Whether you are interested in joining a board, you are a first-time board member, or are a veteran board member, ensuring necessary financial resources for nonprofits is critical. There is so much more to the “F” word (fundraising) than asking for money. Join in this online conversation to learn about: • The role of fundraising in governance excellence • Board and staff roles in securing revenue • Strategies for board ambassadors to serve the organization’s mission • Fundraising policies and practices Presented as part of the Adobe corporate responsibility program

1. Board Service 201 | Board Ambassadors: Ensuring Necessary Resources
Corporate Responsibility | October 2017

2. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
A little about me…

3. Fiduciary DutyEnsuring Resources Fundraising

4. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
BOARD ROLES AND RESPONSIBILITIES
Set Organizational Direction
Provide Oversight
Ensure Necessary Resources

5. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
ENSURE NECESSARY RESOURCES
CEO
Board Members
Supporters
Policies
Planning
Board Giving
Prospecting
Cultivation
Stewardship

6. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
*Susan Kenney Stevens

7. DUAL BOTTOM LINE
MissionImpact
High Mission Impact
Low Profitability
[Keep, contain costs]
High Mission Impact
High Profitability
[Invest and grow]
Low Mission Impact
Low Profitability
[Close or give away]
Low Mission Impact
High Profitability
[Water and harvest, increase impact]
Financial Profitability
*Nonprofit Sustainability: Making Strategic Decisions for Financial Viability

8. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Board’s Fiduciary Role
Understand nonprofit financial foundations
Set up & monitor key financial indicators
Ensure financial control mechanisms
Approve the budget
Oversee legal obligations
Understand roles of board, treasurer, financial committees,
financial staff, internal controls
Plan for financial diversity and sustainability
*BoardSource

9. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
ASSESS FINANCIAL PERFORMANCE
ü Liquidity
ü Revenue & expense activity, diversification
ü Significant investments, policy & strategy
ü Reserves & policy
ü Donor compliance
ü Uniform Prudent Management of Institutional Funds Act

10. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Our Total
Fundraising Net:
Is this enough to fund our work?
Our Dependency Quotient:
Are we at risk if a top donor
changes its giving?
Our Cost of Fundraising:
Are our fundraising efforts paying
off efficiently?
How are we doing?
Source: Measuring Fundraising Effectiveness

11. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FINANCIAL OVERSIGHT QUESTIONS
•Are our current revenue streams sustainable in the
next year? Two years? Five years?REVENUE
•How might changes in revenue streams affect
operating results?OPERATING RESULTS
•If changes in operating results occur, how will these
changes affect our organization’s balance sheet?BALANCE SHEET HEALTH
•How will changes to the balance sheet affect our
organization’s liquidity?LIQUIDITY
•What are the true costs of each of our programs?
EXPENSES

12. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
PROTECT YOUR ORGANIZATION
Accounting
Policies &
Procedures
External
Audits
Internal
Controls

13. Board
Ultimate fiduciary responsibility
Provide financial oversight
Understand org finances
Review financial docs
Assess & minimize risk
Delegate tasks to committees
Committees
Finance, Audit, Investment
Make recommendations
Individuals do not have liability

14. COMMITTEES
Finance Committee Audit Committee Investment Committee

16. Hats We Wear
Legal Ambassador Volunteer

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What does it mean to be
an ambassador?
FUNDRAISING
PLAN & STAFF

18. The “F” Word…

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Fundraising is NOT…
BEGGING ATMs

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MISSION
Fundraising IS…
CAPACITY FRIENDS

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Enough Money to Fund
Programs
(total fundraising net)
A Responsible Balance
of Risk and Reward
(Dependency Quotient & Cost of Fundraising)
Healthy
Fundraising
Program
The Goal
Source: Measuring Fundraising Effectiveness

22. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Show me the money…

23. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Show me the money…

24. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUNDRAISING PROCESS
Prospecting Identification Preparation
Cultivation Build the
Relationship
Engage the
Donor
Ask for the Gift
Stewardship Recognition Reporting Communicating Engagement

25. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Fundraising by Time

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FUND DEVELOPMENT
Diversity
is key
Individuals
Membership
Special
events
Foundation
grants
Government
grants
Corporate
sponsorship
Earned
income
Service
clubs

27. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUNDRAISING BY THE NUMBERS

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DONORS & GIVING
BEQUESTS/PLANNED
GIFTS
MAJOR GIFTS
Capital campaigns
Endowment campaigns
Special events
ANNUAL GIVING
Annual campaigns
Special events
Direct mail
Online giving
Membership programs
ONSITE/FIRST TIME GIFTS
Newsletters
Volunteerism
Social media
Peer-to-peer giving
New Gifts ($)
Annual Donors ($$)
Midsize Donors ($$$)
Major Donors ($$$)
Planned Gifts

29. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Yes, but not
that much
No
3 Possible Outcomes YES!!

31. Philanthropy
Connection
Concern
Capacity
Giving Motivations
* Kay Sprinkel Grace

32. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
FUNDRAISING ROLES
EXECUTIVE
DIRECTOR
Chief Fundraiser
Media Spokesperson
Fundraising Planning
Board & Staff Liaison
DEVELOPMENT
STAFF
Fundraising Strategy
Moves Management
Identify/
Communicate Needs
BOARD OF
DIRECTORS
Connect to Funding
Make Gifts
Policies
FUNDRAISING
COMMITTEE
Board & Staff Liaison
Staff support on specific
efforts/campaigns

33. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
100% BOARD GIVING

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100% BOARD GIVING
Board
Giving
Commitment
Open
Ended
Flexible
Specific

35. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
BOARD ROLES
Meeting &
engaging with
people
Connector
Illustrating the
work in a
compelling way
Storyteller
Making the case
for the future
Visionary
Asking for
specific support
or involvement
Closer
*Creation in Common

36. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Fundraising Policies
▪ Gift acceptance policy
▪ Personal giving policy
▪ Ethics statement
▪ Sponsorship endorsement
▪ Donor relations
▪ Board member fundraising

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Mission Moments

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Ask the Right Questions
What is our capacity?
What does success look like?
What matters the most to us?
How does this serve our mission?
How does it fit our strategic goals?
How might this be a challenge for us?
Why is this important right now?
Why should we consider other options?
Why is this relevant to our stakeholders?

40. © 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Emily Davis, MNM
President, Emily Davis Consulting
Senior Governance Consultant, BoardSource
(720) 515-0581
emily@emilydavisconsulting.com
emilydavisconsulting.com