Nonprofit Board Give Or Get Policy

• Category: Corporations - Nonprofit
• State: Multi-State
• Control #: US-ENTREP-0021-1
• Format: Word; Rich Text

Description

Under wellestablished principles of nonprofit corporation law, a board member must meet certain standards of conduct and attention in carrying out his or her responsibilities to the organization. Several states, in fact, have statutes adopting some variation of these duties that would be used in court to determine whether a board member acted improperly. These standards are usually described as the duty of care, the duty of loyalty, and the duty of obedience.

Nonprofit Board Give or Get Policy: Understanding its Significance and Types A nonprofit board give or get policy refers to a set of guidelines or expectations that nonprofit organizations establish to ensure effective fundraising efforts by their board members. It serves as a crucial tool to engage and motivate board members in actively participating in resource development for the organization. By either providing monetary donations themselves (the "give" component) or securing contributions from others (the "get" component), board members help generate the necessary funding required for the organization's programs and initiatives. The implementation of a board give or get policy has proven to be instrumental in assisting nonprofits to diversify their revenue sources, maintain financial sustainability, and boost community support and awareness. This policy also strengthens the board's fiduciary duty, highlighting their commitment to the organization's mission and their understanding of the importance of fundraising. Different Types of Nonprofit Board Give or Get Policies: 1. Contribution-based policy: This policy outlines a specific minimum financial contribution that each board member is expected to make annually. The amount can vary depending on various factors such as the nonprofit's financial goals, size, and the board member's capacity. 2. Fundraising-based policy: This approach focuses on the "get" aspect, requiring board members to actively participate in fundraising activities, grant writing, solicitation of donations, and expanding the nonprofit's network of supporters. The policy may set specific targets or expectations for each board member's involvement in securing financial support. 3. Combination policy: Some nonprofits adopt a flexible approach by combining both the give and get aspects. Board members are encouraged to make a personal financial contribution while also actively participating in fundraising efforts. This combination policy acknowledges the diverse capacities and resources of board members, allowing them to contribute in ways that suit their circumstances. 4. Time-based policy: Although not directly related to monetary contributions, this policy emphasizes the value of a board member's time and expertise. It sets expectations for the number of hours or specific board-related tasks that each member should complete, ensuring their active engagement in supporting the organization's fundraising efforts through non-monetary means. 5. Escalation policy: This policy establishes a progressive increase in the required financial contribution over time. It recognizes a board member's ability to contribute more as they become more familiar with the nonprofit, its impact, and its fundraising goals. By adopting a specific type or combination of these policies, nonprofits can ensure that their board members actively participate in fundraising, secure financial resources, and play a pivotal role in the organization's success. Ultimately, a well-implemented give or get policy strengthens the nonprofit's financial sustainability and empowers the board to effectively fulfill its important fiduciary duties.