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More than just a monetary number – the capital campaign feasibility study

There are quite a number of groups seeking to test the feasibility of a possible capital campaign.

And, so naturally being a consulting firm catering to small fundraising shops, I tend to get asked to talk about these, and I am currently in the midst of one now.

What I find is that groups think that feasibility studies only test for one thing and that one thing is a financial goal.

I assert that there are many different types of things that a feasibility study tests for as a result.  Financial goals being just one.  In fact, more importantly, feasibility studies look at both internal and external perceptions and find areas of opportunities and challenges for an upcoming campaign.  Things such as “what about that large endowment the organization has?”  or “it doesn’t have strong fundraising leadership?” or “you need to ensure that so and so is on board and committed to launching a full-scale effort.”

Through a feasibility study, a group also finds out about potential campaign leadership, which by the way, can make or break a proposed capital campaign, other competing campaigns currently or just recently completed within the same community, and potential prospective donors to a capital campaign.  Also, a capital campaign feasibility study will unearth the general economic outlook both nationally and locally and how will that impact the success of a capital campaign.

So, as you can see, a feasibility study done correctly will provide lots of data that can then be used to refine the case for support, determine if it is time for the organization to mount a significant campaign, and what is the recommend campaign plan based upon findings as part of the study.  Oh, yes, and what fundraising goal will be feasible.

If you or your group is considering an upcoming capital campaign, I urge you NOT to skimp on the process of conducting a feasibility study.  You will learn more than just – can this campaign make a go of it.  You will find out exactly how much and how it can or cannot!

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Oh, the woes of a nonprofit fundraising database!

So, let’s talk database.

What? That seems like something so mundane. Well, it may be, but it is so critical to fundraising.

Throughout my professional career, I have been victim to bad databases, and I have been asked to work with bad databases.

One thing is for sure, without an initial thought out structure, problems are inevitable. I often come into organizations that have no rhyme or reason as to what they call their Campaigns, Funds, and Approaches. You know, one year it is called Spring Appeal 2016, and the next it is labeled the Mother’s Day Appeal.

Consistency is key. I see so much inconsistency that why bother having a database, to begin with at all. The way names are entered i.e. Mr. and Mrs. Smith or Bob and Laura or even Robin and Smitty or Robin & Smitty.

It drives me mad.

Having a database procedural manual developed with consistent data entry standards specified is critical. How do you pass this institutional information along when staff transition or do you? Do you let them sink or swim?

Hey, garbage in is only garbage out.

The most important thing is the question of who has access to this database? Who does the main gift entry? Moreover, I pray that your answer is a development staff person. Please, do not say that it is a member of the finance department, or even worse, a volunteer or an intern.

Provide those using the database with training in the software itself and budget for it every year. Moreover, don’t think that a cost saving is ignoring software updates and the resulting costs.

I cannot stress enough how important the database is to your fundraising efforts. It will allow you to be donor-centered in your work regarding recognizing donors and their giving the exact way that they want to be recognized. It lets you accurately report on giving and make comparisons that will affect the future of your fundraising efforts, and it will allow you to become more strategic in your endeavors through segmentation and greater personalization.In all of my career if I had to answer the question of “What impacts the success of fundraising THE most, besides the Board, of course,” I would have to answer, the database.

Moreover, folks EXCEL is not a database; it is a spreadsheet tool used by those in the finance department. Please don’t say that you cannot afford a database. Some great databases are available for a very fair and affordable price.

Pay close attention to your database – this is the brain behind your efforts.

 

 

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Do not take Fund Development best practices at face value!

Best practices. We hear that phrase often. This week, I even read a question asking if “best practices were misleading?”

Are we throwing that phrase around to legitimize our field? Our do we have best practices and what are they?Fundraising best practices

Well, I contend that the only true best practice is one that is grounded in research. Those are harder to find that than the other so-called “best practices.”

