Many nonprofit organizations encourage board members to make financial contributions, but can they require directors to donate? The short answer is: it depends on the organization's policies, but legally, no board member is obligated to donate.
Best Practices for Board Giving
While nonprofits cannot legally mandate donations as a condition of board service, many organizations set expectations for board members to contribute financially. Here’s how nonprofits typically approach this:
1. Board Giving Policies
Some nonprofits include a "give or get" policy, meaning board members must either personally donate or help secure donations from others.
The organization may set a suggested or minimum contribution amount.
2. Fundraising Expectations
Many nonprofits expect board members to participate in fundraising efforts, such as seeking sponsorships, securing grants, or hosting donor events.
While personal donations are encouraged, engaging in fundraising can also fulfill a board member’s commitment.
3. Why Board Contributions Matter
Demonstrates Commitment – Grantmakers and major donors often ask whether 100% of the board contributes financially.
Leads by Example – Board members who give personally are more effective in asking others to donate.
Can a Board Member Be Removed for Not Donating?
No law requires board members to donate, and they generally cannot be removed for failing to contribute unless the organization's bylaws explicitly state financial giving as a condition of board service. However, a board can encourage participation through clear expectations set during recruitment.
How to Encourage Board Giving Without Mandating It
Set a Culture of Philanthropy – Emphasize the importance of board giving in supporting the mission.
Allow Flexible Giving Levels – Encourage contributions at any level that is meaningful to each director.
Recognize Non-Monetary Contributions – Board members may bring value through expertise, fundraising, or in-kind donations.
Bottom Line
Nonprofits cannot legally force board members to donate, but they can set expectations and encourage participation. If your organization is considering implementing a board giving policy, it's important to align it with your nonprofit’s mission and culture.
If you need help structuring your nonprofit’s board giving policy, InstantNonprofit is here to assist!