As the saying goes, "Failing to plan is planning to fail." Healthy nonprofits of every shape and size need a fundraising plan.
It's tempting to think that you can just "plan to ask as many people to donate as possible." But that's not really a plan. It might result in a quick influx of cash (which gives the illusion of successful fundraising), but then what? What happens after you've exhausted your network? How do you expand your fundraising efforts?
So, you're probably asking yourself, "How do I write a fundraising plan?".
In short, a fundraising plan is made up of six key elements.
- Decide who should write it
- Set your fundraising goals
- Align your goals with your mission
- Develop a plan of action
- Organize a fundraising timeline
- Outline your case for support
Feel better? Yeah, it's a bit overwhelming, but we'll get through this together, step-by-step.
Set your nonprofit up for long term financial stability by putting in the effort to create a fundraising plan. We promise it will be well worth the time, energy, and resources (and your development professionals will be eternally grateful).
Here's an essential guide to help you create a fundraising plan for your nonprofit.
What is a fundraising plan?
The goal of a nonprofit fundraising plan is to organize all your fundraising efforts and activities so that every event, donation request, and email update work together.
Unfortunately, many nonprofits operate without a fundraising plan. When they come up with a campaign, event idea, or strategy, they just put together a committee or volunteer group and go full-speed-ahead.
Perhaps they have a few regular rhythms like sending the occasional email update or schedule a few meetings with donors, but there's no cohesive plan of action.
The end result of fundraising without a strategy is you will likely often go into "panic fundraising" mode, always fundraising to meet an urgent need. This is most definitely not the most successful or sustainable way to run a development program.
If you've ever watched old war movies, you probably remember scenes of military generals standing around a table-sized map, moving tiny units around to develop battle plans. They don't begin until everyone understands "who," "what," "when," "where," and "why." None of those leaders would have imagined going into battle without a strategic plan of action. I'm sure they'd also be huge proponents of the nonprofit fundraising plan.
A nonprofit fundraising plan is like a battle plan. It gets everyone in the organization on the same page and provides a clear understanding of goals and expectations. The plans usually include event and campaign dates, donor tracking plans, an outline of your communication schedules, and other essential information.
Of course, dates, times, other details will move as the year goes on, but it's better to adjust a plan as needed than to not have a plan at all. A fundraising plan is meant to keep you and your team on-task and working toward specific goals throughout the year.
Fundraising plans also help minimize (or eliminate) "crisis fundraising," when you just need to raise money to make ends meet. Having fundraising goals allows organizations not just survive year-to-year. It enables you to develop emergency funds, close deficits, invest in new programs or resources, and expand their services.
Create A Nonprofit Fundraising Plan In 6 Steps
Even though fundraising plans are just as important as military battle plans, they don't have to be nearly as complicated or challenging to create. Here are five easy steps to creating a basic fundraising plan that will serve any nonprofit.
1. Decide who should write your fundraising plan
Every nonprofit has a slightly different structure. If you have a fundraising department or development team, they should participate in the process. The CEO or Executive Director and board of directors should also play a significant role.
If your organization does not have a dedicated fundraising team, then it's probably best to have the executive director or board of directors write the fundraising plan.
Many nonprofits also hire qualified development consultants to help them create fundraising plans. Some fundraising consultants specialize in this niche and are well worth the investment, especially if your organization has been around for a few years and has never written a fundraising plan.
2. Set your fundraising goals.
Create a budget for the year. How much money do you need to raise? Just like you have a household budget or a financial plan for your business, you should have a pretty good idea of exactly how much it will cost to run your nonprofit and accomplish your goals.
Setting specific fundraising goals ensures you aren't surprised by an unforeseen deficit at the end of the year. It also helps you choose the right fundraising strategies that will help you accomplish your goals.
