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9 Ways Board Members Can Raise Money Without Fundraising

By Nell Edgington



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I’ll admit it, I’ve been on a board fundraising kick lately in the blog (here and here). I just think that if your nonprofit is going to become more strategic and financially sustainable, you have to start from the beginning (or the top, as it were). In my last blog post I discussed how to overcome excuses for why a board member can’t bring money in the door. But the fact remains that a majority of people don’t like to (or simply won’t) ask for money.

The good news is that there are lots of other things board members can do to bring money in the door. And remember, if you are financing not fundraising your organization, your definition of “bringing money in the door” should be very broad.

Here are 9 things you could ask your fundraising-shy board members to do:

  1. Help create or evaluate a business plan for an earned income venture. If you have business leaders or entrepreneurs on your board this would be a great use of their time and add tremendous value to your organization. If they can help you create a more profitable business, they are directly contributing to your organization’s bottom-line.

  2. Advocate for government money. You may have a board member that can’t stand the idea of asking their friends for money, but they are well connected in city, county, state or federal government and could open doors to you for government contracts, grants, fee-for-service or other government monies.

  3. Provide intelligence on prospects. If you have a board member that seems to know everyone in town, but for whatever reason refuses to ask any of them for money, they can still be incredibly useful. You may be getting ready to ask a prospective donor for $1,000, and this board member can tell you what that person has already given to, at what level, who else might know them and so on. When you make an ask, the more information you have going into it, the more successful you will be.

  4. Set up a meeting with a prospective customer. If your nonprofit is engaged in an earned income venture, you probably always need help with new sales. If you have a board member who is part of, or connected to, the target customer(s) of your business, they could open doors to new customers. Or at the very least, they could help you think through your sales and marketing strategies and make them  more effective so that you can attract more customers.

  5. Email, call or visit a donor just to say thanks. The stewardship of a gift is an often forgotten, but incredibly critical, part of the fundraising process. According to Penelope Burk’s annual donor survey, 84% of donors would give again if they were thanked in a timely way. And being thanked by a board member is a bonus. A donor who renews their gift to a nonprofit is providing more money for the organization.

  6. Explain to a prospect why you serve. A board of directors is a group of volunteers who care so much about the mission of the organization that they are willing to donate their time (a precious resource) to the cause. As a donor, it is affirming to see that a volunteer is contributing time, but it is even more motivating to hear, in the board member’s own words, why they feel compelled to serve this organization. That story can be enough to convince someone to give.

  7. Host a small gathering at your home. Over the course of a year, most people invite a gathering of friends and/or family into their home at least once. A board member could take a few minutes at their next dinner party, birthday celebration or Super Bowl feast to talk about something that is near and dear to their heart: the nonprofit on whose board they serve. They don’t have to ask people for money, but they could simply say, “If you’re interested in learning more, let me know.” And then the nonprofit’s staff could take it from there with those who are interested.

  8. Recruit an in-kind service. If a board member could remove an expense line item from a nonprofit’s budget that would directly contribute to a stronger bottom-line. For example, if a board member works at an ad agency, could they convince their company to provide some pro-bono marketing services to their nonprofit? But keep in mind, these in-kind donations must be of value to the nonprofit and provide an offset to a direct cost that the nonprofit would otherwise have to bear.

  9. Negotiate a lower price from a vendor. Do you have a board member with great negotiating skills (think of all of those lawyers on your board). Could they negotiate with your insurance providers, office space rental company, or printers, for a lower price? If so, that’s more money in the bank.

If you think of a board member’s “get” responsibilities in these much broader terms, then I find it difficult to imagine a board member who cannot bring money in the door. You just have to get strategic about how each individual board member can best contribute to the organization’s bottom-line.

Photo Credit: DeeganMarie


Related posts:

  1. 7 Things Board Members Can Do To Raise More Money
  2. Ways to Raise Money in a Recession
  3. Financing Not Fundraising: Jump Start Your Board
  4. Overcoming Board Fundraising Excuses
  5. Financing Not Fundraising E-Book

About the Author: Nell Edgington is President of Social Velocity (www.socialvelocity.net), a management consulting firm leading nonprofits to greater social impact and financial sustainability. Social Velocity helps nonprofits grow their programs, bring more money in the door, and use resources more effectively. For more information, check out Social Velocity consulting services and clients.


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53 Comments to 9 Ways Board Members Can Raise Money Without Fundraising

[...] Click here to read full post [...]

