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Nonprofit Embezzlement: More Common and More Preventable Than You Think
"I was on the board of a national social justice organization for three years. The Development Director discovered that the "external-auditor-turned-internal-accountant" had been embezzling funds by stealing checks and using the "st …
The Board Builds Its Sense of Self: Body-Building for Boards
Perhaps the single most important attribute of an effective board is also its most intangible: an independent sense of itself. This sense of self is the board’s identity as a BODY rather than, for instance, as a loose collection …
Closing Down the Right Way
In the last Board Cafe column, we discussed how to think about the possibility of closing down a nonprofit, including alternatives to closure. But sometimes closure is the best choice of the possible options. In recent weeks we’ve had a chance to see s …
Thinking the Unthinkable: Maybe We Should Shut Down
When we think about the important work we do at a nonprofit, it’s hard not to think that closing down is the ultimate disaster. But sometimes a lack of money or energy raises the question for us. Here at Blue Avocado, where we turn things on their head …
How to Take a Public Policy Stand, with sample criteria
When the Colorado Association for Recycling was approached to endorse the No Child Left Inside legislation, they didn’t know WHAT to decide, but they did know HOW to decide (see what they decided at end of article). They already had a proce …
Is It Time for an Audit?
Blue Avocado reader Bill Mitchell writes: “As a board member of both a small ($400k/year) and a much larger ($1.8m/year) nonprofit, what are the criteria to determine whether or not to conduct a formal outside audit? I have worked on staffs, sat on boa …
Should the Board Hold Executive Sessions?
Nonprofit boards are often criticized for a lack of vigor, being subservient to their executive directors, and for weak evaluation of their chief executive. The need for frank and informal discussion about staff performance, and the importa …
Board Meetings by Phone: Legal? A Good Idea?
With gas prices rising and everyone getting busier, more and more board members want to participate in board meetings by telephone. The advantage: more people participate. The disadvantage: there's a lot lost in human interaction for both the board …
Nonprofit Budgets Have to Balance: False!
As nonprofits serving people and communities in these difficult financial times, we don’t expect things to turn around for our communities in the near future. Many of us are wondering: how can we achieve a balanced budget in these times? When is it oka …
Abolish Board Committees?
A fresh and radical idea: consider eliminating all (or most) of your board committees. Too many boards are bogged down by committees that are inactive or maybe even semi-fictitious. And board members can feel compelled to be on three or four committees …
