Good advice here, from Susan. To which I'd add:  the Board which raises and
gives the money is the one that will ultimately control how that money is
used, or the effort will simply fail. I fear that it would set it up for an
eventual power struggle between the two Boards.  

Perhaps a better strategy is to form a Development Committee or otherwise
named group whose sole job is developing income sources and fundraising. But
Susan is right, the fiduciary responsibility lies with the existing Board,
and all should be contributing as best they can.

Lucy Sperlin
Butte County Historical Society
Oroville, CA 

-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]] On Behalf
Of Susan Ruderman
Sent: Wednesday, March 13, 2013 1:09 PM
To: [log in to unmask]
Subject: Re: [MUSEUM-L] Board Question

Sigh.  Your situation probably applies to at least half of all museums.

There are sometimes situations that *do* call for the creation of a 
supporting 501(c)(3) whose fundraising is then directed solely to the 
museum.  But lack of financial support from the fiduciary body is not 
one of them.  And of course this suggestion comes from the board:  
"Don't solicit me.  Solicit that other guy standing over there!"

Do your board members have term limits?  Even if it is some crazy long 
limit, it is best practice to have term limits.  And at 25 members, your 
board is getting a bit large.  Could be a good time for some housecleaning.
Has any formal attempt been made to educate the board about their 
duties?  Is there a board handbook?  Have you done a training seminar 
with them with an outside facilitator?
If the problem is one of capacity rather than inclination (i.e., they 
truly can't afford to make a major gift so they opt to make no gift at 
all), some education around the importance of participation (even at the 
$100 level) and its role in leveraging other funding is crucial.
The agent for change is your board chair.  If he or she is not up the 
task, it is worth strategizing how to remedy this situation (short of 
creating a supporting organization.)  If he or she just needs additional 
support and knowledge, Board Source (http://www.boardsource.org/) is a 
good start.

Good luck!
Susan Ruderman
Fundraising Consultant

On 3/13/2013 2:28 PM, Jessica Baldwin wrote:
> Oh Wise Listers-
>
> Quick board scenario for your review.
>
> A long standing museum has a board of 25.  Less than half of those members
are active financial contributors, only 3 of which give $5,000 or less
annually.  There is no suggested or required board contributions.  The board
understands that growing the endowment is ideal for financial security.  The
board proposes a solution to the internal lack of contributions - create a
sub-organization with its own board that financially contributes to the
museum, it's buildings, and other programs run by the main board.
>
> Question: Does anyone have any experience with this type of solution?
>
> Thank you!
> Jessica
>
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-- 
Susan C. Ruderman, Ed.M.
[log in to unmask]
Boston, MA area

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