At 01:42 PM 4/21/2004 -0400, Jill Dixon wrote:

>Just wondering if anyone with a non-profit status requires their board of
>directors to give a certain dollar amount?
>
>  At my current institution, it is written into the by-laws...this has
> recently been questioned as to whether that is appropriate (the amount is
> $800 per board member) for the by-laws.  I didn't feel that it was a
> prohibitive amount nor did I feel that it was 'outrageous' to put it into
> the by-laws - if it's only a suggestion how do you collect from board members?


While "Give, get, or get off" is a popular mantra, it obscures the true
nature of the board of directors, which is to be a fiduciary body.  Now
making sure that the organization has enough (financial) resources to
sustain itself is clearly within the fiduciary scope.

Some (but not the majority) of boards have a informal minimum gift
expectation.  I've seen it more in New York City than elsewhere.  Never
have I seen this written into the by-laws.  Instead, it is most commonly
addressed at the Nominating Committee stage and discussed during
recruitment of the potential board member.  Among the several problems I
see arising would be the need to change the by-laws periodically to
increase the amount as the dollar value declines; the dampening effect a
stated minimum will have on efforts to get larger donors to think bigger;
the exclusion of community members who may bring special
expertise/experience to the board but cannot commit at that dollar level;
and the creation of internal tensions when those who have committed become
aware of those who have not made the "suggested minimum" yet.

I just don't think it is a good idea.

It IS a good idea to have 100% participation from your board in making a
gift at the level they are capable of.  You can always tell them that some
foundations won't even consider a proposal from your organization until all
the board members have donated.  I find the leveraging aspect of this
requirement often motivates recalcitrant board members.

What you are describing seems to be more along the lines of a "Founders
Group" or donor recognition society.  It certainly would not be
inappropriate to create a donor recognition society for the donors at the
higher levels (if you haven't done so already), and then state something
along the lines of "It is ordinarily expected that board members will be
members of the [Big Buck(s)] Society."  But putting it in the by-laws
sounds like it would be counter-productive.

Susan Ruderman



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Susan Cronin Ruderman, Ed.M., Vice President
VERITAS INFORMATION SERVICES, 9 Alton St., Arlington, MA  02474
(781) 643-7811; (781) 643-1136 (fax) mailto:[log in to unmask]
Fundraising Research Consulting http://www.veritasinfo.com
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