Strategic planning for fundraisers

Anne Dill Grantham CFRESenior Consultant New ZealandGlobal Philanthropic Pty Ltd

What is Strategic Planning?

A strategic plan is an organised structure for creating the future.

It has foundation in the present, but describes the framework of a chosen

direction.

Why do strategic planning for fundraising?

Your charity observes that competitors are beginning to receive a larger share of the philanthropic pie.

New board members have recently joined the organisation.

It has been 4-5 years since the organisation has reviewed its sources of funding and the methods used to foster

giving.

The vulnerability of existing streams of income – contributed and earned – is recognised.

The organisation desires to develop new programs or to put more money into existing programs

Three steps to developing the plan

1. Prepare the planning base

2. Establish the strategies

3. Communicating and implementing the plan

Thinking strategically

Thinking strategically is accepting the intellectual challenge of creating the future.

Strategic thinking is the process for recognising the future and for seeing the potential pathways

to reach it.

See the big picture, consider the competition and develop a realistic vision.

Don’t do this alone, a small group of key personnel would be best include interested board

members as well as staff.

Start with Vision and Mission

Unrealistic mission statements breed contempt not commitment.

Why does your organisation exist?

What is the organisation meant to be involved with?

Does your mission statement fit the organisation? Is it really a statement of the way we do things

around here?

Is it easy to understand?

Analysis to avoid paralysis

One must know where one is before commencing a journey and strategic planning is preparing for

the journey to the future.

Planning Steps an overview

Understand the current situation

Identify the potential fund raising building blocks

Assemble the building blocks

Select the best strategy

SWOT Analysis

The only strength, weaknesses, opportunities and threats that really matter in a strategic plan are those with long-term implications – at least five

years out

Review your fundraising assets

1. THE ORGANISATION Well managed

Defined mission and goalsNeeded programs and services

Strong management

2. BOARD LEADERSHIP Committed

Well informedKnowledgeable about responsibilities

Active Development Committee

Fundraising Assets

3. PUBLIC IMAGEWell regarded

No major PR problemsRegular media coverage

Contributes to community

4. ORGANISATIONAL VISION AND PLANRelated to missionEndorsed by board

Put in writing

Fundraising Assets

5. CASE FOR SUPPORT Evolved from vision and plan

Articulates how funding will make a differenceIs compelling

6. PROSPECTSWho could be interestedWith some connections

Who have resourcesWho are involved

Fundraising Assets

7. VOLUNTEERSMake own commitmentsResponsible for asking

Trained in Asking

8. FUNDRAISING RESOURCESProfessional staff

Support staffAdequate budget

Computers Relationship database

Fundraising Assets9. ATTENTION TO DETAIL

Names correctAccurate giving records

Timely, appropriate thank yousDonor stewardship

10. SUPPORTIVE ORGANISATIONAL CULTURE Nice people who can talk about moneyDirector of Development reports to CEO

Director of Development has access to the boardEveryone understands fund raising to be a long term

process

Creating the building blocks

Identify the fund-raising opportunities.

Match all segments of the organisation’s constituency with the fund-raising vehicles

available to it.

Three matrices can be used:•individuals

•corporations•foundations

Matching fundraising programmes to market segments - individualsMarket SegmentsBoard members, former board members; friends,

donorsEvent attendees, community; staff,

volunteersFundraising vehicles

Major giftsDirect mailBequestsEvents

Memorial gifts

Corporations as potential contributorsMarket SegmentsMajor corporations

Small-medium size companiesLocal merchants

Fundraising vehiclesAnnual giving

Special programs and proposalsEvents

Corporate membership programs

Foundations as potential contributors

Market segmentsLarge private foundationsSmall family foundationsCommunity Foundations

Fundraising vehiclesGrant proposals

Identifying strategic options

Choose a variety of fundraising programmes, or building blocks, which appeal to the various

segments of your constituency.

Do they fit with the community?

What is the potential return on investment?

Example of two strategic options

1. A comprehensive development program with major gift focus, with emphasis on identifying, cultivating and soliciting major gifts $1,000+

2. High visibility strategy leading to heightened awareness and development of a broader donor base, less emphasis on major gifts

ScenarioYour organisation is a public library which serves middle and upper income suburban community of

70,000 people.

The library board is anticipating that town funding as a percentage of its operating budget may decline somewhat over the next few years.

Some information is available showing the sources of operating revenue and sources of revenue as a percentage of total operating

budget.

ExerciseIn teams, develop a strategy for option 1 or 2 include in your evaluation the key elements,

secondary elements, advantages and disadvantages of the option you choose and

highlight the key factors for success.

You have 20 minutes and then each team will present their strategy.

Presentations and discussion

What were the key success factors and what influenced your decision?

What other information would be useful for a board when presenting the strategies?

Where to from here?

What makes a good strategic plan?A good strategic plan must be keyed to the

operations which are necessary to make it happen. Who is responsible, and how they are to

operate, and with what resources, what is the time line and how success is to be measured should all be specified, as should targets, and

performance indicators.

References•Greenfield James The nonprofit handbook second edition, John Wiley and Son, 1997

•Kotler and Andreasen Strategic Marketing for Nonprofit Organisations, Prentice Hall, 1996

•Smith Neville Down to Earth Strategic Planning, Australian Institute of Management, Prentice Hall, 1994

For further information or questions contact :Anne Dill Grantham CFRE

Senior Consultant New ZealandGlobal Philanthropic Pty Ltd

Email a.dg@globalphilanthropic.comTel: 021 998 308