In this series of articles entitled “Who’s the Boss?” I have been discussing the CEO’s executive role with respect to the nonprofit board’s various governance functions and have argued that providing explicit and active leadership – what I call “reciprocal governance” – is an essential responsibility of the CEO. You need your board and it needs you in order to provide the best possible leadership through governance. In this article, I am going to explore how the CEO can draw upon the knowledge, resources and connections of board members to help them fulfill their individual and collective duty to support the fund-raising goals of the organization.
In most nonprofit organizations, the chief executive officer is also the “fund-raiser-in-chief.” This is especially true in smaller organizations and those for which the CEO was the founder or first chief executive. However, even in very large organizations with large development staffs and a chief development officer, the CEO usually plays a key role in major gift fund raising and in providing overarching direction for fundraising efforts.
The board of directors represents a corps of volunteers that can be mobilized to help achieve fund raising goals for the organization. However, one cannot expect such support without direction or clearly defined expectations. Therefore, CEOs must work with their boards to establish clear expectations and board policies accompanied by education, training, and coaching in how to perform those duties.
A review of the literature on board engagement in fund raising will typically yield lists of tactics and activities for engaging directors in fund raising. What such lists typically do NOT do, however, is clearly describe the CEO’s executive role in making sure these various board engagement activities related to fundraising are systematically carried out. What I will do in this article is provide a list of what I have found to be the most common strategies for board involvement in fundraising and how the CEO can ensure their execution.
Gleaned from numerous sources, some of which have been referenced below, I have consolidated over 30 different strategies into a “baker’s dozen” of ways board members can help raise money without asking. These are explained and then followed by my brief commentary on how the CEO can facilitate each particular activity. The activities are addressed to board members, so I’d go ahead and share the list with your board and encourage discussion about how they can become engaged. The commentary, however, is addressed to chief executive officers and consists of advice on how you can activate your board members to actually do the deed.
In every case, there is an underlying assumption that board members are expected to support the philanthropic efforts of the organization. If such expectations have not been stated and, ideally, codified in some type of board policy and procedure manual, then discussions with the board around this issue should be held first before diving into these tactical activities. The last thing a CEO wants is a disagreement about what being a board member means in his or her organization.
Make a proud, personal annual gift
I have written previously about the importance of having the CEO take the initiative to visit each member of the board each year to solicit their support for the annual fund. An alternative for larger boards is to visit each board member at the beginning of their term to solicit an annual fund commitment for the number of years of their term. For most nonprofits, this would mean securing a three-year commitment, with another personal visit if the director is elected to a subsequent three-year term.
While such visits will likely also include discussions of donor prospects and general advice and counsel around other organizational matters, having each board member make a personal – not corporate – gift should be the explicit expectation the board has for each of its directors. Commitments to a capital campaign, discussions around legacy planning or deferred gifts may also take place. However, this isn’t ultimately about the amount of money raised from each director. Rather, it is giving them the opportunity to personally invest in the organization they are helping govern.
I know of organizations in which board members themselves ask their peers on the board for their annual pledge or commitment to the organization. While this may work in some instances, this practice hardly guarantees consistency and can promote lack of confidentiality. Few board members have the ability to “make an ask” of fellow volunteer board members. I am also aware of some boards that set a collective goal and then challenge themselves to meet it. Regardless of how board members are involved, the more they can own the process, the better, so long as the CEO is comfortable and involved.
One additional thought in this regard. It costs a fair amount of money to support a board of directors, especially if the board is dispersed and must travel to board meetings. Some boards make a commitment each year to collectively contribute enough money to the annual fund to offset their expenses. In other words, the board’s cost to the organization is net neutral. By doing this, they can track their own commitments and challenge each other to meet their obligation.
Understand Your Organization’s Fundraising Program
Beyond asking each director for a personal annual gift, the chief executive officer has a responsibility to make sure every member of the board understands the overall fundraising philosophy and program of your organization and the various approaches and strategies that are employed. If individual board members are going to be asked to support and participate in fund raising activities and events, they need to know what those methods are in order to understand the importance of every aspect of the program. Board education might consist of presentations by development staff around specific fundraising programs such as direct mail, events, legacy giving, deferred giving, and other opportunities.
Such knowledge of the larger fundraising context is important insofar as board members are often asked about where the money comes from to support the mission. Helping them to understand the big picture of fundraising is a form of engagement and contributes to their own cultivation as a donor. For example, if board members are educated in the steps of “moves management” and understand the five I’s of donor cultivation, they not only see donors at different points of development, but they can see themselves as part of a process that leads toward higher levels of involvement. Therefore, education in donor cultivation might include presentations and discussion about those steps, namely, identifying, informing, building interest, involving, and inviting to invest.
