ENGAGING YOUR BOARD IN FUNDRAISING

Presented by Gail M. Sudore, CFRE

The Center For Nonprofit SuccessCincinnati Fundraising SummitNovember 17-18, 2009

“I’LL DO ANYTHING BUT FUNDRAISE”~

WHY BOARD MEMBERS HATE FUNDRAISING

Perceive it as begging for money Feel it requires them to take advantage of their

friendships to leverage gifts Fear of rejection Don’t know how to do it effectively

10% would absolutely refuse to take a role in fundraising

25% have never participated in any kind of gift solicitation

50% find fundraising “distasteful”

75% would participate in fundraising if they had to- but wouldn’t enjoy it!

“MEMBERSHIP ON THIS BOARD IS NOT POWER, IT IS RESPONSIBILITY.”

“The board of directors— its strength, involvement, and commitment–

is probably the most important determinant of whether the organization stays alive.

A board is the vital link that connects the organization to the larger

community. At the most basic level, the board represents the community to the nonprofit and vice versa. The quality of this

two-way relationship is the shape and content of a nonprofit’s success.

It is a board member’s commitment, skills, connections, influence,

leadership, effort and willingness to give of their time that are keys to making the organization work.”

~Peter Drucker, America’s foremost management authority

TRANSLATING THE SENSE OF POWER/OWNERSHIP INTO A SENSE OF RESPONSIBILITY

Organizations with engaged and well-connected boards who use their personal influence and

donation to set a standard to stimulate funding resources are usually the best known and

most respected organizations, whether or not their programs/products/services/brand

are relatively known

AN UNDERLYING PRINCIPLE:PHILANTHROPY IS BASED ON VALUES

Securing funding support centers on fund development, which embraces but is not synonymous with fundraising

Development is the process of uncovering shared values Development is a series of deliberate activities by which organizations

involve and retain funders/supporters/stakeholders in a (“shared ownership”) donor-investor relationship

Development is based on the premise that all giving is a form of investment

“The request for a gift is less an appeal for money to meet an organization’s needs and budget goals than an invitation to join in an entrepreneurial

venture, an opportunity to invest in a process that pays dividends in the form of a stronger, more vital community”

-Kay Sprinkel Grace, Author of Beyond The Tin Cup: New Strategies For Nonprofit Innovation And Investment

IT BEGINS WITH THE BOARD’S JOB DESCRIPTION AND ORIENTATION

BOARD OF DIRECTORS

JOB DESCRIPTION

POSITION: Member, Board of Directors

PURPOSE: To provide governance…

RESPONSIBLE TO: As an entity...

PRIMARY ACCOUNTABILITIES:

•Understand and accept the organization’s mission, purpose, principles and philosophy

•Ensure adequate funding for the organization’s work and operations

•Support, promote, contribute (according to ability) and participate in the organization’s resource/fund development and fundraising efforts

•Serve as an advocate and ambassador, for the organization, interpret the organization to, and interact with the community

SPECIFIC DUTIES:

•Share information on needs, trends, resources, etc., of the community as applicable

BoardJobDescriptionGENERAL.doc

BOARD ORIENTATION•PROGRAM:

Offer new board members a feel for the work of the organization– what it does, whom it serves, what difference it makes– to get them emotionally and intellectually connected and motivated.

•FINANCES:

Help new board members become informed about where money comes from, how it is spent, and the state of the organization’s financial health, including their role in fund development and fundraising.

•HISTORY:

Provide sufficient knowledge about the past so that the present makes sense. Also, help new board members see their own participation as part of the organization’s ongoing and evolving story.

•STRATEGIC DIRECTION:

Present a framework for new members to participate effectively. Clarify the mission, vision, organizational values, and goals that inform organizational actions.

•ORGANIZATIONAL STRUCTURE:

Help new board members understand who does what, roles, responsibilities and lines of accountability.

~From the “Board Orientation Chart”, BoardSource

THE SIX MAJOR ROLES OF A BOARD MEMBER

GOVERNORS Protecting the public interest, fulfilling corporate obligations (which include financial management and organizational stewardship), and ensuring the organization achieves its purpose “Co-creators of the future”

AMBASSADORS Articulating, communicating and interpreting the organization, its mission, work, validity, impact and value (i.e., how it meets the needs and challenges the community faces) to the community, defending the organization when it is under pressure, and representing the organization in their constituencies and communities “Powerful Testifiers”

