Some Board Members of fundraising nonprofits make no financial gifts at all to the organization or make relatively small gifts. I call this the “Low-Giving Syndrome”. Is this OK?

Furthermore, if a prospective Board Member tells you before they are asked to be on the Board that they have other financial priorities (philanthropic and/or non-philanthropic) and may not give much, should you go ahead and ask them to be on the Board anyway?

In other words, are there special attributes, talents, or connections a Board Member can bring to your group that will justify this lack of giving?

I ask these questions because I hear these remarks about Board Members from organization leaders –

Joe doesn’t give much, but he gives us his time as Treasurer.
Jane doesn’t give much, but her connections to other corporate CEOs in the community are very helpful to us.
Chris doesn’t give, but he is so well regarded in this town – we feel lucky to have him on our board roster.

For Board members, no matter what they bring you otherwise, low giving or not giving is not OK. Instead, your Board needs to follow industry best practice when it comes to Board giving.

It’s easy to say they should give generously, but what IS best practice for Board giving?

After many years of observing the Low-Giving Syndrome among some Board Members, I’ve learned the following from experienced fundraising executives, management consultants, and professional organizations in our field:

Every one of your Board Members should be giving annually at or above a minimum level established by the Board. Your Board Chair should talk with each Member about this expectation before they come on the Board, and if needed, every year they stay on the Board.

Here’s why:

Over time their lack of giving or low giving will depress the giving of other Board Members. Low giving Board Members are known to be such by the other Board Members – they see the financials and donor lists.

Also, many of these low-giving or no-giving Members do have a strong personal income, and it’s clear from their other giving or from their job title or their lifestyle that they COULD be prioritizing this organization in their giving, and they’re not doing so. This is discouraging to their peers on the Board, and communicates lack of commitment.

Another reason is that no- or low-giving on the Board sets a bad example to potential funders or major donors to the organization. They often look at Board giving as an indication of enthusiasm for the organization.

Ah, you may say, that’s all pretty tough. Don’t we want a diverse set of people on the Board? Don’t we want people who bring special talents that we would have to hire otherwise? Don’t we want people whose names add a glow to our Board list? Don’t we want representation from the beneficiaries of our work (who may be lower income)?

Let’s look at all the arguments against every Board member giving at or above a certain level:

What about the “time is money” argument? Well, sure, time IS money, but everyone on the Board is bringing that currency. In fact, some Board members who give financially at a high level ALSO give generously of their time, even though they are very busy people. So that argument doesn’t wash.
What about the “professional skills we don’t have to pay for” argument? I see this all the time, particularly among accountants and attorneys. Unless your organization is brand new and has no money, I recommend PAYING for those critical skills when you need them. You will be more popular with folks in these professions because you respect their professionalism, and you will probably get better service than you would get from the already over-worked professional you talk into giving you the services. It’s simply too much to ask of these professionals, and if they are not giving much financially because of providing pro bono services, you’re also giving up something valuable (and it’s not just the money, as I discussed earlier).
What about the goal of having a diverse Board? Let’s think about that a moment. Are you saying that women, minority groups, or the disabled (for a start) don’t have the funds to be on your Board? That doesn’t hold water. Lots of “diverse” people can afford to give as a Member on your Board. Your job is to make sure there’s a pool of them to choose from by engaging as many diverse people in the work of your group as possible.
What about those glowing names you want on your stationery, even though they don’t give much? My advice is to go to lunch with those luminaries once or twice a year, to get their assistance in finding new donors or even Board Members who will give, but don’t put them on your Board. It will only lead to resentment among the rest of the Board, and you may not get those valuable lunch sessions that you really need.
Finally, what about putting beneficiaries of your work – who may be lower income – on your Board? Well, if your by-laws require it, by all means put them on, but try to find ways these folks can contribute financially, as much as they are able. For example, they might help lead an effort to start a Legacy Society by putting your group in their estate plan, or they might start a monthly giving plan themselves and help with the outreach to start a monthly giving group. Get them involved in fundraising – don’t hang back just because you know they aren’t wealthy.

If your by-laws don’t require putting beneficiaries of your work on your Board, and they are mostly lower income, you should probably create an advisory committee that will utilize their input and stories for outreachand make sure the committee has a formal advisory role with your Board.

Remember, you can build a committee structure that will include others who bring something valuable but can’t give financially at the level required by the Board. Not everyone who can help your organization needs to be on the Board.

Are there any exceptions to my advice about best practice above? Yes, of course, but exceptions should mostly occur only after a Board Member joins the Board and then has adverse circumstances like losing their job or their company, long illness in their immediate family, or some other catastrophic event. You will be able to deal compassionately with those circumstances in the short term, if the Board Member has an interest in staying on the Board at all. But those exceptions should occur infrequently.

With clear giving expectations set by the Board itself, plus frank conversations that happen consistently, you can have an All High-Giving Board!