1. WORKSHOP How To Engage Your Board in Fundraising Diana Kern, Vice President www.new.org © 2007-10 NEW (Nonprofit Enterprise at Work, Inc.), a 501(c)(3) nonprofit organization 1

2. 2 TRAINING AGENDA Trends we all need to know…teach them Making the intangible…tangible Ambassadorship Fundraising Tips and Tools

3. 3 STEWARDSHIP Stewardship “the conducting, supervising, or managing of something; especially : the careful and responsible management of something entrusted to one's care” Webster’s Dictionary Online 2011 For nonprofit boards today the most important part of stewardship includes careful support of funding, including constant review of funding sources, diversified revenue and planned giving.

4. 4 HOLDING HANDS Fundraising is the hardest and scariest part of being a board member – what does it mean? Most board members report being very uncomfortable with this task…not all will be good at it. Most are focused on the fear of the big ask… or asking their friends.

5. 5 WHAT HAS CHANGED? The economy 1.5 million nonprofits – 47,000 in Michigan 15,000 nonprofits in southeast Michigan Focus of philanthropy by city/state/region/ foundation and philanthropist Transparency & outcomes Pressure on boards - fundraising

6. TRENDS IN GIVING TO CHARITIES 6 Charitable giving from the American public decreased 11% in 2009, the largest decrease in 20 years. The top 400 U.S. charities saw billions less in donations, in part due to individuals giving to smaller, local charities and to the continued high rate of unemployment. While overall donations fell, a few organizations including Feed the Children, Food for the Hungry, and Habitat for Humanity saw increases in funding. AmeriCares Foundation jumped from 86th to 4th in terms of the amount of donations on the Philanthropy 400 list in the past 20 years. Source: Associated Press, October 2010

7. 7 RANKINGS BY CHIEF EXECUTIVES Chief Executives Rank Their Boards – 2.57 GPA (C+) Boards Rank Themselves – 2.96 GPA (B) Areas where boards are missing the marks: Fundraising Recruiting for board and committees Ambassadorship – outreach Increasing board diversity Poor orientation to the board Source: BoardSource Nonprofit Governance Index 2010

8. TRENDS IN NON-GOVERNMENTAL GIVING 8 4% Decrease $304 billion was given to the nonprofit sector in 2009 $227 billion (75%) from Individuals $38.5 billion (13%) from Foundations $23.8 billion (8%) from Bequests $14.1 billion (4%) from Corporations Source: Giving USA 2010

9. TRENDS IN NON-GOVERNMENTAL GIVING 9 4.5 % Decrease from 2009 $291 billion was given to the nonprofit sector in 2010 $212 billion (73%) from Individuals $41 billion (14%) from Foundations $23 billion (8%) from Bequests $15 billion (5%) from Corporation “As has been the case for 56 years, the religion subsector received the largest share of charitable dollars, with an estimated 35% of the total …$10 billion” Source: Giving USA 2011

10. Last Thing To Teach… 10 Death by Golf Outing No More Events!

11. 11 EVALUATING YOUR BOARD

12. 12 START-UP BOARD Friends and family Little or no paid staff Never told they need to raise money Never told they would need to give No access to people with money Afraid to ask for money Think one big grant will solve all issues! Expect founder or executive director to raise money Don’t understand the cycles of donor cultivation Would rather hold bake sales Do you recognize this board?

13. 13 GROWTH BOARD TIER 1 Paid staff No development staff Nothing in board member job description mentions role in giving or fundraising (assuming there is a board job description) Role in fund development never discussed during recruitment Have never asked for money before – afraid to ask Don’t think they know anyone who can make “big” gifts Don’t understand the cycles of donor cultivation Do you relate to this board?

14. 14 GROWTH BOARD TIER 2 Paid staff including development staff Board member job description mentions role in giving and fundraising but there is no internal culture supporting this…the Board Chair has not embraced this Role in fund development never discussed during recruitment Don’t like or want to ask friends and family for money; don’t think they have money to give to nonprofits and they will just be asked to give to their causes in return Don’t understand the cycles of donor cultivation Think the development staff should be doing all of the asking – that’s why we have them! Do you recognize your board here?

15. 15 MATURE BOARDS Paid staff including development staff During recruitment, prospective members advised they will need to give money and support the fund development plan Some are uncomfortable asking for money. Hope there will be enough grants and dollars without their involvement Board chair’s role critical - expectations for working with the development staff must be set - part of board’s culture Don’t have a scorecard for development trends. Diversified revenue sources do exist but we don’t continue to revise and adapt. Major fundraising falling to staff and a few board members who sit on the Development Committee.

16. 16 PUBLIC SUPPORT BOARD Historically have gotten 75% or more of your revenue from public support (federal, state, county, etc.) Board was just a policy/governance board in the past Board would rather accept cutting staff and programs as the public support money shrinks rather than discuss the need for philanthropy No formal funding plan with diversified funding sources was ever needed in the past…and we are not yet, or are just starting, to deal with this reality No one on the board expects to have to participate in fundraising…”That is not why I was brought on to this board.” Are you facing some of this with your board?

