Boards and Fundraising

October 13, 2016 1

Agenda

I.Mo,va,ngboardinvolvementinfundraisingII.TheroleoftheBoardinfundraising

III.TheWorkIV.Fundraisingdynamics

October 13, 2016 2

I.Mo,va,on

•  Thefrequentlyaskedques,onis:Whywon’tmyboarddomoreaboutfundraising?

•  Posingtheprobleminthiswaycouldleadtotheiden,fica,onofac,vi,esthatcouldaddressspecificbarrierswhichwewillreviewlater,suchas:– Makingthecase– Trainingandroleplayexperience– Datamanagementsupport– Materials,etc. October 13, 2016 3

Therealques,on•  Thefirstques,onhoweverisnotwhytheydon’tfundraise,butrather:Whywouldanybodyeverwanttofundraise?

•  Theanswerthisques,onisfoundinac,velyengagingtheboardinitsfiduciaryandleadershiproles,especiallyinassuringthattheorganiza,onisadap,ngtochangesthatsurroundit.

•  Rubberstampsdon’tfundraise!

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Thevalueproposi,onFirstly,wemustrecognizethatboardserviceisa

counterintui,veproposi,on1.ALend4ormoreboardmee,ngs.(Generallyinthe

eveningwhenyoumightratherberelaxing.)Themee,ngsmayormaynotbeinteres,ng

1.  WorkonacommiLeethatmayalsobemee,ngintheeveningorbyconferencecallwhenyouareworking

2.  Payfortheprivilege3.  Asabonus,yougettoaskyourfriendsforcontribu,ons

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Therewardsthatmo,vateboardservice

1.Personalconcernfortheachievementofthemission;forthechangethattheorganiza,oncanmakeintheworld

2.Beingpartofaneffec,veandsuppor,vegroup

3.Havingapersonalimpactonabilityoftheorganiza,ontomakethatchange

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1.Missionconnec,on1.Bringthemissionintoboardmee,ngsEveryboardagendashouldincludeanitemrela,ngtothemission,e.g.a

staffpresenta,onaboutexci,ngresults,aclientspeakingabouttheimpactontheirlife,aspeakerfromarelatedfield,etc.

2.BringboardmemberstothemissionBoardmembersshouldbeexpectedandenabledtovisitprogramsandto

speakwithstaffandclients3.ConnectboardmemberswithstakeholdersEverymee,ngwithastakeholder(funder,government,partneragency,

communitymee,ng,etc.)isanopportunitytoenableboardmemberstolearnaboutstakeholderinterests.(ThisalsosendsaveryvaluablemessagetothestakeholderaboutboardInvolvement.)

4.Lookforvolunteeropportuni,es

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2.Beingpartofagoodgroup

January31,2013 October 13, 2016 8

A basic fact of human nature is that we spend our lives seeking to be part of good groups and that we perform at our best when we are part of such groups.

Coxswains call that took the American women from second to first in the Olympics: “You are the USA women’s eight!”

Think about a group that you valued.

•  How would you describe it?

• What were its qualities

StructuresThatMakeaBoardaGoodGroup

Crea,ngaculturethatencouragesthefullengagementofallmembersinvolves:• Agreednormsandexpecta,ons• Clearworkassignments• RespectforcommiLeework• Communica,onandtransparency• Opportuni,estoknoweachotherpersonallyandtodeveloppersonaltrust*

*PatrickLencioni.TheFiveDysfuncBonsofaTeam

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Boardmee,ngs

•  Theagendafocusesondiscussion,decisionsandac,onplanning

•  Mee,ngsarenotusedtopresentinforma,onthatisnotneededfordecisionmaking

•  Boardmee,ngshouldengageboardmemberswithissuesofstrategicimportance

•  Thereisanopportunityforcollegiality•  Everymee,ngincludesamissionconnec,on•  Everymee,ngincludesanExecu,veSession

Oct 13, 2016 10

Expecta,ons

•  Highteamperformancedependsuponhavingsharedexpecta,onsandnorms.

•  Individualperformancedependsonbeingabletotrustthatotherswillperformaswell.