Marziya Yasmin
January 30, 2012

Dear Nell,

Thank you for posting such excellent guidelines for fundraising. We are a small not for profit organization and realtively new. We have been incorporated in 2008. However, we do not have a charitalbe registration number yet, which has been a major constraint in receiving donations, since we are not able to provide tax deduction receipts to our prospective donors. I was wondering if you have some creative ideas for fundraising for an organization like ours?

Thanks

Marziya

[...] 9 Ways Board Members Can Raise Money Without Fundraising | Social Velocity. Written by Editor Posted in research Tagged with nonprofit fundraising, social [...]

Nell Edgington
January 30, 2012

Marziya,

Unfortunately I don’t have any creative ideas for your organization. Without official registration as a nonprofit and the tax benefit that donations receive it is nearly impossible to raise money. I would recommend that you get your registration as soon as possible. Good luck!

[...] 9 Ways Board Members Can Raise Money Without Fundraising | Social Velocity. This entry is filed under Revenue Development. [...]

taiya shiner
February 1, 2012

Hi Marzlya, Unless you are looking for large donations or donors who itemize their contributions (i.e., home owners who right of their mortgage interest etc.) actually use of the tax deductible contribution is more about confidence in the organization than about the financial benefit to the donor. Also, If you are planning on filing for nonprofit status have someone with experience review or help prepare your documents so that you make sure that meet eligibility requirements. The application process has changed since we applied in 2002 – http://www.betteragreements.org but it wasn’t that hard and if your budget isn’t expected to be that big the cost for filing may be less. You can also partner with a nonprofit organization that has a similar program mission and set up a special project where donations are designated for that project. Donors and especially grant funding is increasingly favorable for projects that demonstrate large community support and partnership.

Nancy
February 2, 2012

For Marzlya

Could you perhaps find another exisiting non-profit with very similar aims and goals and who already have the charitable registration? You could possibly merge with them by adding your mission statements to theirs,expanding their number of directors to include yours, and arrange the staffing to include yours. Just wondering.

Norm Bour
February 2, 2012

Great article, we are singing the same song.

Nell Edgington
February 2, 2012

Thanks Norm!

aastha rehab care society
February 2, 2012

great idea sir for fundraising

Rosa Matheson.
February 3, 2012

I had worked in fundraising for charities for sometime and always found Board Members involvement a headache…I like your suggestions…particularly the 10min talk at home socials….will probably suggest this to our Monthly Supporters…..to raise new monthly supporters…

Nell Edgington
February 3, 2012

Rosa, I’m glad the post was helpful. Good luck!

James V.lToscano
February 3, 2012

See my posting on this probelm, which dies have a number of solutions
http://thegoodcounsel.com/2011/09/23/through-the-eye-of-the-needle/

Razi
February 4, 2012

Thank you for posting such first-rate article for fundraising. I am working on poverty reduction. It’s much difficult to come up with new ideas and solutions, policies. But I think point no 2, 3, 5 and seven can be more effective if implemented as a SOP (Standard Operating Procedure) in nonprofit organization. In my opinion Marketing of what you have done and what’s your plan is most important from everything if you fiercely present your work than there is 100% guarantee for future.

[...] 9 Ways Board Members Can Raise Money Without Fundraising. [...]

Danny Glover
February 6, 2012

Nell, this is an excellent post! I have been helping churches, private schools, and a few other non-profits raise funding for their mission for almost 12 years, and the things you suggest are some of the “best practices”, in my experience. Personal, public, and private conversations that connect people’s hearts to the vision are the key to attracting those individuals to commitment. There is a place for generic appeals that reach out to those who will attach at a lesser level, and those gifts count, too. However, there is no substitute to the personal touch that shares why someone else connected to the vision.

Danny

Nell Edgington
February 6, 2012

Thanks Danny, I agree!

Clark Smith
February 7, 2012

Thank you for this Nell. I work on two non-profit companies. One is to preserve music education in South Carolina and the other is work I do with the Governors Office and the Department of Social Services to recruit foster and adoption families. Fund raising for board members is always a grind for most people. Great points and ideas. Thank you for sharing.

Clark

Nell Edgington
February 7, 2012

You are very welcome, Clark. Good luck in your work!

H
February 7, 2012

Maybe the non profit who laid me off will heed these important ideas. I was laid off because the head management FAILED in fundraising. I was punished for their lack of leadership.

Nell Edgington
February 7, 2012

H,

I’m sorry to hear that. However, I would say that when an organization fails in fundraising, they are failing on a larger scale. It wasn’t just the head of fundraising who failed, it was also the executive director and the board.

