JLTV May 6 2014 Presentation

Part III of Executive Workshop Seriespresented by JLTV and The EHL Consulting Group, Inc.

May 6, 2014

The Uncomfortable Ask: Board Members and Fundraising

The EHL Consulting Group, Inc.

• More than 20 years of experience in… – Fundraising & Campaign Management– Strategic Planning– Leadership Development– Nonprofit Business Planning – Creating Innovative Campaigns– Donor Research & Stewardship

• We have worked with over 400+ nonprofit organizations.

It’s About Time – And Dollars:Show Me the Money!

• Nonprofits must ask all board members to give a meaningful gift.

• Nonprofit board members give their time and expertise, but that is not enough.

• If a board member isn’t supporting an organization financially, how can they expect someone less connected to give money?

Steps for Success

Start with the board president and get him or her to “buy in” with the

idea that all board members should give

Create a deadline for board commitments

along with a suggested gift

Make development a regular part of every

board agenda

100% Participation

• Some foundations will only consider awarding grants to nonprofits that have 100% board participation in annual giving.

• The amount of the gift doesn’t matter as much as the fact that every board member makes a gift.

Just 46% of boards reported 100% participation

To Give And To Get

• Many nonprofits utilize a “Give or Get” policy – requiring board members to donate money directly or solicit others for that same specified amount.

• Instead, nonprofits should have a “Give and Get” policy, requiring board members to personally invest and to be involved in the promotion of an organization’s mission.

The 2012 Not-For Profit Pulse Survey found 77% of boards do not have a give and/or get policy in place.

Of those organizations with a give and/ or get policy, 35 percent require less than a $5,000 commitment from

board members.

Great Expectations

• Staff should frame board service as an honor and a privilege and present board giving through the prism of public service.

• As a last resort, some boards may even threaten to remove members if he or she declines to contribute.

Board Donations

• When boards become actively involved in fundraising, nonprofits are more likely to reach their goals.

• 52% of organizations without a board-level development committee met their fundraising goals for 2011, compared with 63% of those with that type of committee.

Board Fundraising

*Source: 2012 Nonprofit Research Collaborative Survey

A Contractual Approach

Example:

All board members will make every effort to meet the minimum amount of financial contribution, currently $__________, every year. Contributions may be made from the

board member’s private resources, or may be raised in any manner that does not conflict with Executive Limitations or otherwise

compromise the organization.Contributions may be scheduled in a series of smaller gifts or payments.

In the case of financial hardship, a board member who is unable to meet the minimum requirement may contribute to the best of his or her ability with the approval of

the Board Chairman.

*Sample Board contract from John and Miriam Carver’s 2006 book, Reinventing Your Board

Financial expectations should be clearly conveyed to board members at the outset.

A written policy is recommended.

Board Giving: By the Numbers

Sources : Board Source Survey 2012; 2012 Nonprofit Research Collaborative Survey

Boards average 74% participation in giving

68% of nonprofits have a policy requiring board members to contribute annually

Among organizations that require a minimum board member contribution, the median amount was $1000. It is higher for arts

($2,000) and education nonprofits ($2500).

2.7% of nonprofits require more than $20,000 to be donated or raised by each board member per year. (not for profit pulse survey)

Some organizations ask for a minimum of more than $100,000.

Measuring ROI: Philanthropy Can Be a Calculated Risk

• Social service programs are easier to evaluate.

• Programs that focus on identity building, education or solving large societal problems are more difficult to quantify.

• Leverage personal $$ thru relationships with donors & funders.

Make sure every dollar spent has a multiplying affect- building confidence from the “inside out”

Giving is the Operative Word

• Fundraising is a primary responsibility of any and every nonprofit board.

• Leading by Example is the primary responsibility of each member.

• Board members should designate their own organizations as one of the primary recipients of their generosity.

• Nonprofits should, if needed, invest in professional training to make board members more effective advocates for their organizations.

• Many nonprofit board members are uncomfortable asking for money and want to opt out of fundraising responsibilities – don’t let them off the hook.

For More Information:

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