•  Explicitexpecta,onsandaregularprocesstoassessperformancewillalsoenabletheboardtobasemembershipdecisionsonperformanceratherthanpersonali,es

Oct 13, 2016 11

Expecta,ons•  Ican’tdomyjobifIdon’tknowwhatitis,andIwon’tdoitifI’mnotconfidentthatmyteammatesaredoingtheirsaswell

•  Coach’sadviceinTheBoysintheBoat:“Youwillbeyourbestwhenyoulearntotrustyourteammates”

•  Trustrequires,ataminimum,knowingoneanother•  Alsohelpfulwouldbesomeopportunityforpersonalhonesty,e.g.WhatIammostproudof,WhatIcouldhavedonebeLer

Oct 13, 2016 12

Boardmemberjobdescrip,on

•  Boardmee,ngaLendanceandprepara,on•  Policies(conflicts,confiden,ality,supportfordecisions)•  CommiLeepar,cipa,onandleadership•  Programvisits•  RespecbuldiscussionandrespectforcommiLee

recommenda,ons•  Rela,onshipwithstaff•  Personalcontribu,onsandfundraisingengagement

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CollegialityTotheextentthatboardmembersknowoneanotherpersonally:

•  Theyaremorelikelytowanttocometoboardmee,ngsand

•  Maketheirbesteffortssothattheydonotdisappointtheirfriends

•  Engageinmutuallyrespecbuldiscussion•  Trustoneanother

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TheChair:ChiefMoBvator

Hasthebigpicture.Clearabouttheworkthattheboardneedstoaccomplish

Engagesandsupportseachboardmemberandprovidesperformancefeedback

MaintainsaprocesstomanageandsupportthecommiLeework

Hasasuppor,vepartnershipwiththeExecu,veDirectorwhocanalsoprovidethechairwithfeedbackontheirperformance

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3.Personalimpact

•  Developingpersonalresponsibilityfortheorganiza,onrequiresthattheboardbegivenresponsibility

•  Theboardmustbeanac,vepartnerinthedecisionsimportantforsustainabilityandmissionimpact

•  Theboardmustbefullyinformed:thegood,thebadandtheugly

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Achievingmissiongoals

•  Theboardmustbeengagedintheprocessofsecnggoalsfortheorganiza,onandfortheboard

•  Iftheyarenot,wecannotexpecttheircommitmentto,andengagementit,theachievementofthosegoals

•  Rubberstampsdon’tfundraise!

October 13, 2016 17

PersonalrewardsVolunteerworkmaybemo,vatedbyadesireto“giveback”,butitismaintainedbytherewardsthatvolunteersobtain

•  Usingtheirabili,estomeetnewchallenges•  Usingtheirskillsinnewways•  Developingleadershipskills•  Havinganimpact•  Themoreweaskofvolunteers,thehappiertheyare.Itcommunicatesthattheyareimportant,neededandregardedascapable.

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II.TheImportanceofBoardInvolvementinfundraising80%oftherevenueofthenonprofitsectorcomesfromindividualcontribu,ons

TheBoardmustdemonstrateitscommitmentBoardmemberswhocontributeandraisemoneyaremoreengagedwiththeorganiza,on

Boardmemberscanspeaktopeersaboutthepersonalmeaningtheorganiza,onhasforthem

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III.TheWorK

•  Makingthecase•  Developingexpecta,ons•  Crea,ngthestructure

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MakingtheCase

•  Theimportanceofindividualgiving$358billionincharitablegiksin201472%fromindividuals15%founda,ons8%bequests5%corpora,ons

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Makingthecase

EstablishingtheneedtoyourboardDifferentcases1.FillingtheGap.Thedifferencebetweenthebudgetedcostsofeachprogramandanes,mateoftherealcosts.

•  Enhancement.Theprojectedcostofsomeshorttermprogramgrowthorenhancement

•  Vision:Thecostofachievingastrategicgoal

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MakingthecaseTheregularfinancialreportshouldalsoenabletheboardto

understandhowprogramsarefinanced•  Whatthedirectcostsofeachprogram?•  Whataretheindirectcosts(infrastructure,marke,ng,

development,etc.)?•  Whatisthegapbetweentotalprogramcostanddirect

programsupport(grants,contracts,etc.)?•  Howisthatgapmadeup?•  Howhaverevenuesandexpenseschangedover,me?

