To remain financially viable and meet its purposes, an organization must have adequate financial resources.
Although the board can and should expect much of the chief executive and management on this score, the board is chiefly responsible for ensuring the organization has the funds it needs and does not spend beyond its means.
For most nonprofits, balancing the budget has two basic dimensions related to revenue:
- Finding dependable revenue streams (normal earned revenue)
- Raising private support (gifts and grants)
The expectation of board member involvement in raising private support continues to rise, yet many boards have not created a policy that specifies what that involvement should entail. Board fundraising policies most often indicate the amount board members are expected to contribute to the organization in the coming year and how they will participate in the fundraising efforts of the organization.