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(from an ongoing series in the Grantstation.com newsletter: Grantseeking and the Nonprofit Board - a conversation between Alexandra Peters and Cindy Adams. This is part 1 of 5)

Introduction by Cindy Adams, CEO of GRANTSTATION

Developing a partnership with your board in the grantseeking process is a somewhat new concept. Boards are often less involved in grantseeking then they are in any other type of fundraising effort. In fact, there is a misconception that the board really has no role in the grantseeking process. However, the board can be extremely helpful in building the credibility of your organization in the eyes of the grantmaker.

Over the past three to five years there has been a trend within the grantmaking community to take note of the role of the board within the organization. Not just the typical question of do they donate money, but rather an eye toward the board’s involvement in the guidance of the organization. And if they are actively involved in oversight, that board will be a more credible board.

This Tracks to Success series in the Grantstation newsletter is a free flowing conversation between Alexandra Peters, one of the most accomplished and experienced board leaders I have met, and me, (about 40 years of grantseeking experience.) We hope that this conversation will shed light on the role of the board of directors in identifying and securing grant funding.

Waiting for a handout from the board?

Board Myths... and Misconceptions – Part One

Cindy: You have decades of experience serving on both start-up and well-established boards, Alexandra. So, before we dive into the role of the board of directors in grantseeking, I want to talk about the overall board role in guidance of the organization. There are many ‘Board Myths’ out there. For example, in order to be on a board you have to “give, get, or get off.” Which of the popular myths do you think are the most harmful, or cause the most problems for an organization?

Alexandra: Just listen to the sound of “Give, get, or get off!” It’s angry. So many of the myths around board members and what the board does have a tone of anger, outrage, and even disrespect. How many times have we heard staff or other board members comment that the Board “never does anything” or that Board meetings are just a bothersome, monthly or quarterly duty that needs to be endured?

Because there is a common misperception that the board’s role is really just fundraising, (typically meaning reaching out to their friends and contacts) there is both frustration on the part of staff (“Why won’t the board do what they’re supposed to do?”) and confusion about what the board is there for. But what they’re “supposed to do” isn’t necessarily what staff think it is.

Before anything else the board’s job is defining the mission: the goals of the organization, what changes the organization hopes to bring about, and who or what will be affected by those changes. This isn’t a corporate exercise or a party game. This is creating a belief system that can be put into a statement defining what you do, why you do it, and what changes it will effect in the world. And it’s the board that signs off on it.

Cindy: You’re absolutely right that the mission statement drives the organization, and it can be used in grantwriting to strengthen a grant request.

Board members are usually asked to develop a short elevator speech based on the mission that they can use to articulate the reason why the organization exists. This pitch can be very helpful if/when a board member meets with a potential funder. But I always feel as if the board member needs to internalize the mission, make it their own so that when a board member talks about the organization it is genuine.

Alexandra: But it’s more than learning to internalize it. The board actually creates the mission, shaping the future of the organization. The board’s most important job is defining why the organization needs to exist. The process of looking at this question is so critical that boards should be spending time at least once a year, perhaps even a whole board meeting, to address it. (Yes! Really! It’s probably the most important and interesting meeting of the year.) Because the landscape is always changing, there are many other questions that will also get asked at this meeting:

• Are other organizations doing what we’re doing? How does their work affect ours?
• What has changed from the last time we asked this question? Are we still as effective/as necessary as we used to be?
• Who is affected by our work? How do we change lives?
• Is the way we are going about this the best possible way? What has changed in the world that might help us work differently?
• If we ceased to exist, what would happen? What difference would it make in the world?
• What does our existence make possible?

Once you have regularly been part of a conversation about why your organization needs to exist, internalizing the answers to that question comes naturally. Then the elevator speech becomes second nature.

Cindy: I love the idea of having this kind of extended conversation during a board meeting at least once each year. I think this discussion could really provide the fodder for requests for both general operating funds and capacity building funds. I am surprised that I haven’t thought of this in the larger context.

I do often encourage boards to meet once a year to review the mission statement and then date stamp the mission, such as: Board Review: January 2011.

That kind of small detail can help build the credibility of the organization when you attach the mission statement to a grant request, quote from it on your title page, or use it somewhere within the body of the grant proposal.

Alexandra: Boards are always told that they must give money to their organizations because funders require it. How true is this, Cindy? Wouldn’t funders primarily want to know that the board is doing their job of oversight? Wouldn’t funders be more concerned about having a board that can focus on the sustainability of an organization, more concerned about assuring that the board is doing what it’s supposed to do?

Cindy: In a way we’re talking apples and oranges. Of course grantmakers want to know that the board is providing oversight, and focusing on the long term sustainability of the organization. But there is a credibility factor that comes into play if individual board members actually contribute to the organization.

Alexandra: So what I’m hearing is that every board member should give something, which makes sense anyway, but the amount isn’t the critical issue? It’s being able to say that the whole board gave?

Cindy: Yes, to some extent. There are some grantmakers that give substantial emphasis to the issue of board members making a financial contribution to the organization, but others that don’t seem as concerned (particularly about the amount). There is no hard and fast rule to be followed. But a good way to demonstrate board support without having to get into too much detail is to have a line item in your general operating budget under Income that is titled: Board of Directors Donations. It conveniently answers the question without expressly stating it in the proposal narrative.

Referring to your board throughout the grant proposal, such as in the budget, can also lend credibility to a grant request, and answer some of those touchy questions such as board giving.

Next week, let's talk about what sort of engagement you have seen at the board level in grantseeking in general, and perhaps that discussion can lay the groundwork for engaging the board in the grantseeking process.

Cynthia M. Adams

Cynthia M. Adams, founder and CEO of Grantstation, has been a fundraiser for over 35 years. Working directly for nonprofits and as a fundraising consultant, Cindy specializes in building bridges between funders and grantseekers. She strongly believes that successful grantseeking requires a thorough understanding of the funders and sound knowledge of the playing field. Her life's work has been to level that playing field, creating an opportunity for all nonprofit organizations to access the wealth of grant opportunities throughout the world. www.grantstation.com

Alexandra Peters 

Alexandra Peters joined her first board 30 years ago and has been fascinated with how nonprofits work ever since. She has served on 13 boards of many sizes and budgets, and has chaired 6 of those. She holds a masters in Developmental Psychology from Columbia University, and has never stopped studying nonprofit governance and leadership. She is a passionate advocate for the meaningful work of nonprofit service, and her real life experience as a board member has given her hands-on expertise in all parts of the nonprofit process. www.boardseye.com