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Expecta,ons•  Afixed“giveorget”canbecomeaceilinginsteadofafloor

•  Everyboardmembermustgiveandgettothebestoftheirabilityincludinga“personallysignificant”gik

•  A“personallysignificant”gikisonethatyouwouldhavetothinkaboutbeforemaking

•  Asthisprocessdevelops,youmightwanttohavemembersoftheResourceDevelopmentcommiLeemakethe“ask”ofeachboardmember.(It’sgoodtrainingforallinvolved.)

•  Everyonecan,andmust,“ask”forsomethingOctober 13, 2016 24

IV.Fundraisingdynamics

• WhyDoPeopleGive?• Wherehaveyoucontributedinthepast?• Whatpromptedthegik?

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Resistance

Whyarewereluctanttoask?•  Fearofrejec,on•  Fearofdamagingarela,onship•  Reciprocity

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Enrollment

Therealworkofboardistobuildrela,onshipsthatcanleadtomajorgiks

•  Whataretheexperiencesthatconnectboardmemberswiththemissionoftheorganiza,on?

•  Whatexperiencesweresignificantinconnec,ngdonors?

•  Whatcantheorganiza,onandtheboarddotocreatemoreopportuni,esfortheseconnec,ons?

•  Enrollmentdiminishesthelikelihoodoftheexpecta,onofareciprocalgik

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Aradicalproposi,on

•  Boardmembersshouldusetheir,meandenergyoncul,va,onofpoten,allysignificantdonorsratherthanonbroadbasedasks

•  Eachboardmembershouldfocusonfourcul,va,onsayear

•  Cul,va,onshouldbeasignificant,ifnotthemain,focusofevents

October 13, 2016 28

Overcomingresistance•  Themosteffec,vewaytoovercomethisfearistofindout

howfriendsreacttothemissionanditsimpactwhenyouarenotaskingformoney.

•  Developthehabitofintroducingtheorganiza,oninordinaryconversa,on

•  Learnhowtointroduceitbyaskingabouttheotherpersonsinterests.Thisistheessenceofsales:Donotintroduceaproductun,lyouhaveIden,fiedaneed.

•  Ac,vi,esthatstrengthenyourpersonalconnec,ontothemissionwillenablethis;learningabouttheorganiza,on,knowingthecaseforsupportandhavinggreatstoriestotell.

October 13, 2016 29

BoardPrac,ces•  Includinganitemonfundraisingateveryboardmee,ng•  Repor,ngonprogramvisitexperiences•  Crea,ngindividualcul,va,onandaskingplans•  Boardmemberssolici,ngcontribu,onsfromtheirpeers•  Crea,ngacul,va,ondatamanagementsystem•  Crea,ngaResourcedevelopmentCommiLeetomanagethe

boardengagement•  Providetrainingwithopportuni,estoprac,ce

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Prac,ce

Helpfulac,vi,esthatarealsowarm-ups•  Iden,fyingprospects•  ALendingandinvi,nggueststoevents•  Targetednetworkingatevents•  SigningleLers•  Hostaparty•  Makethankyoucalls•  Recruitboardmembers•  Joinstaffonasolicita,onmee,ng

October 13, 2016 31

Training

Whattrainingmightbehelpful?•  DevelopmentCommiLeeleadershipandstructure•  Specialeventsplanning•  Useofemailandsocialmedia•  Secngupmee,ngs•  Havingamee,ng•  Introducingtheorganiza,onbyaskingques,ons•  Theartoftheask

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Michael Davidson

Michael Davidson is a consultant specializing in nonprofit board development, management support, strategic planning, leadership transition, and executive coaching for nonprofit managers. He has over 20 years experience in nonprofit board and managerial leadership and has provided board training and retreat facilitation for more than 100 nonprofit organizations. He is the former Chair of Governance Matters, lead consultant for the BoardServe NYC program of the United Way of New York City and a member of the selection committee for the New York Community Trust Nonprofit Management Excellence Awards.

He has been a Peace Corps Volunteer, an Assistant Professor of Anthropology,

an Assistant District Attorney and an attorney in private practice. He holds a BS in mathematics from New York State University College on Long Island, a JD from Columbia Law School and an M. Ph. In Anthropology from Yale University.

   michael@boardcoach.com www.boardcoach.com (646) 418 9619

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