While studying for my Masters Degree in Philanthropy and Fund Development, I learned that philanthropic research has many gaps. However, there are people now making a study of philanthropy and conducting research. Folks like Adrian Sargeant and Jen Shang. More research is needed in our field to support our work.

I can tell you that when research is grounded in actual studies, it works. Eye motion studies, philanthropic psychology, etc., etc.

Recently, I have been working on many appeal letters. And, each time I craft one for the client, I get pushback. Why do you indent paragraphs? Why do you repeat yourself often? Why is there bold and underline? Do we need to include a P.S.? And, can’t the letter just fit on one page? Must we send more than one appeal?

Pushback that is unfounded. And, I push back with research. When the client allows me to use those best practices, the results speak for themselves.

When those results speak for themselves, it is magic. Campaigns get funded, new projects begin, and donors have the opportunity to make a greater impact.

We forget that the fact (and it is a fact) that we are not beggars. Donors want to give. And, to give, they must be asked. Asked in a way that moves them to feel connected to their core beliefs through your organization’s mission.

Know the difference between unfounded best practices and best practices backed by scientific research. Read blogs, stay current with trends, and keep furthering your informal and formal education. When you do, and you practice it, your results will show all the difference.

Fund development does have a researched body of knowledge. Don’t allow anyone to convince you that it does not.

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Yep, the Board does have a role in a capital campaign!

What, wait, we hired that Capital Campaign Consultant to run the campaign, and now you are telling me that I have to do something.  No, this can’t be possible.

Yep!  It would be unrealistic to think that a capital campaign is left up to the staff to manage.  How could they?  The staff doesn’t have access to donors and to peer networks?  A campaign is not a one, or two, or even three person job.  It is even more unrealistic to think that now the capital campaign consultant is in town, no one
needs to do anything period.

So, I know you’re shaking in fear that you might have to ask for money.  Well, yes, you may.  But, that is not your only role in a capital campaign.

When running a capital campaign, I meet with each of my campaign’s Board of Directors and review the Campaign Plan, goal, schedule, gift chart, and Case for Support.  I insist that they vote to approve these primary campaign documents.

And, I also share with them a Board commitment form that I have each and every one of them sign and date.

Board members have many responsibilities to a campaign. Below is my top ten list of capital campaign responsibilities and what I expect them to commit to:

  1. Not taking on any major new volunteer roles for other organizations and consider how to pare down current obligations and be accessible to the campaign.
  2. Review their philanthropic planning for the next year and perhaps beyond, as well as their calendars for those years.
  3. Consider what role they could and would like to play in the campaign. Every board member will be responsible for some part of the campaign and will be engaged in identifying and enlisting campaign committee members.
  4. Review their list of contacts – friends, neighbors, business associates – and carefully consider which of them may be interested in learning more about the organization.
  5. Review and approve the capital campaign plan as recommended by the capital campaign planning committee.
  6. Make a “stretch” gift to the campaign. 
Board members will all support the Annual Fund campaign each year in addition to supporting the capital campaign. All board members will participate financially in the campaign – to the best of their ability. The board will be the first to give. 
It is essential that other donors see 100% percent participation of the board.  It shows them that the board has the utmost faith, confidence, and enthusiasm for the organization.
  7. Ensure that contribution are used well and according to donor intent.
  8. Read all materials given to them by the organization and the campaign. Members of the community – donors, clients, friends, neighbors, etc. – will turn to the members of the board for guidance and information.
  9. Be an advocate for the organization, to the best of their ability, in the local and the wider community. Help expand the organization’s influence and exposure throughout the community by:

o   Securing the sponsorship of a community group to support the campaign.

o   Recruiting a speaker, host, or sponsor for a special event.

o   Arranging tours of the organization for interested individuals, corporations, foundations or others.

o   Hosting an event at their home, place of business or community organization.

o   Endorsing a solicitation made by the campaign leaders, either by phone or by letter.

o   Setting aside at least 20-30 minutes weekly to plan how to help the organization’s campaign.

o   Thanking donors and staying in touch keeping them informed of the project plans.

o   Evaluating the success of the campaign to determine strengths, areas of improvement and effectiveness of board policies and decisions.

