We recommened the following process for creating a fund development plan for a nonprofit organization
1. Understanding Your Organization
a. Understanding the History and Culture of Organization
- How was the nonprofit organization started, for what purpose and by whom?
- Did the organization follow model of similar organizations in other places or is the organization the first of its kind?
- What are some of the key accomplishments and milestones?
- Are their aspects of the organization's historical culture that affect fund development?
b. Understanding the Governance and Structure of the Organization
- What type of organization is it IE society, non-profit company, foundation, etc.?
- What is the makeup of Board and how they are elected or selected?
- What strategies are in place for Board membership mix?
- What is the type of organization in terms of its life-cycle stage and what is the appropriate organizational strategy for that stage?
- Are there any policies, official or unofficial, which may prohibit certain types of fundraising?
- Is fund development is a part of the strategic plan for the organization?
2. The Development Audit
a. Conduct an Environmental Scan
- Investigate other organizations that are doing similar work.
- How do these organizations fundraise and what are their other revenue sources? - to answer this question, we will review their annual reports, which may be available online.
- Identify any metrics that have developed that indicate a sector standard for fundraising IE hospital foundations represent 1% of revenue of parent organization.
b. Examine the Details of Present Sources of Revenue
- Government grants
- Major funding IE United Way, Foundations
- Board and society member donations
- Corporate donations and partners
- Number and size of annual donations from fundraising
- Gaming revenue – casinos, bingo, etc.
- Special Events and Corporate sponsorships
c. Determine Funding Goals
- What is the amount of annual operating budget that must come from fund development?
- What are the program and capital needs that must be met from, or subsidized by, fundraising campaigns or related activities?
- Are their opportunities to set financial goals beyond annual needs?
- What is the long range vision and future fundraising goals IE building endowment?
- What are the strategies for continued awareness and promotion?
3. Your Unique Fund Development Plan
- Develop a case statement or "Case for Support" document as a part of the fund development plan or review and validate the present case statement.
b. Review of Administrative Systems and Prospect Research Capability
- Review the fundraising database you are using or plan to use to determine if it will meet the needs of the strategies identified in the new plan.
- Review and make recommendations of gift acceptance policies.
- Review the receipt and gift acknowledgment processes in place.
- Develop a strategy for donor acquisition.
- Recommend strategies for use of existing database for prospect identification and data-mining.
- There are many tools available for prospect and donor research and commercial databases that require a subscription - identify the research capabilities and needs within your organization
- Track Board connections to prospects and develop a method for tracking their contacts with these prospects
c. Communications Plan to Build Awareness
- We develop a pr and communications plan that supports the fundraising plan.
- The case for support will identify key messages to key stakeholders and target audiences.
- The plan will include a variety of media such as newsletters, website, in-house communications, media releases, advertising and awareness raising events
d. Identify Resources Available
- Identify the people who are dedicated to fundraising and support fundraising.
- Review the fundraising staff and their job descriptions and identify any gaps in staffing.
- Make a recommended budget for the fund development plan, estimating your fundraising revenue and the expenses you will have to generate that revenue.
- There are a variety of fund development activities that may or may not be a fit with your organization. We will recommend the best fit given the results of our analysis.
- Check through a review of fundraising methods that may be a part of your plan.
f. Donor Recognition Plan
- We will create a donor recognition plan that is unique to your circumstances or make recommendations based on your present plan.
g. Organization and Timing of Fundraising Activities
- The plan will include both organizational charts and job descriptions for everyone that has a role in implementing the plan. We will also create timelines for the annual coordination of all activities and timelines for specific activities within the overall plan.
h. Establish Policies Applicable to Fund Development
- gift acceptance policies
- clearance to cultivate prospects
- terms of reference for endowment funds
- clarify issues related to risk tolerance
- policies for gaming
- donor recognition
