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1Chapter Title Here Please

How to Managean Effective

Nonprofit

Organization


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How to Managean Effective

Nonprofit

Organization

FFFFFrrrrromomomomomWWWWWriting andriting andriting andriting andriting and

Managing Grants toManaging Grants toManaging Grants toManaging Grants toManaging Grants to

Fundraising, Board Development,Fundraising, Board Development,Fundraising, Board Development,Fundraising, Board Development,Fundraising, Board Development,

and Strategic Planningand Strategic Planningand Strategic Planningand Strategic Planningand Strategic Planning

Michael A. Sand

Franklin Lakes, NJ


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4 How to Manage an Effective Nonprofit Organization

Copyright2005 by Michael A. Sand

All rights reserved under the Pan-American and InternationalCopyright Conventions. This book may not be reproduced, in wholeor in part, in any form or by any means electronic or mechanical,including photocopying, recording, or by any information storageand retrieval system now known or hereafter invented, without

written permission from the publisher, The Career Press.

HOWTOMANAGEANEFFECTIVENONPROFITORGANIZATION

EDITEDANDTYPESETBYCHRISTOPHERCAROLEI

Cover design by Foster & Foster, Inc.Printed in the U.S.A. by Book-mart Press

To order this title, please call toll-free 1-800-CAREER-1 (NJ and

Canada: 201-848-0310) to order using VISA or MasterCard, or forfurther information on books from Career Press.

The Career Press, Inc., 3 Tice Road, PO Box 687,Franklin Lakes, NJ 07417

www.careerpress.com

Library of Congress Cataloging-in-Publication DataSand, Michael A.

How to manage an effective nonprofit organization : from

writing and managing grants to fundraising, board development,

and strategic planning / by Michael A. Sand.p. cm.

Includes index.

ISBN 1-56414-804-1 (pbk.)

1. Nonprofit organizationsManagement. I. Title.

HD62.6.S346 2005

658'.048--dc22

2005046954
http://www.careerpress.com/http://www.careerpress.com/


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Dedication

This book and my life are dedicated to my wifeand best friend, Diane. As I led workshops for nonprofit

managers over the years, and provided on-site assistanceto nonprofit agencies, I accumulated the tips included inthis book. I want to thank all the individuals who chooseto work in nonprofits, most of whom are overworked andunderpaid. In my home state of Pennsylvania, 11.5 per-cent of the workforce is employed by nonprofits (634,098in 2003), a total significantly higher than the national aver-age of 6.9 percent (Johns Hopkins Nonprofit EmploymentData Project, Pennsylvania Nonprofit Employment, 2005).Therefore, I would also like to dedicate this book to everyindividual who devotes his or her life to assisting others bychoosing to work for a nonprofit organization.


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Acknowledgments

Specials thanks to my family. My wife, Diane, assistedin many aspects of writing this book and proofread every

word. My sons, Jay and Marc, lent their computer ex-

pertise. Thanks also to my agent, Sara Camilli, who pro-vided invaluable advice. I also would like to thank all theorganizations that, over the years, have invited me to lead

workshops and provide assistance.


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Contents

Preface 11

Introduction Helpful Tips to Keep in Mind

While Reading 15

Chapter 1 Effective Boards of Directors 21

Chapter 2 Successful Community Fundraising 53

Chapter 3 Writing Grants and

Getting Them Funded 77

Chapter 4 Managing GrantsOnce You Get Them 103

Chapter 5 Developing a Strategic Plan 117

Chapter 6 Being an Effective Supervisor 135

Chapter 7 Hiring, Firing, and Other

Personnel Management Skills 159

Chapter 8 Establishing an Outstanding

Volunteer Program 171


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10How to Manage an Effective Nonprofit Organization

Chapter 9 Forming Community

Coalitions That Work 181

Conclusion 189

Appendix Questions and Answers 191

Index 213

About the Author 221


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11Preface

Preface

Nearly everything I learned about how to manage aneffective nonprofit organization, I learned from serving as

a staff member, board member, trainer, and consultantfor nonprofit organizations for nearly 40 years. While ex-perience is still the best teacher, there are now myriadbooks, articles, Websites, workshops, university courses,and even degree programs in nonprofit management.

While in law school, I coauthored a law review article

on the legal aspects of the newly formed consumer move-ment, led by a young, relatively unknown activist, RalphNader. Upon graduation in 1966, I applied to the Philadel-phia anti-poverty program, that was starting a consumerprogram and needed a grant writer. While I had no grant

writing or anti-poverty program experience, I dont thinkmany others did either because I got the job.

Over the next several years as a staff member, I no-ticed a dearth of excellent trainers and consultants withexpertise in nonprofit management. When I attended

workshops, for example, they were invariably led by ei-ther businesspersons or university professors with no

11


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12 How to Manage an Effective Nonprofit

expertise in nonprofit management. In addition, there

seemed to be few individuals who could provide practicalconsulting assistance to nonprofits in areas such as boarddevelopment or strategic planning.

So, in 1979, I decided to hang out my shingle and formSand Associates, a firm specializing in providing trainingand technical assistance for nonprofit agencies. As I be-gan to work with individuals with expertise in nonprofit

fields, I added them to my roster of associates and we nownumber more than 100.

As I developed a core curriculum of workshops, Igathered numerous handouts for each workshop. Myteaching style was to present a series of practical tips formanagers in each topic area. Often, workshop attendees,

nonprofit clients, and my associates suggested additionalpractical recommendations from their own experiences.After several years of leading workshops, I developed acore of groupies, individuals who attended every work-shop I led no matter what the topic. One of these indi-

viduals suggested that I gather all my tips into a bookand give out book chapters as course handouts. You nowhave the results of my work.

Managers of effective nonprofit organizations arebusy people. When they actually list their duties, theyoften find they have several dozen (including every topiclisted in this book, plus numerous others). Some of theseduties include serving as spokesperson for the organiza-

tion, liaison with numerous community organizations,maintaining active membership in local, state, and na-tional organizations, and performing general trouble-shooting for the agency. Just being the generalcommunicator and problem-solver with board, staff, andcommunity members is extremely time-consuming.


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13Preface

When nonprofit agency managers have a problem, want

to make a change in their agency, or need advice, theyneed a source of information that gives them practical tipsthey can refer to and implement in a timely manner. HowtoManage an Effective Nonprofit Organization is a uniquebook that will meet this need.

This book contains several hundred practical tips fortaking initiatives and solving problems that I developed

during my 40 years of working with nonprofits. The appen-dix includes 17 questions I was asked at workshops, and theanswers I provided.

Keep this book by your side and refer to individualchapters when seeking practical advice in areas such asfundraising, board development, grant writing, or stra-

tegic planning.If you want more information about Sand Associates,

log on to www.sandassociates.com. Of course, I would bedelighted to provide training and technical assistance to

your agency, or add your suggestions when I lead work-shops. Contact me by e-mail at [email protected].

Michael A. SandAugust, 2005
http://www.sandassociates.com/http://www.sandassociates.com/http://www.sandassociates.com/


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15Helpful Tips to Keep in Mind While Reading

Helpful Tips to Keep in Mind

While Reading

As you read this handbook, give special consideration tothe following additional tips that can be very helpful in learn-ing how to manage an effective nonprofit organization.

In general,do not say anything, do anything, or writeanything down that you would be unhappy (or devastated)seeing in tomorrows newspaper. This should be a guidingprinciple for running your organization. (Look how muchbetter off Richard Nixon and Bill Clinton would have been

if they had followed my advice.) Chapter 1Effective Boards:

Robert is dead!

Henry Martyn Robert wrote the first edition ofRobertsRules of Orderin 1876. My experience is that in most non-profit organizations, strict application of these rules is usedto prolong meetings and make them more complicated,certainly not Mr. Roberts intention.

