The broad purpose of a Governing Body or Executive Body or Board of Directors members of NGO is to run the organization effectively. To do so, Governing Body members are bound to ensure that an organization is operating within laws, earning its money honestly and spending it responsibly, and adopting programs and procedures most conducive to carrying out its mission. Among the responsibilities that Governing Body members must assume in carrying out the NGO’s purpose is a responsibility for funding the organization. Specifically, the Governing Body is responsible for the continued funding and financial health of the organization. In this respect, Governing Body members have two tasks: give money and raise money. More often than not, however, Governing Body members are hesitant to embrace these two activities.
Common mistakes when fundraising for NGOs
The reluctance of Governing Body members to take responsibility for fundraising can usually be traced to two common root causes.
- Governing Body members don’t understand the importance of taking a leadership role in fundraising, and
- The members running the NGO are afraid of asking for money. Governing Body members cannot give themselves wholeheartedly to the process of fundraising unless these two problems are resolved.
The reason that Governing Body members must take a leadership role in fundraising is simple: they own the organization. They are responsible for the well-being of the organization and for its successes. Furthermore, their supporters and potential supporters see Governing Body members as the people most committed and dedicated to the organization. If they, who care the most about the group, will not take a lead role in fundraising, why should anyone else?
When the Governing Body does take the lead its members and the staff can go to individuals, corporations, and foundations and say, “We have 100 percent commitment from our Governing Body. All Governing Body members give money and raise money”. This position strengthens their fundraising case a great deal. More and more, sophisticated individuals and foundations are asking organizations about the role of the Governing Body in fundraising and taking a more positive look at groups whose Governing Body plays an active part.
Mistake 1: Not Everyone Has to Ask for Money All the Time
Governing Body members are often reluctant to participate in fundraising activities because they fear they will be required to ask people for money. It’s true that many fundraising strategies require Governing Body members to make face-to-face solicitations. This is a skill and thus can be learned, and all Governing Body members should have the opportunity to attend a training session on asking for money.
In a diversified fundraising plan however, some Governing Body members can participate in fundraising strategies that do not require directly asking for money. While some can solicit large gifts, others can plan special events, write mail appeals, market products for sale, write thank-you notes, stuff envelopes, enter information into a data base, etc. Everyone’s interest and skills can be used.
Governing Body members inexperienced in fundraising can start with an easy assignment and then move on to more difficult assignments like to raise a certain amount for fund. Some fundraising strategies will use all the Governing Body members, whereas others will require the work of only one or two people such as speaking to service clubs or writing mail appeals.
Often people who join a Governing Body bring two myths with them that hamper their participation in fundraising. First, they feel that since they give time they should not be called on to give money. “Time is money,” they will argue. Second, if an organization has paid staff, Governing Body members may feel that it is the staff’s job to do the fundraising. Let us quickly dispel both of these myths.
Mistake 2: Stop thinking that Time is Money
While a person’s time is valuable to them, it is not the same as money. You cannot go to the company and offer to do their work in order to provide service. You cannot pay your staff or buy your office supplies with your time. Further, everyone has the certain time in a day, but people have vastly unequal amounts of money. Finally, people are rarely nervous to ask someone for their time, but are often very reluctant to ask someone for their money, even though time is a non-renewable resource, whereas money is not.
In training, I often use this example: “If a Governing Body member is assigned to call three people and tell them about a meeting on Wednesday night, he or she will most likely do it. If two people can come to the meeting and one can’t, the Governing Body member does not take this personally and feel like a failure, However, if this same Governing Body member is assigned to ask these same three people for a certain amount as donation, he or she will probably be very uncomfortable without training in how to ask for money.”
If you have conducted many trainings in how to ask for money, but you have never been asked to lead a training on how to ask for time. Comparing time and money is like comparing apples and asphalt. Governing Body members must understand that contributions of time and money are very different, although equally important, parts of their role.
Mistake 3: Relying on employees – Paid Staff cannot do it all
Paid staff also have specific roles in fundraising. These are to help plan fundraising strategies, coordinate fundraising activities, keep records, take care of routine fundraising tasks such as renewal appeals, and assist Governing Body members by writing letters for them, form fundraising plans with them and accompany them to solicitation meetings.
Fundraising staff provide all the backup needed for effective fundraising. It is clearly impossible, however, for one person or even several people to do all the work necessary in a diversified fundraising plan. Just as it is foolish for an organization to depend on one or two sources of funding, it is equally unwise for it to depend on one or two people to do fundraising.
Mistake 4: Not Sharing the Work and the Power
The final reason for all Governing Body members to participate in fundraising is to ensure that the work is evenly shared. Fundraising is rarely anyone’s favorite task, so it is important that each Governing Body member knows that the other members are doing their share. If some members do all the fundraising while others make policy, resentments are bound to arise. The same resentments will surface if some Governing Body members give money and others don’t. Those who do not give money may feel that they do all the work or that those who give money have more power. When Governing Body members know that everyone is giving their best effort to fundraising according to their abilities, the Governing Body will function most smoothly and members will be more willing to take on fundraising tasks.