1. Asking for money before engaging the donor.

Engage in a sincere and meaningful conversation with your top donors before asking for anything.  Remember that asking for a gift is only one step in the “development process” and it usually is not the first step.  You need to “develop” the relationship first and find the shared goals of your organization and the prospective donor.

2. Treating all donors the same.

You may not like it, but not all donors are the same.  Small donors are perfectly comfortable responding to a snail mail or email request. Major donors require major investments of time and energy and a personal relationship and request.

3. Thinking that donors to other organizations will not give to you.

People give wherever they feel they can have an impact and most donors contribute to five or more organizations. Even a donor who is supporting one of your “competitors” may have a very real interest in the area that you are serving and want to support as many organizations as they can that are having a real impact on that issue.

4. Spending too much time securing new donors while failing to steward your current donors.

Your best prospect for a gift is someone who has made a gift before.  Yes, you need to always be adding donors, but don’t make that harder by creating a churn of lost donors every year.  Continue thanking, cultivating and stewarding your existing donors and celebrate a renewed gift just as joyfully as you would a new gift.

5. Not saying “thank you” in a timely manner … and not often enough.

We used to say get the thank you letter to them before their check clears. Most transactions these days are electronic so that no longer applies. But, be quick, be sincere, and do it without asking for more money. A donor should receive a thank you within 24 hours of a gift and a major donor should get a phone call as soon as you receive the gift.

6. Failing to deliver bad news.

They say good news travels fast and bad news travels faster. The nonprofit community is small — there are no secrets. Be upfront and clear with information that deals with controversial issues or mistakes or problems you are facing. Donors invest in you and want/expect to be treated as insiders and trusted advisors. Don’t let your donors hear about your issues from someone else – take control of the messaging.

7.  Appointing Board members who aren’t donating and raising funds.

If your board members, who are legally responsible for the organization, are not your most loyal and dependable supporters you are going to struggle with fundraising.  Further, if your board members are not willing to help you raise funds – by soliciting gifts themselves or making introductions or being vocal advocates for your organization – then you probably have the wrong board members.

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First, they have well-defined and appropriately structured committees where the work of the Board rests. In some Boards, most of that work falls to an executive committee, which effectively establishes two classes of trustees—those who have a say and do the work and those who do not.

Second, they have terms and term limits to ensure the Board doesn’t become stagnant and to make it much easier and more graceful to remove members, who may not be performing at an acceptable level.

Third, they have clear expectations for members of the Board and adhere to those expectations.

Fourth, they have a clear understanding of the talent and experience they need on the Board, match members against those needs, and ensure there are no “gaps” in the expertise needed among Board members. They use this information to inform the selection of new trustees.

Finally, they don’t “settle” in recruiting Board members—they seek to bring on the strongest possible members (not simply their friends or associates) with the talent, knowledge, diverse perspectives, and experiences that the Board needs to do its best work.

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Nonprofits could not achieve their goals without the collective manpower and connections of their board members. Yet, with the average board consisting of 16 individuals – each having other obligations and priorities in their lives – managing them effectively can be a challenge. Rather than struggling to reign in a troublesome board, here are four ways nonprofit leadership can set their board and organization up for success.

1. Define and Communicate Clear Expectations from Day One

When an organization comes to us with a perception that their board isn’t functioning well, we can usually trace it back to a miscommunication when they initially asked a board member to volunteer. The expectations of the staff are often vastly different than what the volunteer assumes their role to be. It’s imperative that nonprofits clearly define and communicate realistic expectations when asking someone to volunteer on their board.

2. Value Board Members as Individuals, Not a Group

Nonprofits need to look at the skill sets of individual board members, their availability and time constraints, and make sure they are using each person where they can be most effective. For example, there may be one very busy board member who has the right connections but a limited amount of time to give. Instead of inviting that person to 20 meetings, free them up to make five high-value phone calls to potential donors. Likewise, if a board member excels at process and structure, and has available time, they should be invited to contribute in various meetings and not expected to bring in high-value donors. Acknowledging your board members’ unique strengths will help build trust and maximize the value each one brings to the table.

3. Cultivate Potential Board Members Year-Round

Organizations typically get fixated on filling a board spot, rather than determining strategically what the board needs. Think about putting together your board as a year-round, very thoughtful process. We like to see people put together a nominating committee for their board to really consider, vet, and cultivate relationships with individuals to put together a quality board – a board that can solve problems, not just identify them. This approach eliminates a situation in which a nonprofit just quickly fills spots without regard to strategy just because they are going to be empty next month. This vetting process also reduces the risk that a nonprofit will have to ask a board member to step down because it’s not a good fit.

4. Don’t Let Your Board Pass a Deficit Budget

This has more to do with an organization’s success than establishing a healthy board but is worth mentioning. One of the biggest mistakes we see board members make is passing a deficit budget. The likelihood that the intelligent business people sitting on a nonprofit board would pass a deficit budget in their for-profit business is extremely low. Yet, when these same people sit on a nonprofit board they tend to treat it very differently than they would a for-profit company. The reality is a 501(c)(3) is a corporation, it’s just structured differently than an S-Corp or a C-Corp. Being a 501(c)(3) doesn’t mean the organization shouldn’t have greater income than expenses, it means the extra income is being distributed back to the common good instead of to stockholders. With this in mind, a nonprofit should make it clear to its board members that they should apply the same level of fiduciary prowess to the organization as they would to their for-profit employer.

While some of these conversations may be difficult to have with a potential or existing board member, doing so could save relationships and set the organization up for maximum success.

This article originally appeared in npEngage.com.

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