I hope you can move on from this unfortunate situation and find a much better, stronger, more sustainable organization. Good luck!

Joseph Selvaraj
February 7, 2012

Can you sugest Fiscal sponsor in USA which is having 501c3 and UK based Charity for act as Fiscal sponsor for Indian NGO’s.
By Joseph
General SecretAY, Grace Foundation.

Shakeel Abro
February 7, 2012

Dear Nell,
A very inspiring and fruitful guideline for the board members.You’ve touched a very crucial part of an organisation and if every member in an organisation adopts these rules i think there could be an enoromous multiplication of nonprofit sustainable organisations.Well done.
Shakeel Abro
BoD IACD UK

chukwuemeka uzu
February 8, 2012

i find this post quite excellent and interesting but the difficulty with my organization is that we have young persons on our board and most of our programs are run on funds from donations and contributions from these youths. Non profit organizations do not get funds from government in Nigeria. we are registered with our corporate affairs as NGO but the idea of charitable registration is new to us. We have established networks and program but lack funding. pls help.

Nell Edgington
February 8, 2012

Joseph,

Unfortunately I am not familiar with nonprofits that act as fiscal sponsors for Indian NGOs, however perhaps one of my readers can point you in the right direction.

Nell Edgington
February 8, 2012

Chukwuemeka,

If you have a good program that is getting results and you have networks of people you can tap into, you are well on your way to finding funding. The trick is articulating the value your program has to those networks and getting them to tap into their networks. Then your support begins to grow exponentially. I encourage you to check out the various posts in our Financing Not Fundraising series to find out more: http://www.socialvelocity.net/tools/financing-not-fundraising-a-social-velocity-blog-series/

Nell Edgington
February 8, 2012

Thanks Shakeel! I agree that if nonprofits could start doing things differently they could become much more sustainable.

Stephanie
February 8, 2012

Thank you for your helpful posts. Our positive youth development program has been supported by me and my family since 1996. For 15 years, we have operated with no salaried staff and have video testimonies from youth who have benefitted from our work through capacity-building, technical assistance, an awards program, scholarships, fellowships, and individual development accounts. In 2006, we incorporated and received 501c3 status as a national organization. Since our intake process is online, we have started a social enterprise that provides web development, hosting, webinars, live meetings, document sharing tools, polling and database management. We also have a partnership with FDIC to provide FREE online financial literacy classes to youth and adults. We have submitted some grants but none have been funded. Yet, after several submissions, we see our ideas implemented. We have no debt. There are three young adults on our board who were program beneficiaries and four adults. None of them desire to do fundraising. We need to increase clients for our social enterprise, purchase new hardware/software, identify additional program funding, and hire staff. Any suggestions other than replace the board?

Nell Edgington
February 8, 2012

Stephanie,

The broader the network of a nonprofit the more successful it will be. From the little you have told me it sounds like your nonprofit’s network is fairly small — mostly friends, family and former clients. I would encourage you to expand the reach of your organization and you can start by recruiting new people, preferably with new networks, to join the board. But at the same time, you can expand your reach through social media, friend-raising events, and other activities that create an inviting space where people want to learn more and become involved. Good luck!

Andrzej Puchacz
February 10, 2012

Thank you for sharing. It is a very useful source of information. Have a great weekend and best regards from Warsaw, Poland – Andrzej Puchacz

Irene
February 10, 2012

Marziya,

Charitable donations are not the only way to raise funds. Try coming up with an event that can both generate interest and be profitable for your organization. If you need some ideas let me know.

[...] Organization: 9 Ways Board Members Can Raise Money Without Fundraising (Social [...]

[...] 9 Ways Board Members Can Raise Money Without Fundraising [Social Velocity] 0 Comments [...]

Marion Conway
February 10, 2012

Nell,

Thanks for this excellent article. I plan to use it with nonprofits that I work with. I do think that most Board members are underutilized and that’s because all we think of is give and get and forget about all the possible steps in between.

Your readers may be interested in a recent popular post of mine which also talks about what board members can do without fundraising – and this is all very painless. Here it is: Demonstrating Board Leadership with Facebook
http://www.marionconway.com/2012/02/demonstrating-board-leadership-with.html

Nell Edgington
February 10, 2012

That’s great, Marion. Thanks for sharing your post!

Dickson Banda
February 11, 2012

This is great. It is indeed true that organizations must not always rely on fundraising to fund their organization. Company Directors who are determined to become good managers must envision their organization services and hope to put them uproar competitively the future we go.

