The Nonprofit Founder’s Guide to Give/Get Policies: How To Ensure You Have a Fundraising Board Of Directors
One of the most intimidating jobs for a new nonprofit founder is finding the donors they need to turn their dream into a reality.
The key to effective fundraising is often found in an effective board of directors.
But for the founder of a fledgling organization, it can feel like putting the cart before the horse to ask their first prospective directors to donate or fundraise.
Let’s look at this decision a bit closer to understand the conundrum better.
Why Your New Nonprofit Should Have A Give/Get Policy
A nonprofit’s first board of directors is the organization’s first leaders. If the directors aren’t donating or fundraising for the organization, then they aren’t its leaders.
Without a fundraising board, your board will lack a connection to its leadership role. They may be passionate about the mission, even actively involved, but they won’t be leaders.
Without leaders on the board, the organization will struggle to make the connections necessary to raise the funds that will support their programs. And ultimately, the lack of funds will undermine the impact.
But don’t despair! There is a time-tested way of avoiding this problem: implementing a give/get policy right from the beginning.
Imagine your board of directors from the very beginning, not only advising and supporting your vision for the organization, but also actively engaged in bringing it to fruition. They offer their talents to the cause; they steer their charitable giving toward your organization; and they connect you with donors who help you exceed your budget.
This is what a give/get policy can do.
So, what is a give/get policy anyway?
If you’re new to nonprofit organizations, you may also be new to the concept of a give/get policy.
A give/get policy is a requirement that all directors on the organization’s board either “give” and/or “get” a certain fundraising goal for the organization.
For organizations with a “give or get” policy, each director can either donate the required amount or raise the desired amount through fundraising activities. Some organizations assign value to other types of director contributions (such as pro bono services) for purposes of meeting the “give or get” goal.
Other organizations have “give and get” policy instead. This has increasingly become the recommended approach for more established nonprofits. Directors at these organization must give a minimum personal donation, andalso have a separate fundraising goal.
But the key to an effective give/get policy, particularly for a new nonprofit, is to view it, and implement it, as a carrot rather than a stick. More on that to come.
What’s the point of having a give/get policy?
The most obvious purpose is to raise funds. Multiply thenumber of board members by the goal, and you now have a fundraising expectation for the board as a whole.
This is a pretty good start for your new organization!
But there are other less obvious reasons for a fledgling organization to implement a give/get policy right from the get go.
First, it reinforces that that the directors on your board are in a leadership role.
It’s the carrot you need to involve your directors as leaders because it inspires them to step up and take on that leadership role.
Remember when we discussed creating a movement around your new organization? The board is a key part of ensuring that your movement grows and expands into something real.
A give/get policy directly connects your organization’s directors with the bottom line of funding the organization. Now the organization isn’t just an abstract idea - it’s a real thing.
When directors feel responsible to raise funds for the organization, they will also feel more connection to how those funds are spent. This will lead to a more engaged board.
Second, it tells external funders that you have a committed board.
Your give/get policy is basically a public declaration that your directors have invested in your organization and are committed.
Having a committed board impresses foundations and other grantors. In fact, some foundations won’t fund organizations without sufficient board giving.
Organizations with committed boards get more funding. Period.
Third, it sets clear expectations.
Directors know what’s expected of them, and you know what to expect from them.
Having a give/get policy can be the carrot you need to inspire your directors to be sure to hit the goal. It can inspire you to manage them more effectively so that they hit the goal, so it’s your own carrot too.
There are now measurable goals for directors so that you know how each director is performing or not performing.
You may have to hunt harder for the right directors. But it will tell you who is ready to serve as a director and who should simply serve on a committee or volunteer.
It will also tell you when a director might be better suited to a non-director role. If a director can’t meet the goal, then you’ll need to transition them off the board, hopefully to a different role.
Having a policy will make those conversations much easier. A give/get policy implemented as a carrot rather than a stick will allow you transition these directors to different roles without as much hurt feelings.
Finally, it also ensures that you’re tracking director contributions, which means you’ll know when to give praise and accolades. A big carrot! Never forget this important part of your job.
Getting Past the Roadblocks Of Setting Your Give/Get Policy
I’ve heard a zillion objections from nonprofit founders about implementing a give/get policy from the outset.
I’m worried that it will make it harder to recruit board members.