Thank Donors
An easy way to engage board members in supporting fundraising is to ask them to help say “thank you” to donors. This can be done by phone, with cards, or with letters. I know of some organizations which schedule a “phone-a-thon” session in conjunction with board meetings in which phone banks are set up, lists of contributors are printed, scripts and training are provided, and board members make calls thanking donors for an hour before or after a board meeting.
Another way in which to engage board members is to have them hand-write personal notes in thank you cards or in short letters. Sample transcripts can be provided along with all the tools and materials needed to accomplish the task. Little things like hand addressing the envelope and using stamps instead of running them through the postage meter make the note more personal and impactful.
Finally, board members may be asked to visit a major donor to personally express appreciation for the gift and to talk about how it made an impact on the organization. Ideally, such a visit would be in the company of the CEO, who has the greatest responsibility for saying thanks, but board members with unique relationships to the donor can certainly be employed in such cases. The CEO must be the person who requests such a visit from the board member and should be followed by a debriefing on how the visit went. Remember, every donor contact is a piece of an overall cultivation strategy, and saying “thank you” in a personal and meaningful way has been shown to be of tremendous significance when it comes to both sustaining on-going support and in eventual solicitation of a major gift.
In all the foregoing examples of how to say “thanks,” board members are not typically going to take the initiative and will require encouragement, organization, direction and materials to carry out the function. Because the CEO is in the singular position of accountability to the board and has the most significant interactions with the board, he or she must lead this effort.
Tell Your Story
Board members who are comfortable talking to acquaintances about their experience serving on your board, the nature and quality of the work you do, and the difference you make in the lives of the people you support can become real champions in the cause. I would go so far as to say that if board members are not enthusiastic about the organization and their involvement on your board of directors, they should excuse themselves from the board. The CEO, as the promoter-in-chief, can reasonably expect that board members are sharing their excitement and support with others.
I know from my own experience how often I spoke about the organizations on whose boards I served. It was easy to share the knowledge I had gained about health care, social services, television ministry, aging services, and developmental disabilities with others. And the experience of working with other like-minded individuals with whom I had an affinity was personally and professionally enriching. Why wouldn’t I talk about that experience?
On the other hand, I have also had the unfortunate experience of serving on a few church councils and small organizational boards that were as close to Purgatory as one could find. Either the organization lacked leadership, had lost its mission, or had a dysfunctional board. Attending meetings was agony. So, the message to CEOs is to make sure your board members are meaningfully and productively engaged and that their experience on your board is personally and professionally enriching. They will tell others about their experience as a board member if the story is exciting and worth telling.
Being properly motivated to share the story with others is a matter of heart and attitude. Turning motivation into effective action, however, requires support and encouragement. CEOs who work with their boards to make them partners in fundraising also have to provide tools with which to tell the story. These tools may consist of talking points, organizational publicity, and how to use social media. Some of these I’ll address later. How and when to speak to civic groups, churches and local media are also aspects of communication that require direction and support. When used effectively, however, the voice of known local board members can go a long way to support an image of an agency whose mission is worth supporting financially.
Open the Door to Prospective Donors and Partners
This two-part activity asks board members to recommend prospective donors to the organization and to introduce them to the CEO. Board members must be asked to plumb the depths of their business and personal relationships and be willing to share such prospects with the CEO. The nature of the relationship and how those businesses and individuals can be invited to financially participate in the organization’s mission should be explored.
Some might react to this expectation with a certain amount of fear and trepidation because it could possibly expose them to negative backlash. After all, these presumably are friends, relatives and business associates with whom the board member has built a relationship of trust and honesty. Asking these acquaintances now to support the organization of which one is a board member poses a certain amount of risk. However, even though there may be possible aversion to making such referrals, the CEO has a responsibility to help board members live up to this commitment.
Assuming the board member has helpful connections and is willing to make introductions to the CEO, it is important to emphasize that the board member is not asking their acquaintance for money. That may come later, but the board member’s only task is making the connection, and then supporting the CEO’s work. This kind of “non-ask” activity should not be difficult or onerous if the board member is properly coached in how to make introductions.
Some models of donor development call for investigation of donor capacity and/or developing intelligence around a prospective donor’s business, investments, wealth, connections, and other information about their capacity and propensity to give. When board members are actively making referrals to the CEO of people who they believe should be contacted, it is most likely that they also have information about the prospective donor that can help the CEO build a file to determine two critical factors: capacity and willingness. Capacity can be objectively determined by using a variety of data analytic tools. Willingness, however, is more subjective and board members often possess key insights that can help the CEO and the development team qualify prospective donors. Such insights can help set cultivation priorities and can help calculate the best use of the board member in approaching the potential donor.
