Building a Powerful Board for Institutional Giving


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  • 1)              Determine the organization’s mission and purpose     Define it – write it down     Strive to Accomplish it     Monitor its programs against it     Distribute it, publicize it     Make decisions – financial – based on it   2)              Select the Chief Executive     Determine what they need; skill sets     Determine how they recruit     Determine who is involved – assure a “client voice”     Establish priorities, short and long term, and gain board consensus     Provide adequate/competitive compensation package     Clarify Board – Staff boundaries   3)              Support the Chief Executive and Assess His or Her Performance     Primarily done by Board Chair and Executive Committee/board’s responsibility     Assess: What do they need to be successful? Positive feedback.     Make key introductions to the community     Praise – public recognition     Watches mental health – encourages vacation leave
  • 1)              Determine, Monitor, Strengthen the Organization’s Programs and Services       Check against mission     Budget process – allocation of resource     Requiring evaluation: outside evaluators, visiting committees, surveys of clients Program Committee functions   2)         Enhance the Organization’s Public Standing   Board Role?     Advocates     Ambassadors     Community Reps Executed How?     Cultivation events for key constituencies     Attendance at City/Public meetings     Meetings with government officials     Attend funder meetings     Represent the organization at national/international meetings, etc.     Insure strong PR and marketing function within organization
  • Building a Powerful Board for Institutional Giving

    1. 1. Building a Powerful Board for Institutional Giving APGA Conference – Atlanta June 5, 2010 Lynne LaMarca Heinrich Senior Consultant, Co-Leader Arts & Culture Practice Group Marts & Lundy, Inc. Beverly Duzik Director of Development Desert Botanical Garden
    2. 2. Today’s Agenda <ul><li>Powerful Philanthropy Programs </li></ul><ul><li>Basic Board Roles and Responsibilities </li></ul><ul><li>A Critical Checklist to Determine Health </li></ul><ul><li>A Case Study: Board Recruitment at Morton Arboretum </li></ul><ul><li>Creating a Culture of Philanthropy </li></ul>
    3. 3. Elements of Successful Philanthropy Programs <ul><li>NEEDS </li></ul><ul><li>CONSTITUENTS </li></ul><ul><li>- Donors </li></ul><ul><li>Members </li></ul><ul><li>Friends </li></ul><ul><li>Volunteers </li></ul><ul><li>Corporations </li></ul><ul><li>Foundations </li></ul><ul><li>Staff </li></ul><ul><li>Public Sources </li></ul><ul><li>ENGINES </li></ul><ul><li>Board Members </li></ul><ul><li>Other Volunteers </li></ul><ul><li>CEO </li></ul><ul><li>Development Staff </li></ul><ul><li>Program and Other Staff </li></ul><ul><li>- Teamwork </li></ul><ul><li>Vision </li></ul><ul><li>Mission </li></ul><ul><li>Strategic Plan </li></ul><ul><li>Needs Assessment </li></ul><ul><li>Communicated </li></ul><ul><li>Buy-In </li></ul><ul><li>Budget/Resources </li></ul>
    4. 4. <ul><li>Major philanthropic commitments are a function of... </li></ul><ul><li>Interest </li></ul><ul><li>Significant Involvement </li></ul><ul><li>Awareness </li></ul><ul><li>Not Brilliant “Asks” </li></ul><ul><li>PASSION MORE IMPORTANT </li></ul>Philanthropy = Relationship Building
    5. 5. How Does A Donor Engage With An Institution and What’s Your Role? Identification Qualification Cultivation Solicitation/Negotiation Stewardship Renewal
    6. 6. Board Governance: 10 Basic Roles and Responsibilities (Ingram) <ul><li>Determine the Organization’s Mission and Purpose </li></ul><ul><li>Select the Chief Executive </li></ul><ul><li>Support the Chief Executive and Assess His or Her Performance </li></ul><ul><li>Ensure Effective Organizational Planning </li></ul><ul><li>Ensure Adequate Resources </li></ul><ul><li>Manage Resources Effectively </li></ul>
    7. 7. Board Governance: 10 Basic Roles and Responsibilities (Ingram), cont. <ul><li>Determine, Monitor, and Strengthen the Organization’s Programs and Services </li></ul><ul><li>Enhance the Organization’s Public Standing </li></ul><ul><li>Ensure Legal and Ethical Integrity and Maintain Accountability </li></ul><ul><li>Recruit and Orient New Board Members and Assess Board Performance </li></ul>