I’m concerned that that it may push away board candidates who could be otherwise valuable.
I’m afraid to make the ask!
Isn’t it better to keep it vague at first?
But I’m just getting started, how can I ask for money?
My directors are already doing so much. How can I ask them for money too?
My directors barely do anything. Asking for money may make them disappear.
My directors are my friends and family. How can I ask them for money?
Aren’t those just for nonprofits that are already established?
This is just another version of “imposter syndrome,” and it’s very common with founders. Your new organization barely exists so asking for money is premature, right?
Wrong!
If you’re setting up a nonprofit organization, better to do it effectively from the beginning. Otherwise, you’re going to eventually have to ask all those nice people who aren’t donating or fundraising to leave your board so that you can fill it with better directors.
That won’t be fun.
This type of timidity results in weaker and less engaged boards.
The key is to walk right past those objections and set your board up with a give/get policy right away. Viewing it as a carrot rather than a stick will make this easier.
Another key to doing that is having an understanding of just howyour directors can actually meet their goals.
How To Create Your Nonprofit Organization’s Give/Get Policy
As a first step, you need an actual policy. This will evolve over time. But at the very beginning, there is nothing wrong with a very simple policy, approved by the board, stating:
Give or Get: Directors of XYZ organization commit to raising contributions through personal donations or fundraising activities of at least $X per year.
Give and Get: Directors of XYZ commit to personally donating at least $Y per year and raising contributions of at least $Z per year.
How do you get your directors to “give”?
In an alternate universe, your first newly recruited board would be filled with directors who personally donate what you need to get your organization off the ground.
But that’s probably not the case. Sigh.
So, then what?
This is where the distinction between a “give or get” policy and a “give and get” policy comes in.
If you have a “give or get” policy, then directors can raise the required funds rather than dipping into their own savings accounts. More on that later.
If you have a “give and get” policy, then all of your directors make a personal donation and also fundraise. This has become a recommended approach by some because it ensures a personal commitment by the directors.
If you go this route, remember that the actual amount of the donation may be less important than that everyone gives. Remember, it’s a carrot not a stick, so your goal is always to use the give/get requirements to help your directors become better leaders.
Take a look at your potential prospects. What do you think they could realistically donate?
Remember, the “give” portion of the “give and get” may actually be small compared to the “get” portion.
But how can you get directors to “get?” They aren’t fundraisers!
There are a lot of ways for directors to fundraise, and you’re going to help them. This helps fund your organization. It gets your directors more invested in the success of your organization.
And it gets you more invested in the engagement of your directors. You’re going to give every director at least one (and hopefully more) fundraising tasks.
You can even set up a development or fundraising committee of the board to monitor and help manage and plan fundraising efforts. This gets your directors themselves more invested in the engagement of the board.
Here are some of the more traditional ways that directors can fundraise for your organization and meet their “get” goal. Your directors can:
Ask friends and family for donations.
Throw a fundraising event for the organization. Salon-type events in a director’s home can be surprisingly effective.
Lend their name to fundraising letters.
Make personal introductions and pitches to potential funders.
Sell tickets to a fundraising event.
Get matching contributions from their employer.
Here are some more innovative ways that directors can fundraise for your organization and meet their “get” goal. These may require some work on your part, and there are limitations on how/when they can be used. But they can be a great way to get directors fundraising and more involved.
Facebook® fundraisers.
Crowdfunding campaigns.
Peer-to-peer fundraising campaigns.
Manage the application process for seed grants.
Manage the application process for social entrepreneurship competitions.
Some Final Thoughts
If you’re a new nonprofit or if you’re just in the formation stages, the objections to requiring director donations or fundraising can feel quite loud. You’re scrambling just trying to find supporters and build a movement behind your idea.
That movement is important, and you don’t want to slow it down, or worse yet, stop it. You want to get people involved, brainstorm together, building programs together, strategize together.
The key is to treat your give/get policy as a carrot rather than a stick. Don’t make it more complicated than it has to be. It’s just another way of getting people more involved in your organization. Just another part of building your movement.
Remember all the hats that your directors can wear? One of them was a funder hat, and another was a volunteer hat.
Your give/get policy inspires your directors to wear these hats and grow into their leadership roles. It encourages some of the best and most appropriate kind of leadership activities by directors – fundraising to ensure that your organization can make impact.