Each group should adopt its own rules. If certainprovisions ofRoberts Rules make sense, adopt them. Ifother provisions are too complicated, adopt your own.

15

Introduction


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(See my suggestion of Sands Rules of Order on pages

49-51.) Try to speak in English, rather than in Roberts.It is much simpler to suggest to the board chair who isleading the meeting that I think its time to vote, ratherthan I call the question. All too often in meetings, youdo not know whether you are voting on a substantive mo-tion or voting whether to vote.

And when the meeting is over, the chair should simply

state that the meeting is adjourned. Asking for a motionto adjourn and then a second and then taking a vote as to

who voted for the motion to adjourn the meeting and whovoted against, and then putting that vote in the minutes,wastes time and paper.

Chapter 2Successful Fundraising:

Plan, plan, and plan some more.

It is essential to spend time in effective planning. Toomany organizations wait until the last minute to hold afundraising event. Then a small group of people franticallystarts to sell tickets with little or no planning, or sends out a

solicitation letter without giving careful consideration as towhether this is the best fundraising mechanism. Begin thefundraising program well in advance by assigning fundraisingtasks to all board and staff members, recruiting community

volunteers to help with the fundraising, and developing anannual fundraising calendar with a detailed budget. Only

when these and other planning steps are well underwayshould you begin to actually sell the tickets, call or visitprospective donors, or undertake similar tasks.

Chapter 3Writing and Funding Grants:

Write the generic grant.

Nearly every Request for Proposal (RFP) you will everreceive from a potential grant source asks you to outline


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the problem you are trying to solve or the need of the

people in the community for the service. Every RFP asksyou to estimate the results of the program you will be op-erating (or the program objectives). Every funding sourceasks specifically what activities you will be undertaking

with the funds and what the cost will be.

So, begin the grant writing process by writing the ge-neric grant, which includes all of these sections. For ex-

ample, you should conduct a Needs Assessment to findout what services the residents of your community need.Then when you obtain an RFP from a possible fundingsource, you can answer the specific question about theneed quickly, because you have already completed theresearch and written a preliminary draft.

Chapter 4Managing Grants:

Dont wing it.

You are excited that a funding source has agreed tofund your program. But dont begin to implement the pro-gram just yet. Find out as much as you can from a repre-

sentative of the foundation, government agency, orbusiness about its rules on managing the grant. Ask yourfunding source contact to send you any information ontopics such as how you receive funds, how much and when,fiscal and programmatic reporting procedures, and record-keeping requirements. It is better to find out the correctprocedures before the program begins than to be criticizedlater by the funding source for not following its rules cor-rectly, even if you were never informed of them.

Chapter 5Strategic Plans:

Follow the Plan.

Many nonprofits have started the planning process.They realize the importance of planning for the future.


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However, all too often the plan is approved by the board

and then it just sits on the shelf. Once the Planning Com-mittee has submitted the plan to the board, dont dissolvethe committee. Give the committee the task of implement-ing the plan. Make certain the plan has measurable objec-tives. Every three months, review the plan to see if theobjectives have been met. When applying for grants, makecertain the objectives of the grants are consistent with the

strategic plan. Chapter 6Being an Effective Supervisor:

Make sure supervisors supervise.

A supervisor should be orienting workers, delegatingtasks, reporting for the unit, calling staff meetings, and

performing tasks that will assist the line workers to per-form their duties effectively. In many nonprofits, individu-als with the title of supervisor dont actually supervise.They just do the work of the agency along with the other

workers. Perhaps they received the title of supervisorbecause they perform the work of the agency more effec-

tively than the other employees in the unit. But what theyshould do is to supervise other employees in the unit andgive them guidance.

Chapter 7Personnel Management Skills:

Hire great employees.

It pays to spend a great deal of time filling vacan-cies with excellent employees. This may mean inter-

viewing more applicants than you intended, spendingtime planning an interviewing process, conducting in-terviews that are in-depth enough to get as accurate apicture as possible about each applicants attitude andskills, and preparing an excellent orientation programfor each new employee. Time spent firing employees or


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encouraging major changes in their work habits or atti-

tudes can be extremely painful, often wasteful, and alwaystime-consuming. So, spend as much quality time as youneed to help assure your new employees are excellent so

you can minimize the time spent changing or firing them.

Chapter 8Volunteer Programs:

Do it.

An effective volunteer program can be a godsend for anonprofit agency. For example, raising $100,000 in grantsor through fundraisers can be next to impossible for manyagencies. Spending time developing a core of volunteers

who provide $100,000 in volunteer service to the agencymight be doable. And usually, excellent volunteers both

help the agency for a long time and recruit other excellentvolunteers, so the services are provided year after year.Of course, while developing and sustaining a corps of vol-unteers is time-consuming, the benefits are usually worthevery minute of your investment.

Chapter 9Community Coalitions:

There is power in numbers.

Here is the scenario: Your agency wishes to convinceits senator to oppose a bill in the legislature. Which ismore effective? Writing a letter from one group repre-senting less than 100 individuals, or writing a letter from a

coalition of several groups representing tens of thousandsof people. Often having several organizations form a coa-lition is difficult. But when the name of the game is power,a coalition is the way to go.


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21Effective Boards of Directors

Chapter 1

Effective Boards

of Directors

21

An excellent nonprofit organization has a well-functioningboard of directors. The board has the responsibility ofsetting policies for the organization and hiring staff toimplement these policies. For a board to function effec-tively, it should meet several criteria:

Its bylaws are current, are followed, andmeet the needs of that organization.

Procedures are in place for getting excellentboard members.


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Steps are taken to keep excellent board

members, and to remove board memberswho are not meeting their responsibilities.

Board members know their responsibilitiesand carry them out effectively.

The board functions through a well-planned

committee structure.

Board meetings are conducted in anefficient manner.

A. BylawsA. BylawsA. BylawsA. BylawsA. Bylaws

Several items should be clearly spelled out in thebylaws:

1. N1. N1. N1. N1. Number of boarumber of boarumber of boarumber of boarumber of board membersd membersd membersd membersd members

There is no optimum number of board members. Thesize of the board should depend on the specific needs ofthe organization. If the boards role is limited, a smallboard might be more appropriate. However, if extensiveboard time is required for fund-raising, or if the board hasa large number of functioning committees, then a much

larger board is in order.

The number of board members is set in the bylaws.One effective technique is to set a minimum and maxi-mum number of board members and to allow the board todetermine its size within these parameters. Then, the boardcan start small and add members as the need arises.


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Another technique is to allow the board chair to ap-

point a number of individuals to the board with boardapproval. In this way, if additional board members areneeded to meet specific needs, these members can be addedquickly.

2.2.2.2.2. TTTTTerm lengths and limitserm lengths and limitserm lengths and limitserm lengths and limitserm lengths and limits

The termof board members must be included in thebylaws. Board members should have fixed terms of office.One common practice is for all board members to havethree-year terms, with one-third of the members beingelected each year.

Having set terms is a good way to assure board conti-

nuity. It also provides an effective procedure for remov-ing unproductive board members. At the end of their term,board members who are not productive are simply notrenominated.

Some organizations limit the number of terms of boardmembers and officers. If an organization has difficulty find-ing excellent board members and officers, the number ofterms should not be limited. A board member or officer

who is functioning effectively should be able to continueto serve. Of course, a board member or officer who is notmeeting his or her responsibilities should not be reelectedat the end of the term.

However, if an organization has a number of excellent

candidates willing to assume board and officer positions,limiting terms might be considered. If the bylaws includeterm limits, however, it is always a good idea to give theboard flexibility. For example, even if a board limits termsof board members or officers, the board should be per-mitted by majority vote to waive the provision in individual

instances.


