Fundraising Basics – Planning Continued

February 6, 2018

Last week we began this series and I focused on the benefits of planning that allow you to do the following:

Clarify your mission, vision, core values and strategies
Identify your critical planning issues
Establish your priorities
Focus your direction, decision-making and resources
Enhance your communication and teamwork
Increase your efficiency and effectiveness

Now today I want to cover what planning should include and what CEOs and Board members can expect from a planning process:

A review of the previous 3-year performance in specific source areas

In order to develop a realistic plan on where you’re going, it’s important first to know where you’ve been. When we help with nonprofit strategic planning, we normally review sources of funding, levels of giving, direct mail performance, donor retention, events and every other area that produces funds. We also review communication vehicles including social media, web site, marketing efforts and more because all of these are related to fundraising.

A statement of critical issues, and the creation of goals and a plan with strategies for each area

Once you review past performance, you can begin to develop a future plan. If you aren’t willing to do that kind of analysis, then you’re prone to setting unrealistic goals based solely on what you need.

For example, we worked with one institution in higher education that had not done any review at all before establishing some very unrealistic goals. In fact, the goals were created primarily by the CFO based solely on need with no input from the new Chief Development Officer. Specifically, they set a goal to raise their annual giving from $800,000 to $1,500,000 in a little less than 3 years. That’s an 87.5 % increase in a very short period of time and also at a time when giving to higher education was in decline nationally.

This also occurred at a time when the institution was moving into a capital campaign. The goal just wasn’t tied to reality and therefore, even though the Chief Development Officer made excellent progress by increasing donations, they failed to achieve the goal.

The creation of a budget to get there

Once you have a plan it should lend itself to creating a budget to fund the activities in your plan. We recommend zero-based budgeting, where you justify each line item annually. That forces people to really think about how to eliminate waste and increase productivity.

The development of a fresh statement of your case with your vision and areas of focus

The same old case tends not to excite people. When I was in higher education we had a few high net worth donors tell us that they were more interested in where we were going and what we might do than what our current needs were. Not that operational needs aren’t important, they are, but they can often be stated more specifically than the “annual fund.”

A call to action with accountability

Plans are nothing if there is not action attached to them. As I said last week, a good plan is one that prompts action, and that action increases efficiency and effectiveness. However, without people acting upon those plans, they simply represent some good ideas that we may implement one day. Also, not only should people act on those plans, but also they need to be held accountable for doing so.

Next week we will discuss more specifics on what exactly it is that we believe should be reviewed before developing your plan.

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church

Fundraising Basics – Planning Continued

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