How Does Your Board Stack-Up?
A new survey by accounting firm Grant Thornton LLP reveals that just slightly more than half of non-profits require their board members to make financial contributions to their organizations.
In the past, many organizations have employed a “give or get” policy where board members are required either to contribute to the organization or to solicit contributions from friends, colleagues and other contacts. However, the fifth annual National Board Governance Survey for Not-for-Profit Organizations, shows that requiring board members to personally give is slowly becoming the norm.
“Board members are increasingly expected by other constituencies and stakeholders to set the example by personally making significant contributions,” said Frank Kurre, national managing partner of Grant Thornton LLP’s not-for-profit practice. “If an organization asks donors to make a contribution, they often expect the board members of that organization to have contributed as well. If an organization can show that 100 percent of its board members have contributed, it demonstrates loyalty and commitment to the organization’s mission.”
The survey also looked at how much board members are expected to give based on the budget size of the organization. The table below shows the range of gift expectations for board members, with the size of expected gifts increasing as the budget size of organizations increases.
| <$20M | $20M - $50M | $50M - $100M | $100M-$500M | >$500M | |
| $1,000 or less | 54% | 39% | 39% | 24% | 25% |
| $1,001 - $2,500 | 20% | 18% | 15% | 12% | 12% |
| $2,501 - $5,000 | 12% | 7% | 22% | 4% | 25% |
| $5,001 or more | 14% | 36% | 24% | 60% | 38% |
The Association of Fundraising Professionals 2006 State of Fundraising Survey also asked participants about board giving, specifically what percentage of their boards of directors financially support the organization. Respondents reported a significant amount of board giving.
Nearly nine in 10 respondents (87.4 percent) in AFP’s survey reported more than half of their board members made gifts to their organizations. In addition, more than seven in 10 respondents (70.6 percent) said that at least 80 percent of their board members contributed to their fundraising efforts, and about 60 percent indicated that more than 90 percent supported the organization financially.
A copy of the Grant Thornton National Board Governance Survey for Not-for-Profit Organizations is available (free) online. Responses to this September, 2007 Web-based survey were received from 603 not-for-profit executives and board members in 47 states and the District of Columbia.
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