

SHOULD BOARD MEMBERS DONATE TO CAMPAIGNS TOO?
When For-Purpose organisations launch major fundraising campaigns, should their board members be required to make gifts, along with major donors, regular donors and the general public?
In relation to philanthropy and giving, the United States often leads the world in terms of dollars donated and developments in the practice of fundraising. In American For-Purpose, board members are expected to make proportionate financial contributions to their organisations and to all fundraising campaigns they undertake.
But we have a different corporate and organisational culture here in Australia, and this is not always the standard expectation. Some board members may donate to their organisation’s cause, some may not. It’s at their discretion.

Everyone wins when a campaign goes well

It’s in all stakeholders’ best interests if a fundraisingcampaign grows donor engagement and maximises revenue for a charitable organisation. Not the least of whom are its board members.
Campaigns where board members are more actively and visibly engaged do far better than those where board members are on the periphery. (From DGB Global’s experience)
We suggest that all board members should be strongly encouraged to make gifts to major campaigns, even if the gifts are small.
Making a donation is perhaps the best way for a board member to be visibly engaged with a campaign. The amount donated by each board member may not need to be disclosed, but if every member of the board is giving something, this signal can important with other donors by leading by example and showing they are fully supportive of the initiative.

“How much are you giving?”
Consider this scenario: A charity is running a $50 million capital or comprehensive campaign to fund a new Centre for Excellence including the services and programs that will be delivered. An informing function is held in order to bring together all the important stakeholders and potential major donors. Members of the board are in attendance of course. If a donor or would-be donor got chatting with a board member and popped the question, “So, have you donated to the campaign?” – it makes for a pretty awkward moment if the reply is – “Err, um, not yet…” Not to mention, not super convincing for the donor and the perceived importance of the project.
And the question is a fair one, because many donors are unsure about what amount they will give, and are most likely simply and legitimately trying to gauge the importance of the campaign. For many sophisticated donors, they want to know that the organisation is ‘all-in’ and the board’s willingness to give is a pretty clear indicator.
So for the board member who isn’t giving, what are they risking in terms of conviction and campaign support? It’s not a good look, for sure - but more importantly, it could be (indirectly) undermining the potential success of the campaign, because the best campaigns are those where the people at the top of the organisation are actively engaged in the campaign process and making timely gifts and even more so if all board members give it’s a great talking point to confirm solidarity and unwavering support. They may actually be putting millions of dollars at risk without even realising.


INFLUENCE FLOWS DOWNHILL
In philanthropy, influence flows downhill; that is, people who give themselves have a greater influence on peers who may be considering supporting the organisation. Investment and support from leadership is essential to ensure the success of campaigns and also long-term philanthropic success.
Centuries of successful campaigns tell us that board members should be encouraged to lead a culture of philanthropy by introducing the organisation to new networks and also by making a meaningful financial contribution that demonstrates to their peers that they believe in the organisation’s vision and mission.

EDUCATING AND SUPPORTING BOARD MEMBERS ON PHILANTHROPY
As mentioned, unlike in the US, here in Australia there is not an automatic expectation that board members will donate to their organisations’ projects and campaigns. But we need to also be fair to board members, many may be new to the For-Purpose sector, certainly many may not have been involved in major campaigns.
So, if it’s not initially expected of them, how do we get board members engaged in this important influential role and ultimately encourage them to donate? We can start by explaining the importance of their roles – the role of the board in campaigns; educating them on their fundraising opportunities and responsibilities. Moreover, this is an important part of the overall campaign, because it is a vital part of cultivating an improved culture of philanthropy within the organisation.
A major capital or comprehensive campaign provides the opportunity for board members to increase their fundraising knowledge and personal engagement in their organisation’s fundraising program. It is an opportunity to educate on best-practice fundraising methodology and build a new level of trust between leadership and operations.
Sharing impactful stories with your board members can be incredibly inspiring, just as it would be for donors. These stories highlight the tangible results of their efforts, reinforcing their dedication and motivation. Additionally, involving board members in donor cultivation activities encourages personal engagement with donors, fostering stronger, more personal connections that are essential for long-term support.

A SENSITIVE ISSUE
Asking people to give money is always a sensitive issue, and must be handled tactfully. Remember, most board members are not typically high-net-worth individuals. Some are experts in the field who may be academics on modest salaries, who can’t afford to make large gifts.
As mentioned above, it’s not about the actual amount, it’s about the act of giving – being demonstrative and showing leadership and conviction that reassures and inspires others to follow.
As we said, amounts donated by board members need not be disclosed. In fact, individual board members could say that policy prevents them from disclosing the amount of their gift, if pressed by donors.

HOW THAT PREVIOUS SCENARIO SHOULD PLAY OUT
Let’s go back to that board member who is approached by the potential major donor at the campaign event. When they are asked if they have donated themselves, this is the alternate response: “Yes, absolutely, I have made a donation. All the board members have made generous contributions. This really is a terrific project, which we are all passionate about… let me tell you why…”

LEADING THE CHARGE
A major campaign unites need, leadership and impact to elevate philanthropic targets and drive real societal change.
One of the most important elements of any successful transformational project or campaign is voluntary leadership – donor leadership. Close to the heart of this leadership is the engagement and commitment of your board members.
Leadership by example is a powerful tool. When board members are also donors, it demonstrates their genuine belief in and support for the organisation, enhancing their influence and ability to inspire others to give.
DGB Global proposes that board members should definitely donate too. They should be leading by example – and leading the charge – by making meaningful gifts early on in a campaign.


DGB Global delivers capital and comprehensive campaigns, major donor & bequests programs, as well as strategic fundraising reviews for the for-purpose sector.
Our work includes working with boards of all shapes and sizes to explain their role in philanthropy and how they can help their organisations to new heights.