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In addition, not every board member must be a vot-

ing member. Many boards include past presidents or cur-rent committee chairs as non-voting board members.Other boards include board members or officers who can-not run again (because of term limit provisions) as non-

voting board members.

3. Election process3. Election process3. Election process3. Election process3. Election process

The election process should also be clearly spelled outin the bylaws. Many organizations have a Nominating Com-mittee that is responsible for recommending new boardmembers to the full board, and for recommending a slateof officers. The Nominating Committee often is chaired

by the immediate past president of the organization, sincethat individual knows who has contributed to the organi-zation in the past.

The Nominating Committee should carefully reviewthe service record of each individual the committee wishesto consider renominating for either board membership,or for an officer position. Has the potential nominee at-tended the large majority of board meetings? Has the nomi-nee served as an effective committee member? Have theyactively participated in fundraising? Fulfilled their dutiesas officers? If so, the individual should be renominated. Ifnot, he or she should be thanked for past service, but notbe renominated.

Most Nominating Committees recommend only oneindividual for each board of directors or officer position.This is a decision that should be made by each individualboard. Would contested elections help or hurt that par-ticular organization?

Additional candidates for board membership or of-

ficer positions can be nominated either in advance or


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from the floor at the election. In some organizations, the

officers are elected by the full membership. In others, theboard of directors elects its own officers. Many organiza-tions elect their officers to two-year terms, although one-

year terms are quite common.

Boards should also consider forming a standing BoardDevelopment Committee and assign this committee thefunctions previously performed by the Nominating Com-

mittee. See Section B, on page 26, for a discussion of thefunctions of a Board Development Committee.

4. Officers

The elected officers of many organizations are

similar: President or Board Chair. Leads the meet-

ings of the organization. Appoints committeechairs. Either signs or co-signs checks, or del-egates this duty to another individual. Oftensupervises the executive director.

Vice-President or Vice-Chair. Assumes theduties of the president or chair in his or herabsence. Often is given specific responsibili-ties either in the bylaws or by vote. Automati-cally becomes the next president in manyorganizations. Many organizations have sev-eral vice-chairs with specific duties. A par-ticular vice-chair may oversee the functioningof several committees, for example.

Secretary. Either takes minutes at the boardmeeting or approves the minutes if taken byanother individual. May be responsible for allcorrespondence relating to board membership.


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Treasurer.Responsible for the finances of the

organization. Usually makes financial reportsto the board and signs checks.

5. Amendments to bylaws

It is important that each organization has flexibility inchanging its bylaws to reflect the needs of that organization.

A Bylaws Committee should meet periodically to re-view the bylaws and make recommendations for revisions.

A common method of assuring flexibility is to permitthe board of directors to revise the bylaws by majority

vote at any meeting, as long as the specific wording of theproposed bylaws change is submitted to each member in

writing prior to the meeting.

B. Getting good board members

Many organizations are finding it more difficult thanever to get excellent board members. This is due to fac-tors such as the proliferation of nonprofit boards, the factthat individuals often relocate to other communities, andthe increasing number of women in the workforce.

Therefore, a board should establish a Board Develop-ment Committee as a standing board committee. This com-mittee would assume all the roles played by the Nominating

Committee. It would have as its responsibility not only ob-taining quality board members, but also of keeping them.

1. Responsibilities of the Board DevelopmentCommittee

The Board Development Committee should strive fora diverse board and list the types of characteristics de-sired, such as:


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Expertise: Some board members should have

personnel management, fiscal, or legal expertise. Ages: It is helpful to have senior citizens rep-

resented as well as young people.

Races and religions: All major races and reli-gions in the community should be representedon a diverse board.

Geography: Individuals should be selectedfrom all parts of the geographic area servedby the agency.

Income levels: Having wealthy individuals onthe board will help with fund-raising efforts,but individuals with low and moderate in-

comes should also be included.

Backgrounds: It would be helpful if someboard members have corporate backgrounds,some are government leaders, and some serveon the boards of other nonprofit groups.

Users of the service: Boards should includerepresentatives of the client population be-ing served. On some boards, current clientsare included, while in others, former clientsare considered for board membership.

The Board Development Committee should searchthroughout the year for individuals with these characteris-

tics. Board and staff members should be encouraged to rec-ommend individuals for board membership. Individuals whohave volunteered to serve the organization by assisting inits programs should be considered for board service.

The Board Development Committee should contactcommunity groups to obtain lists of possible board mem-

bers. Senior citizen groups, youth groups, chambers of com-merce, and ethnic organizations could be among thoserequested to recommend possible board nominees.


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2. Board member responsibilities2. Board member responsibilities2. Board member responsibilities2. Board member responsibilities2. Board member responsibilities

Each board member should receive a list of responsi-bilities. These should include:

Attending board meetings on a regular basisand participating on at least one boardcommittee.

Personal contribution to fundraisingcampaigns.

Participation in board special eventfundraising activities.

Prospective board members should be interviewed in

person by a member of the Board Development Committee.If possible, they should be interviewed by an individual

who knows them. The prospective board member shouldbe asked questions to ascertain if they support the mis-sion of the organization. They should be given the writ-ten list of board responsibilities and asked if they would

commit to meeting these responsibilities if elected. Onlyindividuals who have agreed to meet these responsibilitiesshould be considered for board membership.

C. Keeping good board membersC. Keeping good board membersC. Keeping good board membersC. Keeping good board membersC. Keeping good board members

One technique for keeping good board members is torequire all new board members to participate in an orien-tation program before attending their first board meeting.If several new board members are elected, they shouldattend the orientation program together. Even if one newboard member is elected, however, that board member

should participate in an orientation program.


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1. Review materials1. Review materials1. Review materials1. Review materials1. Review materials

The first step in the orientation process is to reviewmaterials that all board members should receive. These

would include the following:

Board member job description.

Job descriptions of key staff members.

Bylaws.

Annual reports.

Personnel, fiscal, and other board policies.

Names, addresses, phone numbers, andbiographical sketches of board membersand key staff members.

List of committees and committee duties.

Minutes of last several board meetings.

Audits, budgets, and recent financialstatements.

List of common abbreviations andterminology.

Executive directors work plan.

Annual and long-range plans, and otherplanning documents.

Funding applications.


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2.2.2.2.2. Meet with the board chair and the executiveMeet with the board chair and the executiveMeet with the board chair and the executiveMeet with the board chair and the executiveMeet with the board chair and the executive

directordirectordirectordirectordirector

The second step is a meeting with the board chair andthe executive director. This would include:

A review of the highlights of the materialspresented.

An update of current issues faced by the board.

A review of the responsibilities of eachboard member.

A discussion of board confidentialitypolicies.

An outline of the procedures used by theboard for discussions and voting.

A description of the clients served by theagency and the services provided.

A tour of the office during working hours.

New board members should suggest the committeeson which they would like to serve. They should be informedof expectations for financial contributions to the agency.They should also be given the dates of all special eventsthey will be required to support.

3. Other steps to increase board performance3. Other steps to increase board performance3. Other steps to increase board performance3. Other steps to increase board performance3. Other steps to increase board performance

Other steps to encourage productivity of boardmembers include:

Give board members specific projects.


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Keep board meetings interesting.

Thank board members for their work.

Host social events periodically, in additionto formal board meetings.

4. Remove unproductive board members4. Remove unproductive board members4. Remove unproductive board members4. Remove unproductive board members4. Remove unproductive board members

Remove unproductive board members quickly, andreplace them with productive ones. This process includes:

Bylaws specifying that if any board membermisses a certain number of board meetings with-out a reason, automatic dismissal will result.

Only reelecting board members who have mettheir responsibilities.

