A Fundraising Guide for Nonprofit Board Members E-Book

Julia I. Walker

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: The AFP/Wiley Fund Development Series
• Sprache: Englisch

Seitenzahl: 475

Veröffentlichungsjahr: 2012

Beschreibung

Everything you need to know as a nonprofit board member to raise more money and help your organization succeed in meeting its goals Engaging and informative, this practical guide to fundraising contains valuable insights that nonprofit boards need to succeed in raising money in today's dynamic economic environment. While written expressly for board members, this useful handbook also provides advice to executive directors and advancement staff on how to partner with your board to build an unstoppable fundraising team. A Fundraising Guide for Nonprofit Board Members shows you how to raise more money by building board leadership and skills in fundraising. This book covers it all--the board's leadership role in fundraising; how to organize and train your board to raise funds; building a team with board and staff; raising funds for operations, major gifts and capital campaigns; how to ask for gifts; plus a guide for conducting a board retreat that will lead to fundraising success. * Demystifies the ask by providing a straightforward guide on how to ask for, and close, gifts * Features case studies, real life examples, and checklists in an easy to reference format * Offers sample materials for a board retreat on building the successful fundraising team * Also by Julia Ingraham Walker: Nonprofit Essentials: Jump-Starting the Stalled Fundraising Campaign Entertaining, practical, and easy to use, this book will become a must-read for all board members, executive directors, and staff who want to build an effective fundraising team.

Leseprobe

Contents

Cover

The AFP Fund Development Series

Title Page

Copyright

Dedication

Preface

An Introductory Note to Board Members

An Introductory Note to the Executive Director/CEO

How This Book Is Set Up and How to Use It

Acknowledgements

About the Author

Chapter 1: Board Leadership in Fundraising

A Challenging Economic Environment

The Board's Leadership Role in Fundraising

Building a Fundraising Board

The Fiduciary Role of the Nonprofit Board

Summary

Chapter 2: Setting the Pace with Board Giving

Giving and Asking at the Board Level

Develop a Plan for Board Giving

Prepare for Your Fundraising Role

Summary

Chapter 3: Getting Ready to Fundraise

Define Organizational Needs

Strategic Planning and the Board

Fundraising for Current Operations

Planning for Comprehensive Campaigns

Getting Organized for Fundraising

Training Board Members to Fundraise

Summary

Chapter 4: Building the Team

Who Is on the Team?

How to Hire: What to Look for in a Chief Advancement Officer

Standards for Staffing and Cost per Dollar Raised

Fundraising Consultants

Summary

Chapter 5: The Annual Fund

Raising Money for Operations

Annual Fund: Setting the Goal

Annual Fund: The Moving Parts

Making the Case for the Annual Fund

Galas and Fundraising Events

Leadership Annual Fund Programs

Summary

Chapter 6: Major Gifts and Mega-Gifts

An Introduction to Major Gifts

Who Are Our Prospects?

Major Gift Prospects: What to Look For

Cultivation

Transformational Gifts: Giving at the Top

Summary

Chapter 7: How to Ask for and Close a Gift

Preparing for a Successful Call

The Five Elements of the Successful Ask

Common Issues in Negotiating and Closing Gifts

Summary

Chapter 8: Getting Ready for a Fundraising Campaign

An Introduction to Fundraising Campaigns

Setting Realistic Goals

Campaign Structure: Phases, Timetables, and Gift Tables

Summary

Chapter 9: Fundraising Campaigns

Campaign Leadership Roles

Board Leadership in a Campaign

Campaign Volunteer Structure

Making the Case

Campaign Recognition and Pricing

Summary

Chapter 10: Additional Sources of Giving

Giving from Foundations

Corporate Philanthropy

Planned Giving: Add to Your Fundraising Toolbox

Stewardship Programs

Summary

Appendix

Materials for a Board Retreat on Fundraising

Materials for a Board Training Exercise on Fundraising

Glossary of Basic Fundraising Terms

Index

The AFP Fund Development Series

The AFP Fund Development Series is intended to provide fund development professionals and volunteers, including board members (and others interested in the nonprofit sector), with top-quality publications that help advance philanthropy as voluntary action for the public good. Our goal is to provide practical, timely guidance and information on fundraising, charitable giving, and related subjects. The Association of Fundraising Professionals (AFP) and Wiley each bring to this innovative collaboration unique and important resources that result in a whole greater than the sum of its parts. For information on other books in the series, please visit:

http://www.afpnet.org

The Association of Fundraising Professionals

The Association of Fundraising Professionals (AFP) represents over 30,000 members in more than 207 chapters throughout the United States, Canada, Mexico, and China, working to advance philanthropy through advocacy, research, education, and certification programs.

