What Role does the Board have in Nonprofit Fundraising?

Previously, our colleague Deniz Satir put together a resource to help organizations understand an Executive Director's role in fundraising and allowed us to share it with our readers. In it she explained that the best nonprofit leaders will take steps such as developing a fundraising strategy, cultivating donor relationships, engaging with the board, practicing financial stewardship, and aligning the team around fundraising efforts. Those responsibilities are critical components to developing and executing a successful fundraising strategy, and they beg the next question: “What should a Board’s role be in fundraising?”
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Should a Board just allow the ED to own the organization’s fundraising strategy unilaterally, rubber stamping plans and loosely reviewing results? Or should they take a more active role? And how does the Board’s responsibility change when the organization is undergoing significant change like a mission shift or leadership transition?

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​Ideally, a nonprofit Board will be involved in the organization’s fundraising by:

Setting Goals & Aligning Strategy
The Board will work together with the ED to understand the organization’s financial needs and then establish an overall fundraising strategy and set specific fundraising goals to meet those needs. As Deniz explains,

Effective fundraising begins with a well-crafted strategy tailored to the organization's mission, vision, values, and resources. EDs should be actively involved in shaping this strategy, working closely with the board of directors and the development team. By having a clear vision and understanding of the organization's needs, the ED can provide strategic guidance and ensure alignment with the overall mission.

​When a new strategy is suggested or a major campaign is pitched, the Board should play the role of question asker. They should look at the plan or pitch from the perspective of donors and the public to gauge whether it’s compelling and understand what kind of specific deliverables can be expected. If the Board identifies trouble spots, they can call those out to help hone the message and make it more compelling.

For fundraising to be successful, the Board must be genuinely engaged in strategic planning, helping to evaluate popular fundraising options to determine which approach will best align with their mission and supporters.

Discover 10 Ways to Expand Your Donor Base

​Providing Oversight
Once the plan is in place, the Board will oversee fundraising activities both financially and operationally. They will determine which kinds of metrics should be used to evaluate the organization’s fundraising efforts and then regularly review fundraising performance, keeping a critical eye on financial sustainability.

A component of the Board’s oversight includes exercising their fiduciary duties. Acting in a fiduciary capacity, the Board will ensure compliance across regulatory, legal, and grant-specific requirements across all fundraising efforts. These types of requirements typically include things like fundraising regulations, tax laws, and reporting obligations, but may include others as well. They will also prioritize transparency and accountability to uphold strong ethical standards.

Read “The Key Responsibilities of a Board Member” by Jacki Lorenz

​Increasing Charitable Contributions
Unlike Executive Directors that are firmly inside of the organization, the Board operates both internally and externally in their professional capacity related to fundraising. As such, they are typically expected to participate in fundraising in a way that’s distinctly different than the ED.

Board members will be instrumental in donor management by helping to thank and honor major donors. They will often also leverage their networks and connections to cultivate new donors, secure major gifts, find sponsors for fundraising events, and forge partnerships. As our team explains when discussing the key differentiators of a Board’s role, 

The board will not only set fundraising goals and strategies but may also connect individually with current and potential donors as part of their involvement in donor relations. While they typically will not lead the organization’s fundraising efforts, they may play an integral role in cultivating key relationships through personal and professional connections.

​Furthermore, they will often help to foster a culture of philanthropy by making their own financial contributions to get the ball moving or take it over the finish line. Demonstrating this kind of commitment to the cause can significantly improve the organization’s chances of achieving fundraising success. 

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​Remember, the role that a nonprofit Board plays in fundraising becomes even more critical during times of transition. When things are changing quickly and an organization is adapting its fundraising strategy to respond, it’s critical to get the kind of leadership support needed to stay on course.

When your Board of Directors needs help understanding its role in fundraising efforts, let us help! We have a highly experienced team of nonprofit leaders that can come alongside your organization to provide guidance and advice. Whether it’s strategic planning, organizational development, executive leadership coaching, or meeting facilitation we have the right nonprofit consultants to help. Find out more about our nonprofit board advisory services today!