Calling inactive board members and asking ifthere are any problems. In some cases, theboard chair should ask for their resignation

if the board members do not agree to meettheir responsibilities.

D. Governing board responsibilitiesD. Governing board responsibilitiesD. Governing board responsibilitiesD. Governing board responsibilitiesD. Governing board responsibilities

Each governing board of directors has the followingduties:

1. P1. P1. P1. P1. Personnelersonnelersonnelersonnelersonnel

The boards personnel function is extremely impor-tant and has numerous facets:


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Hiring the executive director. Procedures

for carrying out this function should bespelled out in writing. They would includea job description and salary level for theposition. Specific qualifications should belisted. An outline of the steps to be takento interview and select the executive directorshould be included.

Supervising the executive director. Eachboard should have an effective plan for su-pervising the executive director. On someboards, the chair plays this role. The boardchair should meet regularly with the execu-tive director to review major activities andconsult on problems that may arise. On otherboards, the executive or Personnel Commit-tee might play this role, and will meet fre-quently with the executive director.

Evaluating the executive directors perfor-

mance. The steps used to evaluate the perfor-mance of the executive director should bespelled out in writing. The first step should bethe development of measurable objectivesagreed to by the executive director and theboard. Then, the board, through its PersonnelCommittee, could meet with the executive di-

rector perhaps once every six months. Theobjectives would be reviewed to determine

whether they have been met, and to developany corrective actions. New objectives wouldthen be set for the next time period.

Developing job descriptions for all staff mem-

bers. Each staff member should have a job


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description that spells out the specific duties

of that position, the job qualifications, andthe salary. While the executive director hiresall staff members, the board approves the jobdescription for these positions.

Approving an evaluation plan for all staff

members. While the executive director con-

ducts the performance evaluations of staffmembers, the evaluations should be con-ducted according to a written plan approvedby the board. As with the executive director,each staff person should have a job descrip-tion and a set of objectives. An evaluation of

whether the employee is meeting these ob-jectives should be held on a regular basis, noless than once each year.

Setting personnel policies. The PersonnelCommittee should review the written anddetailed personnel policies on a regular ba-

sis, no less then once every six months. ThePersonnel Committee would then recommendchanges in the personnel policies to the board.Every staff member should have a copy ofthe current personnel policies. The policiesshould be reviewed at staff meetings so thatthe staff members are aware of the policies

and can make recommendations for revisions.

2. F2. F2. F2. F2. Financeinanceinanceinanceinance

The boards financial responsibilities should be out-lined in a detailed financial plan that should include thefollowing components:


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Development of a budget. Most boards ap-

prove a detailed annual budget. In most cases,the budget is prepared by the staff and reviewed in detail by the Finance Committeebefore being approved by the board.

Receipt and expenditure reports. The boardshould receive financial reports on a regular

basis. The format of each report and the time-table for submission should be outlined in writ-ing. The report should be simple enough thatit can be understood by every board member.

Fiscal policies. It is important that all fiscalpolicies be in writing. These would include such

items as policies for salary increases, obtain-ing travel reimbursement, and procedures forspending funds (such as for equipment, etc.).When are bids needed and how many? Whatare the procedures if the staff recommends thatthe lowest bid not be accepted? What are the

specific procedures for the expenditures ofpetty cash?

Check signing procedures. Each board shouldhave written procedures for the signing ofchecks, including the documentation neededbefore checks can be signed. It is recom-

mended that all checks be signed by two dif-ferent individuals.

Financial review. The procedures for reviewby outside financial professionals should beoutlined in writing.


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3. Fundraising

The boards fundraising responsibilities should be out-lined in a written fundraising plan that includes the fol-lowing components:

All funding applications must be submittedto the board in a timely fashion before beingsubmitted to funding sources.

Each fundraising special event should be ap-proved by the board. The proposal should in-clude a budget for each event, an outline of thetasks to be performed, and a detailed timetable.

The responsibilities of the board members for

fundraising should be spelled out in writing. Thismight include a requirement to contribute to anannual financial campaign, a statement that at-tendance at all special events is required, and astatement that each board member must be anactive participant in planning at least one

fundraising program each year.

4. Planning

Board members approve plans for the organization.They then monitor the effectiveness of the agencys pro-

grams to see if the goals outlined in the plans have beenmet. An overall planning procedure should be approvedby the board. This might include:

An outline of the planning process. One com-mon strategy is for a board to approve athree-year strategic plan. The process for de-

velopment of that plan should be included.


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Often the board will establish a Planning Com-

mittee to oversee this process. In many agen-cies, the executive director is responsible forthe drafting of the plan under the directionof the Planning Committee.

Procedures and a timetable for plan review. Inmany cases, the Planning Committee will also

have the responsibility for plan review. Manyboards review their plans every six months. Theplan should include measurable objectives sothat the review of the plan can determine

whether the objectives have been met.

5. P5. P5. P5. P5. Public rublic rublic rublic rublic relationselationselationselationselations

Another important board function is that of publicrelations. In order to carry out this function effectively,the board should have a written public relations plan. Sucha plan might include:

Development of a general agency brochure.

Plan for newsletters and other methods of in-forming the public of activities and programs.

Preparation of an annual report whichgives detailed information about the

agencys accomplishments.

Steps to be taken to update the agencys Websiteon a regular basis.

Programs to inform the public of theagencys services and accomplishments.

Many nonprofits have periodic open houses


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or public meetings. An annual event to thank

volunteers might include an opportunity toinform the public about the agency.

Procedures for working with the media. Awritten policy should include procedures foranswering press inquiries or for making state-ments to the media.

6. Other responsibilities6. Other responsibilities6. Other responsibilities6. Other responsibilities6. Other responsibilities

Each board should review all of its responsibilities on aregular basis. This might include functions regarding boarddevelopment as outlined in Section B. In many boards, board

members have advisory functions. A lawyer on the boardor an individual with fiscal or personnel management skillsmight advise the executive director in his or her field ofexpertise. Some boards give board members responsibili-ties for networking with particular community groups orspecific individuals. A board member with ties to a political

leader in the community, for example, might meet with thatleader on a regular basis to provide information on theorganizations needs and accomplishments.

The agency should also develop procedures to give allboard members information about the organizations ac-tivities. Many boards use frequent e-mails to board mem-bers to keep them up-to-date on current issues and

programs. Board members then can publicize the agencysprograms in the community, refer potential clients to theagency, and correct misconceptions about the agency.


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E. Advisory board responsibilitiesE. Advisory board responsibilitiesE. Advisory board responsibilitiesE. Advisory board responsibilitiesE. Advisory board responsibilities

Many boards are not governing boards but advisoryboards. While governing boards hire and fire the execu-tive director, advisory boards do not have this responsi-bility. Most advisory boards do not have financial

responsibilities.Advisory boards should meet all the responsibilities

of governing boards as outlined in Section D except whenthey are informed that they are not allowed to performspecific responsibilities.

In order to be clear about their duties, advisory boards

should take the following steps: Draft a detailed list of responsibilities.

Meet with the governing board to reviewthe list.

Obtain a written agreement that includes

the specific responsibilities of the advisoryboard.

Meet with representatives of the governingboard on a regular basis to provide theadvice requested.

Review the list of responsibilities on aregular basis, and revise it as required.


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FFFFF. Boar. Boar. Boar. Boar. Boards function thrds function thrds function thrds function thrds function through effectivough effectivough effectivough effectivough effectiveeeee

committeescommitteescommitteescommitteescommittees

Effective boards function through an effective com-mittee structure.

Listing of committees. Begin by listing the com-mittees that are standing committees and thusmeet on a regular basis (for example, finance,personnel, fundraising, etc.). Then include thelist of committees that are ad-hoc and only meet

when needed (for example, bylaws, etc.).