    8. 8. Critical Checklist to Determine Health <ul><li>Board is Kept Close to Mission; Education and Social Fabric Monitored. </li></ul><ul><li>Board is Staffed, Time is Allocated </li></ul><ul><li>Board (satisfaction) and CEO Evaluation is Annual, Thorough </li></ul><ul><li>Planning is Comprehensive, Inclusive, Ongoing </li></ul><ul><li>Recruitment Pipelines and Processes Robust, Orientation Deliberate </li></ul>
    9. 9. Critical Checklist to Determine Health, cont. <ul><li>Standing Committee/Ad Hoc Structures Are Empowered </li></ul><ul><li>Terms, Term Limits </li></ul><ul><li>Financial Reporting is Consistent, Comparative, Key Metrics Oriented </li></ul><ul><li>Policies for Philanthropy: </li></ul><ul><ul><li>Conflict of Interest </li></ul></ul><ul><ul><li>Philanthropic Expectations </li></ul></ul>
    10. 10. Morton Arboretum: Case Study <ul><li>December 2008 </li></ul><ul><ul><li>Recently completed major capital expansion, corresponding capital campaign ($18.1M) </li></ul></ul><ul><ul><li>Prior history of endowment earnings sustaining organization; increased operating costs changed dynamic. </li></ul></ul><ul><ul><li>Ambitious plan for growth, relevancy </li></ul></ul><ul><ul><li>“ Family” board; 19 trustees, no terms, average tenure 9 years, potential 40-50% turnover in near term. </li></ul></ul>
    11. 11. Projected Baseline Contributed Income Growth
    12. 12. Process <ul><li>Board Level Discussions </li></ul><ul><li>Governance Assessment </li></ul><ul><li>Planning Meetings: Development, Governance </li></ul><ul><li>Employing Major Gift Campaign Tactics </li></ul><ul><ul><li>Board Members </li></ul></ul><ul><ul><li>Referral Network </li></ul></ul><ul><li>Training, Monitoring </li></ul><ul><ul><li>Prospect Profile Form </li></ul></ul>
    13. 13. The Morton Arboretum: Case for Board Service <ul><li>The mission of The Morton Arboretum is to collect and study trees, shrubs, and other plants from around the world, to display them across naturally beautiful landscapes for people to study and enjoy, and to learn how to grow them in ways that enhance our environment. Our goal is to encourage the planting and conservation of trees for a greener, healthier, and more beautiful world. </li></ul><ul><li>Key Arboretum Facts </li></ul><ul><li>Founded in 1922 by Joy Morton, The Morton Arboretum is a world-renowned leader in tree science and education, working to save and plant trees. </li></ul><ul><li>1,700 acres of trees, gardens, woodlands, prairie, and natural landscapes. </li></ul><ul><li>4-acre Children’s Garden and 1-acre Maze Garden. </li></ul><ul><li>16 miles of hiking trails and 9 miles of paved roads. </li></ul><ul><li>600+ educational classes and programs. </li></ul><ul><li>780,000 visitors annually and 32,000 member households. </li></ul>
    14. 14. <ul><li>Key Arboretum Facts, cont. </li></ul><ul><li>325 employees (140 full-time; 110 part-time; 75 seasonal) and 943 volunteers. </li></ul><ul><li>$25 million operating budget and $192 million endowment. </li></ul><ul><li>$8.5 million earned income from retail, admissions, visitor events, and education. </li></ul><ul><li>$5 million in annual philanthropic support. </li></ul><ul><li>Board Facts </li></ul><ul><li>The Morton Arboretum Board of Trustees serves in a critical fiduciary role to ensure and promote the organization’s mission, fiscal health, and perpetuation. </li></ul><ul><li>18 current trustees/25 maximum trustees. </li></ul><ul><li>Civic and corporate leaders with diverse industry and community backgrounds. </li></ul><ul><li>Average tenure is 10 years with a range of 1 to 45 years of service. </li></ul>The Morton Arboretum: Case for Board Service
    15. 15. <ul><li>Why should I Join the Board of The Morton Arboretum? </li></ul><ul><li>The Morton Arboretum is the leading arboretum in the world , the 3rd most visited public garden in the U.S., and the 6th most visited cultural institution in Chicago . </li></ul><ul><li>Relevant Mission </li></ul><ul><li>A green mission since 1922 to “create a greener, healthier, and more beautiful world.” </li></ul><ul><li>The only Chicago organization focused on saving and planting trees. Trees are essential to the quality of life, the quality of our environment, and the health and well-being of our communities. </li></ul><ul><li>The loss of trees and forests is a major contributor to current environmental concerns. Saving and planting trees impacts global climate change. </li></ul><ul><li>We are the world’s leading arboretum with an international collection of more than 4,100 kinds of trees, shrubs, and other plants including 90 rare and endangered plants. </li></ul><ul><li>The Morton Arboretum is on the forefront of scientific research to develop and grow healthier trees and woodlands, especially in urban environments. </li></ul>The Morton Arboretum: Case for Board Service
