In the world of hot buttons that irritate me (and yes, there are far too many) but in this case, about nonprofit boards, the expectation or demand that a primary responsibility and even duty that boards are about raising money is for me a construct created by nonprofit executives and foundations (who want nonprofit boards to bring in more money to either benefit the foundation in the long run or offset dependency on the foundation - both meritorious goals in themselves but likely should be uncoupled from expectations of boards).
The folks who regularly contribute to the Tallahassee Democrat, regular spreaders of the commonly held beliefs about boards recently had this to say:
Another responsibility of a board of directors is to ensure adequate resources. Without the money necessary to fund operations and services, a nonprofit, no matter its mission or leadership, will not succeed.
Fundraising must start at the top with board members understanding their role and being willing to make a personal contribution. I am a big believer in 100% board giving. This sets the tone for a successful fundraising program and enables board leaders to preface each ask by saying “join me” in supporting the organization. 100% giving is often required by funders to be eligible to apply for grant funding.
Savvy individual donors will also ask about this so it is always best when the organization can answer yes to this question. I recommend the board giving expectation be a personally meaningful gift. Kelly prefers a specific minimum like $1,000 a year. In that case, I recommend a give and get approach which includes a personal gift from the board member in any amount along with gifts they raise. Whichever approach you choose, the outcome is the same: 100% giving.
It is vital for board members to review and adopt an annual written fundraising plan.
Staff are responsible for drafting the plan which is reviewed by the Executive Director and forwarded to the board for their review and input. It can also be vetted by a board development committee. Prior to approval, I recommend the board Chair engage all members in a conversation about the goals, strategies, and timelines. This collaboration helps to produce a fundraising plan that everyone has ownership of rather than just the staff.
The board should monitor and nurture these relationships and anticipate changes in leadership which can impact funding priorities.
Boards are also responsible for planning for the long-term funding needs of the organization. After an organization is established and been running successfully, the board should consider establishing an operating reserve for unexpected expenses, losses, or cash flow shortages.
The board is responsible for helping to raise funds to grow the endowment and invest the funds. Endowments build over time with the addition of legacy gifts by individual donors or by the board itself which can designate unrestricted dollars to the fund.
Board members are ideal ambassadors for the organization and can be key to building long term relationships with donors who may consider this type of gift.
OK - MAYBE ONLY AFTER THE BOARD HAS DECIDED FUNDRAISING IS THEIR RESPONSIBILITY! YES, THEY HAVE THE CHOICE TO MAKE AND MUST MAKE IT WHILE DETERMINING HOW BEST TO ACT ON THEIR FIDUCIARY DUTY OF CARE! Fundraising is not implicitly or inherently implied in the duty of care nor is it inherently a part of the job description unless the board decides so. Do I believe there to be consequences if the board decides fundraising has nothing to do with them? Perhaps abut the same perhaps if the board does not opt to hire an exec who is an accomplished fundraiser. Do I believe board members should understand and authorize the fundraising plan? Absolutely! Do I believe that board members who can Would Want to Make a Contribution? Absolutely! And do I believe that board members who themselves accompany staff on fundraising calls or do so themselves can likely have a positive impact? Again, Absolutely. But are boards required, simply by their title, to get and give? Not - this is a commitment individually and collectively agreed upon - and this is the way it should be. This is the way good things can happen.