Committee responsibilities. Include a detailedlist of the duties of each committee, the approxi-mate size, and the frequency of their meetings.Circulate this list to all board members andask them to volunteer to serve on specificcommittees.

Selection of committee chairs and mem-bers. In many organizations, the board chairappoints the committee chairs and the com-mittee chair appoints all committee members.

Requirements for committee membership.

Some organizations require that committee

chairs be board members, while others do nothave this requirement. It may be beneficialto permit individuals not on the board to serveon committees. This may allow a committeeto add individuals with particular skills, whoare not board members. Adding non-board

members to committees may also be a good


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way to see if particular individuals would be in-

terested in, or qualified for, board membership.

Assigning staff to assist committees. It is al-ways a good idea to assign a staff member toadvise each committee. For example, the staffmember with financial responsibilities wouldattend all meetings of the boards Finance

Committee. The executive director wouldmake these staff assignments. The staff mem-ber should also be responsible for draft-ing proposals. The staff member assigned tothe Planning Committee, for example, woulddraft sections of the plan and submit them tothe committee for review.

Committee meeting location. Committeesshould be flexible as to where they meet. Inorder for some committees to be effective,face-to-face meetings should be held. Othercommittees function well by conference call

or e-mail.

Committee meeting agenda. Every commit-tee meeting should have a written agenda.When possible, the agenda should be sent inadvance of the meeting to all committee mem-bers. Then they would have an opportunity

to recommend additional items.

Frequency of committee meetings. Hereagain, flexibility is needed. No committeemeeting should ever be held if there is noreason to meet.


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Committee responsibilities. Most committees

are advisory only. This means that in orderfor any action to be taken, the recommenda-tions of the committee must be approved at aboard meeting. If any committee can take ac-tion without board approval, this should beincluded in the bylaws. Many nonprofit agen-cies only permit the Executive Committee to

take action without board approval.

Committee meeting minutes. Minutes shouldbe taken of all committee meetings. The min-utes should include the wording of all mo-tions to be made at the board meeting toapprove the specific recommendations of thecommittee.

Membership and functions of the Executive

Committee. Many organizations have an Ex-ecutive Committee that includes the offic-ers only, or the officers and selected other

board members. In some organizations, theExecutive Committee is empowered to takeaction between board meetings. It is impor-tant that the membership responsibilities andthe powers of the Executive Committee tobe spelled out in the bylaws. If the Execu-tive Committee is given the power to take

action between board meetings, board mem-bers should be notified of any actions theExecutive Committee has taken.


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G. Holding high-quality board meetingsG. Holding high-quality board meetingsG. Holding high-quality board meetingsG. Holding high-quality board meetingsG. Holding high-quality board meetings

One key factor in getting and keeping excellent boardmembers is the quality of the board meetings. If board meet-ings are productive, board members tend to be productive.

1. Planning for the board meeting1. Planning for the board meeting1. Planning for the board meeting1. Planning for the board meeting1. Planning for the board meeting

An important technique for assuring productive boardmeetings is to do as much planningbefore the board meet-ing as possible. This might include:

Sending a notice of the date, time, and loca-tion of the meeting to the members several

weeks before the meeting. Even if the boardmeets the same day of each month at the sameplace and time, a reminder notice is important.

Enclosing as many written items as possiblewith the meeting notice. This includes:

* Preliminary agenda.

* Minutes of the previous meeting.

* Information or issue papers onimportant items.

* Executive directors report.

* Committee reports.* Treasurers report.

Notifying the board members that if theycannot attend a board meeting, they mustcall the board chair in advance. In this way,the board chair can get input on important


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items from individuals who cannot attend

the meeting. Also, the board chair will knowif a quorum will be present, and can cancelthe meeting if this is not the case.

Informing the board members that if theyhave any items to add to the agenda, theyshould notify the board chair at least two days

before the meeting. In this way, the boardchair can prepare for the meeting effectivelyand minimize surprises at the meeting.

Recommending that the board chair and theexecutive director meet several days beforethe board meeting to prepare the final agenda,

determine what information still must be col-lected, and discuss how issues will be pre-sented to the board.

2. Setting the board meeting agenda2. Setting the board meeting agenda2. Setting the board meeting agenda2. Setting the board meeting agenda2. Setting the board meeting agenda

The board meeting should start on time. Once mem-bers know every board meeting starts promptly, it is muchmore likely they will arrive promptly.

Each board meeting should start with the distribution ofa written detailed agenda listing, in as much detail as pos-sible, with each separate item to be discussed. The board

chair begins the meeting by asking the board members if thereare any additional agenda items. The chair has the option ofreferring new items to committees or postponing items untilfuture meetings.


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3. Order of business3. Order of business3. Order of business3. Order of business3. Order of business

The order of business at most meetings is as follows:

Approval of the minutes of the previous meet-

ing. A formal vote is needed to approve theminutes. Minutes should be mailed to all mem-bers prior to the meeting and should not beread aloud at the meeting. The board should

decide how much detail should be includedin the minutes. At a minimum the minutesshould include:

* A list of attendees.

* The exact wording of all board actions.

* Listing of all votes taken at the meeting.* Copies of reports and all written

materials.

Many boards also request that the minutesinclude detailed listing of all statementsmade at the meeting. Keeping a record of

the discussions is not a legal requirement. Onesuggestion is for a board to try the shortform minutes for several board meetings. Ifthe members are pleased, this practice shouldbe continued. However, if board members

would like the long version with the full dis-cussions, the secretary should provide the

minutes in that format.

Board chairs report. Before each item, theboard chair should state which items are in-formational and which require board action.The board chair should remind members thatonly policy-making recommendations require


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board action. The board should not vote on

items that are not policy-making.

Executive directors report. This written re-port should be mailed to the members beforethe meeting.The board should determine thetype of information it would like the execu-tive director to include in the report and the

format the executive director should use. Atthe board meeting, the executive directorshould inform the board of events occurringafter the mailing of the report, highlight im-portant aspects of the report, and answerquestions.

Committee reports. Committee reports shouldbe in writing and be mailed to the membersbefore the meeting. If the committees recom-mendations are not unanimous, the reportshould include different points of views. Thecommittee chair should make specific motions

when board action is required. Only policyitems require board action; no board action isrequired when the committee chair is simplyproviding information. The committee chairshould ask the board members if there are anyquestions about the committees recommen-dations before a formal vote is taken.

Unfinished business. The only items that be-long here are ones raised at previous boardmeetings. The board chair should remind themembers when the item was originally raisedand why it was postponed.


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New business. Major items of business should

have been discussed as part of the boardchairs report, executive directors report, orcommittee reports. At the beginning of themeeting, members are asked if they have ad-ditional agenda items. If so, the board chairmay raise these items under new business.

Good and welfare. Many organizations pro-

vide an opportunity for members and gueststo make short announcements, raise issuesto be discussed at future meetings, or com-ment on items of interest.

Adjournment. No formal action is needed.

The chair announces the date, time, and placeof the next meeting, reminds the members ofcommittee meetings to be scheduled or othersteps to be taken, and adjourns the meeting.It is recommended that refreshments be pro-

vided. In this way, opportunities for informal

discussion and board fellowship are increased.

4. Basic meeting procedures4. Basic meeting procedures4. Basic meeting procedures4. Basic meeting procedures4. Basic meeting procedures

All members who wish to speak are recog-nized by the board chair and speak only to

the board chair.

If board action is required, the member makesa motion concerning an item on the agenda.If the item is not on the agenda, the boardchair might postpone the item to a futuremeeting.


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The motion is seconded by another member.

The board chair calls on members who wishto discuss the motion. The chair limits dis-cussion to the motion on the floor, and maylimit discussion as required.

