pocketguides
10 Steps to Creating a Fundraising Plan
Many of us struggle to progress when it comes to fundraising. A lot of time and energy seems to be spent on organising the next event, filling out the next grant application or seeking volunteers for the next bag pack just in time to pay the insurance bill or staff costs.
As a result, fundraising can be stressful and exhausting, but more importantly, it takes all of our focus and leaves little or no time for growing our organisation and reaching our goals.
Building a simple, practical fundraising plan will help you manage your resources better, balance your focus and bring you closer to achieving your organisation’s ambitions.
Here are 10 practical steps to design an effective and comprehensive fundraising plan.
Step 1
Can you answer these questions clearly and in a way that anybody can understand?
- Why do we exist?
Your organisation exists because of a need or right that needs to be met. For example: ‘Because our community needs a place to gather.’ ‘Because it is our duty to protect and renew our built heritage to pass it to future generations.’
The point of asking ‘Why do we exist’ is to enable you to show how your solution or project is needed. The answer to this question is the basis for all your communications, both fundraising and program-related.
- What are we trying to do?
What is the goal of your project? What are you aiming to achieve? For example: ‘We’re developing a communal space where we can host festivals and gatherings.’ You can’t assume that people understand what you’re about, so be specific.
You can’t assume that people understand what you’re about, so be specific. You should have clear short-term goals, such as getting a feasibility study carried out and big long-term goals, like creating a 500-seat outdoor performance space. People need to have a sense of where you’re going, but also what the immediate needs are.
- Why should I care?
Can you tell a neighbour, councillor or business owner why your project is, or should be, important to them? Establishing a connection between your project and a potential supporter is crucial, especially considering the thousands of messages they all receive every day.
For example: ‘As a parent we know that safe spaces for children to play are important to you.’ ‘As a member of our community I’m sure you value opportunities to come together as a community for festivals, markets etc.’
Step 2
Set a Fundraising Goal
How much money do you need in total and right now? And what is it for?
Your project might cost €5 million over the next 10 years, so it can be hard to grasp how to tackle such a big target.
Break your project down into logical steps that have relatively clear financial and time targets. For example, to complete the site survey and draft initial plans by the end of August at a cost of €10,000.
Setting smaller targets while not hiding the ultimate goal shows potential supporters that you are organised and professional, and it also allows anybody to make a significant contribution towards your success.
A table quiz that raises €1,000 makes a big impact on a €10,000 target but seems worthless against €5,000,000. Small successes build momentum and confidence.
Step 3
Conduct a Market and Environment Analysis
Understand what is going on in your community. Are there other organisations fundraising for projects that could align or conflict with yours? Do you need to avoid competition or are there opportunities for collaboration?
Knowing the environment helps you adapt your strategy accordingly. There is enough money to go around for everybody if you plan well and work hard.
Step 4
Review Current Resources and Fundraising Products
Evaluate your organisation’s current resources—staff, volunteers, social media channels, existing donors, buildings, etc.
What have you got at your disposal that can contribute to fundraising? For example, if you have a committee member who is in business-to-business sales, then corporate fundraising might be something they could take on. Likewise, if nobody on your team knows how to run social media campaigns, then digital fundraising might not be a key part of your plan.
Additionally, assess any current fundraising activities you have been doing and determine their effectiveness. Make practical decisions based on your resources and skill sets.
Step 5
Develop a Fundraising Strategy
Decide on the fundraising approaches that best suit your organisation. You don’t want to rely on just one type of fundraising activity or donor. Make sure your fundraising mix has something for older people and younger people, businesses and individuals, wealthy individuals and those with more limited resources. By spreading the activities you avoid always asking the same people for money plus you are less reliant on a particular income stream, should that person or business decide to stop supporting you.
Some common fundraising channels include:
- Community Fundraising
- Corporate Partnerships
- Grants and Foundations
- Major Donors/Investors
- Digital Campaigns
Select a mix that matches your organisation’s strengths and market.
If something isn’t a roaring success the first time out don’t pack it in and decide it will never work. Analyse what went well, what went wrong and be willing to adapt and try again. Your organisation is unique and will grow and develop at its own pace.
Step 6
Learn to Ask! - For money, help, support, etc
There are 3 key parts to asking for money.
Firstly “I” – You need to put yourself into the ask because people give to people, and they want to see that you are committed. ‘I’m passionate about our community.’ ‘I know that an outdoor performance space would bring joy and creativity to our town.’
Next “You” – Make it about the reader/listener because they need to know they are important and needed. ‘I know you are committed to seeing this community grow.’ ‘As a parent, I know you would like for your children to…’
Then finally, ask for something specific and WAIT for an answer. ‘Will you join our committee to help us raise €2 million in the next 2 years?’ ‘Would you be willing to donate €10,000 a year for the next 3 years to ensure the success of this project?’
Once they answer – yes, no, or with a question – then you can talk about details, but first put the ask out there and wait.
Step 7
Create a Detailed Delivery Plan
Outline specific actions, assign roles, and set timelines for each fundraising activity. Having a step-by-step roadmap ensures accountability and keeps the team focused on achieving the target.
Don’t put “Launch marketing campaign”. Break it down into the different steps needed to design the campaign, fund the campaign, deliver, monitor, etc. This way each big project becomes less overwhelming, and you can methodically tick off each step until you get it done.
Step 8
Establish Success Metrics
Define what success looks like. These metrics could include:
- The amount raised vs. the goal
- Donor retention rate
- Return of Investment (ROI) on fundraising events
Having measurable outcomes helps evaluate the plan’s effectiveness. If you don’t set a goal before a campaign, project or event, then you can’t use it as a metric afterwards.
Step 9
Focus on Donor Care
Successful fundraising doesn’t stop at securing donations, it extends to caring for your donors. Implement donor care practices across three phases:
- Before: Make your ask clear and direct.
- During: Acknowledge donations promptly and show appreciation.
- After: Update donors on the impact of their contributions, sharing stories and achievements.
Step 10
Follow Up and Communicate Impact
After fundraising, it’s crucial to follow up with donors. Show them the tangible outcomes of their donations. Whether it’s building a new facility or aiding a community, share results to build trust and encourage future support.
-
-
Visit
