4 things volunteer boards need to know for stronger fundraising oversight

Fundraising isn’t what it used to be. The loyal donors who wrote annual checks year after year are giving way to a new generation with fresh perspectives, different motivations and a whole new set of expectations. At the same time, many mission-driven organizations are facing shrinking donation pools and mounting financial pressures.

For volunteer board members, this creates a tough but critical responsibility: overseeing fundraising efforts in a way that not only keeps the organization afloat but also helps it thrive.

The good news? Board members don’t have to have decades of fundraising expertise to make an impact. By leaning into their diverse backgrounds, asking the right questions, and staying informed, they can help turn today’s challenges into tomorrow’s breakthroughs.

4 things volunteer boards need to know for stronger fundraising oversight

Donor profiles are changing — from a traditional base of long time supporters to a newer group with different giving philosophies, connections to the cause and motivations. Donations are down.

A board with strong oversight will be on top of these warning signs, with directors and trustees ready to bring their unique perspectives to the table, brainstorm solutions and turn challenge into opportunity.

For mission-driven organizations, successful fundraising is the lifeblood of sustainable operations, with effective oversight of this area one of the board’s biggest responsibilities. Yet it’s an area of countless intricacies, with many directors and trustees coming into their positions without much pre-existing experience.

In this quest for excellence, knowledge is power. Here are four things to know to lead your organization into becoming — and remaining — a fundraising powerhouse.

1. Know the right questions to ask

Successful oversight of any important area of operations involves ongoing discussions with management. So you’ll want to make fundraising a regularly occurring item on the agenda of your next board meetings.

To make the most of these recurring discussions, ask questions that get to the heart of strategy and operations, such as:

• How have various fundraising sources been performing? Any sudden dips or anomalies? A yes answer could spur the need to look at new funding sources.
• How have campaigns been performing against both budgets and expectations? When identifying the most successful efforts, it’s also important to make sure the expenses don’t outweigh the benefits.
• How are your efforts tracking over time? Metrics like conversion rates, average gift per donor and cost per dollar raised can be invaluable in spotting and responding to emerging trends.

As Mallory Erickson, host of the What the Fundraising podcast, points out,

"Fundraising is not about hounding people to give. It’s about aligning people’s deep desires for their community and the world with your solution."

2. Know the regulations

Given the involvement of financial data, personal donor data, tax exemptions and, in the case of grant funding, government reporting requirements, fundraising is an area of great regulatory interest — and this is only growing as data protection and anti-fraud initiatives rise on the radar of authorities worldwide.

In fact, our blog on fundraising regulations around the world is one of our longest. For boards of mission-driven organizations, it’s more important than ever to stay up to date on the latest regulations covering fundraising for your jurisdiction and sector, especially if your work involves healthcare and financial services.

Assign a committee to continually monitor rules at the federal, state and local levels, so you can make sure these developments are reflected in your organization’s fundraising and compliance activities. This includes:

• Registration filings and deadlines.
• Requirements for disclosures, donor transparency, record-keeping and reporting.
• Stipulations on the use of funds or percentage of organizational revenue that can be used for fundraising.
• Data protection requirements, including notifications in the event of a breach.
• Legal mandates related to fraudulent practices, such as anti-money-laundering laws.

Mastering nonprofit fundraising oversight

Effective fundraising oversight is crucial for sustainability, yet many board members lack specific expertise. Our quick guide shows you how board management software can help your board navigate these challenges and drive fundraising success. Download the guide here.

3. Know your role

In the board’s oversight role, directors and trustees are responsible for working with management to ensure the completeness and success of the organization’s fundraising plan,

Ideally, this plan includes detailed strategies for grant writing, donor engagement and community events, to ensure efficient operations and use of funds. As shown in this template, a comprehensive fundraising plan also includes:

• Background on the organization’s mission, vision, programs, beneficiaries and previous years’ work.
• Goals that are SMART: specific, measurable, attainable, relatable and time-based.
• A calendar of events and activities.
• Budgets for the organization as a whole and specific events and campaigns.

In many mission-driven organizations, board members are also responsible for a certain amount of fundraising themselves.

Mastering these skills, along with the complexities of organizational fundraising and the nuances of oversight vs. management, is a tall order. For this reason, ongoing training is another vital aspect of a nonprofit director or trustee’s role: to orient new board members to the basics, develop capabilities in vital areas like governance, non-profit finance and donor relations and keep everyone refreshed and current on the latest best practices.

4. Know how the right technology can help

If this all seems like a lot to add to an already-packed schedule, never fear.

Board management software, especially solutions purpose-built for mission-driven organizations, can go a long way in taming administrative overload, while maximizing the efficiency and results of these efforts:

• A secure, centralized resource library gives on-the-go directors and trustees a single source of truth for key documents, from training materials to committee updates to plans in progress.
• The ability to attach these documents to related agenda items makes board fundraising discussions more efficient and effective.
• Secure online workrooms keep committee work on track and sensitive materials and discussions protected.
• AI-powered summarization and minutes creation accelerate meeting preparation and follow-up while automated workflows and in-document annotation tools boost transparency, productivity and accountability.
• Built-in surveys and polls make it easy to gather feedback on fundraising campaigns from initial planning through execution and evaluation.

Put this knowledge to work today. Reach out today to learn how BoardEffect can strengthen your board’s oversight — and your organization’s fundraising success.