There are many times when board members represent industries or professions that can bring value to the organization, or at the very least, help reduce overhead costs. Lawyers may have colleagues who can provide pro bonoservices to a needy client. Contractors may offer heavy equipment for capital projects, employees from supporting companies may be organized to do clean-up or painting. I know of a group of firemen in Oregon who prepare and deliver a meal to a group home of disabled gentlemen because a board member was a retired fireman.
Finally, the expectation for board members to “open doors” can extend to the board area of business opportunities. Such business opportunities might include anything from favorable vendor rates or fees, opportunities to consolidate back office operations, and all the way up to possible mergers or acquisitions. Again, the CEO should promote this kind of entrepreneurial thinking by specifically asking the board to consider who, among their business and professional associations, might be able to provide such opportunities.
Help cultivate donors
Donor cultivation is the systematic process of moving a donor through the progressive stages of engagement. When board members have a personal or professional relationship with prospective donors, the CEO can make those board members partners in moving such prospects up the ladder of support. Called “moves management” in the fundraising profession, the process of developing donors into becoming major supporters of the organization requires knowledge and strategy – both of which board members can help supply.
Let’s use the example of a business associate who works with a board member in the same profession. The first point of contact between the prospect and the organization might come about when the board members invites the prospect to join him in the organization’s annual golf outing. Four hours on a golf course can provide a lot of opportunity to talk about the organization and its work. A meal or social hour after the event provides an opportunity for introduction to the CEO. A review of the participant by the CEO could involve a discussion with the board member about potential and strategies for engagement. If a gift is forthcoming, the board member should be involved in personally thanking the individual.
Over time, if such an individual becomes a regular contributor, the board member should be involved in strategizing ways to “move” the donor to greater levels of engagement, perhaps as a volunteer, referral partner, event host, future board member, or other form of direct engagement. Ultimately, the goal – in partnership with the board member – is to gain as much financial support as possible from the donor. The CEO has to be the manager of this process with each board member and should lead the way in building a relationship with the donor.
When appropriate, ask for contributions
OK, so I lied. There may be some very rare occasions when it is appropriate to ask a board member to directly solicit a gift from a donor. Of course, these would depend on the nature of the relationship of the director to the donor and the existence of extenuating circumstances that would preclude either the CEO asking for the gift or having the board member accompany the CEO on the call. Such an occasion may also present itself if the board member has previously solicited financial or material support from the donor and has a successful track record of engagement. Finally, it may depend on the size of the gift being solicited. If it is a major gift, it would be highly unusual for a director to make the ask. If it is a much smaller contribution, such as an initial annual fund gift, then it might be appropriate.
To determine whether or not a board member should solicit a contribution is something that must be determined by the CEO in conversation with development staff and the board member. It would be most unwise to allow board members to make this determination on their own. The CEO must own this discernment process and must manage all director activities when it comes to soliciting contributions by board members.
Support and encourage all fundraising activities and the fundraising team
It might seem outside the scope of the CEO’s influence to engender this kind of action from board members. However, if appropriately educated about the entire scope of fundraising activity and appropriately engaged in some or all of the activities discussed in this article, board members are in a position to offer encouragement and support in a number of helpful ways.
Fund raising is not an easy profession and development staff, the CEO included, must possess the capacity to withstand being told “no.” When board members understand this and have opportunities to interact with staff, they can do a great deal to advance the cause by expressing positive support to them and by offering assistance to help with fundraising activities. Volunteering to help with the annual golf outing or gala, participating in auctions or walks, or just being present at a donor development event – these all are expressions of support for the team. The CEO is in a position to both model and ask for such support from board members.
Ensure that fundraising has adequate resources and support
In its fiduciary and strategic role, the board as a whole is responsible for making sure that sufficient resources are budgeted for the organization to fulfill its mission. This includes the resource development function as well. When the temptation arises to cut development staff and positions in the face of declining resources, boards must understand the potential for creating additional diminishing returns.
A quick case will illustrate the importance of making sure the development function has the necessary resources. This example comes from a private high school that needed to ramp up for a campaign to provide scholarships. The superintendent was reluctant to add additional staff – even though the ability of the school to conduct a large campaign was dependent on having more development professionals – because it “wasn’t in the budget.” I tried to undo this faulty thinking by asking him what he thought a reasonable return from a development officer should be. In other words, should a fundraising professional be able to raise three or four or five times his or her salary in a year? When he responded that the staff generally raised about three times their salary, I told him he should hire a hundred more. While not practical, I hope you see the point. People raise money. People have to ask people to invest.
