There was a really odd short posting on the Boston Globe website last month. It says that the union representing health care workers asked the board of a hospital to consider whether a trustee "should have disclosed that he helped raise money for the hospital from at least one person with whom he had done business." This makes it sound like raising money for a non-profit medical center is somehow wrong or at least underhanded. At this particular hospital, being a trustee is an honorary position - the board of directors has fiduciary responsibility, and a hospital spokesman said that only directors must disclose conflicts of interest. Further, the spokesman said, "while trustees cultivate relationships with donors, they do not ask for money; that job is handled by hospital staff." This response is what I find so odd about this story. (Aside from the issue of why the union is making these kinds of requests at all.)I've always understood that the entire role of trustees on non-fiduciary boards is fundraising. And if they aren't fundraising from people they've done business with, they aren't doing their jobs - it's not a conflict of interest - it is the job! Fiduciary board members have a major role in fundraising, too, but they also have some other responsibilities.
A number of years ago, I served as chief development officer for a university foundation. My board chair told the board, "it is our job as volunteer board members to raise funds for this organization. The staff is hear to support us in this vital role." I have always agreed with him. If the board won't, or for some reason is prevented from, raising funds for the organization, the staff will find it very difficult to succeed, no matter how hard they work.
Does your board help with fundraising, and do they cultivate and solicit business contacts? If not, would you like them to? If your board needs some help in understanding their responsibilities to your organization, let me know. I'm happy to help.