 

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Sink or swim: the capital campaign steering committee

So, I have a niche somewhat of assisting smaller nonprofits with their capital campaigns.

This niche can be challenging because many of these groups have not had an ongoing, comprehensive fund Steering committee means campaign successdevelopment program in the past. However, working on these smaller campaigns can also be very satisfying because I can help them use this campaign to begin to develop these efforts.  I take those campaigns that a lot of other consultants won’t touch! Many while not having a sustainable donor base to build from, often needs a campaign without doing the preliminary feasibility study.  They need the money, and the campaign must go on.

In the process, there is one thing that I have come to realize.  The capital campaign steering committee is an absolute must.  And, for these smaller groups, it becomes the backbone of their campaign.  In forming this committee correctly, the group has the potential to propel the campaign forward.  Without this group, it may flounder.

And, this group can’t include just anyone.  It needs to include folks that can open doors to others have known networks, and believe in the cause.  They hold some of these smaller campaigns in the palm of their hand.

Without having a known, loyal donor base, this committee can introduce the campaign to a wider net of contacts who may be interested in learning more about the case.  They can leverage their networks to build relationships with, the can act as ambassadors for this campaign, and they can help, to ultimately build this organization’s future.

Not only that, this group can serve as a “feeder” system to the larger organization’s Board of Directors introducing them to a pool of prospective Board members who have deepened their engagement within the group.

Far too many smaller groups gloss over the importance of the who on this committee.  And, by glossing over the who, they are, in essence, glossing over what it takes to be successful in raising money for a capital campaign.  Let’s face it, without a loyal donor base, who else and how else are they going to get access to building one.

I purport that a committee group of connected individuals means success.  And, don’t settle for anyone who says less because they are just fooling you into believing that you can pull this stuff out of thin air.

Just saying, end of story!

 

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OORAH – What the Marines taught me about fundraising

This weekend I took a little vacation of sorts.  I ran a marathon.  The Marine Corps Marathon in Washington, DC.  Running a marathon is exhausting, but also, reflective.  For you see, you run for 26 miles.  That is a long time on your feet – sometimes, three, four, five, six, or even more hours.

Over the course over the weekend, there were approximately 3,000 marines – some of our countries finest armed service men and women.  And, as I reflected on my experience, I was reminded of how important it is to take care of our donors.  You see, the Marines took care of me while I was runMarine Corps Marathon and Fundraisingning.

They were there to welcome me when I arrived – how often do we welcome donors for their first gifts to us or even their second or third?

They directed me through the maze of marathon logistics – how often do we try to make our experience of being a donor easy for our donors?  Do we point them in the right direction?  Do we connect them with aspects of the charity that they care deeply?

And, then when I was running, those Marines were out there cheering me on as if I were the hero – how often do we cheer on our donors in their act of giving?  How often do we make them feel like the superheroes that they are?

When the going got tough, they were there for me, telling me that I could do – when things get tough for our donors, are we still behind them cheering for them?  Perhaps they can’t give us as much, do we abandon them as people?  Or do we still treat them the same, cultivating the relationship?

And, at the end of it all – they placed the medal on me and made me feel accomplished – “Congratulations, Maam” – do we treat our donors like they are the real heroes, even though we are doing the actual work?

Interesting questions.  I was awed and inspired by this display of honor at the marathon.  The Marine’s know how to put on a good race.  And, they also know a lot more about how to treat people.  There are lessons learned here on how we should go about treating our donors.

Giving is MORE like a marathon than a sprint.  It is about cultivating relationships with our donors over weeks, months, years – just like a marathon is about training for days, weeks, months, and years.

So, go out and run the race.  And, even though it is your organization that is doing the hard work, take some lessons from the Marines and treat your donors like the superheroes that they are.  After all, the Marines are making this sacrifice for our country, just as our donors are making another kind of sacrifice for our organizations.

