How Do You Develop a Diversified Annual Fundraising Plan?

You never want to put the cart before the horse–or in this case, your fundraising efforts before your strategic plan.

Because if you do, you’ll be left with wasted time, wasted resources, and ultimately, a wasted campaign.

A lose-lose, no matter how you slice it.

So if you want a successful fundraiser, you have to start with a successful plan. 

Here are the top 4 Q & A’s to set your fundraiser up for success:

1. What is an annual fundraising plan, and why is it necessary?

 A fundraising plan is a written log that tracks the methods and strategies you’ll use to meet your fundraising goals. Key components include targeted dates, campaign efforts, and major fundraising events and activities. 

 Fundraising plans help you determine specific and attainable goals and help you measure your progress along the way.

In its simplest form, fundraising plans address the 5 W’s:

• Who is your target audience/donor? Who is responsible for the pieces of the plan? Who will implement the various parts?

• What financial goals are you wanting to hit? What methods are you going to use to raise the money?

• When do you plan on having your fundraiser? When will each of the initiatives take place?

• Where will you host your fundraiser? Online or in-person? Where are you leading your donors?

• Why are you choosing those specific methods and strategies? 

This leads to the biggest “why” of them all…

Why are fundraising plans even necessary? 

Because without them, you’re lost.

Distractions, getting off track, and fragmentation in your strategy ultimately impact your revenue. That means less money earned, and more effort wasted. 

Creating annual fundraising plans helps you steer clear of these risks by implementing intentional methods and strategies for each fundraising effort.

But here’s the tricky part: 

Your fundraising plan should be solid enough to keep your efforts on track, but flexible enough to account for unexpected curveballs and analytics acquired from data along the way.

Here’s the good news–If you’re a nonprofit relying on annual fundraisers like galas or banquets, you’re probably already doing this. 

But keep in mind, if you have diversified ways of raising money each year, you’ll need a much more detailed plan.

2. How should nonprofits develop a fundraising plan?

Different fundraising targets require different methods (which is why ironing out those 5 W’s is so important!).

Before you even think about developing a fundraising plan you have to answer the most important question: What are you raising money for?

Operations? New building? Capital project? Programs?

Each of these requires a different strategy–it’s not a one size fits all scenario.

Nailing down this answer helps you develop your materials, asks, collateral, and needed information so donors know exactly what they are giving to, and why they should give you their money. 

Once you’ve got that, follow these 3 easy steps:

• Step 1

Start with what you know. Use your organization’s annual budget to guide your target goals. After all, you can’t make a plan until you know what you’re after!

• Step 2

Divide your year into manageable chunks to prevent overwhelm and maintain focus. When determining key dates, double-check local/competing events, major activities within your organization, and holidays.

• Step 3 

Determine staff allocation and assign specific roles and responsibilities. Fundraising is a team effort, but you won’t get anywhere without clear and direct accountability. Make expectations clear, concise, and measurable.

Let’s look at a real-life example:

Say you’re raising money for a new building.

Your approach might focus on tours and personal solicitations to inform the public about what your organization needs. By taking this approach, prospective donors will get to see the physical need firsthand and have a better understanding of all the nuances behind the ask. 

This type of fundraising plan is usually nestled within a specific timeframe and has a clear end goal. Better yet, this approach isn’t manpower heavy and can be accomplished with fewer resources.

Here’s a different example:

Gearing up for an annual fundraiser.

The method behind this fundraiser will look very different than raising money for a new building. And so will the strategy behind it. 

Rather than beginning and ending within a compacted time frame, annual fundraising plans raise money all year long and lead to a major ask at the end of the year. 

For such a huge project, (considering most nonprofits have an average of only 1-3 development staff) you have to determine how to best utilize the staff allocation you have. 

• What ideas and methods will match your staff’s manpower? 

• How can you involve the Board Members and volunteers to increase your capacity? 

• How can you think smarter not harder?

One way to do this is by cultivating a sustainable giving program such as a Circle of Support or Business Partnerships. These free you up to steward and honor your monthly donor base in a sustainable way that isn’t overly time-consuming or staff intensive.

Examples of nurturing these relationships include sending annual letters, acknowledgments of giving anniversaries or simply mailing out stickers. Proving exposure for your business partners is another less intensive way of nurturing current supporters and cultivating a relationship of reciprocity. 

