• The organization has an appropriate funding strategy with sufficient funding and financing to support its programs and organizational sustainability.
  • The organization’s mission attracts donors, both individual and institutional, who fund the organization’s area of work.
  • The organization is fully compliant with all state laws regarding registration to solicit funds and the use of third-party, professional fundraisers by tax-exempt entities.

Indicators of Good Governance

  • The organization has evaluated the benefits of its funding strategy to promote sustainability.
  • The Board oversees the fundraising function of the organization. It is active in securing funding and other resources through identifying prospects, supporting donor cultivation and solicitation, and direct contributions.
  • The Board approves an annual operating budget.  In addition, the Board reviews a three- to five-year fundraising projection which includes projected capital expenditures. These reviews should reflect the priorities identified in the annual and multi-year budgeting process.
  • Where financing is appropriate, Board members develop and/or approve proper financing strategies.
  • 100% of Board members make an annual financial contribution to the organization, an indication that the Board is engaged, supportive, and committed.
  • The Board has an active fundraising committee that oversees the fundraising program and assists the professional staff in planning and raising funds from all sources. 

Questions for the Board to Ask

Does the Board approve both an annual and a multi-year fundraising plan?
Yes, and it is reviewed annual by both the fundraising and finance committees, as well as the full Board. 

Is the Board aware of and prepared to use a funding strategy that, when appropriate, diversifies funding sources to leverage other support and enhance the reach or effectiveness of programs?
Yes, Board members are aware of the benefits of a funding strategy that maximizes a strong financial base and have taken action to utilize that financial base where appropriate and feasible.

Are Board members involved in securing funding through their personal and business contacts, both individual and institutional?
Yes, Board fundraising is a systematic process managed by a fundraising committee and approved by the Board. Board members contribute consistently to fund development through individual solicitation, site visits with funders, and annual fundraising events to reach predetermined goals. 

Is there an active fundraising committee of the Board?
Yes, Board fundraising is a systematic process managed by a fundraising committee and approved by the Board. Board members contribute consistently to fund development through individual solicitation, site visits with funders, and annual fundraising events to reach predetermined goals.

Does 100% of the Board make an annual, personal contribution to the organization at a level that is encouraged or enforced for individual members?
Yes, personal gifts are made by all Board members, commensurate with their means.  [Note: A minimum get and/or give contribution may be required by some Boards.] 

Does the Board understand the impact of restricted funds and manage them correctly?

Yes, the Board is aware of:

  • Its responsibility to ensure that restricted funds are used only for their specified purpose, and understands the procedures to ensure that all restrictions are met,
  • What the restrictions on each fund are,
  • The cash flow needs of the organization, ensuring that unrestricted funds are available when restricted funds are not yet accessible, and
  • What costs are not covered by or can be disallowed in a contract.