Developing a Fundraising Plan

Last month in the Nonprofit Partner, we discussed the challenges of fundraising in tough economic times. One of our recommendations was to review your fundraising plan in order to identify where you can make changes or improvements to maximize contributions.

Of course, it helps if you actually have a written fundraising plan.

As management guru Philip B. Crosby said, “Good things only happen when planned. Bad things happen on their own.”

Naturally, a well-written fundraising plan helps you raise more money. But it also:

·       Ensures that you remain faithful to the mission of your organization

·       Builds support from key stakeholders, such as your board of directors

·       Creates a “case” for support that you can share with donors

·       Tells you how to spend your time and resources to be most effective

·       Provides a structure so you have the freedom to innovate

·       Establishes feedback mechanisms to determine which strategies work best

So what are the steps for creating a plan? We recommend that you begin with a clearly written mission and vision and then ask the following five questions:

1.    What are our programs?

What are your priorities in the year ahead and how do they advance your mission? Determine your long- and short-term objectives, outline your plans, and decide how much they cost.

2.    Why should anyone care?

Create a “case” for support by answering, “What is the problem or need we are addressing?” “Why our are programs relevant, important, and urgent?” “What difference do we hope to make?”

3.    Who are our prospects?

Identify the prospects that are most likely to support your cause. These could be individuals, foundations, or corporations.

4.    What is our goal?

Develop an operating budget based on the priorities established in Question #1. Review your organization’s contributions history and examine the list of prospects identified in Question #3. For all prospects or donors, estimate how much they may give and how much you will ask for. With this information, you will be able to determine if you have enough potential income to meet your goals. If you don’t, then revisit your programs or your prospects to make adjustments.

5.    How will we raise funds?

This is your action plan. Set a goal for each source of funding from individuals, foundations, or corporations based on the trends identified in Question #4. Then list the fundraising programs you plan to implement to reach these goals (e.g. proposal writing, direct mail, online solicitation, events, etc.). Add detailed action steps to establish a timetable, decide who is responsible, and evaluate how you will measure your progress. For example, if one goal is to raise more money from individuals through direct mail, then decide how many letters you will mail, the months you will send them, who will write them, and your expected results. Don’t forget to include a communications plan so that you are in touch with donors regularly.

A fundraising plan can be much more detailed and comprehensive. But answering these five questions will be a starting point for any organization that needs a plan to determine how best to meet its financial goals in the future. 

Sources for Success:

“The Strategic Board: The Step-by-Step Guide to High Impact Governance” by Mark Light.

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