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give/get requirement

The Right Questions to Ask A Potential Board Member

Recently, fundraising maven Kay Sprinkel Grace wrote a post on the GuideStar blog outlining four questions to ask prospective board members when interviewing them for board positions. While I heartily agree with her that nonprofit leaders should institute and follow a rigorous due diligence process in recruiting new board members (rather than just shoving anyone into an empty board seat), I disagree with most of the interview questions she proposes.

In my mind, Sprinkel Grace’s questions for prospective board members focus too much on what’s in it for the potential board member, rather than what value the board member could bring the nonprofit. And in this way, nonprofit leaders are again encouraged to present themselves on bended knee to those from whom they need support or help. I would much rather see nonprofit leaders interview board candidates by confidently asserting the value that their nonprofit creates and determining whether potential board members have something of value that could further that work.

Sprinkel Grace’s first question for prospective board members — “How passionate are you about our cause?”– is absolutely right and helpful in determining whether a prospective member has the requisite amount of interest in the cause they might be helping to lead. But her other three questions (“What personal aspirations of yours could be enhanced by serving on our board?”, “Of what importance to you is social interaction with other board members?,” and “How much time can you give us?”) all put the burden on the nonprofit leader to demonstrate the value a board position will bring to the prospective board member, rather than helping to discern whether the prospective board member will bring value to the nonprofit. For the most part, Sprinkel Grace’s questions are about what the nonprofit can do for the board member, not the other way around.

Instead nonprofit leaders should use questions like these to determine whether or not a prospective board member is a fit for the nonprofit:

In reading through our nonprofit’s strategic plan (or whatever background documents we gave you ahead of time) what things excite you?
This question provides an opportunity for you to judge 1) whether this board member demonstrates enough of an interest in the organization to have done their homework, and 2) whether your work elicits enough intellectual and/or emotional energy from them to fuel their future work on your behalf.

What specific skills, experience or networks do you think you could bring to the table in order to help us move forward on our goals? 
This question makes very clear that you expect something unique and specific from this prospective board member (just as you do with all of your board members), not just a warm body. But more importantly, this question helps you gauge how well this board member understands your work and your plans and how willing they are to get in the game. This question can also help to get the right board member really excited about how their unique contribution right from the start.

How do you think you might go about meeting our give/get requirement?
I know it’s controversial (and I’ve talked about it manymany times before), but I strongly believe that you have to connect every single board member to the financial engine of your nonprofit. If you have a specific give/get requirement for your board (and I hope you do!), then you want to know from the outset how this prospective board member feels about it, and how they might approach it.

If we are going to create strong, effective, sustainable nonprofit organizations, we have to stop begging board members to join. A great board is created when you recruit people who have the specific skills, experience and networks you need to deliver on your mission and you effectively engage them to do the work.

If you want to learn more about creating an effective, engaged board, download the “10 Traits of a Groundbreaking Board” book.

Photo Credit: Ethan

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Why Nonprofit Boards and Fundraising Must Mix

mixing board and fundraisingI recently received a note from a blog reader who disagreed with my argument that a nonprofit’s board of directors should be charged with raising 10% of their nonprofit’s budget. Not only did this reader disagree with the idea of setting a 10% board fundraising goal, but he disagreed with linking board governance and fundraising at all.

As he wrote:

“I recently resigned from a board of a nonprofit, after a 5-year stint. I was honored to be asked to join the board, until at my first meeting pledge cards were passed around, and I realized it was my money, not my leadership skills, that qualified me for board membership. I have given on numerous occasions, but I refused to pay a “bill” I received for my share of employee Christmas bonuses last year. There have been many instances where the board was expected to give money. Only a tiny fraction of the budget would be raised through these measures, so it seemed like it was a membership test. Governance should be totally separate from fundraising.”

While I appreciate this reader’s frustration as a board member, I would argue that his unfortunate experience had more to do with poor management of a board, and less to do with fundraising being part of a board member’s charge.