    16. 16. <ul><li>Clear Strategic Direction </li></ul><ul><li>The Morton Arboretum vision is to be the leading center of tree expertise, inspiring the world to plant and protect trees. </li></ul><ul><li>Our strategic goals are to: </li></ul><ul><ul><li>Advance the planting and conservation of trees through leadership in tree health, tree improvement, woodland conservation, and public appreciation of trees. </li></ul></ul><ul><ul><li>Address contemporary issues related to climate change and trees, and community needs for a greener, healthier environment. </li></ul></ul><ul><ul><li>Attract larger audiences to the Arboretum and engage them in the mission of tree planting and conservation. </li></ul></ul><ul><li>Growing Organization </li></ul><ul><li>Implementation of Phase I of the Master Site Plan included a new Visitor Center, 4-acre Children’s Garden, 1-acre Maze Garden, Big Rock and Prairie Visitor Stations, restoration of Meadow Lake, and environmentally-friendly parking lot. </li></ul><ul><li>Since 2006, attendance and membership have doubled. </li></ul><ul><li>First capital campaign was successfully completed in 2007 raising $18 million. </li></ul><ul><li>Local and global partnerships are expanding: City of Chicago (Chicago Trees Initiative, Chicago 2016, and Chicago Public Schools), Global Trees Campaign, Botanic Gardens Conservation International, and a national network of arboreta. </li></ul>The Morton Arboretum: Case for Board Service
    17. 17. <ul><li>Financial Health of the Organization </li></ul><ul><li>Not-for-profit 501(c)3 charitable organization. </li></ul><ul><li>$192 million endowment is managed to minimize investment risk through diversification and provide enhanced investment performance. </li></ul><ul><li>$24 million annual budget supported by revenue from admissions, membership, contributions, visitor programs, tuition, and endowment earnings. </li></ul><ul><li>No direct public tax support. </li></ul><ul><li>Earned and contributed income streams have increased 50% in the last three years. </li></ul><ul><li>Strong Staff Leadership </li></ul><ul><li>President and CEO Gerry Donnelly PhD has led the evolving vision of the Arboretum since 1990. </li></ul><ul><li>A committed senior management team leads collections management, educational, research, financial, community outreach, and philanthropic efforts. </li></ul><ul><li>Organizational culture is one of passion and dedication to the planting and protection of trees for a better world for generations to come. </li></ul>The Morton Arboretum: Case for Board Service
    18. 18. <ul><li>What are the benefits of service as a trustee of the Arboretum? </li></ul><ul><li>Opportunity to Have Impact </li></ul><ul><li>Through board meetings, committee service, and individual work, trustees are actively engaged in the governance of the organization, and provided opportunity to contribute in areas that match individual expertise and interests. </li></ul><ul><li>Engagement with Community and Corporate Leaders </li></ul><ul><li>Opportunity to work with a dedicated group of civic and corporate leaders with a shared passion for a greener, healthier, and more beautiful world through community investment and engagement. </li></ul><ul><li>Access to Arboretum Resources </li></ul><ul><li>Internationally-recognized collections and grounds. </li></ul><ul><li>Leading science and natural history education programs and classes. </li></ul><ul><li>Expert research and horticultural staff. </li></ul><ul><li>Year-round programs and activities for all ages and interest levels. </li></ul>The Morton Arboretum: Case for Board Service
    19. 19. <ul><li>What level of time and financial commitment is expected of each trustee? </li></ul><ul><li>Time Commitment </li></ul><ul><li>1-year term of service with no defined limit on the number of terms. </li></ul><ul><li>Quarterly board meetings (March, June, September, December). </li></ul><ul><li>Six board committees; each trustee is expected to serve on two committees. </li></ul><ul><li>Attendance at key donor events. </li></ul><ul><li>Financial Commitment </li></ul><ul><li>A personal financial commitment at a level commensurate with capability and leadership position as a trustee. </li></ul><ul><li>Annual fund gift in the mid to upper ranges of the Thornhill Society. </li></ul><ul><li>Attend and host at least one table at the Annual Dinner Party. </li></ul><ul><li>Support periodic institutional capital campaigns. </li></ul>The Morton Arboretum: Case for Board Service
