There 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:
- Should the board be responsible for raising 10% of our budget?
- Should we institute a minimum give/get requirement?
- What should the board’s role in our financial engine be?
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 Getting Your Board to Raise Money 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.
Photo Credit: Wikimedia Commons
A couple of years ago I recognized that there was a real need in the nonprofit sector for tools to help nonprofit staffs, board members and donors make their organizations more strategic and sustainable.
So I began developing e-books, guides and webinars to explain new concepts (like Financing Not Fundraising), demonstrate how to use new models (like a theory of change) and guide nonprofit leaders to a better way (like better engaging their board).
Today, I am really excited to announce, as promised, the launch of the expanded and streamlined Tools store at Social Velocity.
I have spent the last several months revising and expanding many of the e-books, step-by-step guides and on-demand webinars available for download at the Social Velocity Tools page. And we’ve completely revamped the shopping cart experience to make it easier to find the tools you need and to offer additional payment options.
There are four categories of Tools available to you.
- On-Demand Webinars
These can be viewed whenever and however many times you’d like. Some of the webinar topics include:
- Step-by-Step Guides
These take a complex concept (like a theory of change) and show you step-by-step how to create one for your organization and how to use it to garner more support, chart a strategic direction, and much more. Some of the Step-by-Step Guides include:
These explain new approaches, the theory behind them, and how to start implementing a changed approach in your nonprofit. Like the:
- Tool Bundles
I’m most excited about these bundles where I’ve grouped e-books, webinars and guides around a particular goal a nonprofit leader wants to achieve, saving you 15% off the individual tool prices. For example:
But there are many more e-books, guides, webinars, and bundles available on the Tools page, so I invite you to check it out.
I hope these Tools are helpful to you as you work to move your nonprofit forward. Please let me know if you have questions as you explore.
And as always, please let me know what other tools would be helpful to you.
Today is Halloween, which, in my world, means that beyond candy, and trick or treating, and pumpkins it’s time for my annual “Monster List of Resources.” A few years ago I started the tradition of offering a list of resources for nonprofit leaders on Halloween (you can see past lists here and here). Each list is culled from the much larger, constantly evolving list of conferences, organizations, articles, books, blogs, and reports on the Social Velocity Resources Page.
This year I want to focus on the ever-growing number of conferences in the social innovation space. I’m really excited by how many really interesting gatherings are occurring.
But what did I miss? Please add to the list in the comments below. And don’t forget to check out (and add to) the much larger list of resources here.
Social Innovation Conferences
- After the Leap
- Center for Effective Philanthropy Conference
- CityWorks (X)po
- Clinton Global Initiative
- Global Social Venture Competition
- Grantmakers for Effective Organizations Conference
- Harvard Social Enterprise Conference
- Impact Conference
- Investors’ Circle
- Millennial Impact Conference
- National Innovation Summit for Arts and Culture
- Net Impact Conference
- NextGen: Charity
- The Nonprofit Management Institute
- Nonprofit Technology Conference
- NYU Social Innovation Symposium
- Opportunity Collaboration
- Skoll World Forum on Social Entrepreneurship
- Slow Money
- Social Capital Markets Conference
- Social Enterprise Summit
- Social Good Summit
- Social Impact Exchange
- Social Innovation Summit
- Social Venture Partners
- The Feast
- Yale Philanthropy Conference
Photo Credit: Wikipedia
Yep, it’s true, the nonprofit sector doesn’t have enough money. There are lots of reasons for that, but part of it stems from the taboos the nonprofit sector (and the staffs, boards and donors within it) perpetuates. But perhaps if we lay them bare, we can start to break free from them, which is the topic of today’s installment of the ongoing Financing Not Fundraising blog series.
If you are new to this series, the idea is that nonprofit fundraising is broken. Instead of continuing to hit their heads against the fundraising brick wall, nonprofit leaders must take a strategic approach to financing their work. You can read the entire Financing Not Fundraising blog series here.
Nonprofit taboos are so insidious because they are unwritten and unquestioned. But that has to stop. If we want to move the nonprofit sector forward, we must uncover certain taboos and determine whether they are really unacceptable anymore.
Here are the five most egregious taboos in the nonprofit sector:
- Nonprofits Shouldn’t Raise a Surplus
For some reason it is unseemly for a nonprofit to have more money than they immediately need. If a nonprofit is not just barely breaking even, it is somehow unworthy of raising more money. To the contrary, a nonprofit that has operating reserves can invest in a more sustainable organization, conduct R&D to make sure their solution is the best one, recruit a highly competent staff, and weather economic fluctuations. It is far better to invest in an organization that is well poised to attack a social problem than one that is barely able to keep the lights on.
- Nonprofits Shouldn’t Pay Market Rate Salaries
I won’t join the crazy controversy that surrounds nonprofit executive salary levels, but let me simply point out that nonprofits exist within a market economy, that is a fact. If someone is great at what they do, and they can make more money elsewhere, eventually they will do so. It is simple economics. I understand that mission is a driving force for people attracted to the nonprofit sector, but as competition in the social change space continues to grow, the best and brightest will be lured away by other nonprofits, government entities, or for-profit social enterprises. So if you want to attract and retain a really talented employee, you’ve got to pay them accordingly.
