How do agencies determine the level of the Board members gifts?
An article in this morning’s New York Times indicated that the largest cultural institutions in that city require that Trustees contribute from $250,000 to $10 million to sit on the Board. Read the article
Read the article here.
In Los Angeles the amounts aren’t quite that high but still can go into six figures. These institutions rely heavily on contributions to survive, and Board members must be the leaders in giving.
Among my clients, which are usually social service agencies and much smaller, the debate about mandatory Board-giving continues. These agencies often, by choice or by law, are required to have a large number of consumers on the Board. In other cases, the Board wants to attract talented people, but these people are usually not rich.
Most of my clients now agree that Board members must make an annual contribution. This no longer is controversial. The challenge is whether to set a fixed amount or find language that conveys the spirit of the gift without setting a specific amount.
Several phases have been adopted, such as “a leadership gift” or a “stretch gift”, but the one I like is “a gift that you have to discuss with your spouse before you write a check.”
How does your agency deal with the giving expectations of Board members?