    20. 20. Board Giving and Getting Requirements
    21. 21. <ul><li>What is the process for trustee nomination and selection? </li></ul><ul><li>Members of the Governance Committee, working with the President and/or Vice President of Development, meet with each trustee to review trustee prospects at least once per year. Trustee prospects can be submitted for consideration at any time. </li></ul><ul><li>A trustee prospect profile form will be completed for each prospect and submitted to the Governance Committee Chairman. </li></ul><ul><li>The Governance Committee and key trustee(s) will work with the President and the Vice President of Development to create an individual trustee recruitment plan for all qualified prospects. </li></ul><ul><li>The Governance Committee will review “top” trustee prospects at quarterly committee meetings to review status for continued cultivation, nomination, or closing of consideration. </li></ul><ul><li>The Board of Trustees will vote on prospects nominated for board service to approve final selection. </li></ul>The Morton Arboretum: Case for Board Service
    22. 22. Board Skills Matrix
    23. 23. <ul><li>Creating A Culture of Philanthropy </li></ul><ul><li>Staff Campaign </li></ul><ul><li>Recognition Committee </li></ul>
    24. 24. Staff Gifts Can Inspire <ul><li>Board members </li></ul><ul><li>Donors </li></ul><ul><li>Volunteers </li></ul>
    25. 25. DBG Statistics: 2009-10 Staff Appeal <ul><li>100% participation </li></ul><ul><li>118 gifts, ranging from $2.60 to $1,300 </li></ul><ul><li>$19,800 in total annual fund pledges </li></ul><ul><li>Additional $10,000+ from 52 staff </li></ul><ul><li>in special gifts </li></ul>
    26. 26. DBG Staff Appeal Impact <ul><li>Staff engagement and support for development efforts </li></ul><ul><li>Point of pride for the board of trustees </li></ul><ul><li>Enhances case for support </li></ul><ul><li>Impress donors and volunteers with internal commitment </li></ul>
    27. 27. Making It Fun <ul><li>DBG Cranium </li></ul><ul><li>Food and party atmosphere </li></ul><ul><li>Special Guests & Prizes </li></ul>
    28. 28. Board Recognition Committee <ul><li>Personal acknowledgement from peers </li></ul><ul><li>New and creative ways to express impact of gifts </li></ul><ul><li>Double, triple, quadruple the volume of personal “touches” </li></ul><ul><li>“ Wow” donors </li></ul>
    29. 29. DBG Statistics: 2009-10 Donor Recognition Committee <ul><li>468 Personal, Handwritten “Thank You” Notes </li></ul><ul><li>Compelling stories and pictures from volunteers </li></ul><ul><li>Committee presence at a variety of Garden programs </li></ul><ul><li>Committee members want to return </li></ul><ul><li>Thank yous happen without </li></ul><ul><li>assignments! </li></ul>
    30. 30. Participation in Recognition Leads to Involvement in Cultivation & Solicitation <ul><li>Annual Giving by 10 DRC Members has increased by 222% since joining the committee, from $76k to $247k </li></ul><ul><li>3 Committee members have solicited $295,000+ in 2009-10 gifts </li></ul><ul><li>Volunteers involved in saying “thank you” are likely to say “yes” when asked </li></ul><ul><ul><li>to participate in a cultivation activity </li></ul></ul><ul><ul><li>to share names of prospective supporters </li></ul></ul><ul><ul><li>to effectively solicit gifts </li></ul></ul>
    31. 31. Enhancing your Culture of Philanthropy <ul><li>Tools and Resources </li></ul><ul><li>DBG Staff Appeal Samples </li></ul><ul><ul><li>Communications and pledge form </li></ul></ul><ul><ul><li>Script excerpts </li></ul></ul><ul><li>DBG Donor Recognition Committee </li></ul><ul><ul><li>Job Description </li></ul></ul><ul><ul><li>Committee Accomplishments 2008-9 </li></ul></ul>
    32. 32. DBG Credits <ul><li>Marcos Voss </li></ul><ul><li>Assistant Director of Development </li></ul><ul><li>Jane Kernen </li></ul><ul><li>Individual Giving Associate </li></ul><ul><li>Danielle Vannatter </li></ul><ul><li>Special Projects Manager (formerly) </li></ul>
    33. 33. <ul><li>Beverly Duzik </li></ul><ul><li>Director of Development </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul>