Easily one of the most polarizing topics of discussion within the non-profit realm is whether Board members should be expected to make personal financial donations to their organizations. Opinions on this issue have varied with nearly every charity with whom I have been associated during the past 25 years. Yet the one consistent aspect of this debate was the heightened blood pressure levels of the participants.
To understand why the argument generates volumes of passion from both sides, we must consider the central competing reasons of each:
CON: Board members are volunteers who already selflessly give of their time.
PRO: Board members are the leaders of the organization and should be expected to give.
Although both statements give us reason to pause and ponder, the “PRO” side is the one that should be universally embraced by sustainability-aspiring organizations.
Charities are not owned by anyone. Rather they exist as a resource that was established to address challenges and issues that affect one or more communities. As such they are governed by volunteer Boards of directors or trustees comprised by representatives from those communities and affected segments of the population.
Ultimately, each Board is responsible and accountable for their organization’s strategic direction, asset management, financial health and legal affairs. Although most Board members are not directly involved in the day-to-day operations, they are entrusted with ensuring that their organization possesses the needed resources to deliver programs as optimally as possible. In short, occupying a Board position is a big deal that must never be taken lightly.
Tragically this sentiment is not shared by all organizations and consequently they become captive to a “hand-to-mouth” survivalist mentality. Yet arriving at the point where Board members donate regularly should be reached organically as opposed to abiding by a set of rules instituting this practice. Board members must want to give naturally for this action to have any meaning or impact. For me, this is the single most important pre-requisite we must all understand before exploring the below-listed reasons why it is so important for Board members to donate financially to their organizations every year:
· It establishes a “culture of philanthropy” within the non-profit.
Building a “culture of philanthropy” – a.k.a. a “fundraising friendly” environment where everyone within the organization understands the importance of fund development and is willing to play role in the process – is the most tedious yet essential element of a sustainable fund development program. As the gatekeepers of the mission, Board members’ actions, attitudes, beliefs and values “trickle down” and are commonly emulated by others within the organization. When Board members are not in the habit of donating to the cause, it becomes difficult for a “fundraising friendly” atmosphere to permeate to all echelons of the organization.
· It sets an example and inspires others to give.
Being the gatekeepers of their organization’s mission, Board members must set the tone by personally donating at least once a year to their organization. Similar to the above-mentioned point, the act of contributing financially – regardless of the amount – is behaviour that we want as many people as possible to observe and replicate. Although they need not disclose the amounts of their gifts, Board members should make sure their gesture is widely known among their organization’s rank-and-file. Equally paramount is that everyone understand why each Board member is giving – they are demonstrating their own affinity for the cause. Witnessing the increased frequency of the donations and the growing sense of attachment to the mission their Board members demonstrate over time empowers volunteers, staff, community partners, client families and other stakeholders to express their own burgeoning passion for the cause through their own monetary gift.
· Resonates positively with grant-makers and corporate donors.
Trustees from grant-making foundations, corporate philanthropy programs and service clubs pay very close attention to how involved your Board members are with your organization’s fundraising activities. Of greater importance is whether your Board members personally donate to the charities they govern. Many times the decision of which groups are approved for funding favours those whose Boards show the greatest propensity to support their causes monetarily.
· It encourages other donors and funders to support the organization.
Individual donor prospects are also impressed by Board members who financially support the non-profits they lead. They are further enthralled by Board members who make multiple donations during the course of each fiscal year. Frequent giving is an indicator that a Board member believes in the cause so strongly that they are willing to everything within their capacity to help the organization accomplish its mission. Hence potential donors and supporters are more apt to commit to organizations where the gatekeepers donate willingly and frequently.
· It shows the people served by the organization that they care.
Board members donating freely and often – regardless of the amounts – sends a powerful message to the people and communities who depend on the programs and services delivered by the charity that their health and wellness matter. These individuals experience heightened senses of esteem and vigour and a renewed faith in humanity knowing that others care deeply enough to bestow them with what they need to reach their full potential. Profound levels of gratitude and warmth emerge from those served which permeate the organization and consequently inspires others to make their first gifts.
· Giving is what leaders do.
In addition to setting an example for others, visibly and frequently making financial contributions to their non-profits demonstrates their dedication as champions for the cause. This is especially important for Board members who agree to play a fundraising solicitation role where they will be asking prospective donors for gifts. Should a potential supporter discover that the Board member requesting their support does not donate to the charity themselves, the situation can degenerate instantly. Odds are that the individual will feel the Board member does not believe in the non-profit’s mission enough to invest his or her own money, thus why would anyone outside of the group be expected to give? In these circumstances, organizations are understandably accused of having ambivalent leadership and a questionable service capacity that is certain to repel more donors than it attracts.
As mentioned above, accepting the duties and responsibilities as a Board member is a privileged and sacred undertaking that should never be taken for granted. Although it is not always realistic to expect 100% of our Board members to commit to monetary gifts, achieving a rate of 60% is certainly within reason. Yet it is also crucial that the source of their motivation to give not be “peer pressure” or feelings of guilt.
Rather the impetus for Board member contributions should be genuine acts of altruism that are driven by their intensifying levels of passion for the mission they have pledged to pursue. Only once this sentiment is firmly entrenched within the Board can a true giving culture start to pervade the organization and the formation of a solid sustainable donor base commence.
Stay well,
Mike
