e-Newsletter: CNE Board Member Quarterly

The New Fundraising Roles for Nonprofit Boards

"Our board doesn't raise money. You'll have to look elsewhere for fund-raising leadership."
That's when I tell them they have to change the makeup of the board. -Tony Poderis

We all know that times are tough for nonprofit organizations. Dramatic reductions in funding from foundations, government and private sector sources have been coupled with increased demand resulting from the national economic downturn. These forces have caused many nonprofits to cut expenses – often including staff, and utilize a large portion of their reserves.

And once your organization has made all the cuts and is doing “less with less,” you’ve probably started talking about increasing your fundraising efforts – again.  But too many times the executive director is frustrated because the board isn’t raising (enough) money, and the board is frustrated because the executive director isn’t taking the lead (…board members are volunteers , the ED is the paid professional– it’s part of his/her job).

Ensuring there is a realistic strategy for raising money is a key responsibility of nonprofit boards. This includes approving and monitoring the fundraising plan to ensure sustainability; requiring all board members to do something to implement the plan; and being very clear about the expectations of board members during the recruitment process.

A realistic fundraising plan ensures that the organization will have the funds needed to: meet its mission; meet cash-flow needs; ensure there is an emergency reserve appropriate to the mission; and, to invest in/replace capital needs. The plan needs to be aligned with the mission and values of the organization (i.e. defines whether or not a substance abuse program would accept contributions from liquor companies).
Based on the plan, the individual board members should agree that they will participate in one or more parts of the fundraising activities. This may include finding volunteers to assist with special events, using their personal relationships to develop contacts for donations/contributions, or hosting meetings/parties to develop and enhance donor relationships. It is usually more than just writing a check once a year and more nonprofits are asking that board members make this organization a priority in their giving.    

The key to a successful fundraising plan is to start with identifying a champion or leader. Often this is the board chair, although it may be another board member. This person sets an example for the other board members and leads the community side of the activities. If the expectations of board members related to contributions have been made clear before their election, reluctance to participate and assume their responsibilities is minimized.

Another way to ensure successful board member participation is to make sure there are many different ways for board members to contribute – so you need to ask people how they would like to be involved in the fundraising plan. Not everyone shrinks from asking for money, or soliciting ads or raffle prizes, but some may be more comfortable with assisting in other, still valuable, ways. And many board members can gain the confidence needed if they are mentored by a more experienced board member, and/or are able to shadow someone on the “ask.” Practicing the role of the board and staff before a foundation site visit is also a good idea!

Carol Weisman, a leading nonprofit board and fundraising expert, has four questions that should be asked to get nonprofit boards thinking about fundraising:

1. What are our measurable fundraising goals?
2. Does our board have the training to implement them?
3. Do we have a firm commitment from each board member as to what he or she is going to do?
4. How are we going to celebrate when we reach our goals?

Once those questions are answered, the board will have a firm foundation to begin or expand its fundraising plan.

Unfortunately the experience of the past few years with mismanagement of donated funds by some nonprofit organizations and institutions, excess executive compensation scandals, and even criminal behavior has raised the question of how nonprofits conduct oversight, and if there needs to be outside intervention to protect the rights of donors. So part of every nonprofit’s fundraising plan needs to be a process for ensuring accountability and transparency, and adherence to a standard of ethics in fundraising.

The Association of Fundraising Professionals has a code of ethics for fundraisers which can be used as a guide. The Accountable Nonprofit Organization is a statement of principles that outlines the operations and procedures a nonprofit undertakes to show it is accountable to donors, the people it serves, and the general public.

For more information and resources, explore CNE’s website at www.cfnpe.org, or contact Jeff Vengrow at vengrow@cfnpe.org.

Resources / Sources

This information is summarized from these resources:

1. Carol Weisman, www.BoardBuilders.com
2. Tony Poderis, www.raise-funds.com
3. BoardSource, www.boardsource.org
4. The Best of Board Café, CompassPoint Nonprofit Services, Wilder Publishing Center
5. The George Heyman, Jr. Center for Philanthropy and Fundraising, New York University School of Continuing and Professional Studies.
6. Association of Fundraising Professionals, www.afpnet.org