Goal Directive
- The organization shall have an appropriately diversified funding base, and sufficient funding and financing to support the programs and organization.
- The various programs shall be developed to attract funders who are prominent in that field.
Indicators of Good Governance
- The organization is aware of the benefits of having a diversified funding base that promotes sustainability.
- An annual fundraising plan is approved by the board.
- The board is active in securing funding and other resources for the organization through identifying prospects, supporting donor cultivation and solicitation, and direct contributions.
- Where financing is appropriate, board members develop and/or approve proper financing strategies.
- Each board member makes an annual financial contribution to the organization, indicating that the board is engaged, supportive and committed.
Sample Q & A Guide
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Funders’ Questions For Nonprofits |
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Best Board Practices |
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| Does the board approve an annual fundraising plan?
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Yes. |
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| Is the organization's support base appropriately diversified? What opportunities would/does increased funding diversity bring to the organization? Would/do other funding streams enable you to leverage government support? Would/does government funding enhance the reach or effectiveness of your programs?
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Yes. Board members are aware of the benefits of a diversified financial base and are able to discuss its utility to the organization. |
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| Are board members involved in securing funding for the organization, from individuals and institutions, including their personal/business contacts? Does the board make an annual, personal contribution to the organization? How is the contribution level encouraged or enforced for individual board members?
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Yes, board fundraising is a systematic process managed by a fundraising committee and approved by the board. This committee contributes to and approves the organization's fund development strategy. In addition, Board members contribute consistently, and support fund development through individual solicitation, site visits with funders, and annual fundraising events to reach predetermined goals. Personal gifts are made by each board member commensurate with their means. A minimum (get and/or give) contribution may be required by some boards. |
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| Is there an active fundraising committee of the board?
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Yes, or the board operates on a model that mandates action by the full board. (The absence or inactivity of a fundraising committee might compromise the effectiveness of board and organizational fundraising. Committees that exist only for the purpose of an annual event are "event committees" and should be evaluated as such.) | |
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