Engaging Your Board For Effective Management And Oversight

Much of the subject matter of my previous posts has been about Board recruitment, development and responsibilities.  Here is where I tell you flat out and in no uncertain terms, where a board can overstep its power and in the most well meaning way – impede the organization from meeting its mission.

First, I need to talk about leadership.  The Board is the governing body of an organization.  They establish the mission and guidelines.  They recruit, hire and train the executive director.   And then, (here’s the hard part folks) they TRUST the executive director to handle and lead the daily operations of the organization.  A board cannot be an effective board if they get involved in every personnel issue,   marketing and communication pieces, or even each program that is developed.  Ever hear the expression, “too many cooks in the kitchen”?

Think of the board as the heart of the organization.  The board sets the tone and rhythm for the executive director to execute its directives.  They help with many tasks – including fund development, program development, finance, etc.  The board should focus on the big picture and the board members should focus where their personal talents and skills can most benefit the organization.  At any given time, a board member can be called on to assist in the writing of a marketing piece, help with a grant proposal or even offer advice on daily management.  Now, here’s the but – BUT, an effective board with an effective executive director knows that it is not a good use of time or resources if the ED is not empowered to make decisions and act on those decisions when necessary.

At times there can be a temptation for the president or executive director to rely too heavily on the board as a whole to review printed materials, critique solicitation letters and approve stewardship correspondence. There is a natural inclination to do so, especially when the organization is new and the board  is in its formative stages. Yet it is incredibly inefficient in trying to simply get things done. I know of one president who had her entire board review, edit and otherwise re-write each of three solicitation letters. To say this "gummed up the works" is an understatement. In addition, the Rule of Thirds came into play: one third read and commented on the letter, one third reviewed it and had no comments whatsoever and the remaining third never remembered seeing it. Needless to say, it wasn't the most effective use of anyone's time.

Should your organization contract with a professional grant writer?

There really is no one size fits all answer to this question.  You have to evaluate your organization’s situation, the grant writer’s skill (and fees) and the possibility of return on your investment. 

Here are a few pros and cons to using an outside grant writer:

Pros:

1. Expertise.  Generally speaking, grant writers understand the process and can help guide you through it.  They can research for the funding, write the grant and often help with the follow-up required to tie up any loose ends.  If you are a smaller organization, you might not be able to hire someone full-time with this level of expertise.  Hiring a contractor in this case would make sense.
2. Flexibility.  Using a contractor allows you to decide if you are content with the work they are completing on your behalf and if you are not, to discontinue the relationship.  This isn’t always as easy with an employee.
3. Focus.  A grant writer that charges by the hour wouldn’t stay in business long if they were “goofing off” on company time. 

Cons:

1. Institutional Knowledge. An outsider will not have the advantage of seeing the day to day operation and might not always understand those special nuggets that make your organization unique.
2. Priority.  Most grant writers will take on only what they can handle.  You want to make sure that you are working with someone who has the time to give your organization and its needs the appropriate amount of attention.

As with any line item on your budget, you want to make sure you are utilizing your organization’s resources wisely.  Grants can be a very large component of your income and must be treated with great attention to detail.  

Fund Raising vs. Development

After more than 40 years working directly for non-profit organizations, I recently made the decision to become a consultant.  Being a consultant offers me the unique opportunity to work with many organizations, sharing my experience and expertise.  I get to offer an outside voice to organizations of varying size, age and missions.  This rewarding experience suits my desire to enhance our local non-profit community.  It also has presented me with some interesting and unexpected challenges.  Through this blog, I hope to share my insights along the way.
Working in development for as long as I have, my primary challenge was somewhat unexpected.  Clarifying the difference between “fund raising” and “development” is so important and something I took for granted was inherent in every organization.  However, as I continue to explore our local organizations, I realize it makes sense to help make this distinction more clear. 

Simply put fund raising is one part of the broader term development.  Your typical fund raisers have short term goals to bring in revenue immediately to an organization.  Development, on the other hand, involves many strategies to successfully fund organizations’ missions for the long-term.  

A commitment to purely fund raising is not always detrimental.  It can be appropriate when an organization is committed to a cause that has a clear beginning and end to its needs.  For example, funding a budget for a summer camp for one summer for a group of at risk youth might require a one- time fund raiser.  On the other hand, using sound development strategies that same camp can operate and serve thousands of children for many years.   

Development could include any or all of the following:

* Prospecting
* Marketing
* Research
* Goals and Objectives
* Creating a strategic plan
* Annual
* Planned
* Grant Writing
* Direct Mail
* Special Events


Understanding this distinction is extremely important as each of our community organizations determines their individual futures.  Long term sustainability is only achievable with a commitment on the part of all those involved to move away from purely fund raising and onto a development strategy that encourages the right donors to make the right type of philanthropic investment at the right time.