Strategies to Build and Engage a Strong Board & Volunteer Team Theresa Pesch, President, Children’s Foundation Learning Objectives • • • • Why a highly engaged board and volunteers matters How to create a board and team of volunteers of choice New approaches to finding and developing strong board members and committed volunteers Best practices for board/volunteer engagement - Measure and evaluate success - Impact of volunteer engagement on fundraising goals 2 | © 2013 Background 4 | © 2013 About Children’s • • • • • 381 beds 4,270 employees 1,731 professional staff 128,047 patients in 2012 $589M+ annual revenue − 42% comes from Medicaid (reimburses 80% of the cost of care) − $50M+ in charity care annually − $22.5M transferred to hospital annually 5 | © 2013 Children’s Foundation: $40M Plan $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 2005 2006 2007 2008 2009 2010 Actual 6 | © 2013 2011 2012 Projected 2013 2014 2015 Children’s Foundation Transfers $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 2007 2008 2009 2010 Program 7 | © 2013 2011 Capital 2012 2013P Long-term Health Care Why Philanthropy Matters 2012 Report on Shortfalls • Medicaid underpayments to providers will exceed $7 billion nationally • Projected shortfall: $22.34/resident/day Source: http://www.ahcancal.org/research_data/funding/Pages/2012-Medicaid-ShortfallReport.aspx 9 | © 2013 Creating a Board and Team of Volunteers of Choice Traditional Model Door Openers Donors Doers 11 | © 2013 New Model Brings Strategic Relationships Works towards our mission Works Toward Opens Doors Reputation: Become Foundation of Choice Philanthropy: $40M/Year by 2015 Organization’s Mission Becomes Ambassador in Community 12 | © 2013 Serves as Role Model for Philanthropy Recruiting for Mission Benedictine Health System’s Mission The Benedictine Health System is committed to providing compassionate, quality care with special concern for the underserved and those in need. 13 | © 2013 Finding and Developing Strong Board Members/Volunteers Traditional Practice New Demands • Nominating committee meets annually to think about names and then asks them to join • Committee on trusteeship creates a multi-year recruitment agenda and is constantly looking for strong board members and volunteers • Recruiting is about filling available positions • • Recruiting is often done to fill vacancies Recruiting is about finding individuals with specific skills and resources and selling them on board membership/volunteer positions • Board/volunteer orientation, training and development happens “on the job” without any established process • Recruit all the time – better to have vacancies than weak board members/volunteers • Development is experiences, coaching and mentoring • Term limits with opportunities for ongoing involvement • Consider board/volunteer pipeline (if not now, how about in the future) 14 | © 2013 Board Member Criteria Must Haves • Ethical • Passion for the mission • Made your organization among top three philanthropic/volunteer priorities • Generous, philanthropic donor • Actively participates • Participates in fund development (or willing) • Compatible • Willing to question the status quo Helpful or Needed • Experienced board member and/or leaders • Additional, needed expertise based on the vision and strategic direction Very Important • Personal philanthropic capacity to give • Network of influence and/or affluence • Meets diversity goals • Strategic thinker 15 | © 2013 Credit: The Osborne Group, Board Membership Criteria, 2009, updated 2011, 2012 Recruiting for Wealth 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% 16 | © 2013 Give<5% Give<10% Give<20% Give>20% Wealth Essential Wealth Important Wealth Secondary Wealth not Considered Linear (Wealth Important) Linear (Wealth not Considered) Source: BWF 2011 Healthcare Philanthropy Survey Boards that Give More Raise More Source: BoardSource 2010 Nonprofit Governance Index 17 | © 2013 Trustee Generosity Impact Trustee generosity drives fundraising effectiveness 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% <$5mil <$10mil >$20mil Give<5% Give<10% Give<20% Give>20% Linear (Give<5%) Linear (Give>20%) Source: BWF 2011 Healthcare Philanthropy Survey 18 | © 2013 <$20mil Rate Your Board On a scale of 1-10: • What can your board do philanthropically? ‒This year? ‒Five years from now? ‒In a campaign? • Industry expectations? • Quality of members? • Volunteer activity? 19 | © 2013 Establishing Board Member/Volunteer Engagement Onboarding What: How: Result: Two Tiered approach for each new member Co-create an engagement plan and continuously reshape it More is done! 1. 2. Deepen leadership experience Deepen philanthropic experience 21 | © 2013 Onboarding • • • • • Introductions Tour / create powerful experiences Plan for success/ written statement of expectations Role with the ask Thank you and gift accountability *Follow-up always pre-determined 22 | © 2013 Osborne Group “Extreme Engagement Leads to Major and Mega Gifts” • Engaged donors give as much as 38% more than others • Among the wealthy, the numbers are more dramatic 23 | © 2013 Of High-Net Worth Individuals • • Those who volunteered more than 100 hours gave ~$78K Those who volunteered less than 100 hours gave ~$39K Source: 2012 Bank of America Study of High Net Worth Philanthropy 24 | © 2013 Create Personal Philanthropic Plans • • • • • Personal, family and business philanthropic plan Evaluate history of giving and customize stewardship plan Regular touch points around plan Track progress Evaluation of plan * Everything is “calendered” out one year in advance 25 | © 2013 Board Members and Volunteer Impact Who, within a hospital, most influences your giving decisions? Medical/ Nursing Staff CEO/ President Board / Volunteer CDO Other Dev. Staff Community Hospitals 20% 14% 17% 9% 5% Academic Medical Centers/Research Centers 20% 13% 13% 9% 5% Children's Hospitals 23% 8% 9% 6% 8% Long-term Care Facilities 21% 21% 14% 7% 3% Type of Hospital Note: Totals will not equal 100 as those not choosing one of the above were omitted from this table Source: BWF 2011 Healthcare Philanthropy Survey 26 | © 2013 Training and Coaching There are several challenges around volunteer fundraising: • Concept intimidates many people • Lack of understanding of cultivation • Poor understanding of mission, programs and plans • Limited strategy around prospect development 27 | © 2013 Objections Be prepared to address objections: • Fundraising is a staff responsibility • I give MY time • Community obligation • No connections • Inappropriate engagement in the organization • Won’t work 28 | © 2013 Volunteer Trainings Sample Agenda: • Introductions and “what makes you passionate about Children’s” • Preparing for the ask • Overview of tools • Role play • Feedback, successes and challenges 29 | © 2013 Volunteer Trainings 30 | © 2013 Evaluating Success Board Meetings and Evaluation • • • • • Progress tracked; frequent and ongoing touch points Formal, annual evaluations of board members conducted via self-assessments and 360 degree reviews Periodic feedback surveys asking for understanding, efficiency and effectiveness, as well as collective and individual goals Informal feedback Ask at the end of meetings 32 | © 2013 Best Practices • • • • • • • • Board/volunteer recruiting requires a new model—one that also looks at relationships, and individual’s ability to serve as a role model and ambassador Recruit for your mission Don’t forget to also recruit for wealth Understand your strategy and create “your” board and volunteers of choice Ensure engagement from the start by taking on-boarding seriously and co-creating engagement plans Train and coach leaders to see their role in philanthropy Create highly engaged, experiential board/volunteer meetings Track and measure success, adjust as needed 33 | © 2013 Case Study Conclusion Remember the Importance of Board Members’ and Volunteers’ Commitment to Your Organization’s Mission and Values 35 | © 2013