The broad purpose of a board of directors is to run an organization effectively. Board members are bound to ensure that their particular organization is operating within state and federal laws, earning its money honestly and spending it responsibly, and adopting programs and procedures most conducive to its mission. Among the responsibilities board members must assume is a responsibility for the organization’s continued funding and financial health. In this respect, board members have two tasks: to give money and raise money. In other words, fundraising.  More often than not, however, board members hesitate to embrace these two activities. 1

The reluctance of board members to take responsibility for fundraising can usually be traced to two sources: 1) board members don’t understand the importance of taking a leadership role in fundraising, and 2) they are afraid of asking for money. Board members cannot give themselves wholeheartedly to the process of fundraising unless these two problems are resolved. 2

The reason board members must take a leadership role in fundraising is simple: they own the organization. They are responsible for the organization’s well-being and its successes. Furthermore, their supporters and potential supporters see board members as the

people most committed and dedicated to the organization. If they, who care the most about the group, will not take a lead role in fundraising, why should anyone else? More and more, sophisticated individuals and foundations are asking organizations about the role of the board in fundraising and taking a more positive look at groups whose board plays an active part. 3

Jeff Brooks is creative director at Merkle, the premier provider of fundraising services to the top North American nonprofits. Steven Screen is founder of UberDirect, an advertising agency specializing in direct response marketing and fundraising. Between them, they have more than 35 years of experience helping excellent nonprofit’s raise money for their causes. That’s a lot of years, but they aren’t all that old, really. 4

Most executive directors and consultants sometimes shy away from talking about personal giving because it is uncomfortable at best. But let’s just make this crystal clear - you can’t expect others to give to the organization, this includes foundations, unless all board members are giving themselves. Many times however board member will remark that they can’t afford to give as much as others. While this situation is understood, it also brings to mind a story involving a widow’s mite,’ and how important a single small gift of the heart can be to an organization.Lastly, the success of a nonprofit organization has as much to do with the heart and soul of the organization as the bank account balance! 5

Many non-profit organizations take advantage of the services of professional fundraisers. These fundraisers may be paid for their services either through fees unrelated to the amounts of money to be raised, or by retaining a percentage of raised funds (percentage-based compensation). The latter approach is expressly forbidden under the Code of Ethics of the Association of Fundraising Professionals (AFP), a professional membership body. 6

Successful grassroots fundraising comes down to asking for contributions - money, goods, services - from a wide variety of people, both inside the organization and out. The active members of small grassroots organizations are usually very willing to contribute to their own organizations, but may be uncomfortable asking others for support. Over time, this sets up an unhealthy dynamic, in which a few core members contribute more time, money and goods (like office supplies) than anyone else. 7

Not expecting, asking for, and seeking out new opportunities to raise money shuts new members and supporters out of participation in the organization. The organization can develop into a small club over time, with the most active members thinking that since they do all the work, they should also be able to call all the shots in the organization. They stop seeking out new relationships and ideas from outside the core group, and the organization stagnates, or eventually dies for lack of interest. 8

Equally important are fundraising efforts by virtually every recognized religious group throughout the world. These efforts are organized on a local, national, and global level. Sometimes, such funds will go exclusively toward assisting the basic needs of others, while money may at other times be used only for evangelism. Usually, religious organizations mix the two, which can sometimes cause tension. 9

To begin to increase financial support for your organization, take a look at your mission, the reason your organization exists. Is your mission short-term, long-term or continuing? For example, if the sole mission of your organization is to stop a toxic waste dump from locating in your community, your mission is short-term, even if you wind up fighting the dump plans for five years. You have one specific, concrete objective and you can achieve it with active community involvement. Your need for funds is modest, perhaps $3,000 a year or less, and you can probably raise all the money you need by asking for contributions and holding fundraising events locally. Small, local, short-term organizations should see grassroots fundraising as their primary, if not only, source of funds. 10

Paid staff do have specific roles in fundraising. These are to help plan fundraising strategies and coordinate fundraising activities; keep records and take care of routine fundraising tasks such as renewal appeals; and assist board members by writing letters for them, forming fundraising plans with them, and accompanying them to solicitation meetings. Fundraising staff provide all the backup needed for effective fundraising. It is clearly impossible, however, for one person or even several people to do all the work necessary in a diversified fundraising plan. 11

If your mission is continuing, such as working to combat racism in any form it takes in your community, then you will need a healthy mix of grassroots fundraising that expands over time. While some grant sources might be available, they also dry up, shift and change frequently. Almost all grant sources have time limits. 12

Foundation and government grants for the start-up of new non-profit organizations are few and far between, and competition is stiff. Ongoing operating support beyond three to five years is uncommon. Grant funding for specific short-term projects beyond three to five years is available, but again competition is stiff, and foundations and governments shift their areas of interest all the time. If your organization has a long-term, continuing mission, then grassroots fundraising must become a major and growing source of revenue over time. 13

Look at your organizational budget from the revenue side. What were your sources of funds last year, and what percentage came from grassroots fundraising? If the answer is zero, set a goal to raise at least 10 percent of your budget from grassroots funds this year. If the answer is anything other than zero, set a goal to increase your grassroots fundraising income by at least 10 percent over last year. 14

Organizations in the United States established for charitable purposes are allowed to raise funds from many sources. They are given a specific designation by the Internal Revenue Service (IRS), commonly noted as 501(c)(3) organizations. Other nonprofits such as fraternal associations have different IRS designations, and may or may not be eligible to do fundraising. Financial information on many nonprofits, including all nonprofits that file annual IRS 990 forms is available from GuideStar. 15

References
1.  www.nhi.org
2.  www.nhi.org
3.  www.nhi.org
4.  www.donorpowerblog.com
5.  www.nonprofitexpert.com
6.  en.wikipedia.org
7.  www.virginia-organizing.org
8.  www.virginia-organizing.org
9.  en.wikipedia.org
10. www.virginia-organizing.org
11. www.nhi.org
12. www.virginia-organizing.org
13. www.virginia-organizing.org
14. www.virginia-organizing.org
15. en.wikipedia.org