The association fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising rofession. For more information or to join the world's largest association of fundraising professionals, visit www.afpnet.org.

2011–2012 AFP Publishing Advisory Committee

CHAIR: D. C. Dreger, ACFRE

Director of Campaigns for the Americas, Habitat for Humanity International

Angela Beers, CFRE

Director, Devereux Pocono Center

Nina P. Berkheiser, CFRE

Principal Consultant, Your Nonprofit Advisor

Stephanie Cory, CFRE

Director of Development, The Arc of Chester County

Noah D. Drezner, Ph.D.

Assistant Professor, University of Maryland, College Park

Patricia G. Egan, CFRE

Fundraising Consultant

Patricia L. Eldred, CFRE

Fundraising Consultant and Communications Consultant

Gena Henry

Director of Leadership Giving, Trident United Way

Audrey P. Kintzi, ACFRE

Executive Vice President, National Multiple Sclerosis Society, Minnesota Chapter

Marilyn Foster Kirk, CFRE

Associate Vice Chancellor, University of Illinois at Chicago

Steven Miller, CFRE

Director of Individual Giving, American Kidney Fund

Benjamin T. Mohler, CFRE

Director of Development, UNC Charlotte

Robert J. Mueller, CFRE

Vice President, Gift Planning, Hospice Foundation of Louisville

Maria-Elena Noriega

Director, Noriega Malo y Asociados. S.C.

Timothy J. Willard, Ph.D., CFRE

Vice President of Development, Ranken Technical College

AFP Staff:

Rhonda Starr

Vice President, Education and Training

Reed Stockman

AFP Staff Support

Chris Griffin

Professional Advancement Coordinator

Jacklyn P. Boice

Editor-in-Chief, Advancing Philanthropy

John Wiley & Sons, Inc.:

Susan McDermott

Senior Editor (Professional/Trade Division)

Copyright©2012 by Julia IngrahamWalker. All rights reserved.

Published by JohnWiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

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Library of Congress Cataloging–in–Publication Data:

Walker, Julia Ingraham.

A fundraising guide for nonprofit board members/Julia IngrahamWalker.

p. cm. –– (The AFP fund development series; 198)

Includes index.

ISBN 978–1–118–07356–8 (hardback); ISBN 978–1–118–22249–2 (ebk); ISBN 978–1–118–23643–7 (ebk);

ISBN 978–1–118–23732–8 (ebk)

1. Fund raising. 2. Nonprofit organizations. I. Title.

HG177.W344 2009

658.15'224—dc23

2011039740

With grateful appreciation to all thenonprofit board members who give somuch of their time, energy, andresources to help improve life for allof us. I have been fortunate to haveworked with many wonderful andknowledgeable board members, and Ihave learned everything I knowabout fundraising from them. Maythis book be seen as my effort to passthis knowledge along so that otherscan make a similar impact on behalfof the organizations and causes thatthey so passionately support.

Preface

We in the nonprofit sector find ourselves caught up in the world of that famous Chinese proverb, “May you live in interesting times.” Our nonprofit organizations and the services they provide are more important than ever before, but we are under immense pressure to find more resources to sustain these activities.

The basic thesis of this book is that raising more money in an increasingly competitive environment requires tapping the energy and enthusiasm of every one of our nonprofit board members. This book aims to help your board develop from playing a passive role receiving fundraising reports into an active fundraising board that is ready and able to tap into all the philanthropic resources available.

And there definitely are philanthropic resources available. Even given some recent blips and dips (including threats to the charitable deduction), the spirit of private philanthropy is alive and well in the United States today. Estimated charitable giving in the United States totaled over $290 billion in 2010. Over 73 percent of that total came from individuals.1

You and your fellow board members can play a leadership role in securing these resources for your nonprofit. In the process, you will learn some new things, develop some new skills, and hopefully have a little fun. We hope that you will discover how rewarding it can be to raise money for a cause you believe in.

