Conventional wisdom dictates that all trustees of non-profit organizations contribute annually. Trustees are told often that this is what grant-making foundations expect. Similarly, trustees are often expected to make their organizations one of the top three charities to which they contribute. These two commitments are, for sure, important indicia of board engagement that foundations look to for assurance that their grants are well-placed.
But, are they enough? Afterall, “100%-Top 3” board giving won’t guarantee that grantee organizations will steward foundation largess well. Nor will grant criteria, outcome measures, grantee reports and other mechanisms foundations typically use.
In looking at governing board financial contributions as one important factor, what other elements of trustee giving can foundations address in assessing a board’s organizational commitment? Here are some questions to consider:
Does the grantee organization have a written board policy mandating board giving or at least a set of discretionary guidelines?
Are trustees “required”, or at least “encouraged”, to give a minimum annual amount, and/or give according to their means?
What is the trend? Has trustee giving been increasing, static or decreasing?
Are trustees asked to identify the other top two charities to which they contribute because doing so may indicate either opportunities for collaboration or even conflicts?
How long have the policy or guidelines been in place and how frequently are they reviewed, modified and confirmed by the board?
Do the policy or guidelines apply to capital campaigns? Planned giving?
Are trustees expected to (and do they) not only give but also “get”; i.e., do they approach their contacts to give them an opportunity to contribute?
In meeting a board policy or guidelines, must trustees give individually only or are they also credited for matching gifts and contributions from family members and family foundations?
Do grantee organizations budget annually for a realistic level of board contributions?
How are trustees held accountable for their commitments? There are various ways; e.g., performance dashboards shared throughout the year with the board; inclusion of board giving in annual written commitments trustees are asked to sign; and board chair and advancement committee reminders and follow-up calls.
Are prospective trustees recruited with an expectation that they will meet the board’s policy or guidelines?
Does the grantee recognize the importance of other factors in addition to board giving as also critically important to organizational viability (e.g., subject matter expertise, time commitment and influence)?
Foundations may address all or some of these questions informally through prospective grantee discussions or more formally through the application process and on-going reporting on multi-year grants. Provider boards will differ widely in the degree to which they address these questions, and foundations may want to remain flexible in their inquiries depending upon the nature and level of grants. However, the common thread these questions address is whether the grantee organization has developed, or is in the process of taking tangible steps to develop, a culture of giving, a culture that reflects the individual and collective trustee devotion – even passion - to meet the organization’s charitable mission on a sustained basis.