Nonprofit board giving

Board giving is a frequent conversation topic. Here are the three most common issues we address with new nonprofit organizations:

People serving on a board should want to give money to their organization. How much each board member gives is a personal decision. Some boards establish a minimum/suggested donation amount per board member (or in lieu of a personal donation, a board member is required to secure outside donations to meet their obligation). I think this creates unnecessary tension. Every board member’s financial situation is different; even those that appear to be doing well financially might not be able to meet a minimum donation requirement.

It’s more important to focus on the percentage of board members contributing rather than the amount each person contributes. Potential donors and grant makers want to see that the entire board is invested in the organization’s success. After all, if you don’t invest in yourselves, why should anyone else?

With all that said, everyone’s donation should be impactful. New nonprofits need help paying bills in the early months. An individual that can’t contribute to the organization’s expenses isn’t a good fit for the board. Don’t turn them away, though! Find another role for them to make a meaningful contribution that doesn’t require donating, or raising, money.

Not good enough. Board members are expected to give their time and expertise. In a new nonprofit’s first three, six or twelve months, someone needs to pay for the office space, communications, utilities, etc. until donations or revenue begins to roll in. If not the board members, then who?

Again: if you don’t invest in yourselves, why should anyone else?

Find new board members. If a person isn’t willing to write a check, they shouldn’t be on a board. Board members that refuse to make a donation are not committed to the organization’s mission. Everyone is replaceable.

Third time: if you don’t invest in yourselves, why should anyone else?

Notice a theme?

Thoughts? DM me on Twitter, Instagram or Facebook: @thegrantdoctors

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