Why Your Nonprofit Needs a Board Giving Policy (and How to Create One)
2024
What’s the best nonprofit board-giving policy?
This can be a controversial topic for many boards. Some wonder, “Should we really require board members to give as a condition for board service?”
Others say, “we can’t make giving a requirement because not everyone on our board has the means to give!”
And the most frequently debated question is this: “Should we have a “Give or Get” policy? “
We understand that giving policy conversations can be awkward.
Some board leaders avoid the topic because it feels uncomfortable talking about money like this. They particularly don’t want to feel like they’re pressuring fellow board members.
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Boards That Are Not Giving at 100%
Many organizations have less than 100% board participation in giving. In these cases, we often find a lot of discomfort with the overall idea of fundraising.
For boards that are not giving at 100%, we also find that, somewhere, either now or in the past, leaders of the organization side-stepped their responsibilities to support fund development.
These boards need to develop more of a culture of philanthropy – one that will support fundraising as a mission-critical program!
Boards That Give At 100%
Let’s be practical here. Do we really need to be discussing “why” and “whether” board members should give?
The fact is, for many boards, especially for larger organizations, the expectation of board giving is a simply a given. It’s seen as a simple cost of belonging on the board.
For these nonprofits, the subject of personal giving by board members is a straightforward expectation. It’s approached in a matter-of-fact way, as it should.
The challenge is that every board is different. You’ll see boards that have widely varying histories, cultures, and expectations – mostly based on past patterns.
And we all know the old saying, “Culture eats strategy for breakfast.” That is, past practices will triumph over plans and projects at any time.
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Board Policies Can Save You
It’s important to remember that just as every board is different, then every board sets its own policies in the area of giving.
It needs to be a group decision and it needs to be enforced by board member peers, not the staff.
Awkward or not, board giving must be discussed. Not swept under the rug.
The Best Nonprofit Board Giving Policy
Our recommendation is to keep it simple:
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Ask everyone to make an annual “proud personal gift” to support the mission.
The policy is that each board member should make an annual gift that they can be personally proud of.
We all need to remember that each board member has different capacity for giving. So having a simple, flexible policy allows everyone to support the mission in their own way.
This approach allows for the ultimate flexibility – those without deep pockets may make a gift that is significant to them personally. And board members who have wealth capacity may be asked to make larger annual commitments.
Why Do Board Members Need to Give Generously?
It’s obvious, isn’t it?
Here are 5 reasons why 100% of board members should give:
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100% board giving adds integrity to the fundraising process.
How else can your team go out into the community with any integrity to ask for support?
Even more, how can your nonprofit ask others for support if its own leadership is not financially supportive?
It just doesn’t work. The problem is that it’s being two-faced.
100% board giving is simply essential for any fundraising credibility.
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Board members are taking a firm stand behind their organization.
When board members give at 100% they are making a proud statement to the community. They are saying:
- “We stand behind this organization – every single one of us.
- “We believe in the mission – and we proudly support it financially.
- “We are leading the charge in our community, owning and spearheading the work of this wonderful nonprofit.
As the leaders of the organization in your community, they are putting their money where their mouth is.
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Board members lead by example.
The behavior of your board members sets an example to the rest of the community. To your nonprofit’s donors, to its volunteers and staff, and to the entire world.
Who should give generously if the very leaders of the organization are not?
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Many funders insist on 100% board giving.
They want to see the entire board stepping up proudly to support their organization.
And if the full board is not financially supportive, then the funder will back off. Because, situations like this indicate weak leadership to the funder.
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Board members are legal custodians of your nonprofit’s mission.
To us, this is the most important issue: Board members who dodge their personal giving responsibility are ignoring their role as the organization’s legal guardians.
It’s important to remember that the board members themselves are the highest legal authority for the organization.
In a sense, they “own” the organization. From the legal perspective, they are the official custodians of the mission.
They are responsible for its success—no one else, just the board or the people they hire to carry out the mission.
Being a nonprofit board member is a high honor – and a high responsibility.
Board members’ annual “Proud Personal Gift.”
As we’ve described above, this is the generally accepted rule of thumb in nonprofit board management: each board member makes a personal gift they are proud of each year.
We love that concept – a “proud, personal gift” is something that you take pride in.
And it’s something that’s easy for board members to rally behind, too.
Begging off: “We give our time, not our money?”
Please. This is small-time thinking, for small-time causes. When board members start saying this kind of thing, it is disappointing, and it is totally off-base.
What’s the result when board members try to beg off their giving responsibility? They demoralize everyone else.
How can they expect staffers to work so hard to bring in gifts? How can they, with any integrity, hold staffers accountable for fundraising goals when they themselves refuse to participate?
Bottom Line: 100% board giving is essential.
Make no mistake: the buck starts and stops with the board.
As always, it is a pleasure to share our weekly insights with you as we cover important fundraising strategies.
If your organization is planning a capital campaign or expanding your major gifts program – we can help.
Email us at capitalcampaigns@gailperry.com if you’d like to schedule a free strategy call with us.
RESOURCES
Giving Tuesday: A Powerful Opportunity for Connection
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