Role of the CEO is key
When does the board become fully engaged in fund
raising? That question is best answered
by looking at the position of the chief executive officer. This title is arbitrary and some
organizations may call this key leader the president, the general manager or
director or in the church world, a senior pastor. However, the actual functions of management
that the CEO is charged with fulfilling tell us much about their role as well
as the role of the board.
The traditional functions of management are planning,
organizing, directing and controlling and if the CEO is charged and fully
responsible for these classical functions, than likely we have a true CEO and
the board can take on other responsibilities.
Also, as the organization ‘matures’, there are more opportunities for
the board to take on more strategic roles regarding fund raising.
The three phases of board maturity
I’ve discovered that all boards are not created equal,
nor should they be. While all board
have the fiduciary responsibilities of governance, few if any need to spend all
of their time on governance. Annual
executive compensation reviews, budgets and a financial audit take only a
portion of the time leaving the board with other opportunities rather than
responsibilities.
When a nonprofit is in its Developmental Stage, typically
in the first few years and with revenues of less than $100,000, the members of
the board of directors are likely the key volunteers. They are idea people and dream with the
founder about future possibilities.
Their selection and appointment to board status is simple, often not
even formalized and usually happens through friendship rather than any
strategic plan.
In the Growth Stage, typically in the second through
fifth year of the organization and when revenues are still less than $500,000
to $1 million annually, the board of director’s role begins to change. Rather than volunteers, these board members
are key partners in the ministry. CEO’s
look for skilled people to fill these roles that provide expertise and service
that otherwise would need to be purchased or gone without. Attorneys, tradespeople, skilled technology
people are great finds for these boards and they help out with services
provided in-kind. Governance becomes
more important but board members are strategically selected for what they can
bring to this growth stage of the enterprise.
The ultimate stage is the Expansion Stage, and the
organization is likely more than five years old with revenues in excess of
$1,000,000 annually. While less than 30% of all nonprofits ever get this large,
there are still much more ministry that can be accomplished but the thing that
is lacking is money. The board of
directors’ emphasis should be shifted to that of fund raising and board members
are selected based on their networks of friends and associates. These are connected people rather than
skilled people (i.e. Growth Stage). They
are ambassadors of the mission and ministry.
They are the best people to be involved in growing the funding base.
Here are just a few ways for these board members to get involved in the effort.
• Network! Network
is not fundraising, it’s just natural
• Host a Table!
Always have a list of upcoming opportunities and invitations ready
• Coordinate a Grant Writing Initiative (City, County,
State, Federal, Philanthropic)
• Strategically create a list of top influencers to meet
• Plan an event at your club/home/work
• Host a lunch each week with a new prospect
• eMail, call or visit with donors just to say thanks
• Tell people why they serve as a board member
• Identify and recruit an in-kind service
Board Members that understand the opportunity to be
involved as an ambassador build a stronger and more stable funding base. They have the opportunity to be a key part of
the growth and success of the organization.
They build a lasting legacy and transform hearts.
Reprint from ChurchExecutiveMagazine December 2012
