A nonprofit I worked for early on in my career had a Board Member who donated somewhere between $15 to $50 each year of his term. Others on the Board? In the hundreds, thousands, or tens of thousands of dollars in donations and support each year.
And, once in a while, even higher.
And that was just fine with us in the development department. Why? Because what we really wanted was 100% Board participation.
Let me explain …
We all know nonprofit Board Members play a critical role in the success and sustainability of an organization. Their responsibilities go beyond providing governance and oversight; they also serve as key ambassadors and advocates for your organization’s mission. One of the most important ways Board Members can demonstrate their commitment to the organization is through their own annual financial support. This contribution is not just symbolic … it is essential, for several reasons:
Demonstrating Commitment to the Mission
When Board Members contribute financially to the nonprofit they serve, it underscores their dedication to the organization’s mission. A Board Member's personal donation –not a gift they may solicit and secure, the “give” part of a “give and get” policy – shows they believe in the cause and it helps foster a culture of giving that permeates throughout the organization. This commitment and action set a powerful example for staff, volunteers, and external stakeholders, inspiring confidence and trust in the nonprofit’s leadership. And it should be trumpeted internally and externally (think staff-wide emails and first-quarter update newsletters)! A Board whose Members invest in its own organization is better positioned to encourage others – whether individuals, foundations, or corporations – to do the same.
Building Credibility with Funders – Maybe the Most Important Reason?
Many foundations and major donors look for nonprofits to support where the Board has a high level of engagement, including financial support. In fact, if you work in the field long enough you’ll find grant applications and sponsorship requests and high net worth donors specifically ask whether 100% of Board Members contribute financially. You want to be able to answer, Yes! For example, the Ford Foundation, a major player in social justice funding, expects nonprofit Board Members to show their personal investment before considering grants. Similarly, the Kresge Foundation, known for funding in health and community development, often requires organizations to demonstrate full Board participation in giving as a sign of strong leadership and governance. The Bill & Melinda Gates Foundation also looks for nonprofit Boards to be actively involved in financial support as part of their overall evaluation of an organization’s sustainability and leadership.
A strong showing from the Board is often seen as a vote of confidence in the organization’s financial stability and leadership. It’s simple really. If Board Members are not willing to invest in the nonprofit, it raises questions for external funders about the viability and importance of the cause. Full Board participation in giving strengthens grant proposals and fundraising efforts, making it easier to secure much-needed resources.
Helping Your Nonprofit Meet & Exceed its Financial Goals
You and I know intimately that nonprofits rely on a diverse range of funding streams to meet annual budgets, and Board Member contributions can be a significant part of this. Board Members often have the capacity to make meaningful gifts, and their donations can help cover operational costs, fund new initiatives, or build financial reserves. Additionally, a Board Member’s personal financial involvement often opens doors for peers and others in their network to contribute, expanding the nonprofit’s reach in fundraising. Frankly, it’s inspiring, and along those lines, can often be used as a Challenge to match or exceed, thereby bringing in even more funds.
Setting the Tone for Philanthropy
Board members are leaders within your nonprofit, and their actions set the tone for others. By giving annually, they lead by example, encouraging a culture of philanthropy that can ripple through the organization and its community. Board giving is not just about the financial amount but the message it sends about shared responsibility and collective impact. So $15 is just fine!
Want to build your nonprofit's credibility and success? And secure more revenue for your expenses in the process? Demand 100% giving as part of your Board’s responsibilities. And tell prospective Board Members about this – before they join! – and the Why of why you demand it. Because their financial support is vital to both the credibility and success of the organization. It demonstrates their commitment, enhances fundraising potential, and strengthens the nonprofit’s ability to achieve its mission. Good luck!
** Don’t have 100% Board giving yet? Let us help you with the messaging on how to build to that level, and how to build it into your Board member recruitment information and process. Just reach out to us at info@ristid.com and we’ll dig right in. And we can help you pitch its value to your overall Board if necessary. That’s an easy one.
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