Part one of a two-part series
Fundraising is at the heart of all nonprofits. Yes, mission, vision, values, and partnerships are all important, but financial resources are what keep the doors open. As a board member, you play a unique role in ensuring your nonprofit sustains and grows. You may think “we hired an executive director to take care of that,” but you are still responsible for the organization’s financial health. As a board, you collectively have to understand fundraising, how it works, and what it takes. This is different for each nonprofit, but it is your responsibility to be engaged with ensuring your organization is sustaining and growing, and not just getting by.
Whether it’s your annual fundraising or a special campaign, there is specific information each board member should know. This starts with knowing how much needs to be raised for what purposes, and what will be different if and when the goal is reached? You will need a case for support that communicates your fundraising goals and priorities and that shares the unique role your organization plays. This can be a brochure, content for a proposal, a video, or talking points that are shared and understood by all. And it needs to tie to your strategic plan.
Once you know what the organization is raising money for, you need to consider where the funds could come from. Knowing that you will apply for a specific grant, or that a certain foundation has consistently funded the organization in the past, doesn’t mean that either or both of these will be true this year. Ask your executive director to share who the top donors and prospective donors are, if you don’t already know. Because of increased uncertainty, we recommend building a pool of prospective donors who can collectively give three times the amount you need to raise. In practical terms, this means that if you are seeking $500,000, the organization should identify individuals, foundations, and granting agencies that can collectively give $1,500,000. You cannot jeopardize your nonprofit by assuming that everyone you think will provide financial support will actually do so. Or that they will do so in the timeframe that the money is needed. Likewise, if you need to raise $3 million, you want to work with a pool of prospective donors who could give $9 million.
As a board, you also need to know whether your organization has the capacity and infrastructure required to meet its fundraising goals. It takes money to raise money, and it is not out of line for fundraising costs to equal 20% of the amount you need to raise. You need experienced staff, technology, and time for the executive director to focus on fund development and fundraising; they can’t just add fundraising onto an already long list of responsibilities. Related to this, as a board, you need to discuss how much you are willing to give and how much you are willing to raise. Everyone doesn’t need to give the same amount, but everyone needs to give and be engaged in fundraising.
© 2026 Mel and Pearl Shaw, authors of “Prerequisites for Fundraising Success.” We provide fundraising counsel to higher education, nonprofits, and philanthropy. Video conferencing always available. Visit www.saadandshaw.com.
This post should be required reading in every nonprofit board orientation! Especially important are the points about having a larger pool of potential funders and properly investing in the fundraising infrastructure in order to get the job done. Lately I’ve been intrigued by the notion currently circulating in nonprofit spaces that boards shouldn’t take on fundraising as a primary responsibility, but as an ancillary one. In either case, board members still need to understand the context as outlined here. Great post!