Another aspect of resource support comes from the technology side of things. In today’s fundraising world, the fact is that manual management of donor records is virtually impossible, and while not every organization needs to invest tens of thousands of dollars in the highest version of BlackBaud, there are donor management systems available that can greatly improve efficiency of prospect file management. Investing in such support – whether human or technological – may be a big gulp on the front end, but you can’t expect continuing results on the back end without them. It is up to the CEO to state the case to the board, and to demonstrate through pro forma scenarios why such investments and supports are important.
Attend public events and bring prospects and friends
Many nonprofit organizations hold large public events to call attention to their work and to serve as a platform from which gift solicitation can be conducted. A very good example of this is the Leukemia and Lymphoma Association and the regional galas they hold. Another wonderful example comes from a former client of mine, the Independence Fund, which hosts concert events at which tracked wheelchairs are presented to wounded veterans. Having attended these events, I can attest to their emotional power and the impact they have on raising money for the organization.
CEOs should not only invite board members to such events but should model how to include prospects and friends. Seating board member next to major donors or long-time patrons of the organization puts them in a position to support the organization with people who are already on board. The CEO can actively encourage board support by giving them public recognition at the event, asking them to provide a testimonial at the event, and ask them to introduce you to their friends in attendance.
A word of caution is in order, however. It has been my experience that some nonprofit board members gladly attend as many organizational events as they can. Attendance at galas, concerts, award ceremonies and the like are a lot of fun. Of course, these board members also submit expense vouchers for their travel and lodging. To avoid a net loss to the organization from having board members attend functions, the CEO must explicitly articulate the expectations for such attendance. Ultimately, if there is no financial return on the investment in a board member’s attendance, such activity should be discouraged. Feeling good about the organization is one thing. Making sure it has the money to carry out its mission is another – and, in this regard, it is ALWAYS about the money.
One way to address this issue is to ask them to sponsor a group at fund-raising event. First, this is a way for board members to honor their financial commitment to the organization. Second, it is a way to invite prospective donors for a “free” event. Third, it is a way for board members to tell the story of their involvement to their guests. If the event is a banquet or gala, the CEO can ask board members to sponsor a table. If the event is something like a golf outing or other team event, the CEO should offer opportunities to sponsor a foursome or sponsor a hole.
Host a Small Gathering at Your Home
Whether a component of a major gift fundraising campaign, or just another way to expand the donor base for annual fund support, asking board members to host small gatherings in their homes is a great way to engage board members in the fundraising process. It should not be assumed, however, that board members will intuitively know how to do this well. If board members are going to host such events, the CEO must provide the tools and support to make this effective.
This meant that I or my staff had to do a number of things. First, the purpose for the event had to be made very clear. For example, “We would like you to host a small event in your home to give us a chance to tell the organization’s story, after which we will follow up with calls and visits to solicit ongoing support for our annual fund.” The last thing you want to do is mislead your board member about the real purpose of the event. The language they use to invite their friends and associates is very important in order to avoid any appearance of a “bait and switch.”
Second, if such small events are going to reflect the organization in the most favorable light, logistics cannot be left to chance. If cocktails and hors d’oeuvres are going to be served, they should be catered. There are two good reasons for suggesting this. First, the host should not have to worry about food or beverage preparation. They should be focused on making the invitations. Second, as well-intentioned and generous as some board members and spouses may be, the quality and service of food is of critical importance. Serving burned pigs-in-the-blanket can embarrass the host, the guest and the CEO. Besides, hosting an event in one’s home is stressful enough without having to worry about food. Third, the CEO should coach the board member on his or her role, and how they can introduce the CEO. Such events, to be successful, need to be “choreographed” in order to make guests feel at ease and for the event to flow efficiently.
Having attended many such events over the years, I have seen them work exceedingly well and I have seen disastrous bombs. While not everything is in the staff’s control (imagine the pet dog jumping up on an elderly lady), trying to anticipate potential challenges is the staff’s job and board members should be apprised of such possibilities if possible.
Go out and ask for advice and counsel
An old mentor of mine, a phenomenal fundraiser in his own right, used to tell me that the most effective way to develop a sincere and meaningful relationship with a donor was to ask for advice. People love to talk about their own experiences and how they might help another person. Being a board member isn’t a whole lot different. While CEOs should be skilled at doing this, board members can approach individuals they consider potential donors with questions about how to be a good board member, what that individual’s experience on boards was like, what he or she would recommend as far as the involvement of board members in fundraising. This same mentor also used to say that only friends give to friends. Therefore, developing a personal and authentic relationship was essential. Some even call it “friend-raising.” I guess that’s fine so long as it doesn’t become an excuse not to ask for money. But the point is clear. CEOs can model for board members how to engage donors authentically by asking for advice. They may even come back with some very good ideas on how to improve the board’s functioning.
