16 August 2010

Understanding And Maximizing The Board
Member’s Role In Your Campaign

By John Marshall, Vice President
Midwest Region

During a capital campaign, the organization needs its board members to reorder their priorities so that they place their allegiance and support for the campaign over other causes and commitments.

The most successful nonprofits are those which learned a critically important lesson a long time ago. That is, despite purity of motives, and sacrifice and dedication of staff and volunteers, these organizations understand that they cannot fulfill their missions without the support of knowledgeable and respected people who are willing to share influence and skills on their behalf, most notably, those serving on the board.

Perhaps the single most important function of the board is to bring into clear focus those areas in which the unmet and underserved needs of the community overlap with the organization’s mission, experience and capabilities. When those elements merge, they represent real and achievable opportunities for a “win-win” situation. And, they define a meaningful role for the board to serve as a catalyst for goal-driven action.

Without a strong and active board, the organization cannot successfully adapt its mission and resources to the needs of the community. Nor can it hope to build upon its existing success to better serve that community, whether through new or expanded programs, larger and better designed facilities, or increased financial support from the public.

Periodically, the need arises to enlarge or replace existing facilities or to move an operation to another location within the community. Typically, the cost of such actions exceeds the amount that the organization has in reserve for capital improvements. Once the board has agreed with staff that a major capital fundraising effort is needed, a campaign feasibility study is called for. The study will determine (1) if the amount needed for the capital improvements is achievable; (2) the ideal time frame for a campaign; (3) what campaign structure is required; and (4) the dollar level of gifts needed to achieve the goal.

Here are a few critical roles the board plays in leading up to the decision to conduct a capital campaign:

• Helping the organization determine if there is sufficient need for the project
• Exploring the most viable options available
• Establishing preliminary cost estimates for the project(s)
• Reviewing feasibility study proposals and recommending a firm to conduct the study
• Helping to identify key participants in the campaign feasibility study
• Evaluating the findings and recommendations of the campaign feasibility study
• Selecting a firm to serve as campaign counsel

Qualities to Look For and Promote
Each individual brings a unique combination of skills, knowledge, resources and influence to his or her position as a board member. Ideally, board leadership will have recruited a composition of individuals who represent a broad segment of the community’s corporate, public, professional and other key elements which, collectively, can not only provide wise counsel but can also open doors and help influence decision makers.

Having those abilities, however, does not guarantee that board members will be fully involved to the organization’s advantage. A board member must be willing to use that “currency” for the organization’s benefit. That, of course, may come at some personal or professional “cost” to the board member, who must be selective in terms of with whom (and how often) he or she elects to use his or her influence, or chooses to call in “a favor.”

An effective board member is likely to have commitments to, and interests in, other groups and organizations, such as his or her church, alma mater, civic club or professional organization. Under normal circumstances, one or more of these groups may have a higher priority for the board member’s time and resources. However, during a capital campaign, the organization needs its board members to reorder those priorities. That includes financial support for the campaign, potentially involving a commitment over a period of years.

It is not uncommon for a board to have some members who give a great deal of time and effort in helping meet organizational challenges and opportunities. And there may be a few who show up at board meetings, but not on a consistent basis. The rest seem to fall somewhere in the middle. During a capital campaign, however, the organization needs the full support of all board members – from start to finish.

A successful capital campaign won’t happen unless every board member accepts his or her share of the responsibility for:

• Accepting a specific role in the campaign structure
• Attending board, committee and campaign meetings on a regular basis
• Being familiar with the campaign’s “case for support” and eager to share it with others
• Being a team player with a positive “can do” and “will do” attitude
• Using his or her personal and professional contacts to help in gift solicitation
• Making a meaningful personal pledge to the capital campaign

Specific Responsibilities

During the pre-campaign phase, a board member will want to learn as much as possible about the capital project(s) for which funds are being raised. For instance:

• The reason/justification for the project(s); i.e., how will it directly and indirectly benefit the community?
• The cost of the project(s)
• What amount (if any) is already available from existing organizational funds to be applied to the project(s)?
• Any currently available details that describe the project(s) (location, size, design, capacity, etc.)

If a board member personally has any concerns or doubts about the project(s), this is the time to express them and receive clarification to their satisfaction. Otherwise, it will be assumed that all board members are fully in support of the effort that will be moving forward into an active campaign mode.

