It’s Nice To Find A Professional Who Agrees With Me

One of the risk management blogs that I subscribe to is one written by Donald Kramer Esq.  Mr. Kramer is  the chair of the Nonprofit Law Group at the Philadelphia law firm  of Montgomery, McCracken, WAlker & Rhoads LLP.   Mr. Kramer has more  than 35 years of experience dealing with the concerns of nonprofit  organizations, not only as a lawyer, but also as a teacher,   writer, publisher, and board member. Mr. Kramer is editor  and publisher of Don Kramer’s Nonprofit Issues®,   a  national newsletter of “Nonprofit Law You Need to Know.”  He writes and lectures frequently on nonprofit legal issues,  and teaches a course on nonprofit organization law at the University  of Pennsylvania Law School. He has worked with nonprofit organizations  of all types and sizes.

Recently, Mr. Kramer answered the following question: Do you consider it a conflict of interest for the  executive director to also serve on the board?

Below is his response.

“I  don’t think it is an automatic, insurmountable conflict for the CEO to serve on  the board.  Business certainly doesn’t think so, and although that is not  always the standard (See Ready Reference Page: “A Corporate Mentality in  Charity Boardrooms? Hey, Bring It On), it is at least relevant to the  consideration.  The dual role can create a conflict on certain issues, but  everyone has the potential for conflict, and conflicts can usually be resolved  by disclosure and recusals.  

I  don’t think it makes a lot of difference in most cases.  If the founder is  CEO, the founder ought to be on the board.  In some large organizations,  or in advocacy organizations, the CEO is so significant in the public image  that the CEO should be on the board.  I think it depends on the  organization.  In most cases, the CEO does not serve on the board, but  there is no one-size-fits-all in nonprofits, and I have never been particularly  exercised by this issue.”

It’s nice to find nationally respected professionals who agree with me. 🙂


One thought on “It’s Nice To Find A Professional Who Agrees With Me

  1. Anne Derfus 06/26/2013 at 12:25 AM Reply

    Thanks for your tip. Ours is not officially on the board, but she probably should be.


    Anne Derfus

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