As nonprofit professionals, our goal is to generate time, talent and treasure for our nonprofits. We constantly review research on prospects for linkage, ability and inclination. We seek to determine how best to identify, quantify, cultivate, solicit, and steward prospects and donors. This process is never-ending.
The demands for our profession continue to increase each year. The expectations and financial goals continue to rise, yet nonprofit salaries often lag behind similar for-profit roles. But what may be missing at your organization is a nonprofit strategic plan — a clear, written roadmap for the next three to five years — that helps turn your efforts into sustained results.
The Complex Fundraising Process — and Why Planning Is Missing
The fundraising work takes a team effort. One time, in preparation for a seven-figure ask, my team started with a whiteboard, listing every interaction with the prospect over a one-year period and capturing all points of contact. In a moves management strategy, we sought to determine which moves were most effective with the prospect. We stopped counting at 65 touches. This level of strategy led to a successful ask of more than $1 million and illustrates how intentional strategy and clear priorities can unlock transformational gifts.
Whenever you seek revenue from prospects, you must understand their capacity and interest in the priorities you are promoting. These priorities must be sound and based on successful nonprofit strategic planning that involves ownership by administration, board, staff, key volunteers and other stakeholders. An important part of the personal solicitation process is the potential donor’s true engagement.
My organization recently solicited a donor for a significant gift after a successful solicitation visit. The goal was to obtain a multimillion-dollar commitment. The prospect had the capacity to give but needed time to reflect on the visit and his priorities. He created a well-drafted list of questions for us to answer before he would consider a transformational investment in our organization. I loved the fact that the prospect challenged us and wanted to hold our organization accountable. Many prospects are not interested in sustaining this deeper organizational dialogue.
Prospects and donors demand accountability, impact and quality answers to their questions before deciding to make a significant commitment. These questions tend to cover a wide array of topics such as ultimate results, fiscal responsibility, alignment, strategy, communication and recognition. You need to prove to prospects and donors that you represent a solid and well-run organization.
Potential givers want to know exactly how the funds will be used, who will be served and what the long-term results will be from this gift. Many astute prospects ask to see your strategic plan and institutional priorities. This is where some nonprofits fall short — not having those documents can make it harder to secure gifts, build donor relationships, communicate with transparency and obtain additional funds over time.
Common Barriers to Nonprofit Strategic Planning
Strategic planning is frequently nonexistent or ineffective in nonprofits because organizations are trapped in immediate crisis management, chronic underfunding and capacity shortages, according to Rivers and Roads Consulting. These organizations face a scarcity of resources, reactive thinking, funder-driven agendas, board disengagement, lack of importance placed on the strategic process, and lack of willingness to engage in a long-term focused process.
Another significant reason for nonprofit apathy toward the strategic planning process is the simple fact that no one on staff has the knowledge, experience or ability to direct the strategic planning effort. Smart donors do not want to invest in a drifting or weak organization. If nonprofits do not have the resources to engage in the strategic planning process, they should contact their local United Way, community foundation or significant funders to invest in this startup process.
Strategic Plans That Actually Support Fundraising
A nonprofit strategic plan should serve as a roadmap for institutional priorities. It aligns development efforts with mission objectives so that fundraising directly supports the organization’s long‑term vision.
Nonprofit strategic planning involves the process of creating a blueprint that guides your organizational toward its mission-related goals over a typical three- to five-year timeframe, according to Bloomerang. A strategic plan helps your nonprofit raise more money, allocate resources effectively, and respond to external forces. In practice, that means tying specific revenue strategies to clear program goals instead of chasing one‑off opportunities.
Concord Leadership Group’s “Nonprofit Sector Leadership Report” suggests that many nonprofits still operate without a written strategic plan, underscoring how common planning gaps are. But nonprofits that do have written strategic plans are more likely to collaborate with other nonprofits, have boards open to taking risks and have a formal process for measuring leadership effectiveness across the organization.
Impact Priorities Established Through Strategic Planning
Organizations with strategic plans can set fundraising targets; involve multiple stakeholders; focus on key strategies; use specific, measurable, attainable, realistic and time-based (SMART) objectives; and assign tactics and team responsibilities to measure success.
Determining institutional fundraising priorities involves aligning internal strategic goals with donor interests and financial feasibility. Successful fundraising models utilize feasibility studies and fundraising data to develop realistic revenue streams. Step No. 1 should be to evaluate best-of-class models that use strategic plans to establish sound fundraising priorities.
These priorities must align, validate and enhance the nonprofit’s mission by providing compelling investment opportunities that show impact results. There must be a compelling need and urgency, with clear differentiators that make your nonprofit stand out and impact stories that can emotionally engage prospects. Ask yourself if you would personally give to this cause and if the priorities stand the test of time.
Prospects and donors need to understand the direct relationship of priorities to the institutional plan. The case for support must be solid and map revenue goals based upon the linkage, ability and inclination of your fundraising portfolios. Use the process of strategic planning, the establishment of sound priorities and creation of annual revenue budgets based upon proven practices to demonstrate how you will deliver on those commitments.
Changing Your Paradigm
Large donors are driven by transformation, according to the Benefactor Group. These donors have values alignment, demand measurable impact and ROI, want legacy and recognition, organizational trust and credibility, peer influence and leadership, enjoy the pleasure of giving, and support a well-run mission-driven organization.
Quality nonprofit strategic planning plus impact priorities can drive financial success. Donors want to support stories of impact, be part of a well-functioning team, invest in future success, and have their reputation enhanced through positive engagement. Donors want to advance causes that they care about deeply. Your job is to make their connection continually relevant and important with the greatest ROI possible.
The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
