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by Mark L. Duncan, The FundCoach

Many nonprofits start out with great intentions beginning with the founder who has been keenly aware of a particular problem and has created an organization that will be the solution to that problem for many people in need - presumably for many years to come.

Yes, you’ve done a lot of work to establish that 501(c)3. You have a board, a mission, and a letter from the IRS stating that you are now a charitable organization. Now, all you need is money, right? But, is your organization truly ready to raise money?

So often, I engage in conversations with nonprofit leaders who want to learn how to be effective fundraisers. They need space to operate, staff, people to serve and resources to execute their mission. But it’s not always that simple. To ensure that your organization is ready there are three key criteria that should be met first.

First, there must be clearly defined expectations of staff and board. It must be abundantly clear who is responsible for what. Small organizations will usually develop the bad habit of establishing blurred roles. Now, this is not intentional.

Being eager to forge forward and get started is admirable and conveys a real passion for your mission.

But it is important to start smart. Having clearly defined expectations of staff, board, and other volunteers is critical. Doing this up front can alleviate the need to course correct later.

The board’s work must focus primarily on governance, policy, mission alignment and fundraising. Staff work (led by the founder and/or executive director) should reflect the mission in action.

The board sets the priorities and the executive director establishes a plan for the staff to fulfill those priorities.

These lines can unintentionally get blurred when individual board members operate as pseudo staff - giving directives to staff which undermines the authority of the executive director and creates confusion or when a staff member asks someone to join the board without discussing it with the ED. While both examples are well meaning and are designed to advance the mission, they can become problematic.

Second, 100% of the board should be giving annually. Getting your board in the habit of giving to the very mission that they vowed to serve sets the tone for many years to come. This should be an expectation established at the very beginning.

So many nonprofits fail to do this at the outset. If you do not have this expectation, in writing for all board members, you are doomed to recruiting board members who will not take your mission seriously. As you meet and build relationships with potential donors, you will likely be asked about the level of the board’s commitment to your organization.

Saying that you have 100% participation in giving from your board, every year, conveys a message of confidence to potential funders. In fact, many grant-making foundations will require it.

So if you don’t require it, make the steps to change it now.

Although advisable, you do not have to have a minimum giving level. Individual board members do not need to know how much each member is giving. But if you can, set a modest minimum of $100 a year. Make it easy for payments to be made over a few months.

In time, you will attract board members with greater capacity.

Finally, there must be alignment on goals, objectives, and process. Having very clearly defined goals and objectives keeps the work you are doing focused.

Every idea, purchase, and meeting should be in constant alignment with what you have set forth to accomplish. Good ideas will always arise from within the organization.

But you must pause and ask the question - does this tie into our present goals?

This is particularly important when you are presented with a restricted gift for a program or service. The gift may be tempting to take but it may not fit into your current strategy.

This often happens with gifts-in-kind like vehicles or furniture. You are so appreciative of the gesture and generosity that you don’t want to turn it down.

So you accept that 1982 Volkswagen Scirocco. Yeah, I know. Who has one of those lying around? Well, I did!

Anyway, now you’re stuck with something that you can’t use and will actually spend money to get rid of.

On a much larger scale, everyone involved must be laser focused on the task that lies before you. If your goal is to increase participation in a particular program, then your objectives and processes must be in place to get you there.

If everyone is thinking and acting counter to your goals, then you will find yourself achieving very little each year.

These three elements will ensure that you are crystal clear on who you are and what you do as an organization for the people that you serve.

You will be aligned in your work, and create a culture of philanthropy that will translate to donors for many years to come.

….and go!

Ann Schmitz

Immigration Paralegal

4 年

Great article, Mark!

回复
Jim Spencer, CAP?

Senior Consultant at Stick Figure Fundraising LLC

4 年

Hi Mark-highly second the 100% participation by the board (and maybe highly paid staff). Worked once at a place where some board members were chosen so it “looked good” and they never felt obligated to donate. I I Beowulf donate “in their name”. The other component is making sure you thank those who donate.

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