17. 17 STOP THE CYCLE

18. 18 BEST PRACTICES Board Member Job Description Reviewed during recruitment Everyone knows giving policy BEFORE coming on the board Clear discussion of their role in ambassadorship & fundraising Education Speaking of Money, video from BoardSource 53 Ways for Board Members to Raise $1000, article by Kim Klein Books, seminars, etc.

19. 19 DEVELOPMENT STAFF’S ROLE If the board is not on the same page as you (Development Staff, ED/CEO, Board Chair, Development Committee Chair, etc), you must take the time to educate them and ask for their help. We want to help but you need to ask us specific things and then support us in the process. Staff can not just say “We need you to be more engaged in fundraising”, and then stop there. We can’t assume board members understand what philanthropy is or how to help. Teach donor cycle to board. Most are all afraid of the “ASK”, yet that is only 10% of the donor process – ask them to accompany you at meetings.

20. 20 WHAT DONORS WANT In her landmark Donor Centered Fundraising (2003), researcher Penelope Burk offers a fundraising methodology that elevates the importance of stewardship. With her research, Burk reveals the three things donors report they want from the nonprofit organizations they support. If they can get these three things, Burk says, they will continue their support and increase their levels of giving: Prompt, personalized acknowledgment of their gifts (board can help) Confirmation that their gifts have been put to work as intended Measurable results on their “gifts at work” prior to being asked for another contribution Board Members need to understand this and support the organization’s ability to do these three things and be able to speak to these key topics!

21. 21 STEP ONE Ambassadorship First

22. 22 AMBASSADORSHIP FIRST Most important thing you do as a board member Promote ambassadorship Thank-you calls (39% return in same year) Lapel pins Promise to attend four events/year in the community to represent the organization Business cards for board members Ask them to reach out and meet some corporate partners Give them note cards to use everyday

23. 23 ARE YOU A GOOD AMBASSADOR? Exercise for Your Board Take out a piece of paper: You have 60 seconds for this exercise. Besides everyone in this room and the people who live in your home, how many people know you are on this board? Write down first names only.

24. 24 PASSION Board members must be passionate about the mission of the nonprofit to be good ambassadors and fundraisers Passion for the mission translates into passion when you talk about the organization. You will “talk up” the organization to family, friends, co- workers = $$$ It’s all about relationships People give to people they know because they care about the people they know!

25. 25 BUILD COMFORT LEVEL Not all board members will be able and comfortable with asking for money directly – you need all types of skills – however boards cannot abdicate their responsibility to the Development Committee or the Development Staff, they must find their level of comfort…ambassadorship is the minimum. Cultural shifts needed – Board Chair and Officers must lead the charge and be aware of mix of board members and skills.

26. 26 STEP TWO Fundraising Second All board members must give a personal gift every year NO EXCEPTIONS!

27. 27 FUNDRAISING FROM THE START Development committee chair must be someone who fully embraces and understands the organization’s development needs, preferably a board member; partner development director Your best ambassadors should be on the development or fundraising committee Invite non-board members to the committee Develop a clear funding plan and share it with the whole board regularly

28. 28 EVERYONE IN THE KNOW Case Statement No one will ask a board member what the mission is, they will ask “What does Mercy Education Project do?” We need to answer the same way. We also need materials to help us with fundraising. List of Current Givers Share with all board members - confidential Members identify people they know personally Accompany development staff on visits to cultivate the donor, request upgrade on current giving, make special requests, etc.

29. 29 DEVELOP RELATIONSHIPS Board members host fundraising dinner party Development staff, development committee members attend to help with pledges and asks Participate in a “point of entry” event Board members invite 10-15 friends, neighbors, co- workers to the nonprofit’s workplace Staff introduces mission, needs and opportunities for giving and volunteering Attend at least two fundraising events / year on behalf of the organization in order to thank people

30. 30 RAISE MONEY - EVENTS Fundraising Events Establish policy that each board member will bring one sponsor or gift for each fundraiser Requiring only one allows them to learn how to go out and ask for things Sponsorship Silent Auction Gift Sell Tickets to Events Get a Gift Card Or, they can be a sponsor themselves!

31. 31 PERSONAL PLANS Let your Board Members determine their own plan for participating in fundraising: See Hand Out – Trustee Development Plan

32. 32 THE “ASK” You always lead with “I give because…” Your passion will pull them in or not…that is okay! Bless and release. Large gifts take an average 18 months of cultivation (Grace & Wendroff, 2001, High Impact Philanthropy) Philanthropy is not just asking your friends for money

33. THANK YOU FOR PARTICIPATING! 33 Diana Kern’s contact information Email: dkern@new.orgdkern@new.org Phone: 734-998-0160 x 230 NEW / BoardConnect www.new.org