F. Warren McFarlan - Effective Fundraising

The work of donor management by the governance committee can be multigenerational. Consider the following story. A university alum had great success professionally in the for-profit world. He then followed this work up by leading a nonprofit institution with distinction for a decade. On his retirement, his alma mater gave him a picture of their campus as part of thanking him as an alum for giving such distinguished service to society. To their surprise, several weeks later, he appeared on campus to present a $20 million gift for a vital new facility. In subsequent years, he became a trustee of the institution and ultimately head of its next capital campaign, where his philanthropy only grew. Today his children (also alums) are now trustees and supporters.

Relationships grow in complex and unexpected ways over long periods of time. In ways not always recognized in the literature, governance and development are absolutely interlinked. The cold reality is that the closer people are to the heart of an organization, the more generous some of them become. It should not matter, but the fact is, it does. Unfortunately, the larger a deliberative group is, the longer and more diffuse its discussions can become. This means garrulous donor trustees are a real burden versus those who drop off for a short nap (as long as they do not snore!). This puts a special burden on the governance committee to properly vet potential board candidates to make sure they will comfortably fit into the board activities. When there is doubt, a year's advance service on a board committee can provide useful insights.

In summary, the governance committee of the board is fundamentally responsible for spearheading the creation of a board and network of supporters, who can mobilize the resources to allow the organization's mission to become reality. This task can take years to execute. Exhibit 2.1identifies key levers that can be activated by a governance committee to impact the development environment in an organization. The organization needs not only board members who can help bring the mission to reality, but also a CEO and board chair who share this perspective and have the skills to make it happen. Juggling this among other priorities of the organization is very hard for the governance committee. It can be particularly hard to get started, in cases where it is hard to find mission supporters, let alone affluent ones. From this perspective, geographically centralized communities, such as churches, schools, and universities, can find it much easier to attract donors than cause-oriented programs such as healthcare in homeless shelters.

Size of board

Number of development trustees on board

Trustee postboard service links

Number and length of terms for a trustee

Head of development committee serves on governance committee

Vice-chair exception—a great way to keep indispensable trustees who have completed their term

Friends and potential trustees serve on board committee

Has the board taken into account the development needs of the organization in building its board and officers? Is there an appropriate development climate in the boardroom?

Is the governance committee appropriately focused on development as it recruits new members and officers?

Are appropriate mechanisms in place to ensure lifelong connectedness of key trustees as their terms expire?

Have we found ways to engage friends of the organization in advisory committees to keep them close, even if they are not board candidates?

Capital campaign committees and annual fund committees chaired by trustees and composed of friends are widely used tools to broaden development involvement. Are they being used in your organization?

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