An Introductory Note to Board Members

Leadership and learning are indispensable to each other.

—John F. Kennedy2

You already know that times are tough for most nonprofits in this challenging economy. For many, revenues are down and requirements for services are up. Your nonprofit may be squeaking by or perhaps is trying to retool for growth. Where will your organization turn for the increased financial support it needs to meet its mission?

The key to providing concrete, measurable improvements in fundraising productivity lies with you and your fellow board members. It is time to embrace your role as an active member of the fundraising team.

Your role must evolve so that you and your colleagues view the development of resources as a coherent and integral part of your basic function on the board. The purpose of this book is to help you on that journey.

This book is designed to help you improve your own personal fundraising skills as well as to serve as a guide for you, your board, and your organization's executive leadership on ways to improve overall board performance in fundraising. Once that improvement kicks in, your organization will experience greater fundraising activity, improve donor satisfaction, and reach higher fundraising goals.

You can expect to see your own role delineated in the sections titled “Your Role as a Board Member.” As you will see, many of the concepts and techniques presented here will also require development and implementation by others in the organization. You are part of a team and should expect support from the other members of the team.

Your role is a key one. You can demonstrate the leadership, commitment, and passion for your cause that will attract additional financial support. But you must also educate yourself—about your organization, about the fundraising process, and about how to ask for and close a gift. This book will be one resource along that educational path.

Your board leaders, your executive director, and the members of your organization's advancement staff all have their own roles to play. Introducing you to their responsibilities is meant to help you see how your work fits into the big picture.

You will need to learn more about the components of the broader team effort and how the advancement team can support your work. You can help advocate for these additional staffing and programmatic resources if they aren't available in your organization.

If your organization has limited staff and resources, your role as a board member may expand into areas more commonly reserved for the executive director or for advancement staff. Chapter Four, for instance, delineates fundraising activities for board members based on several different models of advancement staff support.

Boards and organizations don't change overnight. Add patience to your list of virtues and take small steps toward the goals you seek. As you and your colleagues begin to experience success, the path will become smoother.

There is incredible power and energy in a board that exhibits fundraising leadership. Implemented successfully, this effort will enhance your board service, build your own personal skill set, and provide personal satisfaction as your organization moves forward confidently with the resources it needs to meet its mission.

An Introductory Note to the Executive Director/CEO

A leader is best when people barely know he exists, not so good when people obey and acclaim him, worst when they despise him. But of a good leader, who talks little, when his work is done, his aim fulfilled, they will say, “We did this ourselves.”

—Laozi

It's time to take a fresh look at how to empower and support board leadership in fundraising. The old mantra of “give or get” must be replaced with defining a more active fundraising role for board members. You know that you need help in securing more resources for your organization. This book is meant to help you find new ways to motivate, engage, and team up with your board members to find those resources.

There are many threats to the nonprofit sector looming in the current economic and political climate. Dropping or changing the charitable deduction, once viewed as an untouchable pillar of the tax code, is under discussion. The volatility of the stock market is making donors wary of large gifts and long-term commitments. Global recession (and the fear of recession) provides an ongoing threat. Fiscal policy is being restructured in dramatic ways at both the federal and the state level.

All of these larger issues, most of them out of your control, affect your organization's ability to maintain and grow revenues and to provide the services to meet your mission.

This backdrop of uncertainty makes your job of ensuring the financial sustainability of your organization much more difficult. Why not mobilize all of the resources at your disposal to build additional support? Harnessing the energy, commitment, enthusiasm, personal connections, and giving of your board has never been more important to the future of your organization.

The most recent national survey of board effectiveness, the BoardSource Nonprofit Government Index 2010, reports that fundraising is the area most in need of improvement. Nonprofit CEOs in the survey rated fundraising as the worst area of board performance on a report card of 10 basic board responsibilities. Board fundraising received the lowest grade, a D+, from chief executives and only a C+ (still the lowest grade) from board members.3

You can help to reverse this poor performance record! The purpose of this book is to give you some insight into how your organization can build the appropriate structures, staffing, and programs to support board leadership in fundraising. From holding a board retreat to preparing a campaign table of needs, you will learn how to board buy-in and ownership of your organization's resource development activities.

