Ken Goldstein, MPPA
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Introduction to Fund Development Planning (book)
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Limit your "crisis fundraising," build flexibility into your finances, increase board involvement, and use your time more productively.
Introduction to Fund Development Planning
is my book for those who are new to nonprofits or new to the
development function. It is ideal for board members and volunteers as
well as staff or those interested in a new career in fundraising or
nonprofit management. By following the eight lessons, you should have
an understanding of:- The importance of a diversified funding base
- The players in the fund development process
- How to conduct an assets inventory
- How to develop your mission & case statements
- How to identify new funding opportunities
- How to set realistic goals
- How to prepare your development plan & calendar
This book is designed with the assumption that you are raising money for a charitable organization that is officially recognized as a "nonprofit corporation" by the IRS under section 501(c)(3) of the U.S. tax code. While some funding sources may not be available to less formally organized neighborhood groups and associations, the concepts learned here will still apply.
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Why Plan?
I am often amazed at how few nonprofit organizations actually have a fund development plan beyond a vague idea of applying for a few grants and sending out an annual appeal letter.
Recognizing that lack of planning, I am not amazed at how often these same organizations have rounds of emergency budget cuts when they realize that they have no assured streams of income.
Very typical is the agency that has received a large grant to run their programs for one year. Then, in the tenth month of the grant period, comes the realization that they don't know how they will fund the next year's programs. With less than two months of money left in the bank they go into emergency fundraising mode.
Their first impulse is to start applying for another large grant. But at most foundations, the process - from letter of inquiry to proposal to acceptance - typically takes at least three months, and often six to eight months.
Their next idea is to turn to their individual donors with a panicked letter that essentially says, "Send us money now or we might go out of business." That, of course, is the least effective fundraising letter you can write. Donors want to invest in your successes, not bail out your failures.
So, how do they avoid these situations? The answer is to plan.
Through the planning process, you will achieve the following:
- Limit crisis fundraising: This,
as the above story illustrates, is our primary reason for creating a
fund development plan, but there are others as well...
- Diversity builds in flexibility: Changes
in other sectors of the economy can have a major impact on nonprofit
funding. A cut in the state budget can be passed down as fewer
contracts for local service organizations. The dot-com bust of a few
years back cut foundation endowments, reducing the funds they had
available to grant. Agencies that had become comfortable relying on a
single source of funding found themselves struggling to survive these
changes. Those with plans and diversified funding bases had the
flexibility to adapt and survive.
- Planning for diversity brings in more opportunities:
In the planning process that you will learn in this book, you will
learn how to identify funding opportunities you never knew existed.
Further, when you stop having to scramble to pay next month's bills,
you will be able to devote more time to developing new sources of
income for your agency.
- Setting priorities, strategies, and goals: New
opportunities present themselves all the time, if you are open to
receiving them. But which opportunities should you pursue? When you
have a clear mission and a plan, the answer becomes clear. By following
the plan, you know where your efforts are most needed at any given
time, and you can turn down distractions that don't further your
defined goals.
- Increase board involvement: I
always hear nonprofit staff complaining about either their un-involved
board members or board members who meddle too much without knowing what
they're doing, and yet they don't create opportunities for the board to
be constructively involved. Asking your board to be a part of the
development planning process will both motivate them and educate them
at the same time.
- Integrate fund development with other program activities & plans: If
you're lucky enough to have staff who work on fund development
full-time, you're also risking a disconnect between program people and
fundraisers. The result is an annual event that's held the same week as
the busiest part of the program staff's season. Written plans that are
shared by all staff help to avoid such conflicts and encourage a
working team environment.
- Most productive use of team's time: The bottom line is that by being organized, and having clarity as to what is expected of every team member, all your activities will be more efficient.
Order from Amazon.com Paperback only |
12.95 paperback $7.23 eBook |
Click for eBook |