Big names = big bucks?
Robert Herman and David Renz followed 44 US community-based human service organizations over a five-year period. Some of the organizations placed a priority on increasing the prestige of their board of directors; others did not. All were engaged in active fundraising and revenue-generating activities.
They found that as the organizations increased the prestige of their board, there was no corresponding increase in revenue. In fact, the opposite seemed to happen! The organizations without prestigious boards saw a greater increase in revenue.
At first I was surprised, but in thinking more about what I see with my clients, this makes sense to me. Many mid-sized nonprofits seek wealthy board members. The rationale is: we will find a wealthy person, they will lead our pathetic fundraising committee, invite all their friends to be part of our cause, and our fundraising woes will be over. Usually what happens is that the new board member doesn’t want to do the fundraising, is already fundraising for other causes, or doesn’t have the time. The organization would have been better off to develop some good staff-led fundraising programs.
Hospitals, universities, major arts organizations –- I think they really do benefit from prestigious boards and they have a board culture of philanthropy. But if you are a mid-sized or grassroots group, don’t assume that the same rules apply. Your fundraising plan should not be to find a board member to solve all your problems!
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