OORAH!  Now get out there and train.

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“Am I asking my donors too much?” Well, Virginia let me tell you the answer.

So, here it is. I am laying this question and answer right out on the line. Especially now that we are coming to the year-end giving season.

I am asked time and time again, “Didn’t we just mail to them, won’t we be bothering them?”

No, no, and no. You can never ask enough.

Yes, Virginia, you can ask multiple times

Let’s face it. The decision isn’t ours to make. It isn’t. It is the donor’s decision to make. Only they are going to tell you, how much is too much. In most cases, if you are only asking once or twice a year, aren’t you telling them that you don’t need the donations to make a go of it? Donors aren’t naive. They know that you are a non-profit, and they know that you need donations to run your organization. Why do we believe that we must lightly tread when it comes to asking?Direct Mail YES

Donors are busy people. Just because they didn’t respond to your initial mailing, doesn’t mean that they don’t want to give to support you. In major gift work, if we don’t get the gift right away during our meeting – and in most cases, we don’t – we explore with the donor the reason for hesitation. Was it the program we were asking for a contribution? Was it the ask amount itself? Was it the timing of the ask? Why do we think that this is any different for the number of times we should mail to a donor? Perhaps the reason that they didn’t respond to your initial mailing is that it wasn’t an ask for the right project or the right amount, or it wasn’t the right timing. Maybe they had a big bill just come in that they needed to tend to or perhaps they were on vacation when the letter arrived in your mailbox. But, we won’t know this if we only mail to them once and then assume the donor will never give again.

And, I often hear clients question whether or not they should include a reply envelope in their newsletter because they just sent out an “ask.” Of course, you put an envelope in your newsletter. This envelope is a “soft” ask. Donors may feel so inspired to give after reading about your good works in your newsletter that they may want to give to support your work. How else will you capture this? And, a “soft” ask is exactly that, “soft.” We are not commanding, directing, or cajoling a donor into giving. If they choose to give using this method, then it is their choice.

Case in point, I asked a client to send out a second direct mail ask to follow up on all those who did not give to the first. And, lo and behold, the response has been tremendous. So enormous, in fact, that the client wrote back and said, “The results have been pretty unbelievable for us, believe me!

I once had a phrase that I would use quite often, “You must A S K to G E T!” And, that is true.

As we move forward into the upcoming holiday giving season, think about your strategy. You will be competing with every other nonprofit group who is sending out their calendar year-end direct mail piece at the same time. The competition will be stiff. How are you going to stand out? How are you going to assure that your donors will read your letter among all of the other letters? And, what is your strategy for follow-up? Will you ask more than once? What forms will that “ask” take? How will you leverage the December 31 tax deadline as an incentive to give?

I know one thing is for sure, this calendar year-end, if you only ask once, you are doing your donors an injustice. They want to give, and they want to give to you. But, your ask must be heard and, that it is the right ask, for the right project, at the right time.

Now, craft a plan that includes multiple year-end asks!

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Holy cow, fifty shades of fundraising consulting, which do you prefer?

Lately, I have been doing a lot of driving.  And, as a result, a lot of thinking.  I have clients all throughout the Northeast.  And, sometimes, yes, the driving does get “old.”  But, then I sit back and reflect.

You see, there are many different types of fundraising consultants.  And, lately, I have been hearing a great deal about “remote,” “outsourced” development professionals as opposed to the strategic “tell me what to do” consultants that produce a plan and then move onto to the next client.  I do consider myself one of these, in fact, all of these.

But, perhaps I am old-fashioned.  Or maybe I just have been working in the field too long.  I remember, long ago, when there were resident consultants who upped and moved to different parts of the country to live and work at a nonprofit and become immersed in their community.

And, while I don’t up and move, I do spend lots of time on the move.  I think – no, wait, I believe it is critical to the success of my client’s efforts.  Yes, many of the things that I do while sitting in their organization can be done quite easily from home.  But, it is not the same.