It is also important during the pre-campaign phase for board members to begin deliberately seeking to share information about the organization’s capital plans and how the community will benefit. They also need to let others know of their own personal enthusiasm for the project(s).

It is likely a board member will be asked to serve on one or more committees that will be formed to move the project(s) along. In particular, the campaign steering committee will be very active during this phase. This committee’s members will need to be responsive and involved participants, not leaving things for others to do.

During the Inner Family Phase of the campaign, each board member will be asked to make a personal financial commitment to the campaign. This will likely be in the form of a pledge to be honored over a period of three to five years. Two things are particularly important in this regard: (1) all board members should be prepared to make a pledge to the campaign; and (2) each board member should make as generous a commitment as possible.

Why is this important? First, it sends a very clear message to the community that the organization’s own board is fully behind the capital campaign. And second, there will be some prospective donors who will look at the board’s collective giving to see if the members have pledged at a significant (sacrificial) level. That may have a real impact on their own level of giving, or whether they give at all.

In addition to their personal pledges, each member should be cultivating a gift from his or her company, organization or other group that he or she can influence. A pledge from any of these should be cultivated as part of the Inner Family Phase of the campaign.

During the time leading up to the Public Phase of the campaign, the organization needs each board member to help identify prospective donors. Through their personal and professional business associations, they will know of individuals, corporations and charitable foundations that have the potential to make commitments to the campaign. They may also be aware of a particular interest that those prospects may have, or a certain type of approach that would work best in soliciting them. Any special information board members share could make the difference between a pledge and a rejection.

Soliciting Gifts from Others
Asking people for a financial pledge is not a comfortable task for some. This can be particularly true when seeking an especially large commitment. Soliciting larger gifts and pledges requires a combination of courage, conviction and commitment.

The courage comes when individuals have become convinced of the importance of the cause and have made their own personal financial commitment. That is why the Inner Family Phase of the campaign comes before the Public Phase and why it often determines the overall success or failure of the total effort.

One proven axiom of fundraising is that people don’t give to causes, they give to people. More specifically, people will likely give significantly more to a cause when they are asked by someone they know and respect. Board members are not only respected for who they are and what they may have accomplished, but also because they are volunteering their time on behalf of a worthwhile organization. The respect for the organization itself, together with the respect others have for the board members, is a powerful ingredient to success in securing gifts and pledges.

Donor prospects need to be “primed to pledge” before someone actually makes the “ask.” Share with them information about the organization’s capital expansion plans: who will be served; how it will benefit the community; and what it will accomplish. If possible, they should have already seen the architectural renderings or read about the campaign in the local newspaper. Perhaps they heard a presentation at their local civic club or saw the organization’s CEO interviewed on television.

It is also very important for prospects to believe that the campaign has an excellent chance of being successful. They need to know that others have already given, and they need to see that the campaign organization is strong and well planned.

At that point, a board member is ready to ask for a campaign commitment. As they do, they will want to emphasize that they have already made their own generous pledge. Prospects are less likely to commit (or to a meaningful amount) if they know that the person asking is not already committed.

In some cases, a board member may feel that it is best to have someone else with them; perhaps someone who is better able to explain the project(s), answer questions and help make the “ask.” That person could be the organization’s CEO, the campaign manager, or perhaps a fellow board member. But make no mistake: the board member’s role is still the key because of the relationship with the prospect.

Finally, a word of caution. Making a solicitation without an amount in mind for the prospect to consider can lead to a disappointing outcome. Some people will ask you outright “what amount are you seeking?” In other instances the prospect, lacking an indication, may offer an amount that is considerably less than they are capable of. Without a doubt, it is a sensitive issue that, if mishandled, could offend the prospect. On the other hand, asking for too little could be just as offensive.

In Conclusion
There is never an “ideal time” to ask someone for a major gift. The economy may be in a prolonged turndown…other organizations may be competing for campaign dollars…the organization’s public profile may not be as high as one would like it to be…and so on.

And yet, if the organization’s cause is clear and compelling, there are many who will be ready, willing and able to be supportive…and generously so. It is up to teh board members to ensure that they are well informed, properly approached and solicited, and appropriately challenged to give at a level they are capable.

Thanks to a fully committed board, the organization with which they serve can be well positioned to take its cause to the public and to begin yet another chapter in its long history of service to the community.