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Board Service 201 | Board Ambassadors: Ensuring Necessary ResourcesCorporate Responsibility | October 2017
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
A little about me…
Fiduciary DutyEnsuring Resources Fundraising
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
BOARD ROLES AND RESPONSIBILITIES
Set Organizational Direction
Provide Oversight
Ensure Necessary Resources
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
ENSURE NECESSARY RESOURCES
CEOBoard Members
Supporters
PoliciesPlanning
Board Giving
ProspectingCultivation
Stewardship
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
*Susan Kenney Stevens
DUAL BOTTOM LINEM
issi
on Im
pact
High Mission Impact
Low Profitability[Keep, contain costs]
High Mission Impact
High Profitability[Invest and grow]
Low Mission Impact
Low Profitability[Close or give away]
Low Mission Impact
High Profitability[Water and harvest, increase impact]
Financial Profitability
*Nonprofit Sustainability: Making Strategic Decisions for Financial Viability
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Board’s Fiduciary RoleUnderstand nonprofit financial foundations
Set up & monitor key financial indicators
Ensure financial control mechanisms
Approve the budget
Oversee legal obligations
Understand roles of board, treasurer, financial committees, financial staff, internal controls
Plan for financial diversity and sustainability
*BoardSource
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
ASSESS FINANCIAL PERFORMANCE
ü Liquidity
ü Revenue & expense activity, diversification
ü Significant investments, policy & strategy
ü Reserves & policy
ü Donor compliance
ü Uniform Prudent Management of Institutional Funds Act
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Our Total Fundraising Net:
Is this enough to fund our work?
Our Dependency Quotient:Are we at risk if a top donor
changes its giving?
Our Cost of Fundraising:Are our fundraising efforts paying
off efficiently?
How are we doing?
Source: Measuring Fundraising Effectiveness
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FINANCIAL OVERSIGHT QUESTIONS• Are our current revenue streams sustainable in the next year? Two years? Five years?REVENUE
• How might changes in revenue streams affect operating results?OPERATING RESULTS
• If changes in operating results occur, how will these changes affect our organization’s balance sheet?BALANCE SHEET HEALTH
• How will changes to the balance sheet affect our organization’s liquidity?LIQUIDITY
• What are the true costs of each of our programs? EXPENSES
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
PROTECT YOUR ORGANIZATION
Accounting Policies & Procedures
External Audits
Internal Controls
Board
Ultimate fiduciary responsibility
Provide financial oversight
Understand org finances
Review financial docs
Assess & minimize risk
Delegate tasks to committees
Committees
Finance, Audit, Investment
Make recommendations
Individuals do not have liability
COMMITTEES
Finance Committee Audit Committee Investment Committee
Hats We Wear
Legal Ambassador Volunteer
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
What does it mean to be an ambassador?
FUNDRAISING PLAN & STAFF
The “F” Word…
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Fundraising is NOT…
BEGGING ATMs
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
MISSION
Fundraising IS…
CAPACITY FRIENDS
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Enough Money to Fund
Programs(total fundraising net)
A Responsible Balance
of Risk and Reward (Dependency Quotient & Cost of Fundraising)
Healthy
Fundraising
Program
The Goal
Source: Measuring Fundraising Effectiveness
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Show me the money…
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Show me the money…
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUNDRAISING PROCESS
Prospecting Identification Preparation
Cultivation Build the Relationship
Engage the Donor Ask for the Gift
Stewardship Recognition Reporting Communicating Engagement
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Fundraising by Time
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUND DEVELOPMENT
Diversity is keyIndividuals
Membership
Special events
Foundation grants
Government grants
Corporate sponsorship
Earned income
Service clubs
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUNDRAISING BY THE NUMBERS
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
DONORS & GIVING
BEQUESTS/PLANNED GIFTS
MAJOR GIFTSCapital campaigns
Endowment campaignsSpecial events
ANNUAL GIVING Annual campaigns
Special eventsDirect mail
Online givingMembership programs
ONSITE/FIRST TIME GIFTSNewsletters
VolunteerismSocial media
Peer-to-peer giving
New Gifts ($)
Annual Donors ($$)
Midsize Donors ($$$)
Major Donors ($$$)
Planned Gifts
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Yes, but not that much
No
3 Possible Outcomes YES!!
Philanthropy
Connection
Concern
Capacity
Giving Motivations
* Kay Sprinkel Grace
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUNDRAISING ROLES
EXECUTIVEDIRECTOR
Chief Fundraiser
Media Spokesperson
Fundraising Planning
Board & Staff Liaison
DEVELOPMENT STAFF
Fundraising Strategy
Moves Management
Identify/Communicate Needs
BOARD OF DIRECTORS
Connect to Funding
Make Gifts
Policies
FUNDRAISING COMMITTEE
Board & Staff Liaison
Staff support on specific efforts/campaigns
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
100% BOARD GIVING
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
100% BOARD GIVING
Board Giving
Commitment
Open Ended
Flexible
Specific
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
BOARD ROLES
Meeting & engaging with
people
Connector
Illustrating the work in a
compelling way
Storyteller
Making the case for the future
Visionary
Asking for specific support or involvement
Closer
*Creation in Common
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Fundraising Policies
▪ Gift acceptance policy
▪ Personal giving policy
▪ Ethics statement
▪ Sponsorship endorsement
▪ Donor relations
▪ Board member fundraising
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Mission Moments
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Ask the Right Questions
What is our capacity? What does success look like? What matters the most to us?
How does this serve our mission? How does it fit our strategic goals?How might this be a challenge for us?
Why is this important right now? Why should we consider other options? Why is this relevant to our stakeholders?
© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Emily Davis, MNMPresident, Emily Davis Consulting
Senior Governance Consultant, BoardSource(720) 515-0581