The board chair may ask the maker of the

motion to revise the motion as needed.

Once the board chair feels that discussionshould be ended, the motion is restated andthe vote is taken.

If a motion requires staff time to implement,

the executive director may be requested to statehow the motion will be put into practice.

5. Keeping order at board meetings5. Keeping order at board meetings5. Keeping order at board meetings5. Keeping order at board meetings5. Keeping order at board meetings

The board chairs role is to keep order at board

meetings. A number of techniques can be used: All members speak only to the board chair.

When members talk to each other, the chairshould remind them to speak only to himor her.

The board chair informs members if each item

on the agenda is a matter of policy or imple-mentation. If it is a policy matter, the discus-sion begins with a motion and a second. Theexecutive director is asked for a staff recom-mendation. Board members then are asked todiscuss the motion. If the item does not relate

to board policy (for example, when it is infor-mational), no board vote should be taken.


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The board chair immediately calls out of or-

der any individual who uses offensive speechof any kind, is not speaking about the motionon the floor, or is not focusing on the discus-sion initiated by the board chair.

The board chair encourages long-windedmembers to get to the point.

The board chair encourages reticent boardmembers to speak. Individual members maybe asked by the board chair if they would liketo speak about a particular issue.

All votes are by hand. The board chair asks

all who are in favor of a motion to raise theirhands, followed by those who are opposed.The board secretary then notes for the recordif a motion is approved or defeated.

The executive director may receive assign-ments from the board at the board meeting.

It is improper for individual board membersto give assignments to any staff member with-out prior board authorization.

6. Dealing with difficult board members

It is the responsibility of the board chair to deal withboard members who are creating difficulties. In some in-stances, the chair can minimize problems at the meeting.For example, members can be called on for comments onlyif they wish to speak to motions on the floor. The chaircan limit discussion on particular issues.


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In other instances, the board chair may have to con-

tact a particular member privately. The chair should givespecific examples of conduct that should be changed andalso give specific examples of appropriate conduct.

7. Consensus7. Consensus7. Consensus7. Consensus7. Consensus method of boar method of boar method of boar method of boar method of board decision-makingd decision-makingd decision-makingd decision-makingd decision-making

Many boards take action by the traditional majority

rules method. If a board of directors votes 87 to takeaction, that board will take the action approved by themajority. Other boards, however, take action only when aconsensus has been achieved. That type of board will con-tinue to discuss a proposed action to see if unanimity, ornear unanimity, can be achieved.

In this type of board, if a vote is taken and it is a closevote, the board will not automatically take the action votedon by the majority; a discussion will be held about whatsteps the board should take if any.

8. S8. S8. S8. S8. Sandandandandands rs rs rs rs rules of orules of orules of orules of orules of orderderderderder

Each organization has the power to determine its ownrules of order to conduct its business. Roberts Rules ofOrderare entirely too complex for nonprofit organizations.So which rules should be adopted? One recommendationis to have each group adopt its own rules.

Because each organization has its own culture, it should

adopt whatever rules lead to the business of that organiza-tion being conducted in an effective matter. Once the busi-ness is conducted effectively, steps should be taken toshorten every meeting.

Following is the authors attempt to develop somemeeting rules that lead both to an efficient discussion of

agency business and a short meeting.


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Sands Rules of Order

a. No document longer than one page gets handed outat a meeting. Documents longer than a page are mailed ore-mailed to each member prior to the meeting.

b. Nothing gets read aloud at a board meeting. All items

are duplicated and distributed to the board members.

c. If a committee has met, its report is in writing and itis distributed to the board members before the meeting.

d. Reports of the executive director, other staff mem-

bers and consultants, are in writing and are distributed inadvance of the meeting.

e. No important item gets discussed at a board meetingwithout someone having thought about it beforehand. Someitems might have been reviewed by a committee before being

discussed at a board meeting. Other items might have beencarefully reviewed by the board chair or the executive direc-tor. If a board member raises an item at a meeting that hasnot been reviewed prior to the discussion, the board chairrefers that matter to the appropriate committee or individual.

f. As items are raised at the board meeting, the chairstates if the item requires the setting of board policy. Ifpolicy-making, a board member is asked to make a mo-tion before a discussion is held. If the matter requiresimplementation only, no motion is made. Once the dis-cussion has ended, the issue is referred to the executivedirector for appropriate staff action.


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g. As procedural items are raised at a board meeting,

the board chair decides what steps should be followed.The chair might refer an item to a committee, for example,or set a time limit for debate of a particular item. The onlytime a vote is taken on a procedural item is if a boardmember requests such a vote.

h. Rules of order are used to help, not to disrupt. Theboard chair tries to avoid the use of rules to complicaterather than simplify the board decision-making process.

i. All votes are by a simultaneous show of hands. Whenthe board chair requests a vote on a motion, the request isfor all in favor to raise their hand and then for all opposed

to raise their hand. The secretary can then record the votes.

j. When there is unanimous consent to a board action,no separate vote is taken. The board chair will state: DoI hear any objection to the motion? If not, the secretary

will note unanimous approval.

Boards that adopt their own rules, rather than relyingon those contained inRoberts Rules of Order, or rules fol-lowed by other agencies, find that their board meetingsare more productive and usually much shorter.


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53Successful Community Fundraising

Chapter 2

Successful Community

Fundraising

53

In these times of increasing community needs and lim-ited resources, nonprofit organizations must spend sig-nificant amounts of time and energy raising funds. Eachorganization should begin by developing and implement-ing a comprehensive fundraising planning process.

This plan should include several components:

Outlining the role of board members in thefundraising process.

Setting the role of staff members in thefundraising process.


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Encouraging community volunteers to

participate actively in fundraising.

Developing fundraising programs thatappeal to the publics charitable nature.

Planning fundraising appeals that stress thebenefits to the giver.

Instituting an effective public relationscampaign that precedes the fundraisingefforts.

Holding an open house to introducepotential donors to your program.

Analyzing other community fundraisingdrives and their successes and failures.

Dividing fundraising prospects into those tovisit, those to call, and those to receive amail solicitation.

Asking for community investments frombusinesses.

Asking for community investments fromindividuals.

A. Active board participantsA. Active board participantsA. Active board participantsA. Active board participantsA. Active board participants

For major fundraising to be successful, every boardmember must be involved in some way. This requirement

should be a prerequisite for board membership. Whenpotential board members are recruited for membership,


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they should be informed that participation in fundraising

is required. As fundraising reports are given at board meet-ings, the requirement for board participation should bestressed.

Board members should be told exactly what fundraisingentails. For example, they should be given the dates ofspecial events as soon as these events are planned so thatthey can put them on their calendars.

One effective way of implementing the requirement ofactive participation of every board member in fundraisingis to list various alternatives for involvement and ask indi-

vidual board members to choose which tasks they wish toperform. For example, as the planning begins forfundraising, board members might be given the choice of

these tasks: Serving on the Planning Committee.

Developing mailing lists.

Writing a press release.

Assisting with the mailing.

Making arrangements with the event site.

Soliciting ads for the ad book.

Selling tickets to individuals.

Visiting companies to encouragesponsorships.

Volunteering for various tasks on the dayof the event.


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While all board members should be required to at-

tend all special events, each board member should onlybe required to select one task from the above list.

In many instances, board members are not convincedof the necessity to be involved in the fundraising process.A board member who is convinced should explain to theother board members why involvement of each boardmember is a requirement. On some boards, the board chair

outlines why active participation of each board member isrequired; in others, the chair of the Fundraising Commit-tee would have this responsibility.

A specific discussion at a board meeting of board mem-bers roles in fundraising is often effective. In this way, moreenthusiastic board members would have an opportunity to

convince others. The arguments include the following: Successful fundraising takes a great deal of

time, so all board members must be involved.As events are planned, estimates should bemade of the hours required for successfulfundraising.