I don’t believe board members should ever be “billed” for a contribution. Rather, the board chair and the executive director should sit down with each board member individually on an annual basis and have an open conversation about that board member’s role on the board. This should be a much larger conversation than just what she wants her annual financial commitment to be, but that still must be part of the conversation. So while you absolutely should discuss why the board member has chosen to serve on your board and what she would like her role to be, you also can (and should) discuss how she wants to contribute to the financial model of the organization.

And if you define a board member’s “contribution” much more broadly than just a check she writes, the sum total of all of the contributions each board member makes can be much more significant than “a tiny fraction of the budget.” Every single board member, if truly right for the post, has many ways to contribute to the financial model of a nonprofit (here is just a beginning list of ways). If you ask board members to think strategically about how they can contribute, and if they are well versed in the financial model of the organization they serve, it should be fairly easy to get them involved in a significant way.

And getting each board member engaged and involved in the organization should be the aim. While I agree that the idea of a “membership test” is certainly unappealing, there should be a bar to being a member of the board of a nonprofit organization. If some members are allowed to be members in name only, but not required to have any skin in the game, then what compels any member to invest their time and resources in a significant way? If there is no bar that a board member must clear to be a board member, then what separates a board member from just an interested member of the public?

A board of directors must be a nonprofit’s staunchest supporters, most vocal advocates, and most committed allies. If a nonprofit cannot depend on its board to work tirelessly, not only to ensure achievement of the mission, but also to ensure financial sustainability, how can a nonprofit possibly expect those outside the organization to care? So, yes, being a member of a board must come with some level of commitment, both of time and of resources.

Because at the end of the day, there is no mission without money. By allowing any individual board member, let alone your entire board, to make programmatic and organizational decisions without fully understanding and contributing to the financial model of the organization you are creating an enormous disconnect between mission and money. A person cannot hope to understand something unless they have actually worked within it. So each board member must somehow contribute to the financial model of the nonprofit on which they serve.

Just because nonprofit leaders sometimes do a poor job of engaging their board in the financial model does not mean that we should separate the governance of a nonprofit from its financial model. All board members must understand, embrace, and actively work toward the financial sustainability of the nonprofit they govern.

Photo Credit: Susana Fernandez

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Is Your Nonprofit Board Avoiding Their Money Role?

nonprofit boardI was speaking to a group of nonprofit leaders in Pittsburgh last month about how to Move From Fundraising to Financing and there were some parts of the presentation that raised eyebrows and (sometimes) controversy. And it usually happened around the topic of the nonprofit board.

I strongly believe that the board of directors is a nonprofit’s most critical financial asset. A board that is actively engaged and has the specific skills, experience, and networks required to deliver on the organization’s strategy can make the difference between a nonprofit that is just getting by and a nonprofit that is truly creating social change. And money is an inextricable part of that. Therefore, a nonprofit’s board cannot avoid its money role, or the organization and its mission will suffer.

Is your board avoiding their money role? Here’s what it looks like when they are:

The Board Isn’t Raising 10% of the Budget
I know it’s heresy, but I believe that a board should be charged with raising at least 10% of a nonprofit’s annual budget. But that doesn’t mean they all have to write personal checks (or get their friends to write them). Rather, there is an endless list (here and here) of ways board members, who are fundraising shy, can bring money in the door. Because why should the entire financial burden be left on the shoulders of the staff? That’s just not sustainable. And if you can’t get your board to step up to the financial plate, how will you have any hope of getting others to do so? There are really so many reasons why your board should take on more money responsibilities.

The Board Doesn’t Enforce a Give/Get
So to reinforce the idea of complete board involvement in the financial engine, you need to make it a practice. And that’s where the give/get comes in. A give/get requirement is a minimum dollar amount at which each individual board member must either “give” themselves, and/or “get” from somewhere else. Every single member of the board must understand and contribute to how money flows to the organization. They cannot argue that money is the purview only of the staff or a subset of board members. Money has to be part of the ENTIRE board’s job. Until you force the board to really participate in creating and maintaining an effective financial engine, you won’t be able to have substantive conversations about or get real engagement in raising or spending money.

