The primary challenge that smaller nonprofit organizations face is raising funds. The board of an organization is its most important constituent group, serving as its first circle of community. A nonprofit’s community consists of concentric circles, with each circle getting larger but containing less energy, similar to the rings that ripple outward from a pebble thrown into still water.
The board of an organization is the most important aspect of its structure. Board members should be individuals who highly value the organization and are capable of providing support in terms of their expertise, energy, reputation, and financial resources.
Before we discuss board makeup, let’s talk about board giving. I believe that every board member should donate to the organization, but there should be no minimum gift amount. Board members are not expected to produce a certain amount of money each year. The amount they give depends on their wealth and commitments to other nonprofits. What may be a major gift for one board member may be insignificant for another. Establishing a minimum gift amount for board members can result in some members giving too little, while others may be unable to contribute at all.
Over the years, I have worked with and advised many smaller organizations, and those that struggle with funding tend to have two things in common: a small board and indifferent board members.
Small Boards: For an organization to be successful, its board must be appropriately sized to provide credibility to its purpose and mission. Purpose and mission are the reasons why the organization exists and why it should continue to exist. The board must also be able to provide adequate oversight and support to ensure that the organization is functioning efficiently and effectively.
Indifferent Board Members: To achieve these goals, it is essential that board members are sufficiently committed to the organization’s mission. Fundraising is a critical aspect of board member commitment. The board needs members who are capable and willing to make or obtain substantial donations. This is particularly important because major gifts are often the lifeblood of an organization’s operations.
That’s why it’s essential that an organization’s board is composed of members who are willing to take an active role in fundraising. The board should be the most direct path to major contributions to the organization. By tapping into the networks of its members, the board can leverage its connections to obtain significant donations.
A successful nonprofit organization needs a board that is appropriately sized, capable of providing oversight and support, and is committed to fundraising. By having these attributes, the board can help the organization achieve its goals and fulfill its mission.
Determining what qualifies as a major gift is subjective. A donation that is significant for one organization may not be as significant for another. The impact of a gift on an organization’s budget and fundraising goals, rather than its size, is what defines it as major.
What is the ideal size of a nonprofit board for successful fundraising?
As someone who has worked in both executive and CEO roles in nonprofits, I believe that a board with fewer than ten members finds it hard to provide the necessary oversight and support resources. On the other hand, having a great number of members on a board can sometimes lead to less involvement or even become a drain on staff time.
What I recommend is a two-tiered board structure. A board with 20 to 30 members would provide the necessary fundraising support while an executive committee of around ten would be responsible for active management and decision-making. This way, the full board’s primary functions would be to provide oversight and assistance, while the executive committee would have more power to make important decisions.
The proposed model suggests that the executive committee would meet once a month while the full board would meet quarterly. This approach would enable the organization to benefit from the fundraising potential of a larger board while avoiding the management challenges that a large, active board can sometimes pose.
This model is akin to the concept of having a small board and a larger advisory committee, where the advisory committee would have no power except for that of persuasion. The CEO and staff would work with a board that is sized for easier management, while the advisory committee would provide additional volunteer leadership and help with fundraising. So, the question arises: why not keep the board small and create a large advisory group instead of having a two-tiered board structure?
The answer is straightforward and has already been mentioned: Board members are the most generous donors! Accepting a position on the board of an organization means committing more publicly to that organization. When it comes to fundraising, board members tend to put in more effort to secure donations and also make larger personal donations relative to their financial ability.
Let’s assume that I have convinced you of the importance of having a large, full board and a small, strong executive committee. However, the most significant and challenging task is recruiting qualified board members. This task holds crucial importance for any CEO, Executive Director, or board member of a financially struggling small nonprofit. Finding 20 or 30 board members who share a high value for your organization and are willing to support it with their expertise, energy, reputation, and money is a difficult feat. As someone who has been through this, I understand how challenging it can be even to find one board member who meets these criteria.
When it comes to changing the composition of a board, approach it like a fundraising campaign. Here are the steps you can take:
- Plan: Make a plan for the change you want to bring about.
- Establish prospect qualifications: Define the qualifications that are necessary for the new board members.
- Identify qualified prospects: Identify the people who meet those qualifications.
- Set interim goals: Set interim goals to make the process easier.
- Get the help of existing volunteer leadership: Seek the help of the existing board members and community leaders.
- Reach out to your community: Reach out to your community to find new board members.
- Each One Get One: Assume your current board has ten or fewer members, and make them the new executive committee. Charge them with a month-long “each-one-get-one” campaign. Some of them will know people who would be suitable for the new board. Have the executive committee and informed community members meet to build a list of candidates. Rate and evaluate them as you would in a fundraising campaign.
For this exercise, you are qualifying candidates based on the value they add to your fundraising efforts. However, if your existing board/executive committee is failing to meet other needs, you should recruit with an eye toward those needs as well.
Another thing to keep in mind is that you are also recruiting members for the new full board. The selling points of this recruitment are that the members will not have to attend monthly meetings and the level of involvement required of them will be less than that of the executive committee. Your aim should be to address any potential objections that may arise and to recruit qualified board members. It is important to note that since you are recruiting for a large board with minimal day-to-day responsibilities, you can afford to accept some people who may not meet the requirements.
Once you have successfully completed the “each-one-get-one” campaign, it is important to orient your new board members. Ask each new member to provide you with a list of three potential additional board members. Carefully evaluate and rate potential candidates and begin the recruitment process anew. Approach this effort with the same level of detail and attention that you would use for a fundraising campaign. You should repeat this process until you have the board and executive committee that you need. Expect some attrition along the way, so have a plan in place to mitigate its impact.
It is possible that less may be expected from the new full board, but that does not mean you should lessen your effort to nurture relationships with its members. Keep them informed in a way that makes them feel involved and engaged in the organization and its good works. Find ways to give them public visibility and encourage those who show a willingness to take part in governance and the organization itself. Board members can be ambassadors to the organization’s larger community and to specific constituencies.
By implementing all of these actions, your organization will increase its capabilities, recognition, value to the community, and fundraising abilities.
At C&A, we know that learning is a lifelong journey. For nonprofit leaders looking to sharpen their skills and stay ahead in the game, here’s a curated list of resources that’s like a treasure trove for your leadership journey:
by Simon Sinek
Drive: The Surprising Truth About What Motivates Us
by Daniel H. Pink
by Leslie R. Crutchfield and Heather McLeod Grant
Mindset: The New Psychology of Success
by Carol S. Dweck
The Nonprofit Leadership Podcast
by Rob Harter – Conversations with nonprofit leaders and experts.
by Harvard Business Review – Features leading thinkers covering a variety of leadership topics.
TED Talks – Insightful talks on leadership, innovation, and the power of social change.
Online Courses and Workshops:
Coursera ” Giving 2.0: The MOOC ” – Learn from experts in social impact strategy.
LinkedIn Groups – Nonprofit Professionals