Boards should limit the time staff membersspend on fundraising so staff members canspend adequate time performing the missionof the agency. While it is tempting to giveadditional fundraising responsibilities to paidstaff members rather than to volunteers, board

members should try diligently not to limitagency services because the staff is spendingexcessive time on fundraising activities.

For an equal amount of time spent, board mem-bers and other volunteers can raise more moneythan staff members. The general public contrib-

utes more readily to nonprofit organizations


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when the request is made by a volunteer,

rather than a paid employee.

It is difficult to ask the public to contribute toan organization when board members them-selves have not made a commitment. Mostsuccessful fundraising campaigns begin with astatement that every board member has made

a financial commitment to the agency. Programbooklets at special events should list all boardmembers. Board members should be intro-duced at each agency public event as a visualreminder of their commitment.

Ultimately, board members are responsible

for implementing the mission of the organi-zation, and if that requires raising funds, theyshould be committed to doing so. This is apowerful argument. The board chair mightstate, If we are committed to the mission ofthe agency, and fundraising is required to

achieve this mission, then we have no choicebut to participate.

B. Active staff membersB. Active staff membersB. Active staff membersB. Active staff membersB. Active staff members

For major fundraising to be successful, all staff mem-bers should be required to participate in fundraisingefforts. This should be a policy approved by the board,and every staff member should be aware of exactly whatparticipation entails.

While participation would be mandatory, employees would

be paid for their participation. Fundraising responsibilities


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would be a clearly defined part of every staff members

job description.When hiring new employees, supervisors should clearly

outline fundraising responsibilities. A secretary or book-keeper, for example, should be informed of specific re-sponsibilities in the fundraising area in addition to otherresponsibilities. The executive director should know hisor her specific fundraising duties.

All staff members should be given dates of agency spe-cial events as early as possible and should be informedthat attendance is mandatory. The agency should have aclear statement of expectations for contributing tofundraising campaigns. While exact donations should notbe specified, each staff member should be required to make

a donation of some amount.Certain duties in the fundraising area should be the ex-

clusive responsibilities of board members and of some staffmembers. For example, requests for major contributionsshould be made by board members or other volunteers.Individuals who solicit funds at a fundraising dinner, for

example, should always be volunteers.Staff assignments should include:

Keeping comprehensive records of allcontributors and contributions.

Making certain that checks and cash aredeposited in the bank as soon as possible

after they are received.

Keeping accurate bank records of alldeposits.

Developing detailed budgets for everyspecial event.


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Keeping track of receipts and expenditures

for all special events and comparing them tobudget estimates.

Making accurate lists of all volunteers andthe specific assignments they undertook.

Keeping the master copy of all funding

documents such as brochures and flyers.

C. Active non-board volunteersC. Active non-board volunteersC. Active non-board volunteersC. Active non-board volunteersC. Active non-board volunteers

Throughout the year, board and staff members should re-cruit volunteers to assist in fundraising. Because fundraisingis extremely time-consuming, a large corps of volunteersis needed to supplement the board and staff members who

will assist.

Efforts should be made throughout the year to recruitvolunteers. This should precede the decision of what types

of special events to hold. When a board is deciding whetherto hold a specific special event, the decision-making shouldinclude an idea of the volunteers that are likely to help.

Possible sources of fundraising volunteers include:

1. High schools and middle schools1. High schools and middle schools1. High schools and middle schools1. High schools and middle schools1. High schools and middle schools

Many schools either require participation in commu-nity activities as part of their curriculum, or are receptiveto requests from nonprofit organizations. Representativesof the agency should make a formal presentation to a teacheror principal explaining in detail their request for studentassistance. Nonprofits recruiting students should empha-size the educational aspects of their programs. For example,


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a senior citizen center could invite students to a program

on aging that discusses the facts and myths regarding theaging process. Then the center could ask students to vol-unteer for specific fundraising tasks. The agency shouldbe aware, however, that adult supervisors are needed for

youth volunteers. The recruiting of the appropriate adultsupervisors should precede the call for youth volunteers.

2. Colleges2. Colleges2. Colleges2. Colleges2. Colleges

In many instances, college fraternities and sororitiesare excellent places to recruit fundraising volunteers. Col-leges often will supply lists of student organizations thatare receptive to requests for volunteer help. In addition,

students earning degrees in particular subject areas areoften pleased to volunteer for nonprofits to gain skills. Acomputer science major, for example, might be willing toset up a computerized record-keeping system for afundraising campaign. Often, a teacher in a particular dis-cipline will work with a nonprofit organization on afundraising project. A video class might prepare a

fundraising video; a cooking class might volunteer to pre-pare and serve a meal as part of a special event.

3. Service clubs3. Service clubs3. Service clubs3. Service clubs3. Service clubs

All communities have organizations dedicated to com-

munity service. These organizations are receptive to pro-posals from nonprofit groups. A nonprofit is moresuccessful if the request for volunteers or funding comesfrom a service club member, however. Therefore, the non-profit should encourage its board and staff members to

join community service organizations. Before a specificproposal is made, the nonprofit should review past projects

of that civic group. What has been the past involvement of


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the service group when receiving other similar requests?

What are the types of projects to which the service groupis likely to commit?

4. Churches4. Churches4. Churches4. Churches4. Churches

Traditionally, churches and other religious organiza-tions have been excellent sources of volunteer assistance.

It is much easier to encourage volunteering if several boardand staff members of the organization are also membersof that church. It is usually appropriate to begin by sched-uling a meeting with the religious leader. Be as specific aspossible as to what types of commitments you are request-ing. Do you only need volunteers on the day of an event

for example, or do you need volunteers to assist in theplanning phases? How many volunteers are you request-ing? What will these volunteers be expected to do? Whattype of training will be provided? Many churches will al-ready have committees established to discuss particularrequests with you.

5. Businesses5. Businesses5. Businesses5. Businesses5. Businesses

Often, businesses will encourage their employees to volunteer for community organizations or give their em-ployees release time to assist in worthwhile projects. Toencourage involvement, a nonprofit should stress the ben-

efit to the business of its employees volunteering to assistin fundraising. For example, if a department store is beingsolicited for volunteers to help a particular organizationsfund-raising efforts, the organization should stress howmuch money its members spend in that department store.It is always helpful to let the business know in advancehow the involvement of that business will be publicized.

Letting members of an organization know in a newsletter


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of the involvement of a particular business or acknowl-

edging the participation of the business at a special eventor in a press release can be extremely helpful in encour-aging business participation.

6. Senior citizens organizations6. Senior citizens organizations6. Senior citizens organizations6. Senior citizens organizations6. Senior citizens organizations

Senior citizen groups provide the dual benefits of in-

dividuals with extensive experience in fundraising and thetime to spend. When making a proposal to a senior citizengroup, however, be aware of the limitations of the seniors.Be certain that all activities are handicapped accessible,for example.

Because many senior groups are in need of funds them-

selves, one other successful technique involves sharing ofprofits from a fundraiser. It would help greatly in recruit-ing volunteers from a particular senior citizen club if thenonprofit agreed to contribute a portion of the proceedsto that club.

7. Agency volunteers7. Agency volunteers7. Agency volunteers7. Agency volunteers7. Agency volunteersOrganizations should review their list of agency vol-

unteers for those interested in fundraising. Many times,an individual who assists the agency in substantive areas,such as reading to children in a library, or helping withmajor mailings, might also be willing to assist in fundraising.

It may be appropriate to ask every volunteer who helpswith agency projects to also help with fundraising.

Be as specific as possible as to what you are request-ing. If you need volunteers to collect tickets at a specialevent, for example, give as much information as you canas to hours, exact dates, etc.


