Non-Profit Questions

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PPPA 6034

Managing Nonprofit Boards

Session 8

The Board’s Role in Fundraising

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The Fund Raising Pyramid

CORPS 7-8%

INDIVIDUALS 85%

FOUNDATIONS 7-8 %

Constituency

First-time donors

Regular donors

Major gift donors

Principal gift/ultimate gift donors

Direct response:

Mail, phone, Internet

Cultivation/
personal
solicitation

Cultivation/personal solicitation/
gift planning

Leadership annual donors

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Why People Give

  • Altruism versus social exchange

  • Evidence for social: no crowding out (People give to Harvard)

  • Empathy = identification with the needs of others
  • “Association is the school of identification.”
    (Schervish and Havens, 2002)

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Role of Volunteer Leadership

  • Authenticators

  • The power of example

  • The power of “peer talk”

“The solicitor should be a giver whose own giving standards and whose place in the scheme of things are commensurate with the goals [that solicitor] seeks and the people [that solicitor] sees.” – Seymour, 1966

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Organizing and Preparing the Board
for Fundraising: Best Practices

Affluence and influence among criteria for recruitment.

Set clear expectations from the start.

Discuss fundraising at board meetings with data

Recognize in public, scold in private (Create role models)

Role of board chair and development (development/fundraising) committee.

Establish board policies on giving and fundraising.

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The Development
(Fundraising, Advancement)
Committee

  • Standing committee
  • Makes policy, monitors overall program

gift acceptance policies

fundraising goals, metrics

  • Responsible for board giving
  • Many also oversee other areas: communications government relations

marketing

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Approaches to Board Giving Policy

  • Minimum gift

  • Minimum give or get

  • Percentage of income or assets

  • From each according to his or her ability

  • Individualized plans

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The Board/CEO/Development Officer Partnership:
Traditional Model

  • CEO: envisions, articulates, inspires

  • Board: sets policies, gives, influences others to give

  • Staff: develops strategy, manages program, identifies prospects, supports president and board

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A More Complicated Reality:
The Fund Raising Partnership
As An Unusual Football Team

  • Board as owners, blockers, runners

  • Chief development officer as manager, quarterback, runner

  • CEO as owner, coach, star runner

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The Partnership in Action
(AGB Study)

How trustees participate in cultivation, solicitation, stewardship:

Development staff-driven program 13%

Trustees open doors for president and staff 23%

Trustees together with president or staff 56%

Trustees only 8%

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How Trustees Receive Fund Raising Assignments
(AGB Study)

Identify own prospects from among

friends and associates 3%

Review list from staff and select 12%

Staff identifies, enlists trustees to help 25%

Board and president decide without staff 2%

Mix of the above 56%

Trustees do not accept assignments 5%

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