Month: April 2015

This time, calling it by it’s correct name !!

As previously noted in these postings, “Development” has its focus on the relationships between the organization and its constituents/donors that can result in contributed income, “Fundraising” focuses only on the dollars.

For a new nonprofit, immediate funding would probably be needed to ensure survival in the short term, but it’s quality relationships that result in consistent dollars over-the-long-term.

It must also be understood that Development Plans are constructed for specific sets of circumstances — there is no one-fits-all model.

Before the Development Plan comes the Strategic Plan … to determine priorities and where the organization wants to be by the end of this year, in two years, in three years … and for what programs/staff/equipment/overhead/etc. funding will be needed.

The development plan functions to help you keep in mind where the money came from last year, what you had to do to get it, and what you’re going to have to do to get that same money this year. Secondarily, the development plan looks at how to increase funding from former sources and generate new money from new sources.

At the end of the process of constructing a Development Plan, you have a fundraising goal for the year (or for whatever period you’re doing the planning), a goal that MUST reflect reality. It must represent what you know of the organization’s fundraising history and what you know about your prospective new donors.

That goal must be achievable, it cannot contain any element of wishful thinking. If the fundraising goal and the projected income from all other sources don’t add up to what the budget requires, it’s the budget that must be trimmed, not the fundraising goal that must be increased.

At the end of the year (or whatever period for which the development plan was constructed) you look at each element of the plan: what the goal was for each activity (direct mail, personal solicitation, special events, etc.); whether each of those goals were attained; what factors, if any, kept you from attaining each/any of the individual goals that comprised the overall goal; and, what you’d need to do to reach all of your funding goals next year.

The development plan for the period just concluded is the basis for constructing the plan for the next time period. The new plan is based on the realities learned/faced last time, and its goals must be attainable.

A fundraising goal cannot be set just because the Board and/or the ED says more money is needed. Board and/or ED insistence that the goal be higher (by a percentage or by a dollar figure), when the goal isn’t supported by history/reality, is a recipe for failure. And failure to achieve fundraising goals leads to a loss of confidence in the nonprofit and its leadership.

More on Goal Setting next week.

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Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

As noted last week: (1) The fundraising plan addresses (where appropriate) mass solicitation (mail, email, telephone), individual solicitation (major gifts), foundation applications, corporate solicitation and special events; and, (2) A fundraising plan, more than anything, must be a reflection of reality.

In crafting a plan, “reality” derives from experience. For example, only if you’ve previously done direct mail can you project how much you will need to spend for that activity and how much you’re likely to raise from that activity in the coming year.

For a new nonprofit, without the experience to craft an actual plan, the “plan” will consist of a number of activities that will investigate various fundraising methodologies.

That “plan” might include the intent to research a number of foundations to determine which (type of) foundations would be likely to support the organization’s mission. It might include the intent to call and/or write (or have someone write) letters-of-inquiry (preliminary proposals) to a small number of foundations. It might even include the intent to identify the executives and board members of the identified foundations who live in the organization’s service area.

It might include the intent to compile lists of local and national corporations that serve your area and/or your constituency, then to research which of those corporations … and which of their executives … are active members of your community.

And, most importantly, it should include the intent to identify who the leaders are in your community … those people who sit on the boards of local corporations, who are board members of other nonprofits, and those who are major donors to other nonprofits. Those are the folks with the money, the people who are most likely to be able to make the major gifts you’ll need for long-term survival.

The “plan” might include the intent to talk with one-or-more fundraising/development consultants … with an eye toward identifying one with whom you’ll be comfortable working. You might even talk with a direct marketing firm about direct mail … how many pieces should be in a “test” mailing, how many test mailings should you do in a year, what would it cost….

If an organization wants to grow/survive, it must invest in the research that will (help them) identify likely (long-term) donors.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

This is one of the most important aspects of a successful Development program, but it’s a subject that needs a lot more attention than it gets.

An organization’s development/fundraising plan, once formulated, provides the map, the guidelines for doing what must be done to raise the funds an organization needs to operate/survive. Sticking with the “map” analogy for a moment, it shows you the route you must take to get to where you want/need to be … and where you want to end up.

A Fundraising Plan addresses what will need to be done in order to raise a dollar amount that has, through the above-described process, been deemed attainable.

Typically, an organization should be creating a “new” fundraising plan each year. As circumstances change, like the economy, as there are changes in a nonprofit’s leadership and/or staff, as new potential donors are identified and as more is learned about current donors, a fundraising plan must change, must adapt to any/all changes.

The first question that you should be asking is, “What is a fundraising plan?”

So, I’ll start by noting what a Fundraising Plan isn’t: A Fundraising Plan is not the equivalent of “Let’s Put On A Play,” or “Let’s have a Bake Sale.” A Fundraising Plan is not just a list of activities. It is not a wish list.

A fundraising plan, more than anything, must be a reflection of reality. It must be based on what you know … not on what you think you know or would like to be true, but on fact. A fundraising plan addresses all types of fundraising that your organization will be doing for the coming year. It includes mass solicitation (mail, email, telephone), individual solicitation (major gifts, planned gifts), foundation applications, corporate solicitation and special events (not fundraisers).

Usually, for a new/young organization, very little is “known.” You don’t know who the people/foundations/corporations are who would be likely to support you if they knew about your mission/purpose; and, you don’t know why potential donors would want to support you – and their reasons will rarely relate to how good you think your organization might be or how strongly you believe in your mission.

So, obviously, you must first learn who those people are and what would cause them to want to support you.

For a new nonprofit, the founders, their families, their friends, their families’ friends, and their friends’ friends are the most likely (prospective) donors. They will give because the people that are asking are people they care about … they will support those people … not necessarily the mission.

Please note:
1. We do not advocate the use of “fundraisers,” to the contrary,
    as those activities can’t be relied upon for ongoing/long-term support.

2. Better than two-thirds of funding for nonprofit organizations comes from
    large gifts from individual donors. If you’re looking for funding, you should
    look at where most funds come from !!

Next week’s posting will look at a Fundraising Plan for a New Organization.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.