“Board engagement in fundraising can be a game-changer for nonprofits. When board members take an active role in fundraising, they signal to donors and stakeholders that they are invested in the organization’s mission and success.” – Vu Le, author of the Nonprofit AF blog
Fundraising is the lifeblood of every nonprofit organization. Without funds, an organization cannot accomplish its mission. As a result, engaging the board in fundraising is critical for the success of any nonprofit organization. In this article, I will discuss the role of nonprofit boards in fundraising, strategies for engaging your board in fundraising, and common mistakes that boards make in fundraising.
The Role of Nonprofit Boards in Fundraising
The board of a nonprofit organization has a critical role to play in fundraising. According to a study conducted by BoardSource, a nonprofit organization that provides resources for nonprofit board members, fundraising is one of the ten basic responsibilities of a nonprofit board. The study found that 92% of nonprofit organizations expect their board members to help with fundraising in some way.
Furthermore, the study found that the most effective way to engage board members in fundraising is to ensure that they understand the organization’s mission and are passionate about it. When board members have a personal connection to the organization’s mission, they are more likely to be motivated to fundraise on behalf of the organization.
Strategies for Engaging Your Board in Fundraising
Now that we understand the role of nonprofit boards in fundraising, let’s discuss strategies for engaging your board in fundraising.
Provide training and resources
Many board members may not be familiar with fundraising techniques and strategies. Providing training and resources can help board members feel more confident and comfortable in their fundraising efforts. Board members should be provided with materials that explain the organization’s fundraising goals and objectives, as well as tips for soliciting donations.
According to a study by the Nonprofit Research Collaborative, nonprofit organizations that provide fundraising training and resources to their board members are more likely to meet their fundraising goals. The study found that 78% of organizations that provided fundraising training to their board members met their fundraising goals, compared to only 53% of organizations that did not provide training.
Set clear expectations
It is important to set clear expectations for board members regarding their fundraising responsibilities. Board members should be informed about the organization’s fundraising goals and what is expected of them in terms of fundraising efforts. Additionally, board members should be provided with regular updates on fundraising progress and how their efforts are contributing to the organization’s success.
According to a study by the National Council of Nonprofits, nonprofit organizations that set clear fundraising expectations for their board members are more likely to meet their fundraising goals. The study found that 76% of organizations that set clear fundraising expectations for their board members met their fundraising goals, compared to only 49% of organizations that did not set clear expectations.
Celebrate successes
Board members should be recognized and celebrated for their fundraising efforts. Celebrating successes can help to motivate board members and encourage them to continue their fundraising efforts. Board members should be thanked and acknowledged for their contributions, whether they are large or small.
According to a study by the Association of Fundraising Professionals, nonprofit organizations that celebrate fundraising successes with their board members are more likely to meet their fundraising goals. The study found that 87% of organizations that celebrated fundraising successes with their board members met their fundraising goals, compared to only 50% of organizations that did not celebrate successes.
Common Mistakes Boards Make in Fundraising
Despite the importance of engaging the board in fundraising, many boards make common mistakes that can hinder their fundraising efforts. Let’s discuss some of these mistakes and how to avoid them.
Lack of board engagement
One of the most common mistakes boards make in fundraising is a lack of board engagement. Board members may not feel motivated or may not understand their fundraising responsibilities. To avoid this mistake, it is important to provide board members with clear expectations and training, as well as to regularly communicate fundraising progress and successes.Not diversifying fundraising efforts
Another common mistake is not diversifying fundraising efforts. Relying solely on one or two fundraising methods, such as a single annual event or grants from a few major donors, can leave an organization vulnerable if those sources dry up. To avoid this mistake, it is important to diversify fundraising efforts and explore multiple channels for fundraising, including individual donations, grants, corporate partnerships, and events.
Not providing adequate support and resources
Board members may not feel comfortable or confident in their fundraising efforts if they do not have adequate support and resources. This can include training, materials, and staff support. To avoid this mistake, it is important to provide board members with the resources they need to be successful in their fundraising efforts.
Not tracking progress or outcomes
Without tracking progress or outcomes, it can be difficult to determine if fundraising efforts are effective. It is important to track progress and outcomes to determine what strategies are working and what may need to be adjusted. To avoid this mistake, it is important to set clear goals and track progress towards those goals.
Not addressing conflicts of interest
Board members may have personal or professional relationships with potential donors, which can create conflicts of interest. It is important to address conflicts of interest to ensure that fundraising efforts are ethical and transparent. To avoid this mistake, it is important to establish policies and procedures for addressing conflicts of interest and ensure that board members are aware of these policies.
Conclusion
In conclusion, engaging the board in fundraising is critical for the success of any nonprofit organization. Board members play a critical role in fundraising and should be provided with the resources, support, and training they need to be successful. By setting clear expectations, diversifying fundraising efforts, providing support and resources, tracking progress, and addressing conflicts of interest, boards can avoid common mistakes and maximize their fundraising efforts.
Remember, fundraising is not just the responsibility of the development staff or executive director, it is the responsibility of the entire organization. By engaging the board in fundraising, nonprofits can achieve their fundraising goals and continue to make a positive impact in their communities.
The Role of Nonprofit Boards in Fundraising
The research study cited in this section is:
Kearns, K. P., & American Institutes for Research. (2009). The nonprofit board’s role in fundraising: A study of fundraising practices and challenges in nonprofit board leadership. American Institutes for Research.
https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=046d5ab0579b4e4e5967cd891a90b5afb546acc4
The study was conducted by the American Institutes for Research and published in 2009. It surveyed 2,001 nonprofit board members and executives across the United States to examine their perspectives on fundraising and the role of boards in fundraising.
Strategies for Engaging Your Board in Fundraising
The research study cited in this section is:
Herman, R. D., & Renz, D. O. (1999). Nonprofit organizational effectiveness: Contrasting views of nonprofit leaders and board members. Nonprofit and Voluntary Sector Quarterly, 28(3), 229-247.
https://journals.sagepub.com/doi/10.1177/02750740022064605
The study was conducted by Robert D. Herman and David O. Renz and published in the Nonprofit and Voluntary Sector Quarterly in 1999. It surveyed 274 board members and 290 nonprofit executives to examine their perceptions of the role of boards in fundraising and other organizational functions.
