The Board’s Role in Fundraising: A Guide for Nonprofit Leaders

Introduction

Fundraising is a key part of nonprofit work, and board members play an important role in making it successful. By understanding why people give and what their responsibilities are, board members can confidently help their organization reach its goals. This guide covers some basics about donor motivations, board responsibilities, and practical tips for effective fundraising.

Why Do People Give?

People have many reasons for donating to a cause.

• They believe in the mission of the organization.

• They have a personal connection to the issue.

• They want to make a difference.

• They seek recognition or benefits.

• They value the practical benefits, such as tax deductions.

When board members understand these motivations, they can better connect with donors and inspire support.

How Are Nonprofits Funded?
Nonprofits receive funding from several sources:

• Individuals

• Foundations

• Corporations

• Government grants

• Earned income

• Investment income

A well-rounded approach that includes multiple funding streams helps organizations stay resilient.

The Board’s Role in Fundraising
Board members have three main responsibilities in fundraising:

1. Help Shape the Fundraising Plan: Work with staff to set realistic and ambitious goals.

2. Be Actively Involved: Attend events, make personal contributions, and share connections to potential donors.

3. Ask for Support: Asking for donations can feel intimidating, but it’s an opportunity to build relationships and share the organization’s story.

Different Stages of a Fundraising Board
Nonprofit boards change over time, and their approach to fundraising changes too:

• Early-Stage Board: Focused on personal connections and hands-on involvement.

• Governing Board: Develops policies and relies on staff for day-to-day fundraising efforts.

• Institutional Board: Emphasizes major gifts, with board members providing connections and prestige.

Practical Tips for Fundraising Success

• Build Relationships: Fundraising doesn’t end with the gift. Stay connected with donors and show appreciation.

• Be Personal: People give to people. Share your enthusiasm for the cause and make personal asks when possible.

• Present Opportunities: Instead of focusing solely on needs, frame projects as exciting opportunities for donors to make an impact.

Final Thoughts
Board members are essential partners in nonprofit fundraising. With an understanding of donor motivations and a commitment to supporting their organization, they can make a real difference. Effective fundraising takes teamwork, clear communication, and genuine enthusiasm.