Get the most bang for your buck:

Fundraising is an investment–regardless of how big or small your event may be. And when it comes to investments, the biggest thing to consider is your ROI:

Will the fundraising strategy you choose earn you more money than the amount you’re putting in? 

By keeping your resources allotted, you’re able to wisely discern the best use of your resources. Knowing where you’re starting from and where you’ll like to end up helps you consider the pros and cons of each fundraising cost. 

Examples to consider:

• Printed and mailed invitations or email marketing?

• Down payments for venues and catering services or hosting your gala virtually?

• Multiple small events or one large fundraising appeal?

If you’re a small organization with a limited budget, putting a hefty amount of money down upfront probably isn’t the best choice. 

But regardless of what choices you make…

Make the calendar work for you:

Stay on top of local events in your community and regional area. Universities, chambers of commerce, rotary clubs, and other nonprofits/charities are all examples of entities that compete for dates on the calendar. 

Knowing when other organizations are organizing their fundraisers or capital campaigns helps you determine the best time for you to schedule yours–Freeing the public up to give you undivided attention. 

Another great tactic is to make appeals on certain holidays throughout the year. If you’re a cardiac organization considering making some sort of ask around Valentine’s Day. If you’re a community garden or an organization that promotes environmental changes, consider how you can incorporate holidays like Earth Day into your fundraising strategy. 

3. How can nonprofits diversify their fundraising plan?

Many nonprofits have at least more than one way to raise money–and they should!

Whether it's through online giving, Facebook appeals, monthly Circles of Support, business endorsements, or silent auctions, diversifying the streams of incoming revenue is critical to the success of your organization.

• Research untapped donor groups

When you go fishing, you use different bait to hook different fish. 

Attracting new donors is no different.

Understanding the mindset of potential donors is essential. Tapping into the beliefs of desired donors keeps your fundraising efforts effective, and ensures your messaging speaks to them directly. 

Look at the fish in your pond and seek to understand what motivates them. Incorporate that strategy into your messaging, marketing, fundraisers, and social media.

For example:

Baby Boomers (ages 55-72) donate the most charitable dollars in the U.S. They are driven by a conviction to be involved and give back to their community.

Gen X (ages 35-54) is the most skeptical of institutional giving but leads the generational race by rolling up their sleeves and volunteering. If you’re looking to engage this group financially, transparency and honesty are their #1 priority.

Millennials (ages 25-34) believe they can make a difference and give when they feel inspired. They are the biggest generation on the job, have the highest potential for giving dollars, and are most likely to research nonprofits before giving. 

Gen Z (ages 18-24) was one of the highest-giving groups amidst the pandemic. Growing up in a technological boom and smartphone era, tech-savvy and secure online methods are critical to reaching this younger population.

• Expand corporate giving

Businesses donated more than $21 billion to nonprofits in 2019.

Building relationships and seeking direct sponsorships from corporations should be a consistent strategy for your fundraising efforts. They are especially helpful during fundraising lulls or slow phases throughout your fundraising campaigns. 

Many companies are willing to match philanthropic contributions for specific causes and participate in gift-matching opportunities. Talk to local businesses to create a campaign that’s a win-win for both parties.  

• Harness the power of grants

Grants can be a powerful resource in reaching your fundraising goals. Although competitive, well-written grants can make their way to the front of the pack.

When you’re constructing your grant be sure to personalize and tailor the message of your proposal directly to the funder. Communicating emotionally driven central messages and establishing personal connections with funders are all ways to beef up your ask and set you apart.

• Nurture donor relationships

People give to people, not brands. So make sure you’re making connections instead of just transactions.

Donor stewardship is always going to be a worthy investment of your time, effort, and resources. Check-in regularly with donors to show your appreciation and see how you can in turn support them.

Be sure to regularly communicate the impact their contributions are making with concrete examples within your organization.

4. How Serve Denton can help you make diversified fundraising plans

We get it–fundraising efforts can be challenging, overwhelming, and a stumbling block to your financial success. 

That’s why we created our Shared Services program. 

Designed to help you run an effective and efficient nonprofit, Shared Services removes the burden of resources and time, and offer expertise specifically in the area of development support.

We can provide a fresh pair of eyes and a full-blown assessment of your fundraising initiatives. Together we will determine what’s working and what’s not, the roadblocks or challenges you’re facing, and provide strategies to help you reach your financial goals.  
If you want to develop processes and plans that deliver results and remove unnecessary burdens, get started with Shared Services today.