The Handbook of Board Governance, 2nd Edition

52Fundraising Best Practices for Not-for-Profit Boards of Directors

Stephanie Cory CAP^® CFRE

Philanthropy and Governance Consultant; and Adjunct Faculty, Villanova University

Introduction

One of the key responsibilities for a nonprofit board of directors is to ensure necessary resources. This entails two main types of resources: financial and human. A key challenge for each individual board is this: How the board helps ensure necessary financial resources can vary. Some organizations rely heavily on fees charged for services or membership dues. Others must raise 100 percent of the money needed to carry out their missions.

The board as a whole is charged with identifying what resources are needed and establishing policies for how these resources will be acquired. The board should also determine how each board member is expected to participate in fundraising, which is typically to contribute financially, help develop a fundraising plan, and support the organization's solicitation efforts.

The board's involvement in fundraising varies significantly across organizations. This chapter will discuss best practices that can be applied to organizations of all sizes and maturity levels. In order to make improvements in your board's fundraising efforts, it may require coordination with your governance committee as well as patience.

Why is it important for your board to play an active leadership role in fundraising? There are four key strategic reasons. The board has fiduciary responsibility ...