Why Nonprofit Boards need outside help in evaluating their CEOs.
Two of the chief responsibilities of a nonprofit board are to provide guidance to their CEO, and to assure that the organization is complying with legal and tax requirements. Additionally, the IRS requires that compensation for a nonprofit CEO be “reasonable”, or excise taxes may be imposed on the organization, the CEO and the board members who approved the “unreasonable” compensation. Unfortunately, board members often have neither experience in evaluating nonprofit CEOs nor in setting their compensation.
info@NPCEOEvaluation.com
(816) 486-7786
“The care and feeding of the CEO is a nonprofit board’s most important duty.”
How we help:
Evaluation Surveys
To conduct an effective evaluation, every member of the Board must offer input on each key area of the CEO's performance. We simplify that process by creating a customized, web-based survey that is easy to complete, yet thorough, helpful and flexible.
Compensation review
How much is a great CEO worth? The correct answer is "It depends." The IRS, however, requires that compensation for a nonprofit CEO be “reasonable”, or excise taxes may be imposed on the organization, the CEO and the board members. We provide objective analysis which meets the IRS requirements.
Objectivity and impartiality
Board/CEO relationships are complex, interdependent, and not always completely rational. By using a third party to administer an evaluation survey and to provide objective compensation analysis, a Board can provide valuable, anonymous feedback and insulate itself from IRS concerns.
“Boards and board members often are reminded that they have a ‘fiduciary responsibility’ to the organization and, ultimately, to the larger community within which they serve. At its core, ‘fiduciary responsibility’ is the responsibility to treat the resources of the organization as a trust, and the responsible board will ensure that these resources are utilized in a reasonable, appropriate and legally accountable manner.”
The NPCEOEvaluation.com logo is intended to reflect the importance of the point of intersection between the board, which is responsible for governance, and the CEO, who is responsible for implementation.