Change can be difficult, and your board members are not going to embrace fundraising overnight. Think of your work in this area as an investment in building long term support for your mission. Your encouragement, support, leadership, and patience will all be required. As a board member quoted in the BoardSource survey noted, “The board's effectiveness is directly related to the level of the chief executive's engagement with the board.”4

Successful fundraising depends on arming yourself with new strategies and techniques that have proven to be effective. Learn what works for other boards and their executive directors. Develop a more productive fundraising team by having your advancement staff integrate their efforts with those of your board members. Improve board fundraising skills through training and mentoring programs. Be an effective teacher and leader: Raise expectations, set goals, hold people accountable, report on results, and praise success.

The stakes are high and the timing is crucial. Find ways to harness the passion, energy, and skills of your board members in the search for additional resources. The alternative is too ugly to contemplate—that your nonprofit will wither, lose momentum, and perhaps die on the vine. Take steps now to engage your board in the development arena and your fundraising results will soar. This book will give you the tools to make this happen.

How This Book Is Set Up and How to Use It

This book is comprised of 10 chapters and appendix material, as well as a companion web site, with the goal of providing a guide for nonprofit board members on how to take an active leadership role in fundraising.

The material is arranged in a manner that initially introduces the reader to the main components of major fundraising programs common to all nonprofits, so that board members become educated about basic fundraising topics. Exhibits and ancillary material, including real-world examples, are used to educate readers about strategic elements and to suggest applications of each program to their own needs. Every chapter includes a section that focuses on the specific role of board members and advice on how the board can implement programs and strategies that will improve their organization's fundraising results.

Chapter 1 starts with a look at board fundraising leadership: what it is, and what steps to take to build an active fundraising board. Chapter 1 also explains how the board's fiduciary role has undergone a transition in recent years and how that role applies to fundraising. Chapter 2 covers key aspects of board giving and how board members can prepare for the expanded role they will play in fundraising.

In Chapter 3, board members learn about using strategic planning to identify organizational needs. This chapter includes recommended board committee structures and training options for improving board fundraising skills. Practical issues such as development staffing and budgets, hiring fundraising consultants, and the role of board members vs. the role of advancement staff are featured in Chapter 4.

Chapter 5, on the annual fund, is all about how to raise more money for operations. It includes a plan for putting in place a leadership annual fund program to raise annual gifts of $1,000+. Major gifts and prospect identification are the focal points of Chapter 6, which includes a section on how to find transformational gifts of $5 million and up. These chapters show board members how to focus their time and energy on fundraising programs that provide a strong return on their investment.

Chapter 7, titled “How to Ask for and Close a Gift,” provides a step-by-step guide to how to make a successful solicitation call for a major gift. Chapter 7 is augmented by material posted on the book's companion web site, found at www.wiley.com/go/boardfundraising, which includes materials for a board retreat on fundraising, a training exercise on how to ask for major gifts, and a related PowerPoint presentation on The 5 Elements of the Successful Ask.

Chapters 8 and 9 focus on fundraising campaigns: How to prepare for them, how to set realistic goals, elements of campaign structure, recognition and pricing, as well as campaign leadership and volunteer structure. Campaigns are still the most efficient method of raising money for capital projects and endowment, and they require substantial board engagement to reach their goals.

Chapter 10 introduces board members to corporate and foundation giving, a step beyond fundraising from individuals. Chapter 10 also introduces fundamentals of planned giving and the elements of good donor stewardship. Familiarity with these elements of fundraising gives board members a broader understanding of how to develop and maintain relationships with donors to support the organization over the longer term.

The Appendix includes materials for a board retreat on fundraising and related materials to use for board training. This book has a companion web site at www.wiley.com/go/boardfundraising, where readers can go to download the materials that appear in the Appendix. These materials are available on the web site so that you or your staff can download them and edit them to fit your organization's needs. Included exclusively on the web site is the PowerPoint presentation, “The 5 Elements of the Successful Ask.”

These materials include:

Materials for a Board Retreat on Fundraising PreparationSample Board Retreat AgendaSample Board Retreat Agenda with Discussion PointsNext Steps: After the RetreatAttachments to Use in Board RetreatMaterials for a Board Training Exercise on Fundraising PowerPoint Presentation: The 5 Elements of the Successful AskRole-Play ExerciseThree Sample Role-Playing Scripts

Notes

1.Giving USA 2011: The Annual Report on Philanthropy for 2010, published by Giving USA Foundation, researched and written by the Center on Philanthropy at Indiana University, 2011.