You will probably have multiple fundraising goals. If so, you may choose to create a fundraising plan for each goal instead of one overarching fundraising plan. Regardless of your strategy, be as specific about your needs as possible. Don't be afraid of big numbers. The more accurate you are with your fundraising goals, the more likely you'll be to achieve them.
3. Align your goals with your mission statements
Now that you identified how much money you need to raise, it's time to line that up with your mission statements. Why do you need this money? How will it help you accomplish your organization's mission?
Being able to clearly communicate how each fundraising goal aligns with your mission will help you stay motivated to do the work. It will equip you to make excellent donation requests and demonstrate to potential donors that you are responsible with your finances.
4. Create a plan of action
Now that you know exactly how much you need to raise and how it fits into your mission, you can come up with a specific plan of action to accomplish your goal. What strategies, events, campaigns, or activities will you use to raise your goal amount?
Be as specific as possible in this step. How much do you expect to fundraise from each fundraising event and strategy?
For example, if you need to raise $5,000 for new tutoring resources, your goal might be to raise $2,500 through a charity 5K and $2,500 with a new peer-to-peer crowdfunding event.
Don't be afraid to be creative with your fundraising tactics. There is no shortage of fundraising ideas. It's a good idea to use a variety of fundraising tactics to diversify your income streams. Just be sure to account for the overhead cost of each event.
5. Create a fundraising timeline
Fundraising experts typically recommend plotting out a 3 to 5-year fundraising timeline. The first year is usually very detailed, and the subsequent years less defined. This helps you stay ahead of your financial needs and remain proactive.
As you develop your fundraising timeline, include specific milestones like financial goals, number of donors, and attendance at events. These will help you assess your progress and give you things to celebrate along the way.
Your timeline should identify who is responsible for various fundraising activities. Delegation and clear communication will keep everyone focused and help you prioritize various tasks throughout the year.
Make sure your timeline is easily accessible to everyone in your organization. Everyone should be aware of the big picture as well as their specific tasks.
6. Create your case for support
Potential donors need a compelling reason to give to your specific fundraising campaign. Perhaps the best way to stand out from the crowd of nonprofits jockeying for donations is to have a persuasive case for support.
Donors actually want to understand your organization's fundraising strategy and mindset. The more compelling your case, the more likely people are to give to your campaign.
Fundraising consultants usually recommend including these sections in your case for support.
- Your mission statement
- A brief history of your organization
- Goals
- Budget
- Fundraising plan
Support cases are prevalent for capital campaigns, but savvy nonprofits should develop a case for support as part of every fundraising strategy. Some information will remain the same, so you won't have to reinvent the wheel every time.
The process of creating support cases is beneficial for your entire staff team. It will help you develop an "elevator pitch" to explain your mission and fundraising campaign to anyone in any situation.
Creating a fundraising plan for your nonprofit might seem like extra work. Still, most organizations notice that it improves the effectiveness of their fundraising efforts. Whether you're a start-up nonprofit or a multi-million dollar charitable organization, the key to long-term financial stability is creating and following a good fundraising plan.
Here are three more resources to help you improve your fundraising strategies.
- 7 Great Peer-to-Peer Fundraising Event Ideas: Peer-to-peer fundraising is one of the fastest-growing fundraising strategies because it allows nonprofits to mobilize their supporters to fundraise on their behalf. Friends and family members are excellent advocates on your behalf! Here are seven peer-to-peer fundraising events to get you started!
- 5 Easy Steps to Create A Monthly Giving Program: Especially during financially hard times, donors probably don't have large sums of money at hand. They're more likely to have a small amount in their weekly or monthly budget. Creating a monthly giving program allows supporters to give a little throughout the year, which adds up quickly! Here's how to start a monthly giving program for your organization.
- 4 Ways To Protect Donation Levels During The Coronavirus: Donor care is a critical piece of any fundraising plan. It's even more essential during seasons of economic uncertainty. Even small actions will help you build trust with donors at every level, and it can actually expand your network of potential new donors!
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