New Program Decisions Ignore Money
It is not enough for a board to approve new programs or program expansion by only analyzing the potential impact on the mission. The board must also understand how a new program will or will not contribute to the long-term financial sustainability of the organization. The board needs to analyze all of the costs (including set up, opportunity costs, and ongoing operating costs) of the program and whether the program can attract enough money to at least cover those costs. And if not, whether the new program can be subsidized by other activities already in the mix. But the board cannot blind themselves to the financial downfalls of a sexy new program.

Real Conversations About Money Happen Only in Crisis 
Most board meetings include an update on a nonprofit’s budget, which is the extent of any money conversation. If there is a problem (expenses are too high, or revenue is not flowing as budgeted) a long conversation will ensue about the crisis. But bigger, regular discussions about the overall financial strategy of the organization are scarce. If the board is to be the financial steward of the organization, they have to spend time analyzing and developing their nonprofit’s financial model — where revenue should flow and how money should be employed to meet the mission. Money is a tool. But to effectively wield that tool, the board needs to think, talk, and act strategically about it.

For a nonprofit to be truly effective and sustainable, its board — the entire board — must embrace its money role. Because their is no mission without money. And no successful board turns a blind eye to the financial engine of their organization.

If you want to find out more about developing a sustainable financial model for your nonprofit, download the Develop a Financial Model Bundle. And if you want to learn how to create a more effective board, download the Build an Engaged Board Bundle.

Photo Credit: Luis Miguel Bugallo Sánchez

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The Gentle Art of Nonprofit Board Herding

Nonprofit board fundraisingThere is such a hunger in the nonprofit sector for help wrangling the board of directors. Because the board is a disparate group of volunteers, it can often seem impossible to get their attention, let alone get them all pointing in the same, effective direction. This is even more true in fundraising. But if you can get your board members all on the same page, it can transform your nonprofit.

So as we approach the end of the year and the height of nonprofit fundraising I wanted to offer some ways you can get your board more involved, not just for the next couple of weeks, but for years to come.

Here are some strategies to get your board fundraising for your nonprofit:

Start a Game-Changing Board Discussion
One way to plant the seed of change is to engage the board in a thought-provoking discussion. If you’re interested in kicking one off at your next board meeting, ask your board a question like:

And if you are uncomfortable starting the discussion yourself, let me do it. Share my video Why Every Board Member Should Fundraise at the meeting and see how board members respond. Be prepared for some disagreement, perhaps even anger and frustration. But I believe it’s far better to get the demons on the table so you can examine them rather than pretending they just don’t exist.

Give the Board Options
If you have board members that are scared of fundraising, or that hate to ask people for money, there are plenty of other things they can do to help. I believe there is an endless list of ways board members can contribute to the financial engine of the organization, from writing a business plan, to negotiating with a vendor, to hosting a friend raiser, and the list goes on. If you want to help your board think outside the fundraising box, these lists (here and here) of ways board members can raise money (without fundraising) can help.

Educate the Board on Fundraising
Often a board’s inertia comes from a lack of knowledge. Very few people know how to fundraise effectively. So remove that barrier by educating your board about how money flows in the nonprofit sector, how other boards raise money, how to ask for money, etc. The How to Build a Fundraising Board webinar, the Finding Individual Donors webinar, and the 10 Traits of a Groundbreaking Board e-book can all be useful tools to help your board understand how things work and how they can be more helpful to the financial sustainability of the nonprofit they serve.

Involve the Board in Making the Case
You can’t expect the board to raise money if they can’t make a compelling argument for why people should give. And you can’t just hand board members a brochure and expect them to effectively articulate the message. If you really want to get your board excited about raising money for your cause, involve them in making a case for investment. Bring them together as a group to ask and answer a series of questions about why people should give to your nonprofit, what your organization is working towards, why it matters, and so on. The Draft a Case for Investment Step-by-Step Guide will give you the framework to use. At the end of the exercise you will have not only a compelling case to make to prospective donors, but, more importantly, an army of board members excited about making that case.

It is an unfortunate reality that almost every nonprofit leader faces. Boards of directors, as a rule, are not effective fundraisers. But you can move beyond that by getting your board to talk, think and act differently about bringing money in the door.

And if you’d like some one-on-one help to get your board raising more money, check out the board engagement consulting and nonprofit leader coaching services I provide.

Photo Credit: Wikimedia Commons

 

 

 

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