When was the last time you increased your Board dues? Within the last 10, 20 years? Within this century?
Board giving requirements—at the minimum— should reflect a nonprofit’s annual budget increases. Many nonprofits, however, have the same Board dues as they did 10-20 years ago. Not surprisingly, these organizations have trouble meeting their budgetary goals.
It is a normal practice to urge Board members to give more each year—yet it is not the norm to formally raise Board dues and annual giving minimums. This is a misstep for nonprofits.
Board giving may look a lot different from one organization to another. Some use the give-or-get policy while others have a minimum gift requirement. Some have a suggestion to prioritize giving to an organization or a requirement to “make a gift that is meaningful to you.” It is paramount for nonprofit organizations to design a Board giving policy that is grounded in their specific mission, culture, and Board priorities.
Board giving requirements should also increase every year as part of the budgeting process.
Think about this: in every aspect of life, prices are rising. Whether it’s the cost of milk, college tuition, or your interest rate on a mortgage—everything is going up. Even in times when there isn’t much inflation, prices go up. We expect salary increases every year and we expect our donors to give more every year, so why aren’t we doing the same with our boards?
What if you simply raised Board giving requirements in sync with staff salary increases?
If you are giving staff members a 5% raise, the Board agrees to each give 5% more. That’s not a huge ask really. It means that if the minimum requirement is $5,000 in year one, it would go to $5,250 in year two. This increase not only helps the bottom line, but it signals to the staff how much the Board is invested in their work. And let’s not forget, when people give more, they tend to care more and be more invested in the organization’s success.
There will always be exceptions, which is why every nonprofit should look at their Board giving policies individually with an eye towards fiscal responsibility. For those who have the same Board giving requirements for the last 10 years, 20 years (more??). . . if these nonprofits had simply raised their board dues in line with all the 2% staff raises/adjustments for inflation over all the years, their boards might be 50% higher in their annual dues. I urge you to re-evaluate your Board requirements with an eye towards sustainability, growth and commitment—which means you must raise your minimum Board giving requirements.