Research Gleanings: Nonprofit Governance Practices that Predict Strong Fundraising Habits

By Dr. Harry Bloom, Founder and President, Benchmarking for Good, Inc.

During my doctoral studies at the Azrieli Graduate School of Yeshiva University, I was motivated to conduct largescale research on which nonprofit Board governance practices most significantly influence schools' financial and educational success. in a series of posts, I plan to share the fruits of that research. This post will present a research-validated governance roadmap to securing a Board seriously invested in its fundraising role.

What are the Board-Related Fundraising and Advocacy Practices Schools Want to Promote?

Fundraising is vitally important in ensuring the sustainability of day schools since schools typically rely on voluntary donations for 20-50% of their operating budgets. My experience as an Advancement Director suggests that these are the fundraising and advocacy practices Boards should embrace:

1. Board members give their school one of their top annual philanthropic gifts.

2. Board members attend and generate financial support for all school events.

3. Board members participate in major donor identification and cultivation.

4. The Board has an active Development Committee that sets fundraising policy and provides active fundraising leadership in support of the various campaigns of the school.

5. Board members actively communicate the school’s value and contributions to the community, including prospective families, community leaders, and donors.

   
   

   Which Governance Practices Predict Whether a Board will Embrace its Fundraising and Advocacy Role? 

   
   

   Our research, based on input from over 100 Board presidents-- found that the following good governance norms predict whether Boards succeed in embracing the aforementioned Fundraising and Advocacy practices.

Rationale

It makes perfect sense that these five governance practices lead to strong Board involvement in fundraising and advocacy because they align with three key principles of effective "teamwork." 

• We Hold Each Other Accountable: Heads of School are held accountable for reaching agreed-upon goals, and Board members for avoiding conflicts of interest and prioritizing the school's interests over their own.

• We Stay in Our Lane: Board members concentrate on their role in supporting the school’s strategic objectives and refrain from interfering in operational matters that undermine Head of School accountability.

• We Understand and Can Effectively Promote the Need for Financial Support: Board members are educated about their role in maintaining the school’s financial health and feel confident in making fundraising requests and engaging potential donors because they genuinely understand the school’s programs, their advantages, and their costs.

Next Steps

To discuss the implications of this article for your school's governance and advancement program and learn about how your school can participate in Benchmarking for Good's Governance survey grant programs, please contact Dr. Harry Bloom at harrybloom@benchmarkingforgood.org

#Nonprofit   #Governance   #Fundraising    #Board   #Education