By Julie Finkelstein and Naomi Adland
Slingshot was approached with what may seem like a simple question, “Do the organizations listed in the guide have minimum board giving guidelines?”
Our answer was – “We have no idea, but let’s find out!”
We reached out to a small group of innovative organizations listed in Slingshot ’12-’13, eight non-profits with budgets ranging from $500,000 to $1,000,000, and asked a few simple questions:
- Do you have a board giving policy in place? If so, what is it?
- Do you enforce it?
- If so, did board giving go up?
We learned that this issue has been at the center of board agendas for the last few years. We repeatedly heard that successful board giving policies require clear goals, flexibility, and open communication.
Here’s what we heard is working:
1) It’s not all about raising funds. This group of organizations recognizes that the point of board giving isn’t just raising funds – it’s also about strengthening connections and creating a deep sense of investment. Whether $1,800 or $5,000, each organization understands that some board members are unable to meet a minimum expected board contribution on their own. Instead, they ask that board members donate time, professional skills, and assistance soliciting gifts from others. Not all board members come to the table with the same financial portfolio and network – rather, they bring diverse experiences and viewpoints that provide strength to the organization. By asking board members to give in some way of personal significance, these organizations open themselves up to a broader range of board contributions –not just fiscal gifts, but professional assistance, connections, and potential donors.
2) Set a specific giving expectation. When raising funds is important, setting a minimum give or get expectation has been helpful to many organizations. On average the organizations polled ask board members for a minimum gift of $3600. Ranging from minimum expectations of $1,800 to $5,000, most organizations established their specific giving expectations with their board members,bearing in mind the demographics of the board make-up. One professional shared, “At first we thought [our minimum] was too high, but as it turns out, most of our board members were glad to be asked for that amount. In general, we’ve found that our board likes to be asked for things.” Another organization noted that even with specific amounts stated in the organization’s policy, they allow for exceptions to be made. “Flexibility of the [policy] language has allowed us to have 100% board participation [in giving].”
3) A “meaningful gift” can be just as meaningful. Asking board members to give a personally meaningful gift, instead of a designated amount, can help increase the number of gifts made too. One organization’s policy states that “each board member will consider [this organization] one of his/her top three philanthropic priorities and will make a personally significant annual gift that reflects that priority.” Another organization shared, “It used to be a mandatory ‘give or get’ of $3,600 with no enforcement and no one giving/getting $3,600. As of last April, our board policy is to make our organization one of your top three causes and to give a personally significant/meaningful gift – and board giving has gone up.”
4) Make the giving or getting expectation clear. At one organization, a document is distributed to prospective board members that states the guidelines for board participation and clearly points out the $3,600 expected giving minimum. “We do enforce it,” a second organization shared. “The board chair makes phone calls each board member to ask for their contribution and we talk about it in the orientation process. And yes, it helped a lot!”
5) Giving policies help set expectations. In one organization, a new board member that gave less than the minimum, gift despite his capacity to give more, was informed by staff that the minimum gift was generally higher, and promptly wrote a check for the balance. Another organization regularly shares their budget with the board, pointing out the budget line for board giving and demonstrating its impact on the organization’s finances. In being clear about their expectations, these organizations were able to maximize the impact of the board in simple ways.
6) Giving policies can have a surprising impact. In some of these more mature organizations, a move away from a “Friends/Family of the Founder” board (which was effective in the startup period of the organization), toward a “Giving” board has been important to the success of the organization. A professional reported, “One of the best things that happened as a result of [creating a policy] was that a few people decided to step off the board because they realized they couldn’t meet our expectations anymore. They’re still strong supporters of our work, but no longer attend board meetings. Not only did that set the bar higher for other board members, it also helped to set a healthy precedent.”
From this exercise we learned once again that regardless of mission area, innovators struggle with many of the same issues, and develop many of the same solutions. It is clear that we can learn a great deal from each other’s experiences. What helpful policies have you developed to improve board giving or the culture of board participation at your organization?