3 Reasons Why Your Board Doesn’t Fundraise and How to Fix That

featuring Barbara O'Reilly, Windmill Consulting

For many boards fundraising is truly an “f” word—and not in a good way. Yet, it is inherent in a board’s governance duty to ensure that their organization is financially sustainable and has access to funding. Fundraising is probably one of –if not THE--biggest priorities of any nonprofit yet it is the #1 cause of complaint by both CEOs and Boards. In BoardSource’s 2021 Leading With Intent report, CEOs gave their boards a C for fundraising citing strengths in internal responsibilities like understanding of the mission, fiduciary duties of financial and legal/ethical oversight rather than external ones.

Learn the three top reasons why board members don’t fundraise and how to change their mindsets. Learning objectives we will cover:

Transcript

1. Three Reasons Why Your Board Doesn’t Fundraise and How To Fix It Presented by: Barbara O’Reilly | CFRE Principal APRIL 2023
2. 30 year career as a fundraiser, earning my stripes at big shops like Harvard, American Red Cross, National Trust for Historic Preservation CFRE, AFP Master Trainer, Past President, AFP Washington Area Metro Chapter, Advisory Panel, Rogare, The Fundraising Think Tank​ Tailored 1:1 consulting on startups, major gifts, campaigns, assessments/studies, CEO/CDO coaching, and board training.​ Nice to meet you! Barbara O'Reilly Principal www.whillconsulting.com
3. What We’ll Learn Today…​ Three common complaints about boards and fundraising Good governance practices to ensure your board is set up for success Solutions that can turn around your board into fundraising superstars
4. It comes down to: Do you have the right people on your board? Do they know what you’d like them to do to help with fundraising? Do they have the training and tools they need to be successful?
5. 1 My board isn’t made up of the right people.
6. POLL How many of you can relate to this complaint?
7. You’re not alone… Strength A Understanding mission Area of Board Performance Average Grade from Executives Financial oversight Source: BoardSource, 2017 Leading With Intent
8. You’re not alone… Strength Strength A B Understanding mission Legal & ethical oversight Understanding board roles & responsibilities Adopting & following a strategic plan Monitoring performance against strategic plan Area of Board Performance Average Grade from Executives Financial oversight Guiding & supporting the chief executive Thinking strategically as aboard Evaluating the chief executive Source: BoardSource, 2017 Leading With Intent
9. You’re not alone… Strength Strength A B C Understanding mission Monitoring legislative & regulatory issues Fundraising Area of Board Performance Average Grade from Executives Financial oversight Understanding context of work Increasing board diversity Source: BoardSource, 2017 Leading With Intent Legal & ethical oversight Understanding board roles & responsibilities Adopting & following a strategic plan Monitoring performance against strategic plan Guiding & supporting the chiefexecutive Thinking strategically as a board Evaluating the chief executive
10. Get the right people on the bus, the wrong people off the bus, and the right people in the right seats. Jim Collins, Good to Great
11. Source: Consumer Health Foundation Board Matrix Who do you have now on your board? Who will you need?
12. Who do you have now on your board? Who will you need? Source: Consumer Health Foundation Board Matrix
13. Define Your Short-term and Long-term Needs Create a matrix that maps skills, networks, geography, demographics you currently have and what you may need to fill Identify your current gaps through an annual Board self-evaluation to gauge performance Work with Governance or Executive Committee to lead this ongoing process and set or adjust expectations
14. Your Ideal Potential Board Members Have… Access Belief Capacity Does this person have a relationship to you or other board members, staff, donors, others related to you? Does this person genuinely care about your mission? Is this person historically philanthropic toward similar causes? Does this person have the financial ability and/or networks of those who can support you at a significant level?
15. 2 My board isn’t a fundraising board.
16. POLL How many of you can relate to this complaint?
17. Fundraising Isn’t Just Asking For Money Donor Closer Spokesperson Ambassador Steward Cultivator
18. Hospitality Integrity Community Gratitude (We welcome donors to our organization) (We are transparent and accountable) (We inspire others to want to be involved in our work) (We thank donors) Your Board Source: “Major Gift Fundraising: Unlocking the Potential for Smaller Nonprofits,” Amy Eisenstein and Adrian Sargeant, 2015 I can't picture in my mind a major gifts circle without the board being at the center of that. That culture just kind of permeates, emanates out from that circle. They're right there in the heart of it because they helped grow that culture…There's a hunger and experience of our mission, of our integrity, of our welcome, of our gratitude. —Board member Boards Lead a Culture of Giving
19. Give or Get? Give AND Get?
20. 1 Board member giving is a public commitment to the organization’s work Board members might pay increased attention to the nonprofit’s mission and financial health when their own money is engaged Many other donors and institutional funders will not give to organizations that don’t have 100 percent board participation as current donors. 2 3 Here’s Why Board Giving Matters
21. Agree to a Role for Each Board Member Offering names of personal/business contacts which are moved to prospects lists and into active cultivation Reviewing donor lists from other organizations and identifying potential supporters and/or “rating” current donors Augmenting information on current donors (i.e., who should contact, qualifying info) Being the primary member of a team making asks Writing personal, hand-written thank you notes to donors Making the initial contact with a donor or prospect to move towards further cultivation
22. Agree to a Role for Each Board Member Making calls to donors, e.g. thank you calls, outreach to lapsed donors, calls to current for renewed contributions this year. Taking responsibility for personally cultivating or stewarding donors/guests at a special event Hosting a small event that introduces new networks to your organization Participating in training: during meeting, offsite, other Contributing to fundraising events: raising money, acquiring in-kind services/items, volunteering time
23. 93% They would “definitely or probably give again the next time they were asked” They would “make a larger gift.” They would “continue giving indefinitely” 84% 74% Boards Influence Donor Retention
24. 3 My board doesn’t seem to follow-through.
25. POLL How many of you can relate to this complaint?
26. Do They Know What You’d Like Them To Do?
27. 1 Job Description Getting to Know You Fundraising 101 Your expectations (time, meetings, financial) How they can be involved in fundraising Mission and Vision Strategic Plan Your fundraising trends Opportunities and challenges Ways they can “fundraise” Tips on how to be successful Your goals and challenges Their role and responsibilities 2 3 Set Expectations from the Beginning
28. Do they have the fundraising tools they need to be successful? Templates and Scripts Donor Meeting Strategy Talking Points Canned call to action Donor background and research
29. What’s Holding Your Board Back? Inspire them Lead them Fear of Rejection Use a mission moment at the beginning of every board meeting Connect them with donors—thank you calls & notes at every meeting Bring beneficiaries to tell their stories Orientation and training sets expectations Give them tools and resources they need Follow-up with them Role play Discuss scenarios and responses
30. When Do You “Bless and Release?” Annual Self-Evaluation Term Limits —YES! Bless and Release Are we honestly assessing how we’re doing as a leadership group and as individual members? Can help you avoid burnout Without them, limits your access to networks Otherwise, there’s no easy way to remove ineffective members Self-evaluation is a good conversation opener Review Board expectations Set personal meeting to learn what’s preventing them from fully embracing their duties. Thank them for their service
31. Bonus My board can help with events.
32. There’s a Role For Every Member Leading By Example Showing Gratitude Inspiring Others Every board member can play a part in helping you reach your goal. Issue challenge grant to use night/day of event Thank you notes and phone calls following the event. Call attendees to ask about their experience attending the event. Personally reach out to invitees—new to the event, longstanding attendees, etc. Be a social ambassador promoting the cause and event Welcome attendees during the event—give them assignments! Purchase a table (or two)
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