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8. Clients8. Clients8. Clients8. Clients8. Clients

In certain instances, clients should be asked to volun-teer. Season ticket-holders for arts events often volunteerto participate in fundraising. It certainly will not hurt toask for specific assistance. Recipients of social servicescan be asked to help in fundraising efforts. In some in-stances, the agency should keep records of graduates

from agency programs and ask these individuals for help.Clients are often pleased to assist in fundraising as a wayto show their appreciation for the services provided bythat agency. Potential volunteers may assist an organiza-tion when they are asked to do so by an individual who hasbenefited from the services provided by that organization.

9. Individuals with special skills9. Individuals with special skills9. Individuals with special skills9. Individuals with special skills9. Individuals with special skills

In addition to groups, individuals who have expertisein specific areas should be solicited. Individuals with cook-ing skills, for example, will often volunteer to cook at anagency special event, even though they have no other con-

nection with that organization. Individuals may also vol-unteer to baby-sit, serve as an usher, collect tickets, or setup tables even though they may have no prior contact withthe organization requesting their services.

Some general rules apply for requesting volunteers tohelp with fundraising:

Try to have the request come from an indi-vidual who knows the individual being askedto volunteer, rather than from a stranger.

If the request is made in person, it increasesthe likelihood that it will be granted. The sec-ond choice would be a phone request. If an


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e-mail or U.S. mail request for help is made,

it should be followed up by a phone call.

Be as specific as possible about what you arerequesting. How many hours are required?To perform what task or tasks? At what loca-tion? What dates?

Stress that training and supervision in carry-ing out specific tasks will be provided.

Follow up promptly when any individual vol-unteers. If an individual lists his or her nameon a volunteer sign-up sheet, for example,contact that individual within a day to make

future arrangements.

D. PD. PD. PD. PD. Prrrrrograms that appeal toograms that appeal toograms that appeal toograms that appeal toograms that appeal tothe publicthe publicthe publicthe publicthe publics charitable naturs charitable naturs charitable naturs charitable naturs charitable natureeeee

Think carefully about how the funding request is pre-sented to the donor. Individuals will contribute far more

when a particular funding request appeals to their chari-table nature. Techniques that appeal to the donor include:

Asking for funds for programs to help those

who generally need help in society. Programsthat aid children or the elderly have universalappeal.

Stressing in your funding requests when therecipients need services through no fault oftheir own. It is easier to raise funds for vic-

tims of natural disasters than for individuals


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who have created their own dilemmas (for ex-

ample, prisoners).

Highlighting the specific need of the recipientsfor the services rather than the need of theagency for funds. A request for funds shouldstate that it will enable 25 children to have aspecial after-school learning program, for ex-

ample, rather than it will help the agency toovercome a deficit or increase staff salaries.

E. FE. FE. FE. FE. Fundraising appeals thatundraising appeals thatundraising appeals thatundraising appeals thatundraising appeals thatstress the benefits to the giverstress the benefits to the giverstress the benefits to the giverstress the benefits to the giverstress the benefits to the giver

In addition to highlighting the benefits to the agencysclients, information should be given on benefits to thedonor. Some benefits might include:

Tax benefits. Individuals asking for funds

should always be informed of the specific taxbenefits to the giver, whether an individualor a corporation.

Lower taxes. If individuals can be assisted toget jobs and move from the welfare rolls to thetax rolls, taxes will be lower for all citizens.

Lower crime. If young people are in super- vised after-school programs, crime in theneighborhood will often be lower.

Less time off at work. Drug-free individualswill miss fewer work days.


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More jobs. If a neighborhood has fewer social

problems, industries with more well-payingjobs will move in.

Increased sales. As more individuals increasetheir incomes through better jobs, they willspend more of their income at local businesses.

Increased quality of life. If a community hasmore cultural events, it will be a more pleas-ant place to live.

FFFFF. An effectiv. An effectiv. An effectiv. An effectiv. An effective public re public re public re public re public relations strategyelations strategyelations strategyelations strategyelations strategy

that precedes the fundraisingthat precedes the fundraisingthat precedes the fundraisingthat precedes the fundraisingthat precedes the fundraising campaigncampaigncampaigncampaigncampaign

Individuals are more likely to give to an agency whenthey are aware of the agencys servicesbefore they are askedfor funds. Agencies should develop and implement publicrelations efforts before fundraising begins, so prospectivedonors are knowledgeable of the agency and its programsand needs. For example, if businesspeople and wealthyindividuals will be asked to contribute to an organizationin the future, several steps might be considered now toinform them about the agency:

Invite them to serve on the board.

Form a business advisory board to adviseon policies that affect businesses and toassist with fundraising.

Develop a high-quality newsletter and sendit to potential donors.


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Visit individual businesses to learn about

their products and to discuss agencyservices.

Meet with potential donors in an informalsetting to discuss their particular interests,such as childrens programs, services to theelderly, or particular educational services.

G. Hold an open house to introduceG. Hold an open house to introduceG. Hold an open house to introduceG. Hold an open house to introduceG. Hold an open house to introducepotential donors to your programpotential donors to your programpotential donors to your programpotential donors to your programpotential donors to your program

One effective technique to raise awareness of theagencys needs is to hold an open house. Some tips for asuccessful program include:

Invite business leaders and wealthy individu-als to serve on the Planning Committee forthe event.

Compile an extensive list of individuals to invite. Asking a member of the Chamber ofCommerce to recommend individuals for amailing list will be helpful.

Once an invitation has been sent, follow through

with phone calls to encourage attendance.

At the event, make sure each individual isgreeted personally to make them feel welcome.


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Give each attendee a badge with their name

and affiliation in large letters so that every-one can greet them appropriately.

Make certain that refreshments are included aspart of the program. The Planning Committeecan determine what type of food and drink wouldbe appropriate, whether a breakfast, a luncheon,

or hors doeuvres, for example.

A short well-planned program led by theboard chair is appropriate. A printed outlineof the program should be distributed. Theprogram might last a maximum of 30 minutes,for example, and could include:

* An outline of the agencys mainservices.

* Specific examples of how individualshave benefited by participating in theprogram.

* A talk by a recipient of the agencysservices which highlights the personalbenefits of the program.

* A short video that features the agencysservices.

* A testimonial by a present donor thatoutlines the reasons why that individualmade a financial commitment to thatagency.

* A tour of the agency.


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Decide whether to include a request for

funds. Many open house programs just serveto introduce potential donors to the program.The request for funds is made at a later date.

H. Analyze other community fundraisingH. Analyze other community fundraisingH. Analyze other community fundraisingH. Analyze other community fundraisingH. Analyze other community fundraising

drives and their successes or failuresdrives and their successes or failuresdrives and their successes or failuresdrives and their successes or failuresdrives and their successes or failures

Very few fundraising ideas are new.In most cases, in-dividuals who have planned fund-raising drives for otherorganizations will be pleased to discuss their experiences.

In some instances, a meeting with a representative ofa nonprofit that has completed a similar fundraising effortin a neighboring community might be effective.

Meet with individuals in person who have had particularfundraising experiences. Ask specific questions such as:

How many hours of volunteer time werespent?

What specific services were provided?

What were the actual profits afterdeducting all of the expenses?

Do they have specific recommendations

that would increase revenues or decreaseexpenditures?

What problems were encountered?

Can they provide you with copies of theirmaterials, such as fundraising brochures

and letters?


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I. Divide fundraising prospects intoI. Divide fundraising prospects intoI. Divide fundraising prospects intoI. Divide fundraising prospects intoI. Divide fundraising prospects into

those to visit, those to call, and those tothose to visit, those to call, and those tothose to visit, those to call, and th