One of the biggest misconceptions about the Fundraising Committee is that its members are to do the fundraising for the nonprofit. No, the job of the Fundraising Committee is to ensure that the fundraising is done very well. The actual fundraising should be done by all Board members, with various staff members supporting those Board members.
What’s the Primary Role of Any Board Committee?
The role of any Board Committee is, at a minimum, to ensure “best practices” in the activities, or the function, that the committee is assigned to. Just like people need to do certain things to stay healthy (such as eat, sleep and exercise), organizations need to do certain activities, too. Many people might refer to those activities as “best practices.” (There are many strong feelings about whether “best practices” even exist, but most people would assert that the phrase has more usefulness than not.)
When recurring crises occur, it’s usually because people are attending only to what’s urgent and not to what’s important. Best practices ensure that the most important activities are done. So Board committees should ensure “best practices” are implemented in the major functions in an organization, for example, in Board operations, planning, marketing, staffing, finances and (in the case of nonprofits) fundraising.
What’s the Primary Role of a Fundraising Committee? What Are Its Ongoing Responsibilities?
Notice the nature of the following activities — how they are not focused on very near-term, detailed tasks for Committee members to raise money. The following responsibilities should be included on a work plan for a Fundraising Committee. Notice that the activities are recurring — they should be done on an ongoing basis.
1. Ensure there’s a specific fundraising target
How much money needs to be raised? Usually the amount is the difference between expected revenues and expenses. Usually those revenues and expenses are identified during strategic or program planning.
2. Ensure prospect research occurs to identify how much money might be raised from different types of resources
Good prospect research will look at the nature of the nonprofit’s services and its locale, and identify similar nonprofits and the sources of funding used by them. For example, similar nonprofits might have raised 50% of funds from individuals, 20% from government contracts, 20% from grants and 10% from fees. That profile suggests the mix that the nonprofit might aim for. Good prospect research will go beyond searching a database of foundations to submit proposals to.
3. identify specific, potential sources of funds from a diverse mix of sources
Now the nonprofit is ready to start selecting specific sources of funds from individuals, foundations, government and/or fees. These activities should result in the names of specific sources, for example, names of people, foundations and government agencies, and/or the specific amounts of fees to charge for certain services. (The amounts of fees to charge might be recommended by, for example, a Marketing Committee.)
4. Develop an action plan about who is going to approach what source, how and by when
This responsibility includes identifying which Board members will approach what source, along with what staff members will support those Board members. All Board members should have assignments, not just the members of the Fundraising Committee.
5. Compile the results of items 1, 2, 3 and 4 into a Fundraising Plan that is approved by the Board
The Plan should include more than merely a listing of what foundations to approach. The Plan becomes the roadmap for generating sufficient revenue. It should include realistic expectations from a diversity of sources, and justify how those sources were identified. It should include an action plan (from step 4) that the Fundraising Committee ensures is implemented on a timely basis.
6. Ensure effective administrative systems to track grants and donations
As funding comes into the nonprofit, its various sources and amounts must be closely and accurately documented. Acknowledgements and receipts must be provided back to donors. Grant requirements must be monitored to ensure they are met. In the United States, fundraising information must be included on the IRS Form 990.
Summary — Job of the Fundraising Committee is to Ensure Planful, Strategic Fundraising
So, again, notice that the job of the Committee is NOT to just ask the Executive Director to provide a list of foundations to write grants to. It’s much more strategic than that. And its responsibilities are recurring — Committee members should never say they don’t have anything to do.
Members of the Fundraising Committee should not be picked because they are “big names” or “big pockets.” Popular and rich people rarely want to serve on Fundraising Committees. Many times, they’d rather write a check, than be expected to attend monthly meetings. And foundation officers see right through the “game” of listing big names on a list of Board members. Instead, select members who know how to think strategically, develop a plan and ensure that the plan is implemented.
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What do you think?
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Carter McNamara, MBA, PhD – Authenticity Consulting, LLC – 800-971-2250
Read my weekly blogs: Boards, Consulting and OD, Nonprofits and Strategic Planning.
