Last night, we helped add eight new board members to a well-known and highly- respected African-American art's organization. Obviously, the new board members wanted to know what their role in fundraising would be. This is probably the most common question that comes up with new board members (and rightly so). Board members must be expected to raise money, and they should know this up front when they first get started on the board.
Most people do not join non-profit boards to raise money, rather they join organizations to make an impact in the community and to save the world. But there is (or should be) a lot of work involved in being a board member. Board members need to assume responsibility to not only design the strategic plan for the organization but to also make sure there are adequate resources to run the agency.
This week, let's take a look at some of the primary roles board members should play in fundraising and resource development:
- Each board member should give a meaningful gift to the organization. It's critical that each board member make a personal financial gift to demonstrate to the other board members as well as to the donors that s/he has a financial stake in the organization. For some, this may mean $10,000 and for others it may mean $100.
Most boards require a specific sum of money such as $2,000 in a "give or get policy," while others simply require that the gift be one of the board member's top three philanthropic priorities. Whatever the amount, it's important that each and every year the board members verbally agree to a specific policy and hold each other accountable for that dollar amount.
- Approve the operational fundraising plan for the year. It's up to the board to develop a definitive funding road-map that the executive director and development staff can follow.
- Recruit a few board members who are willing to become major donors. Many boards are simply NOT fundraising boards and never will be; however, this does not mean that your board cannot become involved in raising money. Try to recruit a few people to your board who have wealth or access to wealth and who you can call on to become major donors.
- Make it an institutional priority for ALL staff and board members to become involved in fundraising. Not everyone needs to write a check for $1,000+ but everyone does need to do something to assist the development efforts. This can mean different things for different people and might include selling raffle tickets; or getting their church to designate the organization for its mission dollars; or asking a local restaurant if they will donate a meal to the silent auction.
- Hire an executive director who is savvy at raising money. Most executive directors spend at least 50 percent of their time bringing in dollars, so it's imperative that they have a fairly sophisticated understanding of the politics of money (it also helps if they're a great schmoozer). I was facilitating a board retreat two weeks ago in which the executive director decided the organization should focus their time on programs and not on fundraising. The organization was already in a downward slide and it became obvious why: No one was concentrating enough time on bringing in the dollars.
- Establish policies to help shape and guide the resource development efforts. We have worked with a number of organization on their gift acceptance policies . A gift acceptance policy is essentially an ethical screen to help organizations determine which companies they will or will not accept donations from.
- Every year, ask each board member what areas they will concentrate on from among the following options:
- Direct mail
- Hosting a parlor meeting
- Helping organize the gala or special event
- Providing in-kind and donated gifts from their company or other business for raffles, auctions, etc.
- Making phone calls during the holiday season
- Attending interviews with private foundations
- Soliciting their corporation
- Approaching their church or faith-based organization
- Identifying 10 prospects for major gifts
- Hosting a luncheon
- Evaluate the organization's fundraising efforts. On a quarterly basis have the board review the fundraising operational plan for the year and recommend adjustments to this road-map.
- Organize a strong development committee that will be the focal point of operating the development plan. This committee should be comprised of non-board members from the community who bring expertise, contacts and credibility to the group. This committee is a good breeding and training ground for future board members.
- Leadership is key. Always keep an eye out for potential new fundraising board members. Look to your existing and new donors, as well as people who have chaired your special event committees as possible future board members and leaders. Developing the "farm team" now will make for a first-rate major league team in the future.
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