ADVOCATES Promoting the interests of the organization and the people it serves (the relationship of paid staff members to the organization is often perceived in the community as one of “enlightened self-interest”; because board members are volunteer leaders who give freely of their time and effort, board members bring enhanced credibility to the organization and are in a unique position to act as an advocate for the organization within the community board members are the most powerful and effective advocates a nonprofit has, far more effective than professional P.R. specialists, lobbyists and fundraisers)

“Passionate Champions”

THE SIX MAJOR ROLES OF A BOARD MEMBER CONTINUED:

INFORMATION GATHERERS Finding out what the community needs, challenges, issues and opportunities are, learning what the perception of the organization is in the community, and bringing those needs, challenges, issues and opportunities to the organization (which can help the organization improve its program, services and work)

CONSULTANTS Sharing their professional knowledge, skills and expertise

SPONSORS Giving money (making a financial contribution within their ability) and raising money (identifying and cultivating sources of support, making introductions and connecting the organization with sources of support, promoting the variety of opportunities and ways for individuals and institutions to be able to support the organization, and obtaining financial support from the community

3 W’s, 3 C’s, 3 G’s BoardWealth, Wisdom, Work

Commitment, Clout, Contacts/ConnectionsGive (money/resources), Get, or Get Off (the board)

BoardRoleInOrganizationalSustainabilityAndResourceDevelopmentHandout.doc

THE SPECIFIC ROLES OF BOARD MEMBERS IN THE FUND DEVELOPMENT PROCESS

The fund development process requires and encourages a partnership (and coordination) between board and staff and provides each with opportunities to be a resource, catalyst, and implementer. Board members are an organization’s major investors, regardless of the size of the gift they (or their institutions) make. As major investors, board members have a primary and crucial role in fund development. This role consists of those subtle, frequently intangible, and not immediately measurable acts which draw current and potential donors/funders and supporters closer to the organization and more deeply into an understanding of shared values. These include:

PROSPECT IDENTIFICATION QUALIFICATION DEVELOPMENT OF STRATEGIES CULTIVATION EVALUATION SOLICITATION FOLLOW-THROUGH/FOLLOW-UP STEWARDSHIP RENEWAL

ENGAGING IN PROSPECT IDENTIFICATION

Complete a biographical information/profile form and assessing fund development quotient checklist BoardOfDirectorsBiographicalInformationProfileFormGENERAL.doc ChecklistForAssessingBoardMembersFundDevelopmentQuotient.doc

Provide referrals of potential supporters/donors (simple list of names; “since the last meeting” prospect identification sheet; major donor referral form/tool) ProspectIdentificationSinceTheLastMeetingSheet FundDevelopmentTool.doc MajorDonorReferralFormGENERAL.doc

Make a list of friends and close personal contacts who are interested in the cause, organization or similar organizations and send them a brochure and newsletter with a personal note, “I thought you might find this of interest…”

Attend community, donor recognition, legacy society and special events to learn about prospective supporters/donors, their interests, families and future plans; after the event, report on the contacts made and the information garnered/exchanged

Talk to personal, professional & business contacts/acquaintances (e.g. attorney, accountant, banker, financial planner, insurance agent, etc.) and arrange for them to feature/distribute information, brochures, newsletters, posters/displays, etc., in the lobby/reception area of their offices/facilities

Assist in the continuing information and data collection process by clipping/forwarding pertinent newspaper, magazine, professional journal, e-newsletter, blog articles, etc.; provide “ground level” information

Acquire mailing lists for the organization from community, civic, fraternal and professional groups/organizations belong to; facilitate a mailing list “exchange”

Convene and host a gathering of current enthusiastic long term donors to involve them in prospect identification, review and development

Make it a practice to prospect identify at every board meeting! Keep all prospect review sessions confidential

ENGAGING INQUALIFICATION

Assist with formulation of prospect profiles and the verification of information and data

Assist in the assessment of the connections and “match” between prospects and the organization

Help prioritize prospects based on capacity and readiness; participate in a “silent prospecting” exercise (silent prospecting process sheet/tool) SilentProspectingProspectIdentificationAndQualificationFundDevelopmentTool.doc

ENGAGING INDEVELOPMENT OF STRATEGIES

Make a meaningful gift to the best of individual ability (the 100% standard makes a powerful statement to the community and prospective donors!)

Assist with the identification of the best and most effective ways to approach, cultivate and solicit prospects

Identify where can “open doors” Many times aboard member can open doors to prospects for whom the nonprofit’s staff cannot gain access

Insist on spending adequate time as part of board and committee meeting agendas to discuss, plan, strategize and evaluate, in order to pursue continuous improvement in the organization’s fund development and fundraising capacity and ensure success! Make it a priority topic-- at the top of the agenda, instead of the bottom!