Two weeks ago on my blog, I noted how “culture of place” is such an important part of our work.  How can you get to know and understand that “culture of place” if you are working remotely?  Or for that measure, how can you understand the mission and culture of the nonprofit that you are working for if you never sit at a desk and be a part of all that happens on a day to day basis.  What does this have to do with fundraising?  A lot!

It makes a big difference to the quality of work.  When I am onsite, I am a strong reminder to the client that we need to focus and get work done.  So, a lot of work gets done.  When I am not directly onsite, and I work remotely, it seems like work moves at a snail’s pace.  Emails are not answered with urgency, and meetings are postponed.  I get it.  I fall to the bottom of the list.  Very different than having a living, breathing person taking up precious space/rent or whatever you call it in your office as a good reminder.

And, the kinds of things that I do go far beyond just providing advice. I do the work. I craft appeal letters; write newsletter content, solicit donors, write Case for Supports, write grants, work on board development, manage capital campaigns, conduct feasibility studies and audits, on and on and on.

So, when you are thinking about consultants – yes, personality is important – yes, credentials and experience are important, but, don’t overlook the consultant’s personal philosophy of service provision.  Will they go the distance, sometimes hundreds of miles at a time, to live in hotels, to get your work done and to understand the context, both internally and externally, in which your work happens?

We don’t expect our staff development professionals to be in the office behind their desks, so why would you expect the same of a fund development consultant?  They need to be building relationships with organizations to create impact – just as fundraising professionals must be with donors.  It is just another extension of this donor-centered relationship – creating results and positive outcomes for a mission.

While the old models of “in-residence, uproot you and your family” are not so available today, I believe that my unique model of in-residence consulting of a set number of days per week/month onsite is an excellent compromise.  And, hey while I toot my own horn, my model makes a huge difference to my clients and sets me apart from the rest of the bunch.

See you on I95 or maybe I89 or maybe Rt 66.  But, you can be sure of one thing, you won’t see me sitting at my desk at home.

P.S. – Yes, these are photos from my travel.  When I say I get immersed in a community that I am working in, I do.  On a recent stay in a client’s town, I did go to the “Cow Barn” for milk for breakfast.  And, that stretch of road is I91 heading into a client’s town in Vermont from another client located in the Stamford area of CT.

 

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Culture of place and how it impacts fundraising campaigns

There is so much science behind fund development. You can study it, take courses in it, and read books on it. Campaigns have become honed regarding best practices; there are easy steps to put into place, materials to be created, and people to be engaged.

The one thing that I have come to realize, though, is that one part of fundraising is science and the other is art. And, what is that other? Well as a regional consultant, one thing that I notice that makes a tremendous difference is the culture of place. That is why I firmly believe that consultants need to adopt the old “in residence” model. They need to live and breathe a community and get to know and vermontunderstand its nuances. Then and only then will a campaign be successful.

Currently, I have three different clients from three distinct geographic areas. One is for the Stamford area of Connecticut, one is from the Greater Providence area, and the other is from a rural village in Vermont. I could not stress the dichotomy between these clients and it all has to do with the culture of place.

In Connecticut, life is fast-paced and hectic. Projects move quickly. And, the population is so very significant that one tends to blend in with the community without being noticed. In Rhode Island, everyone knows everyone; it is the smallest state in the Union. There is a high degree of competition for funding from a limited donor pool, and people treat each other like family. It is all about who you know. In Vermont, very different. Life in a village is remote. The nearest store is 45 minutes away, sometimes up and over the mountain, you rely on and bond with your neighbor, and it is not about who you know, it is about what you know about those that you know.

Culture of place. If you don’t begin to understand it, you will not be successful. The culture of place is how fundraising art meets science, and the magic of campaign success happens. Ignore it and try to forge ahead without addressing or understanding, and your campaign is doomed to fail.

