10 Steps to Fundraising Success: Your Organization's Roadmap
For charities and nonprofits, having a fundraising plan is incredibly important. A well-structured plan improves donor engagement and increases funding, serving as a blueprint for success. Often, organizations randomly choose fundraising initiatives or decide to hold events, only to find they are not achieving the desired results. This leads to wasted time on ineffective activities.
In this article, we will provide you with a ten-step plan to create a strategy that drives your fundraising success.
Evaluate your current fundraising efforts. The first step is to assess your organization’s previous fundraising activities. Determine what has worked well and what has not in your annual fundraising or campaign efforts. While doing this, gather input from staff, board members, and key stakeholders. Analyze your donor data and fundraising metrics, which can be done using your donor database to review metrics on a fundraising dashboard or through reports. Look for trends in your data. Are there events that your supporters gravitate towards? Are there funds that donors typically contribute to? Examine all aspects of your fundraising to decide the best course of action.
Set clear fundraising goals. Once you've assessed your data, it's time to set your fundraising goals. Clearly define goals that are measurable, attainable, relevant, and time-bound (SMART approach). Discuss with your team the importance of aligning these goals with your organization’s mission. You can set short-term goals, such as how much you want to raise over the next year or the number of new donors you aim to acquire. Also, consider setting long-term goals as well. For example, you could build a major gift program, which could enhance the long-term sustainability of your organization. Or develop a volunteer program of committed volunteers who can support various projects and events. Establishing fundraising goals is essential to the success of your fundraising plan.
Identify your target audience. Understanding who supports your organization is important for successful fundraising. During the assessment phase, you may identify key characteristics of your donors. To deepen this understanding, create donor segments and build donor profiles to tailor your messaging more effectively. Once you know your supporters better, you can strategize how to appeal to different donor groups. For example, if you have a loyal group of donors supporting a specific initiative, consider creating a targeted fundraising appeal for them to maximize your results.
Develop a case for support. Your case for support is the cornerstone of your communication strategy. It is essential to articulate why your organization deserves funding by highlighting key achievements and future goals. Use compelling stories and data to strengthen your case. Without these crucial details, your case for support might not resonate with donors, making it challenging to persuade them to donate or support your cause.
Select your fundraising strategies carefully. There are many activities to consider for your organization’s funding model. These can include, but are not restricted to, individual gifts, in-person or hybrid events, capital campaigns, crowdfunding, and major donors. Evaluate which strategies best align with your organization's staff capacity and resources. Also, consider which strategies are most suitable for your audience, based on your data analysis and donor profiles. When choosing your fundraising strategies, ensure you create a balanced mix of activities to diversify your income streams so that you are not too reliant on one source of revenue.
Create a timeline and budget. Start by outlining a timeline for your fundraising activities. Allocate a budget for each activity, taking into account the costs, expected returns, and the time required to complete each task. For example, if your organization plans an event, determine the best time to have the event, the number of volunteers needed, and their required hours. Additionally, estimate the event costs and projected revenue. Applying this level of detail to each fundraising activity will help you assess if the activity is realistic and a good use of your time and resources.
Build your fundraising team. Identify who will be responsible for each aspect of your fundraising plan. Even for smaller organizations that do not have a dedicated fundraising team, it is important to assign activities. Engage both staff and volunteers in various roles and responsibilities to distribute the workload evenly and prevent it from falling on a single person. If you are a team of one, prioritize tasks based on impact and seek external support when necessary, like hiring a fundraising consultant.
Implement donor stewardship. Beyond creating a fundraising plan, incorporate donor stewardship into your strategy. Develop a plan to thank donors and show them the impact of their contributions. Without a well-thought-out plan, stewardship efforts can fall flat. Ensure your team discusses strategies for building long-term relationships with donors, and continuing to engage with them even after they have made a donation.
Use technology. For smaller organizations, technology can be especially advantageous, with various tools and platforms available to streamline fundraising efforts. Using donor management systems and online giving platforms offers numerous benefits, making it easier for your team to manage and accept donations. When selecting the right technology for your organization, ensure it aligns well with your needs and simplifies your processes, rather than adding extra work.
Monitor and evaluate progress. As you develop your successful fundraising program, it's essential to establish metrics to track the success of your activities. For example, are you securing additional corporate partnerships, or expanding your reach through social media platforms? Regularly review and adjust your plan based on performance and feedback. Emphasize the importance of continuous improvement in fundraising within your organization to ensure you move in the right direction.
A fundraising plan is essential for both charities and nonprofits. By following the ten steps outlined above, you can create your own plan and move towards fundraising success. With a well-structured approach, you'll be on the path to achieving your fundraising goals, and ensuring your organization’s sustainability.
If your organization needs more support or finds the steps above overwhelming, we are here to help. Contact us, and we can create a customized fundraising plan tailored to your organization's specific needs. Our goal is to support and empower organizations that may struggle to create a fundraising plan on their own, ensuring you have the resources and guidance needed to succeed.
