Board Leadership 101: The Role of the Board Directors in Nonprofit Fundraising
Fundraising as a team
Many nonprofit organizations are what we would consider to be small shops. These organizations rely heavily on volunteers, who dedicate a significant amount of their time and effort to keep the organization running efficiently. Regardless of the size of your organization's team, it's crucial that everyone participates in fundraising activities. When everyone understands their roles in fundraising, it can maximize the effectiveness of the team's efforts. Fundraising is a collective responsibility and everyone, from the board of directors to staff members and volunteers plays a vital role in the generation of funds. This collective effort is what keeps the organization financially healthy and operationally effective.
Increasing your nonprofit organization’s capacity
An organization may choose to get help with their fundraising strategy. They might hire a professional fundraising consultant, to help increase the capacity of their staff and provide specific expertise that does not exist on the team. And even though this may enhance your fundraising capacity, it's important to also have a dedicated in-house team overseeing the strategy and tracking the progress of your fundraising plan. Depending on the size of your organization and your specific needs, you might have individuals who are allocated fundraising duties as part of their broader responsibilities. This mix helps ensure that your funding objectives are consistently met.
Understanding the Role of the Board in Nonprofit Organizations
The board of an organization plays a crucial role in upholding the mission of your organization and ensuring its long-term financial health. This involves figuring out how the organization will be funded, and actively participating in fundraising efforts. This responsibility can sometimes lead to debates, as the board can hand over some fundraising duties to volunteers or staff, causing potential confusion about who exactly is in charge of fundraising. It is important to understand the fundamental duties a board should carry out in relation to fundraising. This includes planning, overseeing, and actively participating in these efforts to ensure the organization's financial stability. So let’s look specifically at some of the basic functions a board should fulfill in regards to fundraising.
Long-term strategy. The first basic function that the board is responsible for is ensuring that your organization can meet the needs of the community you serve well into the future. This means, part of the strategic vision that the board sets should include planning for how the organization will maintain its financial health and longevity into the future. For example, planning for a reserve fund that your organization can rely on in times of uncertainty.
Creating a fundraising budget. Next the board needs to be able to demonstrate its commitment to fundraising through ensuring there is a fundraising budget. Organizations that have resources to support their fundraising efforts will be more successful at fundraising than organizations without a dedicated fundraising budget. The fundraising budget may include resources like dedicated fundraising staff, a budget for donor management software to keep the fundraising targets on track, or money set aside to bring on extra resources like a fundraising consultant or contract employee.
Have knowledge of fundraising processes. The next function involves understanding fundraising procedures and processes. Imagine a scenario where a person wants to donate to your organization and shares this with one of your board members. Would your board member know how to direct them? Do they understand the basic administrative process of how your organization handles donations? Do they know whether or not you can offer a tax receipt? Although it is unreasonable to expect your volunteer board members to understand every intricate detail of how your organization operates, they should have a basic knowledge in matters concerning fundraising processes.
Fulfill commitment to organization. And finally, individual board members should be expected to follow-through on their commitments. This is because the success of your organization's fundraising initiatives heavily depends on their accountability. If they do not fulfill their commitments, it could hamper the overall effectiveness and success of the organization. So, it's important that each member is held accountable for their roles and tasks. Plus, this is the area where frustration can really fester. When board members do not fulfill their commitments it can really have a negative impact on the relationships between staff and board members, or even between board members. So it’s so important for board members to be realistic about what they take on, and fulfill the tasks accordingly.
Sometimes board members can feel a bit uncomfortable with fundraising, but in many cases this is simply because they have some uncertainty about what their role should be and how they can be successful. By taking the time to help board members understand their role in fundraising, it can alleviate a lot of stress, and help increase the effectiveness of volunteers as your entire team works together to accomplish your fundraising goals.