For those nonprofit organizations wanting to hire someone who works from a remote location and who will not commit to finding someone who can spend time “in residence” then think again. While all the degrees in the world, equate to know how it does equate to campaign success. An understanding of the culture of place does.

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Meetings – are you positioned right?

Meetings, meetings, meetings. We all know them, and we all attend them.here are three types of meetings and the way that you position yourself physically within the meeting could make a world of difference.  Including meeting with our donors.

But, did you know there are three types of meetings, and the way that you position yourself physically within the meeting could make a world of difference to the meetings outcome?  Yes!

Meetings, meetings, meetings! Are they positioned correctly?

Meetings, meetings, meetings! Are they positioned correctly?

So, what are these three essential meeting types and how can you best position yourself?

The three types of meetings are collaborative, presentation, and decision.

What is the difference between them?

A collaborative meeting is when you are engaging in an interactive meeting working as equals towards a common goal.  These might be meetings held between department managers, Board members, or any other type of peer working group.

A presentation meeting is when you or someone else is presenting to or facilitating a group.  You may be demonstrating a strategy, conducting a PowerPoint, or making a case.  In this mode, you are in front of the audience.

A decision meeting is when there is a decision to be made, and the meeting needs cooperation to make that decision.

Can you see any one of these meetings between yourself and a donor?  I sure can.  In one instance, you may work together to volunteer on a project (collaborative), or you may be presenting your case for support (presentation), or asking for a gift (decision).

So, how do you position yourself at each of these meetings to affect the result?

Well, in a collaborative meeting, you surely want to create a high level of interaction, so you must create an “equal” seating pattern.  In this case, round seating arrangements would work well.  They foster a sense of contribution, collaboration, and community.  Avoid at all cost, any seating position that places people at the “head” or in prominent positions of power.

In a presentation, the goals are to create connection and interaction.  Presenters need to move freely within the group while working one-on-one with others and connect folks through hand gestures.  The facilitator or presenter is in a spotlight, and they regularly bring others to the stage making them look good.

In a decision meeting, the power must always seem to be in the decision makers hand, even if it is not. Folks sitting at the head and foot o the table are in power positions, and those facing inside seats are more peer oriented.  One must always work in this case to keep the power dynamic at the forefront through seat positioning.

So the next time that you have a donor meeting scheduled, think about what the aim of the meeting is and how you are going to position yourself at the table.  Sometimes meetings can be much more than meets the eyes and you want to be sure to use all the tools in your potential toolbox as you can to have a successful outcome.

 

 

 

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Love me or lose me – How donor communications can do both.

We often talk about banning jargon when we speak to others about our organization.  And, that is so needed.  But, I would like to take it one step further, and say that we are not here to “educate” our donors about what we do.

They don’t care about the specifics.

There, I said it.  Truly, your donors don’t.  Just think about your experiences.  When I call an electrician to fix an electrical problem in my house, I don’t want him to explain all of the mechanics of electricity or what is wrong with my particular situation.  Right?  Tell me basically what is wrong, how you are going to fix it, and how much it is going to cost.  Don’t share with me black to black, and red to red, and copper to copper, I don’t want to know.  It is actually beyond me.Simply what you say to a donor

So, when you have a particular project, do you think that donors want to know every little nitty gritty detail?  I hardly doubt so.  For the fact of the matter is, they should have a relationship with your organization before you even ask them to give and if they have a relationship with your organization, then they should TRUST you and TRUST that if they invest in you, you will know what to do with their investment.  In fact, they believe that you are the expert in whatever part of the sector your serving.  You can’t expect your donor to know all about the legalities surrounding domestic violence victims or child custody cases; they expect you to know and to do that.

So, when you are meeting with a donor and sharing a particular project or even your organization and what it does, spare them the details.  Give them the picture of why you, why now, and for what?  Otherwise, if you share too much, you will lose your donor in the process.

