e-Newsletter: CNE Board Member Quarterly

The Board’s Role in Fundraising in Difficult Financial Times

In these difficult financial times, it may seem to boards and staff alike that all you think about is money. And when nonprofit organizations think about money, “fundraising” is often one of the first things that is brought up - how to do it, how to do more of it, how to do it better, what to do differently, how to attract and retain new and more donors, etc., etc., etc.

But fundraising isn’t just about the money – a strong and sustainable fundraising plan starts at the beginning with a clear understanding of the mission. In these turbulent times, it’s even more critical that the key stakeholders – board, key staff, major funders, consumer, and community representatives understand and agree with the mission and strategic direction indirection in the same way. Presenting a unified, consistent picture of your organization is key to ensuring donor confidence in the short-term and for the long-haul.

Once you start asking for money, whether it is through a special event, or a major gift solicitation, or a grant application, everyone involved needs to be on the same page to be able to answer your donor’s’ questions with consistenc.. A well-planned and thoughtful message is critical to sustaining the organization’s credibility and reliability level.

We often get asked: “Whose responsibility is fundraising in a nonprofit organization?” The bottom line is that it is one of the major responsibilities of the board to ensure that the organization has the financial resources it needs to meet its mission. The board makes sure that there is a plan AND that it is within the capability of the organization to successfully be accomplished successfully.

The role of the board often includes participation in the plan through gifts proportionate to each member’s means, and by investing time and energy to open doors to potential donors or otherwise be present at events and help as needed. If the organization has a staff, the Executive Director/CEO oftenCEO often has a major role, supported by the board’s activities. Since most people don’t like asking for money, it’s vital that the board assess what skills are needed to meet the fundraising goals, and who on the board has those skills.

For example, if the board decides to initiate a major gift campaign, and no one on the board has ever participated in that type of fundraising before, the campaign is doomed before it begins. It is important to determine what skills or activities are needed, and then assign tasks based on them, on them in order to be successful.

Some organizations first conduct aconduct a self-assessment and/or a community feasibility study. These tools will help your board determine the organization’s “readiness to ask and the community’s willingness to give” (David Allen, CFRE). A feasibility study tests whether the goals and resources needed to meet the goals are based on accurate and realistic data.

Remember no money - no mission. Your organization cannot run at a deficit, and to do so is an abdication of the board’s responsibility to provide adequate resources to meet the mission. A well-thought out fundraising plan can help to create enthusiasm and generate confidence in the organization. The plan needs to focus on developing the relationships with funders and supporters that will continue to provide the financial and other supports needed to weather this storm.

These are very difficult times for nonprofit organizations, so don’t waste time reinventing fundraising options or processes; check out the many resources on this topic (see the Resources List below), and visit CNE’s Resources & Tools page, attend a training program, or consider hiring a consultant to help you get started and develop your plan based on the needs, strengths and skills of your organization. For questions related to how to hire a fundraising consultant, refer to the Association of Professional Fundraisers’ Code of Ethics at www.afpncoh.org.

Resources / Sources

This information is summarized from these resources:

1. Fund Raising Realities Every Board Member Must Face, David Lansdowne
2. The Development Plan, Linda Lysakowski
3. The Fundraising Habits of Supremely Successful Boards, Jerold Panas
4. Leading Up: Transformational Leadership for Fundraisers, Lilya Wagner
5. The Fundraising Feasibility Study: It’s Not About the Money, Martin Novom, CFRE
6. Strategic Fund Development: Building Profitable Relationships That Last, Simone Joyaux
7. Secrets of Successful Fundraising: The Best From The Non-Profit Pros, Carol Weisman
8. Saving Money in Nonprofit Organizations, Gregory Dabel