What is Giving Compass?
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Many boards spend considerable time defining the board’s role in securing adequate resources for the organization. Personal contribution is an essential part of that discussion. Each board should determine its own personal giving policy. For boards that raise funds, the target should be to reach 100 percent board member participation.
Why should board members give?
Board member giving is natural and necessary. Here are some rationales:
- Board members of most charitable organizations are expected to participate in fundraising. An appeal is particularly convincing if a board member can use him or herself as an exemplary donor.
- The board is responsible for providing a sound financial basis for the organization. By personally contributing, a board member recognizes this responsibility and demonstrates a commitment.
- Nearly 90 percent of American households contribute to charities. A board member should designate their own organization as one of the main recipients of their generosity.
- Many foundations only contribute to organizations where every board member is a contributor.
Giving policies
The board must draft a fundraising and personal giving policy. A strong leader during the decision-making process — a sensitive peer who is in a good position to make the case — can help find a consensus among board members. As the decision affects each board member individually, it is necessary to create a policy that can be enforced. To avoid any misunderstandings and false expectations, every board candidate should be familiar with these policies.
How much is enough?
It often is not appropriate to ask each board member to make an equal contribution. Some board candidates might find the amount too high; therefore the policy would eliminate valuable prospects from joining the board. Others may have considered contributing more but a lower suggested amount could change their minds.
Most policies set a range, suggest a minimum amount, and/or encourage each member to give generously according to his or her means. One set of guidelines may not be appropriate for every board.
Read more about board members and giving at BoardSource.