We have all heard of organizational strategic plans. We all know that fundraising is a critical component of a larger organizational plan and generates the resources needed to achieve big, mission-oriented goals. But what about development departments themselves? They also need the opportunity to think strategically and expansively about their vision and how to reach important milestones.
This is where a fundraising strategic plan is invaluable. It’s often an afterthought, especially in smaller organizations. Typically, development staff are given the bottom-line dollar goal and then are expected to get to work.
How can you take this to the next level and dream big about what you might accomplish? I like to approach nonprofit fundraising strategy in a way that is data informed, but also makes space for the larger work of setting a vision.
Before we delve into creating a fundraising strategic plan, we need to pause and think about how to best align fundraising with organizational goals. Organizational leaders, stakeholders, and board members set the organization’s mission and vision. Fundraising leadership needs to be a key part of that process and all leaders need to think about how to align resources with programs, taking into account the desired outcome and impact. From there, all fundraising activity should be in service of achieving those organizational goals.
Here is how I think about the first steps in creating a fundraising strategic plan:
Establish Your Baseline
Take a good look at how your development program is performing and pull data for the last three to five years. In addition to breaking down your total giving into categories (e.g. major gifts, foundations, corporations, etc.), be sure to take a look at the data on a more detailed level. When making projections about your future fundraising potential, you want to be sure that outliers aren’t muddying your predictions.
I’ve previously written about digging into donor data and it’s important to do that when you’re examining your performance. Going through this process can unearth key prospects and growth trends that will inform your larger fundraising strategy.
Conduct a Landscape Survey and Examine Trends
Now that you have a good idea of how your organization is performing, take a look at the broader fundraising and economic landscape. This step is critical in not-for-profit fundraising strategy. What trends is your organization subject to? For example, are you engaged in hot-button issues that are likely to be in the limelight?
In terms of the broader philanthropic landscape, if you’re reliant upon institutional giving, it’s good to get a sense of the larger financial climate. In this realm, foundation grant making can be highly dependent on the performance of financial markets. Grounding your own organization’s data in the current economic landscape will help you know which areas are and are not poised for growth.
Set Big Goals and Call in Expertise
Now that you’ve got a firm grasp on past performance and how the overall climate will impact your fundraising, it’s time to set goals for your development shop. Where do you want your nonprofit fundraising strategy to take you? While it’s natural to focus on overall revenue growth, I’d encourage you to also look at other ways to make a big impact:
-Can you increase the number of major donors?
-Can you innovate in your events program or annual campaign?
-How about encouraging your staff to grow and stretch in ways that will fuel their satisfaction and boost organizational performance?
After taking these initial steps, unfortunately many fundraising strategic plans never make it to implementation. This is where outside expertise is invaluable in helping you reach your potential. At Little Bean Group, we love to provide the kind of tailored support that can bring you closer to achieving your big goals. Our fundraising assessments and guidance through planning and implementation will spur action and drive results.