Tips on Developing Your 2004 Fundraising Strategy

The purpose of the fundraising plan is to have an operational document that clearly spells out the overall fundraising direction and road map for your organization. In most plans, the agency takes a historical look at the past three years and seeks to project probable funding sources three years into the future and then develops the next 12 months into an operational plan. Generally the purpose of the plan is to:  

* Develop the overall approaches, strategies, and timetables to increase and diversify your funding.

* Identify specific funding needs and match those needs with appropriate funding categories.

* Develop the most strategic approaches to each funding source.

* Explore additional controllable funding streams and opportunities.

* Work the plan into month by month deliverables.

1. ELEMENTS OF A FUNDRAISING PLAN - This should be the table of contents for the fundraising plan:

• BACKGROUND
• CASE STATEMENT
• DEMOGRAPHIC INFORMATION
• SWOT ANALYSIS
• ORGANIZATIONAL DYNAMICS
• FUNDING HISTORY
• FUNDING OPPORTUNITIES
• FUNDING STRATEGY
• STRUCTURE OF THE FUND RAISING STRATEGY

( click here for the article, Elements of a Fundraising Plan )

2. KEY POINTS THAT SHOULD BE INCLUDED IN THE PLAN

• Each board member should make a contribution AND help the organization raise money.
• Set a board goal every year during the first few months of the year. Work with the board to design the specific strategies that match the board member interests, contacts, etc.
• Always try to upgrade donors throughout the year.
• Always try to increase the amount of CONTROLLABLE dollars coming into your organization from donors, memberships, special events, local churches, and fees.
• Make fundraising an organizational commitment rather than the responsibility of the executive director.

3. HAVE SPECIFIC FUNDRAISING GOALS ESTABLISHED AND APPROVED

It is critical that EVERYONE in the organization know exactly how much money needs to be raised for what specific purpose. Clearly identify your funding needs broken down by administrative; program(s) - you will probably have a number of programs that are seeking money; equipment (such as computers, furniture, technology); and capital requirements. Make sure you are clear exactly what your funding needs are and develop a specific dollar amount for each of the needs.

4. INVOLVING THE STAFF AND BOARD LEADERSHIP

The last thing the board members want to do is raise funds and this is the first thing the executive director wants people to do. It is important to constantly generate an interest in bringing in money as an equal and necessary priority as fulfilling the mission (because without money, we can't fulfill our mission). Retreats work great as an opportunity to bring the whole board and leadership into the game and you should use this retreat time to plan out the strategic plan for 2004. Always try to bring non-board members into the development committee as a way to expand your leadership base and to plan for future board candidates.

5. ROLE OF THE BOARD PRESIDENT AND EXECUTIVE DIRECTOR

These are the two key leadership positions in most organizations. The board president needs to take the leadership in selling the fundraising plan to the board members; to ask for individual contributions; and to hold board members accountable for their commitments. The executive director, in most cases, takes the leadership in designing and developing the fundraising plan and in working with the executive or development committee to sell the plan and the deliverables to the board members. This team approach is critical for getting 'everyone on board' on the money ship.

6. DATABASE, DATABASE, AND MORE DATABASE

Most of the groups we work with complain about the lack of an effective database or that they are having a hard time tracking everything that they do. We find that the issue is NOT in the database, but in the discipline of inputting the data into the database. Most databases will work fine if the staff inputs the data within 24 hours of contact with donors. It is critical to have the staff, board, and volunteers keep track of all phone calls, meetings, and other contact with potential and existing donors, supporters and friends - and to make sure that the information is put into the database. The Grassroots Fundraising Journal ( www.grassrootsfundraising.org ) and the Nonprofit Times ( www.nptimes.com ) have recently been involved with listing and evaluating databases for purchase .

7. YOU HAVE TO SPEND MONEY TO MAKE MONEY

It is vital that boards allocate money in their yearly budgets for the staff members to attend a fundraising conference, or to subscribe to various databases such as the Foundation Center, Chronicle of Philanthropy (most recent grants), Guidestar and others. There is a cost of raising money and the leadership should be willing to spend resources in developing the fundraising capability 

Richard Male President Richard Male & Associates rich@richardmale.com  

www.richardmale.com p. 303-355-2919 f. 303-355-7190