The Board's Role in Fundraising (Webinar)

1@CapitalOne | @BoardSource | @AskEmilyD

The Board’s Role in FundraisingCapital One

February 3, 2016

© 2016 BoardSource

EmilyDavis,EmilyDavisConsultingSeniorGovernanceConsultant


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#governance#nonprofit

#fundraising


Emily Davis, MNM

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Agenda

I. Roles & responsibilities

II. Define fundraising

III. Fundraising process

IV. Sources of support

V. Giving motivations

VI. Fundraising roles


Poll Question

QUESTION CHALLENGE


What is Fundraising?

§ Investment in a mission

§ Improves capacity for impact and change

§ Build relationships – “Friend”raising

§ Not begging for money

§ People are not ATMs


Board Roles & Responsibilities

Set organizational

direction

Provide oversight

Ensure necessary resources


Fundraising by the Numbers*

*Giving USA 2014


Fundraising Process

Prospecting Identification Preparation

Cultivating Build the Relationship

Engage the Donor Ask for the Gift

Stewarding Recognition Reporting Communicating Engagement


Poll Question

Prospecting Cultivating Stewarding

What takes the most time in fundraising?


Fundraising by Time

Involve&EngageDonors

25%

Identification ofProspects

20%

Educate&Cultivate25%

AskforGifts5%

Thanks&Recognize

25%

Fundraising by Time


Different Motivation

RESISTANT

NO WAY!

RELUCTANT

Not sure, have a lot of

questions.

EXISTENT

I might be able to do

this.

COMPLIANT

I can/will do this.

COMMITTED

I’m happy to do this.

COMPELLED

I’m excited and can’t wait to do

this!


Funding Types

Diversity is key

Individuals

Special events

Foundation grants

Government grants

Corporate sponsorship

Service clubs

Earned income/Social

Enterprise


Individual Funding Sources

§ Direct mail§ Telemarketing§ Online giving

(websites)§ Events§ Membership § Annual gifts

§ Major gifts§ Giving circles§ Peer-to-peer funding

(crowd funding)§ Memorial/honorary

gifts


BEQUESTS/PLANNED GIFTS

MAJOR GIFTSCapital campaigns

Endowment campaignsSpecial events

ANNUAL GIVING Annual campaigns

Special eventsDirect mail

Online givingMembership programs

ONSITE/FIRST TIME GIFTSNewslettersVolunteerismSocial media

Peer-to-peer giving

Giving Pyramid


Spheres of Influence

New gifts

Annual donors

Midsize donors

Major donors

Planned giving


Giving Motivations

§ Belief in mission§ Relationship to

cause/individuals§ Passion for programs§ Values align§ Personal story§ Impact§ Recognition§ Guilt§ Obligation

* Kay Sprinkel Grace

Philanthropy

Connection

Concern

Capacity


Questions


Fundraising Roles

EXECUTIVE DIRECTOR

Chief Fundraiser

Fundraising Planning

Board & Staff Liaison

DEVELOPMENT STAFF

Fundraising Strategy

Moves Management

Identify/Communicate Needs

DEVELOPMENT COMMITTEE

Board & Staff Liaison

Staff support on specific efforts/campaigns

BOARD OF DIRECTORS

Prospect/Cultivate/Steward

Oversee Strategies

Make Gifts

Policies


Board’s Role

§ Current revenue sources are stable

§ Diverse funding sources are secured

§ Organizational & programmatic goals & financial support for them

§ Realistic assumptions or goals are put in place, agreed upon by board & staff

§ Realistic goals are agreed upon by board and staff

§ Know Donor Bill of Rights


Board’s Role*

• Meeting & engaging with peopleConnector

• Illustrating the work in a compelling wayStoryteller

• Making the case for the futureVisionary• Asking for specific support or

involvementCloser*Creation in Common


Poll Question

Do 100% of board members give a personally significant financial

contribution to your organization every year?

qYes

qNo

qNot Sure/ Maybe


100% Board Giving*

0%

20%

40%

60%

80%

Have policyPercentage

giving 100% participation

68% 74%

46%

Board Participation in Giving

*BoardSource,2010


Giving Commitment Types

§ Open ended = Board members individually determine a personally-significant financial gift.

§ Flexible = Any combination of a personally significant gift and fundraising from others as part of the individual commitment.

§ Specific = A defined amount that all board members give in addition to engaging in other fundraising strategies.


Fundraising Policies

§ Gift acceptance policy

§ Personal giving policy

§ Ethics statement

§ Letter of Commitment


Additional Considerations

§ Obedience to the Law

§ Confidentiality

§ Prevent Self Dealing & Conflicts of Interest

§ Presenting Information to the Public

§ Assure that Funds are being Used for Stated Purposes

§ Relying on Outside Consultants

§ Accountability of Outcomes


Shared Leadership


One Take Away


Questions?


Thank you!

BoardSource750 9th Street, NW

Suite 650Washington, DC 20001

Phone (202) 349-2500Web site:

www.boardsource.org

Emily Davis, MNM

Emily Davis Consulting, President

BoardSource, Consulting Associate

(720) [email protected]

emilydavisconsulting.com

The Board's Role in Fundraising (Webinar)

Government & Nonprofit