Number 6: Write an Annual Fundraising Plan
Building a fundraising plan requires a thoughtful and strategic approach. Here are some key steps you will want to consider:
Define your goals and align with your case for support. You’ve written your case for support and stated the important change in the world and how your organization will make and how you will make that change happen. Your fundraising plan exists to provide the resources that enable you to accomplish your mission and provide rationale for why it is so important. So the question is: how much are you going to raise? Your plan will demonstrate how you will raise that money across a period of one year. It won’t be perfect and it will change as you move across the year. But it will serve as a specific goal and action plan for how you will get there.
Identify your target audience(s). Identify who your potential donors are, what motivates them to give, and where you can find them. You will likely have multiple levels of donors reflecting multiple levels of giving and how you are going to reach them. You will have major gift donors and prospects, mid-level donors and prospects and low dollar donors and prospects. Perhaps more. Develop a plan for each. I would suggest you put a robust prospecting plan in place and consider lifetime value when you create your budget. As a rule of thumb I have always thought that breakeven is a good going in target for your acquisition efforts. When you consider lifetime value you will realize that it’s okay to invest in this effort as it will payout over time. Think of your acquisition efforts as an investment, not a cost.
Develop your messaging subjects. Create a calendar of compelling subjects across the year that clearly communicate the impact of your organization's work and how donations will make a difference. Envision a calendar with these subjects that each of your tactics will support during a specific time period (e.g., a month). You will want to consider seasonality of giving and macro happenings in the world that will impact giving at different times of the year.
Choose fundraising methods. Decide on the fundraising methods that are most appropriate for your organization and target audience(s). You will likely have events, direct mail, email campaigns, social media. Make sure each is aligned with a messaging subject on your calendar and that it is in service to your larger goal. You will also have grant and major gift solicitation.
Build out a detailed timeline for each initiative. Create a timeline for your fundraising activities, including deadlines for grant applications, key meetings and events. Include milestones for each.
Set a budget. Determine the resources you will need to achieve your fundraising goals, including staff time, marketing materials, and event expenses.
Plan for donor stewardship. Develop a plan for engaging with donors, including thank-you messages, updates on your organization's work, and opportunities for continued involvement. I can’t stress enough how important thank you letters are to this process. Also continued updates on your organizations progress will be important.
Measure success. Define metrics you will need for measuring the success of your fundraising efforts. This will include metrics such as the number of donors acquired, number of gifts from current and past donors, amount and number of gifts raised from each effort, cost per dollar raised and lifetime value of your donor.
Evaluate and adjust: Evaluate the effectiveness of your fundraising plan regularly and make adjustments as needed to ensure that you are meeting your goals.
Remember, a successful fundraising plan requires ongoing effort and a willingness to adapt to changing circumstances. By following these basic steps, you can create a plan that helps your organization achieve its mission and make a meaningful impact on the big change you are trying to make.