- Nonprofits Shouldn’t Demand Board Members Fundraise
Why not? Seriously, I don’t get this one at all. If your governing body is free to make strategic and programmatic decisions without understanding, first hand, the financial implications of those decisions, you are setting your nonprofit up for failure. Mission and money must be strategically aligned, and the first and most important place that alignment occurs is at the board level. There are plenty of ways for board members to get involved in the financial engine of their nonprofit. Let’s stop apologizing for having to make money in the nonprofit sector and start requiring every single board member get actively involved in the process.
- Nonprofits Shouldn’t Question Donors
Donors hold the purse strings so nonprofit leaders are unwilling to tell them how it really is. But if the sector continues to act like a grateful recipient of a wealthy person’s or institution’s largesse, that power imbalance will continue, as will the dysfunctions that accompany it. If instead nonprofits and funders were equal partners working together to solve a problem, maybe we could get somewhere. But this will only happen if nonprofit leaders become more confident at telling their donors (and board members) how it really is. And if nonprofit leaders are more strategic about diversifying their financial model so they are no longer beholden to a few funders.
- Nonprofits Shouldn’t Invest in Fundraising
In the nonprofit world the fundraising function is equivalent to the sales and marketing function of the business world. No one expects Apple to create amazing gadgets and then sit back and hope people show up and buy them. They have an extensive and well-financed marketing and sales function. But nonprofits are expected to spend as little as humanly possible on fundraising. Added to that, nonprofits are even more challenged because they have two, not just one, set of customers: 1) the clients they serve who often can’t pay for services, and 2) the funders who pay for those services. So we are telling nonprofits to recruit and serve two sets of customers on a shoestring. That’s crazy. We have to get over the idea that investing in fundraising (high quality staff, technology, expertise, planning, marketing) is a bad thing.
At the end of the day, we have to stop apologizing for the realities of the nonprofit sector. It’s time nonprofit leaders stand up and start demanding the end to some serious strictures that hold them back from doing their jobs. And, let’s remember, those jobs are to solve some of the most complex problems facing our communities. Those jobs are probably more easily and effectively done in the absence of crazy taboos.
If you want to learn more about moving your nonprofit from fundraising to financing, check out the Financing Not Fundraising page.
Photo Credit: wheat_in_your_hair
Yet, if you take a big step back and develop a groundbreaking board, you can dramatically increase your ability to achieve financial sustainability, reach new audiences, deliver more program results, and meet your organizational goals.
This month’s Social Velocity webinar, “How to Build a Groundbreaking Board”, will help you do just that.
The How to Build a Groundbreaking Board webinar will show you how to lead your board to:
- Define what it should do and how
- Recruit the right people
- Drive strategy for the overall organization
- Raise more money and use it more effectively
- Strengthen the organization
- Open your nonprofit to greater support, awareness and connection in your community
How To Build a Groundbreaking Board
A Social Velocity On Demand Webinar
Keep in mind that all Social Velocity webinars are “On Demand” so even if you can’t make this date and time, you can still register for the webinar and receive all the same content.
The registration fee will get you:
- A link to a recording of the webinar, which you can watch as many times as you like
- The PowerPoint slides from the webinar
- The ability to ask additional follow-up questions after the webinar
Photo Credit: State Library of Queensland
It’s no secret that nonprofits struggle with money. In fact, the Nonprofit Finance Fund’s most recent State of the Nonprofit Sector Survey found that 41% of nonprofit respondents ran a deficit in 2012. If we really want to rewrite this rule for the nonprofit sector, we need to make some pretty big changes.
So here’s a radical idea.
What if every nonprofit board were responsible for bringing in 10% of their nonprofit’s annual operating budget?
That means that if your nonprofit’s budget is $1 million, your board would be responsible for raising $100,000 each year. They could do that through a combination of give/get activities, meaning they could all write personal checks (at whatever level makes sense for them individually) and then use their unique skills, experience and networks to raise the remaining amount.
That’s a crazy idea, right?
I don’t think so. Here’s why.
The Board Must Really Understand the Money Engine
A board of directors simply cannot separate themselves from the financial engine of their nonprofit. The entire board must fully understand and contribute to how money flows to the organization. They cannot argue that money is the purview of the staff; money HAS to be part of the board’s job. Until we make the board really participate in making the financial engine run, they won’t be able to have substantive conversations about how to raise or spend that money.
The Board Must Share the Burden
I’m so tired of silly, small board fundraising goals. Does a 15 member board that brings in only $15,000 out of a $1 million budget really make a difference? Absolutely not. That’s pennies. If they are truly going to lead the nonprofit that they serve, they must share the financial burden. Ten percent of the operating budget starts to make a significant dent, so let’s start there.
The Board Must Tap Into Their Unique Assets
I am not suggesting that we force every board member to ask individuals for money. Far from it. Rather, I’m arguing that nonprofits start getting really strategic about tapping into each individual board member’s strengths and assets in order to make a bold fundraising goal a reality.
