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Philanthropy in Action: How Nonprofit Boards are Meeting the Moment

Philanthropy in Action: How Nonprofit Boards are Meeting the Moment

Chapter Leadership Brief 11.01.24

By Susan Madon, CFRE
CEO and Founder, Minerva Nonprofit Management Consulting

We've all been there. The board meeting where one trustee insists on reading every line item of the 27-page financial statement aloud while another trustee quietly plays Wordle on their phone. Or perhaps you've experienced the famous "strategic planning session" where the conversation somehow devolves into a 45-minute debate about the color scheme of next year's gala invitations. One of my personal favorites was the board chair who consistently referred to our "annual giving campaign" as our "annual giving champagne" – though in retrospect, maybe he was onto something about making fundraising more festive.

But here's the thing: even our most cringe-worthy board moments serve as valuable lessons in how to evolve and improve. That trustee obsessed with financial statements? They helped us develop a more efficient dashboard reporting system. The invitation color debate? It led to the creation of a proper event committee structure. And yes, even the "champagne campaign" chair inspired us to inject more celebration and donor appreciation into our fundraising efforts.

As we look ahead to National Philanthropy Day 2024, the landscape of giving and nonprofit governance has evolved dramatically. The convergence of global challenges – from economic uncertainty to climate change, and from public health concerns to social justice imperatives – has fundamentally transformed how nonprofit boards approach their vital work of stewarding organizations and mobilizing resources for community impact.

The future of philanthropy depends on boards that can navigate complexity while staying true to their organizations' missions. As we gather on November 15th to celebrate National Philanthropy Day, we recognize that effective board leadership is more crucial than ever – and yes, maybe we'll even raise a glass of champagne to those annual giving campaigns.

The Evolution of Board Leadership
Today's nonprofit boards are reimagining their roles as strategic partners and community connectors. Gone are the days when board service primarily meant attending quarterly meetings and making annual donations or just being a name on the letterhead. The modern nonprofit board member must be an active ambassador, strategic innovator, and collaborative partner in advancing mission-driven work.

Emerging Trends in Board-Driven Philanthropy
Several key trends have emerged as boards adapt to new realities:

Embracing Participatory Governance
Forward-thinking boards are incorporating community voices into their decision-making processes. Organizations are increasingly using advisory councils that bring program participants and community leaders into strategic conversations, ensuring that those most impacted by their work have a seat at the table. Savvy organizations are also finding ways to include key participants as full members of the board by changing Giving Policies from a flat rate to offering the opportunity to give a personally meaningful gift.

Impact-First Funding Strategies
Boards are moving beyond traditional fundraising metrics to embrace more nuanced approaches to measuring and communicating impact. This includes:

  • Developing comprehensive impact measurement frameworks
  • Investing in data collection and analysis capabilities
  • Creating more transparent reporting mechanisms for stakeholders
  • Aligning fundraising strategies with specific impact goals

Innovation in Giving Vehicles
Board members are leveraging their networks and expertise to diversify funding streams through:

  • Corporate partnership programs
  • Donor-advised funds
  • Impact investing opportunities
  • Foundation engagement
  • Planned giving initiatives
  • Cryptocurrency donations

Meeting the Moment: A Call to Action
As we navigate these transformative times, nonprofit boards must continue to evolve and adapt. Here are key priorities for board members to consider:

Strengthen Digital Competency

  • Boards must invest in technological infrastructure and digital literacy to:
    • Enable hybrid engagement models
    • Enhance donor relationship management
    • Improve program delivery and impact measurement
    • Foster innovative fundraising approaches
    • Protect data integrity from malware and hacking

Advance IDEA Initiatives

  • Meaningful progress on diversity, equity, inclusion and access (IDEA) requires boards to:
    • Recruit diverse leadership that reflects the communities served
    • Implement inclusive governance practices
    • Address systemic barriers in philanthropic giving – for example, The San Diego Foundation created the El Camino Fund to meaningfully engage Latinx donors.
    • Support equitable grantmaking practices

Build Resilient Organizations

  • Boards must focus on organizational sustainability through
    • Developing robust reserve funds
    • Creating crisis management protocols
    • Investing in staff development and well-being
    • Strengthening stakeholder relationships
    • Overseeing the executive director in a thoughtful and effective manner.

Looking Ahead
The future of philanthropy depends on boards that can navigate complexity while staying true to their organizations' missions. As we gather on November 15th to celebrate National Philanthropy Day, we recognize that effective board leadership is more crucial than ever.

Success in this new era requires boards to:

  • Embrace adaptive leadership practices
  • Foster authentic community engagement
  • Drive innovative funding approaches
  • Champion transparency and accountability
  • Build sustainable organizational capacity

The Association of Fundraising Professionals NYC Chapter remains committed to supporting board members and nonprofit leaders in this vital work. Through our professional development programs, networking opportunities, and thought leadership initiatives, we continue to advance the cause of ethical and effective philanthropy in our city.

Join us on November 15th as we gather to celebrate Philanthropy Day and recommit to the transformative power of strategic board leadership and collective action. Together, we can build a more equitable and sustainable future for all New Yorkers. REGISTER HERE

Susan is the founder of Minerva Nonprofit Management Consulting, a generalist firm which helps small to mid-sized nonprofits gain the resources, they needed to ensure stability. Key clients include Champions for Quality Education, The YWCA of the City of New York, Cathedral High School, The Sheen Center for Thought and Culture, The HOPE Program, and IMPACCT Brooklyn.

Susan holds an M.B.A. from Columbia University, a B.A. in Theatre from Jacksonville University and maintains the Certified Fundraising Executive (CFRE) designation. She is a member of the board of The Association of Fundraising Professionals, NYC Chapter where she serves on The Government Relations and Ethics Committee and serves as a mentor. She is also on the board of Champions for Quality Education. She recently published her first book, a suspense novel on fundraising best practices entitled, “The Disappearing Donor” and serves on the faculty of Indiana University’s Lilly Family School of Philanthropy where she teaches fundamentals of philanthropy.

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