Is your board fit for fundraising?

Boards are responsible for long term sustainability, risk oversight and ensuring the organisation can deliver on its purpose. If there’s no money, there’s no mission.

Over the past few years we have seen tightening of government budgets across many sectors. At the same time, cost-of-living pressures have affected donors’ and volunteers’ capacity to give. In this environment, hoping that income will continue as usual is not a strategy. Boards need to think commercially and strategically about where revenue will come from and how secure it really is.

Delegating fundraising entirely to management is not enough. It should be a partnership, with the board setting direction, appetite and guardrails. Part of the board’s role is to look ahead, analyse trends and interpret what they mean for the organisation’s funding model, now and into the future.

Strategy is more important than sausage sizzles

Income does not simply appear. And if it does, it is unlikely to be reliable.

Too many organisations jump from event to event or grant to grant without a clear framework. A fundraising strategy helps the board step back and ask: how does our income mix align with our purpose, values and long term goals?

It can be tempting, and sometimes necessary, to take funding wherever it can be found just to keep the lights on. But at what cost? Without clear policies and agreed principles, decisions about sponsors or funding partners can become contentious and divisive.

The recent funding debate within Sydney Gay and Lesbian Mardi Gras is a useful reminder of how complex these issues can be. Members passed a motion at the 2025 AGM to pursue public funding rather than rely on certain corporate sponsors, citing concerns about alignment with values. The board later overturned the motion, referring to its obligations under ACNC governance standards and the need to ensure decisions aligned with values, strategy and long-term sustainability. Regardless of where you sit, the example highlights how differently people can interpret ethics, risk and sustainability.

Boards must be deliberate. Chasing multiple short term project grants may help cash flow in the moment, but it can also distort strategy, stretch capacity and exhaust staff through endless applications and acquittals. The board’s job is to balance short term viability with long term direction.

If your board needs a starting point, the Community Directors helpsheet on establishing a fundraising strategy is a practical way to begin the conversation.

To kick things off, ask:

• Is our income mix intentional or accidental?
• Are our targets aligned with our strategic priorities?
• Do we understand the true cost of fundraising, including staff time and overheads?

Getting the whole board involved is a fundraising must

Another common challenge is uneven commitment. Boards regularly ask how to get every director “pulling their weight”, especially when everyone is a volunteer.

The honest answer is that contributions will never look identical. People bring different networks, confidence levels and time capacity. What matters is clarity of expectation and a shared understanding that fundraising is a collective responsibility, grounded in legal and ethical duties.

Equity and flexibility are key. Create a culture where directors can be open about their capacity, without equating less availability with lower commitment. Contributions can take many forms, including:

• making introductions to relevant contacts
• thanking donors by phone or email
• attending meetings or events to support relationship building
• advocating for the organisation in professional and community networks
• giving personally at a level that is meaningful.

Silence or visible reluctance at board level can undermine morale and credibility. Visible commitment, even in small ways, sends a powerful signal internally and externally.

The helpsheet on getting your board on board for fundraising is a useful resource for clarifying roles and expectations.

Board readiness matters when it comes to effective fundraising

Enthusiasm does not automatically equal readiness.

Before setting ambitious targets or diversifying income streams, boards should ask whether the organisation is genuinely prepared. Do you have the foundations in place to raise and steward funds effectively?

The Community Directors fundraising readiness checklist can help boards test their assumptions.

Consider:

• Do we have a clear and compelling case for support?
• Is our impact articulated and measurable?
• Are there effective systems to manage donor data and relationships responsibly?
• Do we have the skills and capacity required, at board and staff level?

Without these basics, pushing harder on fundraising may simply amplify weaknesses.

Boards need to set boundaries on fundraising efforts and manage risk

Every funding source carries some form of risk, whether reputational, legal or ethical. Boards have a fiduciary duty to be clear about their risk appetite and the trade offs they are willing to make.

This is where policy becomes essential. An ethical fundraising policy and a board fundraising policy help to:

• set expectations for directors
• clarify roles between board and management
• protect the organisation’s reputation
• support compliance with relevant legislation.

Fundraising should also be embedded in your risk management framework and reviewed regularly. Sector conditions, community expectations and economic factors shift quickly. Governance settings need to keep pace.

From passive oversight to active stewardship

Sustainable funding is not a side issue. It sits at the core of the board’s responsibility to safeguard the organisation’s future.

If the board treats fundraising as someone else’s job, sustainability becomes fragile. When the board sees fundraising as part of its stewardship role, income decisions are more likely to be strategic, ethical and aligned with purpose.

The question is simple. Is your board merely observing fundraising, or is it actively governing it?

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