But you can’t just turn to the board and tell them to bring 10% in the door. Some things are going to have to dramatically change in order to make 10% a reality.
Here’s what you have to do:
- Work one-on-one with each individual board member to create an annual plan for how they will meet their part of the goal.
- Give the board lots of different ideas for how they can meet their goal.
- Provide the training, materials, and education they need to execute on that individual plan.
- Hold each individual board member accountable for their individual plans and goals, check in with them every month to see how they are progressing.
- Have the board report at every meeting about their progress on the 10% goal.
If we really want to see a shift in how the nonprofit sector is funded, we need to make some pretty radical changes to business as usual. So start to entertain the idea. What would it look like if your board brought in 10% of your annual budget?
If you want help transforming your board, check out the Board Engagement consulting services I provide.
Photo Credit: Richard Matthews
But it’s time to move beyond that. I’m starting a new series today about the many different forms of Nonprofit Fear and how to move the sector beyond them.
Because there are many:
- Fear of making an investment
- Fear of change
- Fear of losing a donor
- Fear of being honest
- Fear of money
- Fear of competition
…and the list goes on. Because these fears are so crippling and have the potential to really hold nonprofits back, I want to unpack each one in order to start a conversation about how we move past them.
So today, let’s discuss one of the most crippling, which is the fear of making an investment.
Most nonprofits live hand-to-mouth. They exist in a hamster wheel of raising just enough money to keep going. But if they took a step back, marshaled their resources and made an investment in real transformation they could break free from that hamster wheel.
Nonprofits come to me with a long list of woes: we don’t have enough money, our board isn’t doing anything, our funders are worn out, we can’t meet client needs, we are just getting by, we are worn out. They desperately want to break out of this endless cycle of not having enough and not being able to do enough. I explain that in order to make a significant change, in order to break free from this beast, in order to really transform business as usual, they must make an investment.
Not just an investment in help, but an investment of time, energy, and mind share. They need to rally their board, staff, funders, and advocates around a transformation plan. They need to be willing to take a risk and make an investment in a new way.
Some nonprofits decide that the risk is too great. That instead of overcoming their fear of investment they would rather pull back and continue on as usual. They may still cobble together a strategic plan, or write up a new board recruitment policy, or put together a fundraising plan, but nothing has really changed. They are still thinking and operating in the way they always have.
But the nonprofits that I do work with decide to take that first step. They decide to put a stake in the ground and chart a new direction for their organization. They release the status quo and instead make an investment in their future, a better future for their organization and the community change they seek. They are willing to ask hard questions, to make hard decisions, to take risks, to try a new approach.
Instead of shrinking from the opportunity, they stand up and say “enough is enough.” They decide that in order to achieve the vision that sparked their organization’s beginning long ago, they must make an investment in their future.
Photo Credit: briandeadly
Last week I spoke to a group of nonprofit leaders about 5 Nonprofits Trends to Watch in 2013 and a woman stood up and said “These trends are all well and good, but we need to talk about the fact that the money just isn’t there anymore. We are having to compete with more organizations for much less available funding. We need solutions to that.”
Agreed — fewer resources and more competition for those shrinking resources is the reality we are facing. But it’s not going to change anytime soon. So it is up to nonprofit leaders to embrace and adapt to that new reality. Instead of beating our heads against the wall of change, let’s adapt to meet it.
In fact, it is time for a new kind of nonprofit leader, one who has the confidence, ability, foresight, energy, and strength of will to really lead the nonprofit sector forward.
This new nonprofit leader:
Moves to Impact. She realizes that it is no longer enough to just “do good work.” Nonprofits must create a theory of change and then find a way to measure and articulate the outcomes and impact they hope they are achieving.
Finances the Work. He works toward completely integrating money into the mission his nonprofit is trying to achieve, understanding that big plans are not enough, he also must finance them. And beyond just recognizing his lack of infrastructure, he puts together a plan for raising capacity capital and convinces donors to start investing in a stronger, more effective organization behind the work.
Refuses to Play Nice. She overcomes the nonprofit norm of politeness at all costs and gets real with funders, board members, or staff who are standing in the way of the mission and impact of the organization.
Looks Outside. He understands that a nonprofit can no longer exist in a vacuum. He and his board and staff must constantly monitor the external marketplace of changing client needs, demographic and economic trends, funder interests in order make sure their nonprofit continues to create community value.
Gets Social. She embraces the idea of a networked nonprofit and is willing and able to open her organization and let the world in as fully engaged partners in the work her nonprofit is doing.
Asks Hard Questions. He constantly forces himself, and his high-performing team of board, staff, funders and volunteers to ask hard questions (like these and these) in order to make sure they are pushing themselves harder, making the best use of resources and delivering more results.
This new nonprofit leader is confident, engaged, and savvy. She will, I have no doubt, lead this great nonprofit sector to new heights.
If you need help figuring out how to adapt to this new reality, let me know.
Photo Credit: John Morton
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