2. All epigraphs and quotes throughout are from brainyquote.com.

3.BoardSource, p. 7.

4.BoardSource, p. 7.

Acknowledgments

My thanks go to my family, especially to Cedric, my sweet and longsuffering husband and companion; and to my sons Jake, who served as my first editor, and Ben, who designed my first web site. Along with them I am very grateful to my former colleague Eva Martinez, who provided the insight of an informed reader at an early stage in the development of this book.

Thanks also go to Susan McDermott, Jennifer MacDonald, Melissa Lopez, and the rest of the team at John Wiley and Sons, my publishers, along with the AFP Publishing Advisory Committee that approved my proposal for this book. You are the real pros in this field and I feel lucky to have worked with all of you.

To my clients and longtime friends in the advancement profession: You deserve a special acknowledgement for teaching me so much. I depend on each one of you to keep me in touch with the reality of what works in fundraising.

Finally, many thanks to the generous donors who make meeting our goals possible, and whose philanthropy we count on to make our nonprofits succeed. We couldn't make a dent on improving this troubled world of ours without your incredible and uplifting support. May your giving natures be blessed and your charitable tax deductions be secure forever.

About the Author

Julia Ingraham Walker holds a BA and an MA in English from Tulane University and an MBA from Rollins College in Florida. Her initial marketing expertise was gained during 10 years as a professional in college admissions, first at Tulane and then as Director of Admissions at Rollins. In 1985, she returned to New Orleans and began a career in fundraising that has spanned more than 25 years and numerous positions ranging from annual funds to major gifts.

In 1990, Ms. Walker was appointed Vice President for Institutional Advancement at her alma mater, Tulane, where she served until 1998. In this position she directed the university's successful $250 million capital campaign. At Tulane she helped to raise over $100 million for the school's endowment and secured resources for the construction or major renovation of eight campus buildings. In 1994, Ms. Walker was named Outstanding Fundraising Executive by her peers in the New Orleans chapter of AFP, the Association of Fundraising Professionals.

Ms. Walker has been active as an independent fundraising consultant since 1998 and has conducted and advised campaigns that raised a total of more than $1 billion. Her clients include a wide range of nonprofits, from museums and schools to grassroots community organizations. A resident of New Orleans, she returned to the city post-Katrina to repair her home and has been working with nonprofits in the region since then as they reopened, recovered, and rebuilt.

As an independent fundraising consultant, Ms. Walker has worked with clients in the fields of religion, health care, the arts, historic preservation, low-income housing, K–12 education, higher education, museums, and a community foundation. Her areas of expertise include campaign planning and nonprofit management, including building and training nonprofit boards for fundraising leadership.

Ms. Walker is a member of AFP and has participated in numerous national conferences and workshops on fundraising topics. She has published three prior fundraising books with John Wiley & Sons in the Nonprofit Essentials series: The Capital Campaign, Major Gifts, and Jump-Starting the Stalled Fundraising Campaign. Ms. Walker can be reached through her web site, www.walkercapitalcampaigns.com, or by email at [email protected]. She would welcome any comments or suggestions from readers of this book.

Chapter 1

Board Leadership in Fundraising

Act as if what you do makes a difference. It does.

—William James

After reading this chapter, you will be able to:

Take a leadership role in fundraising.Build an effective fundraising board.Understand the board's fiduciary role.

A Challenging Economic Environment

There are many financial challenges facing the nonprofit sector today.

It is getting harder to predict where to find the resources that organizations need to sustain their operations and to grow. An ongoing environment of economic uncertainty has increased the demand for new sources of revenue. Financial planning, modeled on what used to be regular and predictable annual growth, has proven less and less reliable. Volatility is affecting markets and service providers.

For many nonprofits, almost every source of revenue is getting more difficult to maintain. There are perils in depending on earned revenue, which can decline in bad times, when the organization needs the money the most.

Endowments, meant to be a savings account for a rainy day, dropped with the falling markets a few years ago and are only slowly regaining their former value. Government grants, whether local, state, or federal, have dried up. Congressional earmarks have become unworkable in the current political environment of budget deficits and spending cuts.