An organization can be effective only if it has enough financial resources to meet its purposes and advance its mission.
For most nonprofits, balancing the budget has two dimensions: 1) finding dependable revenue streams, and 2) raising money.
Boards can help to suggest and create products and services that will generate income while remaining consistent with the organization’s mission.
They can also engage in fundraising to attract contributions from individuals and corporations, and foundation and government grants. They can help identify and cultivate potential donors. An organization’s effectiveness in fundraising is directly linked to board members’ participation.