Speak and Write
I do this all the time with clients I support as a consultant. I am honored to be of service to them and, because I have the luxury of choosing who I wish to work with, can select nonprofit organizations whose missions I can fully embrace. Even after my engagement has ended, I try to stay connected to these organizations through social media. One of the easiest ways for board members to publicize the good work of the organization is to like or share posts on FaceBook and LinkedIn. Retweeting tweets – not something I’m very adept at – is another way to share information from and about the organization.
The CEO and his/her staff can facilitate this by first making sure every board member is connected to the organization. This can be done in a number of ways. Assuming the organization has Facebook and LinkedIn pages, sending an invitation to like or join to every board member gives them the immediate connection they can share with others. Whenever a noteworthy even is posted on the organization’s social media platforms, board members can immediately share and repost. I have used this method to introduce some of my favorite clients to my friends.
Board members can be asked to write an article for the organization’s newsletter or annual report. If the organization has a blog on its website, written contributions or reactions to blog posts can be written by board members. The importance of having such endorsers can’t be understated. Anyone looking at an organization’s website expects to read glowing reports and to see stories that cast the organization in the best possible light. But when volunteer board member write on behalf of the organization, their words carry weight.
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I don’t pretend to be a development professional. At the same time, as a CEO I had to engage in many of the foregoing practices because of my role. I had the privilege in my early academic career to work with a truly outstanding fundraising president and gained a lot of knowledge and insight about different aspects of this process. I was able to implement many of the things I learned when I became a CEO and even though I could never claim the success of my mentor, came to believe that working with board members in the ways I have described is something the CEO must actively manage if they are to be of assistance in raising revenue for the organization.
I’d like to conclude with a final thought around board member expectations with respect to supporting the philanthropic efforts of the organization. Some have called this the “give, get, or get off” condition of board membership. These three G’s have been derided by some recently in various journals and blogs as reflecting antiquated and limited perspectives on board recruitment, expectations and involvement. To be sure, the most important role the board and its members play is to govern. I have argued that such governance practice to be effective requires people with the needed skills, knowledge, expertise and experience to ensure sufficient depth and breadth of intellectual capital so that the board can effectively exercise its fiduciary, strategic and generative governance responsibilities.
But the reality for just about every nonprofit social service organization is that the ability of the organization to carry out its mission is dependent upon its ability to raise nonoperating revenue, usually in the form of gifts. One could argue that part of the board’s fiduciary responsibility in making sure that revenues are sufficient to carry out the mission goes beyond just overseeing the expenditure of resources. It must include attention to the revenue side as well. Therefore, it is inherently incumbent on board members to be knowledgeable and involved in generating revenue, and this means supporting the fundraising efforts of the organization.
Of course, not all board members have the same level of giving capacity. Of course, their recruitment to the board wasn’t done primarily because they had deep pockets. Of course, their talents lie in diverse areas and most likely not in the area of fundraising. But if the expectations are clearly articulated that board members are to personally and generally support the philanthropic efforts of the organization, then they should GIVE. And if they don’t have the means to give (although everyone has some capacity to give something!) then they should work to open doors, support fundraising in other ways, and thereby to GET financial support from others. And finally, and frankly, if they can’t or won’t do either of those two, then they should GET OFF your board.
None of the tactics I have described above should be onerous. The important thing for CEOs to keep in mind is that their success in engaging board members is to be open, clear, explicit and make sure that the values that support the board’s involvement in fundraising are written, talked about, and understood by everyone.
References and Resources
Edgington, Neil. https://www.socialvelocity.net/2012/01/27/9-ways-board-members-can-raise-money-without-fundraising/
Garecht, Joe. https://bloomerang.co/blog/5-different-ways-your-board-can-help-with-fundraising-without-making-asks/
Hass, Len Al. https://www.gcn.org/articles/what-role-do-boards-and-individual-board-members-have-in-nonprofit-fundraising
Koenig, Marc. https://nonprofithub.org/fundraising/transform-your-board-of-directors-into-fundraising-champions/
Perry, Gail. https://www.gailperry.com/fundraising-responsibilities-every-board-member/
Price, Nick. https://www.boardeffect.com/blog/how-nonprofit-boards-fundraising/