Champion an annual board retreat/advance that includes significant time for fund development and fundraising planning

Participate in a “Sight Raising” brainstorming session, a form of strategic marketing focused on how to best influence the gift levels of other board members, key donors, volunteers and stakeholders, and on securing leadership gifts

If an experienced board member, work one-on-one with/mentor new board members to help develop their fund development quotient

Participate actively in all board training and development sessions; attend a professional association (e.g. AFP, OANO, etc.) program for board members and share the experience with the rest of the board

ENGAGING INCULTIVATION

Personally approach acquaintances/contacts, introduce them to the organization’s CEO and/or development staff and set up a visit(s), tour(s), program presentation, luncheon with the CEO/board chair, etc.

Open a dialogue (the cornerstone of cultivation) with prospective and current donors; respond confidently to all questions from prospects, as well as seek on behalf of the prospects, the answers to more complex inquiries

Wear an “ask me about…” button (to spur conversation and dialogue) Host a “point of entry” event, “giving circle”, “breakfast/lunch/dinner/coffee club”, or

“book club” type forum Personally invite prospects to an event/function Pick up a potential donor and transport them to organization events, tours, program

presentations, etc. (drive time is an opportunity to talk and begin to establish a personal relationship)

Captain a table at a special event Leverage personal and professional contacts; acquaint legislators, city council

members, public officials and key community leaders with the organization’s case for support

The purpose of cultivation is to build relationships and uncover shared values!

ENGAGING INEVALUATION

Listen to feedback from prospects and donors and share information garnered/exchanged with board and staff

For prospects have connections with: help determine/gage if those prospects have been provided all the necessary and right information and in the form best for them; if adequate cultivation is being/has been done; if the timing of contacts, communication, cultivation activities and other actions have been appropriate, right, timely and effective; and if more needs to be done before the solicitation can be made

Provide input on who should be included in the solicitation meeting

ENGAGING INSOLICITATION

Accompany staff on visits to prospects; take an active (vs. passive) part in the “ask”; take the lead-- invite prospective donors, arrange and serve as host of the visit

Personally deliver information (or tokens of thanks) Write personal notes to prospective donors and donor renewals on solicitation

materials, correspondence, etc. Follow up with prospects who are unable to attend events Arrange for or make a presentation to community, civic or fraternal groups/clubs

personally belong to Obtain a gift from the institutions, corporations, organizations personally involved with Apply for matching gift support through own employers/institution/ corporate giving

program Set up a challenge campaign (e.g. will give, or get, $5 for every $25 a donor(s) gives

or will match every $10 gift up to 10 gifts); conduct a challenge during a fundraising event (e.g. match every gift given during a 15 minute period of time); challenge campaigns can be conducted on an individual basis or collectively as a board, set specific dollar and/or participation goals, and have a specific time table or be open ended

Host a small event/party/function for major prospects in home, office, restaurant or other location

ENGAGING INFOLLOW-THROUGH/FOLLOW-UP

Provide an “action update” to the board and staff as appropriate and meet with staff to determine and plan the next steps

Follow-Through= continuous, sustained and seamless action at every step and stage of the fund development process- even solicitation

Follow-Up= a renewal of action/activity

The implementation of each step will determine what specific

follow-through/follow-up is needed

ENGAGING INSTEWARDSHIP

Write personal notes or thank you letters to donors Make thank you calls (pure thank you calls with no suggestions of an “ask”);

participate in a “thank-a-thon” Send an e-mail or make a personal call to event patrons (within a week of

the event) to thank them for their attendance Send holiday, birthday, anniversary, milestone or other special occasion

cards to prospective and current donors Make calls and/or write notes/e-mails to lapsed donors (to simply inquire

about how they feel about the work the organization is doing and obtain feedback and input, with no suggestions of an “ask”); share information garnered with board and staff

Participate in recognition events Host a meeting(s) of “corporate council”, “foundation council” or other

donor/funder/philanthropic demographic “councils” (dialogue, input and feedback purposes)

ENGAGING INRENEWAL

Arrange a “testimonial” focus group of current donors and invite other board members, community leaders, etc. (can also invite selected prospects as appropriate) to discuss what motivated them to give to the organization; share own personal passion and commitment to the cause

From High Impact Philanthropy by Kay Sprinkel Grace

Renewal of donors starts the fund development process/cycle (from the point of re-quantifying donors based on their recent gifts) all over again

BoardMemberIndividualFundraisingPlan.doc BoardRoleInFundraisingKimKleinArticle.mht

