We tend to think that a board’s primary role in fundraising is implementation. They should give money, they should ask for money, they should make connections and spread the word. All of this is true. Board members can be our very best ambassadors and we need them on the front lines of fundraising.
But, board members should also play a strategic role in fundraising. It’s up to the board to ensure the financial health of the organization and it’s not enough to glance at monthly fundraising reports and track progress against financial goals.
Fundraising is a long-term enterprise, but at the typical board meeting, the discussion is generally about meeting this year’s goal. While this is important, the board should also be taking a longer view. And asking the hard questions.
Here are three things every board should explore in order to build a sustainable fundraising program:
What are we doing to keep our donors?
Too often, the conversation at the board table is about bringing in new donors. The reality is that it costs more to acquire a new donor than to keep an existing one. Every organization should have a clearly articulated retention strategy. You can check out our Leaky Bucket workbook for ideas.
If you’re a board member and all you’re hearing about is the year-end appeal, make sure you ask about stewardship. When did our donors hear from us last — other than just asking them for more money? What have we done to build a sense of ownership and loyalty among the people who give to us? These people are your lifeblood and it’s everyone’s job to make sure they’re taken care of.
Are we raising money the hard way?
If your organization is overly reliant on events, it might be time to reevaluate. Event donors are expensive to acquire and just as expensive to keep if you don’t convert them to some other channel of fundraising. Plus, events can wreak havoc on staff morale and efficiency. They tend to pull people away from other, more efficient fundraising work, and as you probably know, they just plain wear people out.
As a board member, it’s your responsibility to ask questions, like: How much is it really costing us to run this event, including staff and volunteer time? How many event attendees actually become annual fund donors? You must be willing to say “enough is enough” when an event isn’t passing muster, even though others may be emotionally invested in long-standing events.
What are we doing to retain our fundraising staff?
Professional fundraising positions are renowned for high turnover and long vacancies. This “revolving door” presents a real problem for nonprofits. Board members should be proactive about making sure there is appropriate support for the fundraising team in terms of compensation and achievable financial goals. While it’s the executive director’s job to manage the fundraising staff, it is important that the board not approve unrealistic fundraising goals or expense budgets that are too meager to support fundraising success. After all, it takes money to make money.
Of course, there are lots more fundraising issues you’ll grapple with on a board, but these questions are a great way to elevate the conversation and get everyone thinking strategically about fundraising not just as a year-over-year function, but as a sustainable source for years to come.
