Fundraising

Nonprofit Boards and Governance Review

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Getting Your Board to Use the F-Word: Overcoming Fundraising Fears

By Amy Hummel

For many board members, fundraising is a dirty word. As nonprofits face an uphill battle to raise needed dollars in a downhill economy, it is increasingly important that board members use the "f" word with courage and conviction.

Equipped with the right tools and information, board members can make fundraising another _expression of their commitment to the mission. But first, there should be a commitment to overcoming fears that may lurk. Here's a look at some of the most common qualms.

"I can't do fundraising! I don't like begging for money."

Fundraising is not begging! Fundraising is giving those invested in the organization an opportunity to show others their commitment to a worthwhile cause. Many donors realize that charitable gifts are investments in their community that will pay off long into the future, and they feel good about being able to help make a positive difference.

Board members have the capacity to be successful fundraisers because they are committed to the organization. Often they can tell compelling stories about why they became involved and why they continue to dedicate their time and energy to the organization. As leaders who provide financial oversight, they also know that the organization needs money to provide programs and services. Equipped with this knowledge, they can get started in fundraising by talking to their friends, colleagues and family members, and asking them to contribute as well.

"Fundraising is distasteful."

Board members may not realize that they can make a compelling case for support without stretching the truth. Give them the facts. Arm your board with figures, statistics and other evidence of the organization's effectiveness. Be able to show outcomes and results from programs and services offered by your organization.

Board members are responsible for providing oversight to the organization's fundraising activities. They should be comfortable that the organization's staff and board are engaging in ethical fundraising practices, and they should be clear about how the money they are raising furthers the mission and promotes long-term financial health.

Be sure that fundraising novices understand that some funding can actually be detrimental to your organization's financial health. For example, board members may need to say "no" to funding offers that are attached to a program that takes you away from your mission.

"I won't be able to bring in much money."

Board members who haven't participated in fundraising in the past are likely to underestimate their effectiveness. Get them started in the right direction by emphasizing that it's important for every board member to be involved in fundraising. All board members can help identify and evaluate prospective funders, cultivate and solicit gifts from their friends and colleagues, and actively support fundraising events by their presence. A special training session could also help board members understand that they can be successful fundraisers.

When recruiting new board members, make sure that your board orientation includes your organization's policy on personal "giving and getting." Many boards ask that board members make a personal contribution or solicit a contribution from another individual or institution, as part of their board responsibilities. Board members may have differing abilities to contribute, so a standard gift is not necessarily appropriate, but one hundred percent board giving should be the goal. Some foundations now expect every board member to support the organization financially before they will provide a grant.

Statistics that show other board members are participating may also influence more active fundraising. More than 88 percent of those responding to Board Source’s Governance Index questionnaire said they make annual personal monetary contributions to their boards. In addition, 79 percent reported that they identify donors and/or solicit funds, while 75 percent said they attend fund-raising events for their organizations.

"I don't feel comfortable putting my reputation on the line."

This concern might be an indicator of deeper problems related to the board's fiduciary responsibilities. Board members who are uncomfortable talking about money may need additional information about your organization's audit process, your policies for handling potential conflicts of interest, and financial and accounting procedures (signing checks, handling of cash, approving expenses, outlining parameters for credit card usage). All board members should understand your organization's finances and feel comfortable vouching for its integrity.

"My friends don't have a lot of money. I don't want to put them on the spot by asking."

This fear is based on the assumption that making a donation is a painful or unpleasant thing. As mentioned earlier, board members should understand that many donors appreciate the opportunity to support a strong organization that is making a positive difference in their community.

Asking for a specific amount of money is a proven technique for successful fundraisers. Large organizations with fundraising staff often gather information about prospective funders, such as the amount of money an individual has given to other organizations, that helps determine the amount of the initial gift request. Thereafter, requests are usually based on previous giving. When in doubt, begin asking for an amount that you believe to be high for the individual. Depending on the person's response, you will then be pleasantly surprised with a larger-than-expected gift or be quick to explain that a smaller gift would also be very appreciated.

If it is truly impossible for the donor to give money, there may be other things that the person can give, such as the in-kind contribution of professional services, volunteer time, or an introduction to another person who would be able to make a contribution. In this way the fundraising conversation is part of a larger process of building the organization's network.

"I will get rejected."

The reality is that people don't give unless they are asked. Unfortunately rejections are often par for the course. When you do get rejected, listen to what the prospective donor says and try to respond to his or her concerns.

If appropriate, add that person to your organization's mailing list. Send them updates on your accomplishments with as much personalization as possible. Board-level _expression of appreciation for an individual's interest can spur new giving -- ultimately turning a "no" into a "yes."

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