We get so carried away in our “internal” thinking that we fail to see a contributor as a donor as a person.  We talk as if they are supposed to know what we are referring to; we use language and jargon to paint portraits of projects, and we go and on and on sharing minutia with them.  It is time to stop and think about your experience with your mechanic, or your plumber, or your electrician, or any other expert that you have hired.  What do you need to know, what do you want to know, and what is it going to cost you.

The adage “keep it simple,” reigns true here.  Donors expect YOU to be the expert, not them.  So, don’t shroud them in jargon and details and minutia.  Just share with them what is wrong, how you are going to fix, and how much it is going to cost.  Simple.

 

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From here to minutia…Board of Directors and their committees

Ah, Board committees. Now, we get knee deeper into confusion. So, keeping the Board focused on governance is challenging work. Keeping the committees focused on governance seems at times almost impossible.

A few observations from the field.

Just like with Board of Directors, Board committee’s need position descriptions and expectations. Now, I won’t recommend specific committees because each organization is different, but the basics such as Finance and Governance Committees are essential.Board Committees are all about governance

Why a position description for the committee? Well, far too often, I have seen committees want to take over management types of activities. You know, they think governance is at the Board collective level, and therefore, they can focus on getting things done. Yes, to some extent, but with specific parameters in place. A committee also needs to be engaging in governance regarding examining trends and their implications.

Take, for instance, a Development Committee. Where does the line end between helping to establish a philanthropic goal, approving a fundraising plan, and then actually implementing the work and sometimes even circumventing staff efforts? Ah, yes, this does happen. And, it happens more than we like to think. Once you get down to the committee level, management seems to creep in. So, a powerful committee position description will help to create appropriate boundaries.

Now, I say, in the case of Fund Development, members as part of this committee work to engage their fellow Board members in the process of fund development. So, they may call upon a Board member to chair an event, or to help solicit funds, or to introduce the organization to a significant prospect. This fact does not mean that the manage the fundraising process. And, this is not to say that they manage staff. That is up to staff. But, even in all-volunteer organizations, when Board members must manage, governance comes first. Heck, you can establish a special event committee of the Board that works on event logistics with both Board and non-Board members. Governance rules.

Moreover, committees in no way, shape, or form make decisions for the Board. No, way. You see, the only people that make decisions for the Board is the Board collective. Committees can wrestle with tough strategic, governance issues, and make recommendations for actions at the Board meeting, but in now way does the Committee make a decision that is not vetted and voted by the Board as a whole. Again, clearly outlined position descriptions and expectations create parameters for appropriate behavior.

I know, I know, governance in small nonprofits. Again, governance discussions come first. Operational issues can be done by a task force or other such components. The Finance Committee in a large or small organization needs to look at economic trends in the overall community both locally and globally and make sound fiscal decisions. That does not mean that they get into the minutia. Yes, Board members do need to do management kinds of things in small non-profits, but they can also engage their membership or volunteers to assist in getting things done. So, while a nature organization needs to discuss trail maintenance and who is going to do it, they most importantly need to discuss which trails where, why, and how much is going to cost. What are the environmental impacts of a trail system, etc. They can always appeal to their membership or the general community to help clear brush.

So, again, clear, written, articulated in advance, position descriptions for the Board as a collective, individual Board members and the committees of the Board themselves are needed to create parameters and boundaries around keeping the Board focused on its significant role in governance.

I have been known to point out, “Would you see a Board committee of Pepsi-Cola engaging in supervising staff other than the CEO, or working in the factory bottling soda pop?” Even small, family-owned businesses, need to talk about things like, “there is a new competitor in town, what does that mean for us?” or “Our chocolate sales hit rock bottom, what is our cash flow over the next year?”

No, so what makes us in nonprofits think that we need to operate any differently? Just because we are “non-profit” doesn’t imply that our Boards of Directors should operate any differently. The difference being that for-profit Boards report to stockholders and our Boards report to stakeholders. And, yes, my friend, we can offer our Board compensation if we wanted to go that far.

For more articles on your Board of Directors, start here!

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