I believe successful development efforts have all board members participating in fund development in some capacity and I don’t just mean the “Hey, you’re doing a great job” cheerleading role.

Being a board member is not just an honor to bestow on people who show up at meetings. Board seats are critical to the financial success of your organization.

I can just feel some people squirming as I write this. I can read your mind, too: “But Lori, you don’t know my organization—my board can’t/won’t agree to that!”

Are you sure?

The reality is, without FULL board participation and a clear understanding of your financial needs, your work as an organization is far more difficult.

How do you get the board to support your fund development work? Start with an expectation and accountability discussion. When the board members started their term of service, were they told directly that being a part of fund development is expected of them? Was their role clearly defined? And do you have one or more advocates on your board who will strongly support your efforts to get all the board members, well, “on board”?

Here’s what I mean: In the interview process, it’s critical that both fundraising (the raising of assets) and fund development (raising of visibility and deepening engagement) activities be thoroughly discussed and outlined. New board members must know beyond any doubt that they will be included in some of the “doing” as well as the giving.

A frequent frustration I bump into is that the development staff doesn’t know—because they haven’t discussed it or created a plan around it—what they want from the board, so the board is left to figure it out on their own. It’s as if you want me to know how to scuba dive because I love being in the water, but no one ever takes the time to teach me to do it.

Participation doesn’t mean the board members must directly ask for financial contributions. Here’s a short list of things that a board member or key volunteer can do to assist your organization in maintaining deep, connected relationships with donors, and they do not ever have to ask someone else for a financial contribution:

• Make phone calls to donors to thank them for their recent contribution.
• Invite donors, volunteers, community members, family, friends, colleagues, and others to your events, including the “get to know us” type of events that are free.
• Take a current or former donor to coffee to thank them for their recent gift. Obviously it’s not practical to take every donor out; set a minimum donation goal for this type of activity.
• Make an introduction to the community affairs person at their workplace.
• Give a heartfelt—but short—speech at their church or civic group to invite interest in your organization.

This is only a short list of the many ways board members can actively participate in fund development activities. Whatever role they play, staff and board must be clear and specific about expectations. Then staff assists by providing data so that board members can hold themselves accountable. Discussion of these metrics may cause great strides in your keeping donors connected and engaged.

Let me know what other ways your organization utilizes board members in fund development efforts.

What does it take to BE financially savvy right now? Especially with continued uncertainty surrounding funding sources and for some, “off the charts” increases in the need for programs and services?

Three things can help you be a financially savvy organization: Monitor, Stay Focused, and Ask Good Questions that lead to action.

What to monitor? Throughout the year but definitely in times of uncertainty some things to take a look at:

1.  Financial track record.
2.  Be aware of changes to income source(s) and cost structures.
3.  Note how diverse & flexible your financial support is or isn’t.
4.  Know pledge redemption history and be prepared for changes.
5.  Note how financially sophisticated the board, staff & donors are.

And for more, last week, colleague Laura Deaton from Third Sector Connector posted a great list titled: 20 Questions That You Should Be Able to Answer At Any Given Time About Your Organization’s Financial Health.

Stay focused on core programs & services. Remind yourselves why you exist in the first place. Then identify any weaknesses in funding for core or peripheral programs. Reach out into your community to shore up collaborations or partnerships if necessary to maintain what is core to your mission. For some groups I’m working with this has been a difficult conversation because state or federal funding cuts are eliminating programs. Now is when it’s critical to have your strategic plan front and center to guide the decisions that may need to be made.

Ask questions. Your organization may or may not have the answers to all the questions you are asking, but asking the right questions is key. Financially savvy organizations know the costs of their programs, where the strengths and weak links are, what the contingency plans are for cost cutting and they share that kind of information with more than just the “insiders.” I’m a fan of sharing the good news and the not so good news with donors, volunteers, board members, staff – virtually anyone who is a stakeholder.

Just a week ago, a CEO I work with, we’ll call him Charlie, shared with me that he was surprised and proud that two of his board members made it a point to ask about the funding gap for the organization. The board members brought up the topic at a recent board meeting, Charlie didn’t. 

What Charlie said is: “we’ve really trained our leadership to be asking questions and aware of what our financial situation is so they can share it with others and help us to raise the dollars we need.” Sounds like a great board to me.

The second part of asking the questions is being able to make decisions and take action when you’ve collected the information. Don’t let the indecision paralyze your organization.

One of my passions is to raise awareness of the “money” conversation that often goes on behind closed doors and doesn’t get shared until it’s too late. I believe talking about finances and fundraising costs & goals allows others to see that you have a place for them when they are ready to give.

Social media. A conversation that’s happening at the speed of light these days on the internet.

I attended an awesome seminar last week with @ChrisBrogan, author and marketing & Twitter guru at Best Buy HQ in Bloomington, MN. I found Chris Brogan is as quick witted and entertaining in person as he is on Twitter.  And I found him to be a fountain of knowledge about how best to use social media. One of the most powerful things he shared with us: The three main ingredients of social media are Listening, Connecting & Publishing. With a big emphasis on the listening.

What social media offers for nonprofits is a way to listen to your community. Whether using Facebook, Twitter, a website that’s interactive or sending email with a call to action, the whole point is about more deeply engaging your community. The very best way to deeply engage others is by hearing what they have to say. And not just about you. Listen to what gets them frustrated, or excited or causes them to feel great about anything and build on that.  

The power of social media is that it CAN be helpful. If you don’t think so, take a look at how much money was raised in text messages in a few days following the Haiti earthquake. Millions of dollars. $10 at a time. By millions of people all over the world.

Being helpful is key. One of the best ways to use social media is in support of your fundraising and marketing efforts. How? Share startling statistics, answer FAQs, share the cost of serving one client, send followers to helpful resources at other people’s websites. The more helpful you are using your chosen method of social media, the more “followers, friends and engaged listeners” you’ll generate.

On May 6, my membership webinar topic will be Social Marketing for Social Profits. Guest speaker is national social media guru: Amy Sample Ward.  In a recent blog post @amysampleward talks about the Effects of Joining the Conversation.

Amy says: “People are talking online and the best way to influence what they are saying or how they are thinking about issues is to talk with them.

Amy reminds us that being an active member of the conversation…whatever the conversation is…pays off. But I say: First you have to join the conversation.

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