Editors note: Jeffrey Byrne & Associates, Inc. is a member of The Giving Institute (a member of the Nonprofit Research Collaborative) and a contributor to the annual Giving USA Report which is researched and written by The Center on Philanthropy at Indiana University.
Senior Vice President
Jeffrey Byrne & Associates, Inc.
Many of the calls we receive from staff we work with have a common theme. Regardless of the organization’s size or mission, its senior staff, at some point in the conversation—generally fairly early—express frustration or at best, curiosity, about board engagement among their peer organizations.
A new study by the Nonprofit Research Collaborative entitled, “Nonprofit Fundraising Study: Covering Charitable Receipts at US Nonprofit Organizations in 2011”, published April 2012 indicates most Boards now understand and accept an increased role in fundraising. Here are ten highlights from the report:
- Forty percent of all boards have between 11 and 20 members.
- Sixty percent require board members to make a financial contribution to the organization. The smallest organizations were least likely to make this requirement.
- Ninety percent of organizations that require a contribution report that they tell a prospective board member about that expectation at the time of recruitment.
- Only 35% set a minimum gift amount for board contributions
- The average annual board gift is just under $5,000 with education organizations reporting the highest at $12,520.
- Only 11% of responding organizations in the religion subsector reported a minimum gift amount, but their average gift is not lower than averages in most other subsectors.
- Sixty percent of organizations track the amount board members help raise.
- Board members are most likely to get involved by allowing use of their names (79%), asking friends or associates to attend events (78%), and making personal introductions (76%).
- Only 52% of board members will host events in their home or business.
- Board members are least likely to develop the fundraising plan, although 52% do, and rate prospective donors, although 42% do.
There is no longer an excuse for board members not to be engaged in fundraising in some capacity for your organization. It is now accepted best practice that strong organizations have board members who are actively engaged in supporting the organization. Serving as wise counsel is no longer sufficient.
For more information about board giving and how to energize your board around giving, go to http://www.FundraisingJBA.com/ or attend our workshop in Kansas City on June 8 to learn about engaging your board in capital campaigns.