Effective Board Support - What Is It?

Based on the number of visits to my last post, I strongly suspect that the relationship between board and staff in regards to fundraising is a hot topic!

Here is the whole article by Pete Nixon that appeared in the GiftWorks October eNewsletter.  I think Pete does a good job of describing the role of the board and the role of the staff that makes alot of sense but is too rarely realized!

-Mary Pat 

Effective Board Support--What is it?
Pete Nixon, Apogee Consultants (Park City, UT)

Does your 501c3 organization have enough money? If so, you can stop reading now. If not, it's time to evaluate how well your board is doing its job of connecting with the community. Community support comes in many forms: providing the community leaders who sit on the board, providing the cadre of volunteers who provide essential services without cost, and cash donations from the community. This last area is where many boards shirk their duty, placing the burden unfairly on the Executive Director or a Development Director.

The Evolution of a Nonprofit
A nonprofit organization might also be called a 'community-supporting and -supported organization'; it's typically started by a group of people who perceive there is a social need not being met by existing organizations, including government, business or other nonprofits.

In the beginning, the founders serve as both the board and the (unpaid) staff. They struggle to raise funds so they can develop and administer the programs to meet the need. If there is a broad enough interest by the greater community, the funding base grows and the organization is then able to hire paid staff. What happens next varies, depending on whether or not the leadership recognizes the distinction between staff and board functions.

"What happens when a nonprofit hires its first staff depends on whether or not the leadership recognizes the distinction between staff and board functions."

My point is: nonprofits are usually started, governed, and managed by people in a community who are focused on the mission, not on raising money. Fundraising in the community is seen as a necessary evil. As soon as the organization can afford to hire an Executive Director, one of the first tasks they unload is that of fundraising. At that point, the personal connection to the community becomes strained--if not severed. You need a Board to bridge that gap.

A Better Board Model
The Board's role in connecting the nonprofit with the community includes:

1. Representing the organization in the community
2. Representing the community's interests in ensuring the organization is meeting the community's needs

If the Board takes this role seriously, the community is always aware of the importance of the nonprofit to the community and of the need to support it with volunteers and funds. This is not something a staff person can or should do, unless it is in support of board initiatives.

Board members should be chosen not only for their interest in the mission, but for their ability to engage the community in supporting the organization with their money, time and talents. All too often, organizations that are in trouble financially are 'led' by a board composed of well-meaning, concerned citizens who do not understand or accept their responsibility to ensure the financial well-being of the organization.

An effective board is one composed of people who are willing to use their stature and influence in the community to raise funds from the community. Ideally, these are people who are successful in their own right - 'pillars of the community'-- who are not the least bit reluctant to ask for money for a good cause. In fact, they enjoy the challenge of doing so.

The Nonprofit's Funding Conundrum
By its nature, a 501c3 nonprofit derives little or no funding from those it serves and must instead obtain funds from sources that only indirectly benefit from the services provided. Think about that for a minute because it is at the heart of the funding conundrum faced by just about every nonprofit.

"By its nature, a nonprofit derives little or no funding from those it serves; it must instead obtain funds from sources that only indirectly benefit from the services provided."

A community health clinic or homeless shelter provides critical life-saving services to those who cannot pay; it must somehow convince the community to provide the funding. Animal shelters, soup kitchens, adult literacy programs, inner-city and at-risk children's programs--the list is virtually endless and the dilemma the same; those served cannot pay for the services so the community must be convinced to do so.

Many of these programs qualify for government funding, but it is rarely enough to meet an organization's financial needs. This is particularly true in tough economic climates as we have seen recently, where demand for services soars while these funding sources dry up. Even those nonprofits previously successful in obtaining foundation grants are now seeing that source constricting.

So, unlike for-profit businesses, nonprofits must not only serve their 'customers' (the users of their services) well - they must also convince someone else to pay for services they are not themselves using. Now that is a marketing challenge!

The Fundraising Duties of Staff
The staff's role in all of this is to administer the programs at the center of the organization's mission which serve constituents. All too often, though, I see Executive Director job descriptions that make the ED responsible not only for running successful programs but also fundraising in the community. This is an abdication of duty by the Board and a formula for constant financial distress for the organization.

What is the staff's role in fundraising? I believe it is limited to:

1. Identifying and applying for relevant foundation and agency grants
2. Developing an effective marketing strategy to get the right message out to the community
3. Providing administrative and marketing support for fundraising and awareness events that the Board has initiated and promoted within their circle(s) of influence
4. Developing and grooming a database of financial supporters to which occasional appeals can be targeted

In Summary
The key to active, ongoing community support is a Board with the right attitude toward its responsibilities as the 'community connection'.

