ensuring necessary resources: board ambassadors (october 2017)

Board Service 201 | Board Ambassadors: Ensuring Necessary ResourcesCorporate Responsibility | October 2017

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A little about me…

Fiduciary DutyEnsuring Resources Fundraising

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BOARD ROLES AND RESPONSIBILITIES

Set Organizational Direction

Provide Oversight

Ensure Necessary Resources

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ENSURE NECESSARY RESOURCES

CEOBoard Members

Supporters

PoliciesPlanning

Board Giving

ProspectingCultivation

Stewardship

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*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

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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

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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

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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

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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

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What does it mean to be an ambassador?

FUNDRAISING PLAN & STAFF

The “F” Word…

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Fundraising is NOT…

BEGGING ATMs

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MISSION

Fundraising IS…

CAPACITY FRIENDS

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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…

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Show me the money…

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FUNDRAISING PROCESS

Prospecting Identification Preparation

Cultivation Build the Relationship

Engage the Donor Ask for the Gift

Stewardship Recognition Reporting Communicating Engagement

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Fundraising by Time

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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

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Yes, but not that much

No

3 Possible Outcomes YES!!

Philanthropy

Connection

Concern

Capacity

Giving Motivations

* Kay Sprinkel Grace

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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

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100% BOARD GIVING

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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

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Fundraising Policies

▪ Gift acceptance policy

▪ Personal giving policy

▪ Ethics statement

▪ Sponsorship endorsement

▪ Donor relations

▪ Board member fundraising

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Mission Moments

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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

emily@emilydavisconsulting.comemilydavisconsulting.com