RESOURCES AND ADDITIONAL INFORMATION Board Source www.boardsource.org Workshops, trainings, annual conference, assessment tools, and an extensive website and

selection of information and material on nonprofit governance (requires fee-based membership; books & publications for purchase; some information and services are available for free)

Blue Avocado http://www.blueavocado.org/ An on-line magazine for nonprofit boards; regular columns include Board Café (free subscription)

National Council on Nonprofit Associations www.councilofnonprofits.org/ A national network of state and regional nonprofit associations serving more than 20,000

member organizations; by linking local nonprofit organizations across the nation through state associations, the National Council helps small and midsize nonprofits manage and lead more effectively, collaborate and exchange solutions, engage in critical policy issues affecting the sector, and achieve greater impact in their communities; provides technical assistance and tools, conducts research on issues and trends impacting the nonprofit sector, and offers educational programs, conferences and workshops/seminars, a “Nonprofit Solutions” resource center, the “What You Need To Know” newsletter, and a wide variety of books, publications and materials (requires fee-based membership; some information and services are available for free)

Ohio Association of Nonprofit Organizations www.oano.org/ A statewide membership association of more than 600 nonprofit organizations representing the

breadth and diversity of Ohio's charitable nonprofit sector;provides leadership, education, and advocacy to enhance the ability of Ohio's nonprofit organizations to serve their communities; offers trainings, conferences, workshops/seminars and networking opportunities; services include “Ask An Expert” and a Standards of Excellence organizational certification program (requires fee-based membership; some information and services are available for free)

Leader to Leader Institute http://www.pfdf.org/ Helps social sector organizations achieve excellence in performance and community building

by providing guidance in managing for the mission, making innovation a part of all strategy, developing productive partnerships, collaborations and alliances, facilitating dispersed leadership, promoting and building richly diverse, inclusive organizations and communities, and using self-assessment resources for establishing mission, goals, and objectives

RESOURCES AND ADDITIONAL INFORMATION CONTINUED Center on Philanthropy at Indiana University http://philanthropy.iupui.edu/ A leading academic center dedicated to increasing the understanding of philanthropy, improving

its practice, and enhancing participation in philanthropy; provides information, research, books and publications on philanthropic trends and practices, and offers training and workshops on fundraising and fund development through its Fundraising School (most information is available for free; “Fundraising School” offerings are tuition/fee-based)

Association of Fundraising Professionals www.afpnet.org/ An international professional association that represents more than 30,000 members in 207

chapters throughout the world, dedicated to advancing philanthropy through advocacy, research, education and certification programs; fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising profession; an excellent resource for a wide variety of fundraising information, books, publications and materials, educational programs, trainings, conferences and workshops/seminars, professional certification programs, and networking; offers an extensive resource center that provides customized research assistance on fundraising issues, techniques, methodology and best practices (requires fee-based membership; some information and services are available for free)

The Chronicle of Philanthropy http://philanthropy.com/ An excellent source of news on the foundation and nonprofit world; website, printed and on-line

journal with news for nonprofit organizations on grant seeking, foundations, fund raising, managing nonprofit groups, technology, charitiable organization tax considerations, nonprofit jobs, and more; searchable database of grants; features include a searchable “guide to grants” database, a “new grants” section which lists grants of $20,000 and more made by foundations, companies, and other private sources, and a “deadlines” section which lists newly announced deadlines for grants and other awards nonprofit groups are eligible to apply for (available by subscription; some features and articles available for free)

FundRaising Success www.fundraisingsuccessmag.com A monthly published periodical containing practical information on fundraising methods and

techniques, strategies, issues and trends, innovations, and more; regular columns include “To The Point”, “Easier Said Than Done”, and “Speaking Of Fundraising” (free for qualified recipients)

5 X 5 GREAT IDEAS!

Engage board members by evidencing: Gratitude- show you appreciate them Recognition- how you fit recognition to the task, mission and motivation Enthusiasm- for them, and for your organization Acknowledgement- show them their time and work are valued Time-Sensitivity- show that you make the use of their time worthwhile

Retain board members with: Inspiration- keep them close to the product! Dedication- yours will lead to theirs Energy- applied to tasks and relationships Appropriate tasks- match their tasks to their motivation Special thanks- thank board members sincerely and often

~Kay Sprinkel Grace

CONTACT INFORMATION

Gail M. Sudore, CFRE Consultant, Author and Speaker

c/o 61 Liberty StreetDansville, New York 14437

E-mail: SudoreG@gmail.comTel: 607-483-5383

Specializing In Building Visionary, Excellent And Extraordinary Organizations