e., the amount spent to raise funds, sometimes expressed as cents per dollar raised spent on fund-raising) and (ii) the relative amount of revenue allocated to administrative costs and program costs. (more…)

Alicia Clegg’s recent article in the Financial Times (Watching the executives, June 7, 2011) highlights corporate moves to improve compliance and image by hiring ethics officers. The issues are identical in non-profit organizations, despite the fact that the budget for such positions is almost always lacking. With due respect to the overall excellence and best efforts in the non-profit sector, culturally and organizationally rigorous integration of ethics policies and practices at all levels is often lacking as well. (more…)