If your organization does not have a board that understands and accepts its responsibility as the 'community connection', you will likely always struggle with funding. On the other hand, if your board becomes actively engaged in a two-way conversation with the community, you will likely find a much more receptive audience for your marketing message and have an easier time obtaining community support.

Organizations that have mastered the art of soliciting community support can actually experience an increase in community support during economic downturns. Make sure your community knows why you exist and why they should support you - and the best way to do so is with a board that understands this as their 'job one'.

Pete Nixon, of Apogee Consultants (Park City, UT), helps corporate and nonprofit clients recognize and overcome patterns of behavior and thinking that don't serve them well, and to develop strategies for future success. Pete has been an active leader and volunteer with numerous civic and charitable groups in the Salt Lake City area.

The Role of the Board in Fundraising

In our eNewsletter coming out today, we have an excellent article on the role of the Board of Directors in raising funds for your organization.  It's written by one of expert GiftWorks Consultant Partners: Pete Nixon of Apogee Consultants in Park City, Utah.  You won't want to miss it in your inbox!  Please let us know if you're not on our mailing list. 

It's typical for a board to want to "delegate" fund development to the Executive Director and/or Development Director and take on other matters.  But, really, this is part of the core board responsibility, and one that cannot be totally delegated to staff.

Ruthellen Rubin, CFRE, another expert GiftWorks Consultant Partner, writes about this topic (among many others) in her blog.  Here's an excellent article Ruthellen wrote on this topic that was published in Fundraising Success Magazine:  Success in Fundraising Starts with the Board of Directors. 

I have never been involved in a nonprofit organization that hasn't struggled with this issue in some way.  We'd love to hear your insight from a board or a staff perspective! 

A New Twist on the Traditional Auction

On Friday night I attended an auction for the benefit of the Milagro House, an amazing organization that offers a "long-term, education-based program committed to restoring the lives of homeless women and children."  I, probably like you, have attended many, many auction events over the years, and I expected this one to be the same.  I intended buy some items just to support the worthwhile mission of Milagro House, but honestly, I just didn't need any more stuff.

But the event Executive Director Polly Lauer and her committee offered on Friday was not your typical auction.  All of the items available for silent bidding were things needed by the people Milagro House serves.  Instead of bidding on restaurant gift certificates and upscale services, we bid on a year's supply of diapers and driving lessons for a young mother seeking to achieve independence.  We bid on GED courses and educational toys and electric bills.  I was thrilled to see the bidding wars on such atypical items.  It created a whole different vibe and spirit that was contagious, generous and fun.

Then, for every $25 in bid or increased bid you made in the evening, your name was entered into a drawing for 6 grand prizes.  There you found your vacation homes and $1000 wine baskets.  So, the more you bid, the better your chance of winning!

It was a great evening all around and very relevant given the economic situation and the increased awareness of the needs of others. A big thank you to Polly Lauer and Milagro House for a wonderful event - it truly was my honor to attend.

Please share any ideas you have on updating the traditional auction!

 

Keeping Close to the Purpose

I had an unexpectedly great day today.  I took a road trip with a colleague to visit one of our clients, Camp Hill Special School in Glenmoore, PA.  The drive itself was lovely. It's been a perfect fall day in Pennsylvania; cool air with warm sunshine filtering through the newly turning foliage.  Rolling hills, pristine farmland. Stunning. Then we arrived at Camp Hill Special School.  I was expecting a traditional school building with classrooms and students, but instead was treated to a verdant campus filled with small, homey buildings. Special students walking hand-in-hand with teachers, gardens, chickens, and beauty everywhere.

The mission of the Camp Hill Special School is "to create wholeness for children and youth with intellectual and developmental disabilities through education and therapy in extended family living so that they may be better understood and their disabilities moderated, that they may more fully unfold their potential, and that they more fully and meaningfully participate in life."

My brief tour of the campus and my interactions with the staff there indicate that they are living this mission to the fullest.

We had our meeting, talked about how GiftWorks can help them achieve their goals, and I left feeling energized and renewed in a deep way.  Helping organizations like Camp Hill Special School become stronger is what I want to do. It's the purpose of GiftWorks and all our efforts.

We are all so busy and have so much to do day-in and day-out.  Today I had the luxury of stepping out of the usual and remembering why I do this work and how important it is.  Tomorrow may be back to the regular busyness, but I expect it will be with an extra spring in my step and smile on my face.