Jane Kuechle
February 12, 2012

I like the idea of a board member hosting a small gathering at their home to provide information and support to the non-profit they care about. However some board members are reluctant to even consider that. They feel that just by inviting friends they are implying that a contribution is expected. One way around that is to ask them to just host and the organization (CEO, Director of Development, other Board members) will do the inviting. That way they are only providing the space and not “asking”. A short welcome as the host and testimonial about why they are involved with the non-profit will go a long way without putting them in an awkward and uncomfortable spot.

meljay
February 13, 2012

It’s true that many Boards are not at all comfortable with hands on fundraising however “friend-raising” is critical and opening their networks and contacts is vital. My networking with law firms and listed companies is yielding results with valuable offers of in kind support (construction, pro bono legal, charity partnerships) worth tens of thousands of dollars this year. I rarely ask directly, but when people ask what I do, I have my set piece spoken with passion, and they soon offer – the best way to proceed. I start with an achievable ask, that sets a relationship in motion and build from there. But it’s lots of corporate lunches, seminars to tap the right people.

[...] Nell Edgington from Social Velocity offers 9 Ways Board Members Can Raise Money Without Fundraising. Check it out!  http://www.socialvelocity.net/2012/01/9-ways-board-members-can-raise-money-without-fundraising/  This entry was posted in Uncategorized by admin. Bookmark the permalink. [...]

Thelma Andersen
February 15, 2012

9 Ways Board Members can Raise Money without Fundraising!
So good to see the points put across so well. Have beeen on courses and heard all of the points, but not all at the same time. We have a good board and they have been of great support especially in the hard times we are all experiencing at the presently. Every Rand raised is precious, because it makes a great difference in our children’s lives.
The words that stood out for me at this time are” ‘Financing not Fundraising’. We need to make this important shift!. Thanks!

[...] full article……..via 9 Ways Board Members Can Raise Money Without Fundraising | Social Velocity. Share OptionsPrintTwitterEmailMoreFacebookLinkedInStumbleUponRedditDiggTumblrLike this:LikeBe the [...]

[...] recruits think through the commitment they’re about to make by asking about their ability to meet board fundraising requirements (if you have them), and if they have time to devote to your nonprofit. Ask prospects to consider [...]

Jamil
February 16, 2012

Thank you so much you’ve given me clarity and plan for our upcoming board meeting.
I was a bit stressed until I read your articles now I calm focused and ready.
Thank You!

Nell Edgington
February 17, 2012

Jamil, you are very welcome. Glad it was helpful!

James D'Ambrosio
February 17, 2012

Excellent post! When it comes to fund-raising for board members, there are many ways to cut the pie besides making direct asks. This is especially important for young professionals just starting out who may have limited resources or feel uncomfortable asking others for donations. I agree that sweat equity in terms of writing/evaluating a business plan is a great way to positively impact the bottom-line. Thanks for providing some progressive, outside-the-box thinking on a thorny topic for many.

[...] recruits think through the commitment they’re about to make by asking about their ability to meet board fundraising requirements (if you have them) and if they have time to devote to your nonprofit. Ask prospects to consider [...]

frankline
February 21, 2012

Thanks Nell you are spot on, was scratching my head thinking l was going to drain my reserves but you are helpful. One non governmental organization l work with is going into Business building and l think this is a great article for us, thanx.

Nell Edgington
February 21, 2012

Glad to hear it, Frankline. Thanks!

[...] Neil Edgington from Social Velocity has practical and nonthreatening suggestions on his article 9 Ways Board Members Can Raise Money Without Fundraising. [...]

Richard Soundy
February 21, 2012

Nell, thank you for the very informative article.

Are there templates available that provide “ideal” (or goal setting) financial ratios for various types of not-for-profit organizations? In particular I am seeking information pertaining to a Trade Membership Organization where funding is primary from membership dues.

Nell Edgington
February 21, 2012

Richard, you might look at Kirsten Gronbjerg’s Understanding Nonprofit Funding and P. Dalsimer’s Understanding Nonprofit Financial Statements.

Dana
February 21, 2012

Thank you very much for the article. I guess for now money from government is more available (!) than money from business in this crisis time. But I don’t have any idea how to kick of my Board members to be more active in racing funds for our Foundation. I will share this article with them…

[...] other day, a woman with whom I volunteer shared a fantastic article by Nell Edgington highlighting several ways board members can raise money with out writing a check or directly asking others to do so. The key point of the article is that [...]

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