Free Management Library's
Online Nonprofit Organization Development Program Module #9:

Basics in Developing Your Fundraising Plan

Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008.

Some of this program is based on materials adapted from the
Nonprofit Capacity Building Toolkit(SM)

(This module is in the nonprofit organization development program. However, this module can also be used by anyone as a self-study exercise to learn more about nonprofit fundraising.)

INTRODUCTION

Raising funds to operate your organization and its programs is very likely one of the most important activities for your nonprofit. Many nonprofits obtain necessary monies from fees and sales (that is, from sources other than donations). However, if your nonprofits counts on donations, then this module will be very useful to you.

This module will guide you through basic considerations and activities that address the questions:
What is fundraising?
Are you ready for fundraising?
What are the standard sources and how are they approached?
What's the board's role in fundraising?
How is a proposal written?
How can fundraising software help me?
Should you use a fundraiser and/or grantwriter?
How can the Internet and Web help you with your fundraising?
How is the overall health of your nonprofit's fundraising activities?

NOTE ABOUT BOARD COMMITTEES: Consider establishing a Board Fundraising Committee to review and guide implementation of key information in this learning module. Major activities and goals from this learning module could be incorporated in that Committee's Committee Work Plan.

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MATERIALS FOR REVIEW

• The following materials will help you address each of the topics and learning activities in this module.

Fundraising & Grantwriting -- particularly the sections: - - -
- - - Getting Ready (read all articles)
- - - Overview of Sources and Advantages/Disadvantages of Each (all of the article)
- - - Board's Role in Fundraising -- Organizing Internal Resources (all articles)
- - - Registration of Fundraising Activities (all articles)
- - - Grantwriting and Proposals -- (read at least "Guide to Proposal Planning and Writing")
- - - Fundraising Online (scan "start here", and at least 3 articles in "Basics..", "But Be Careful", "Donation Services" and "Shopping Malls")
- - - Fundraising Software (all articles)
- - - Hiring Fundraisers -- Should You? How Much Should They Be Paid? (all articles)

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SUGGESTED TOPICS FOR REFLECTION AND DISCUSSION

• Learners are strongly encouraged to discuss the following questions with peers, board members, management and staff, as appropriate.

Basics -- Getting Ready

1. What should be considered when assessing if an organization is ready for fundraising? (See Are You Ready for Fundraising (capital campaigns)?)

2. What are some overall, basic guidelines about fundraising? (See "General Guidelines ..." in Overview of Nonprofit Fundraising Sources and Approaches, Easy Fundraising: Does it Exist?) and First Rule in Fundraising.)

3. What are the organizational structures that need to be involved in fundraising? (See "General Guidelines ..." in Overview of Nonprofit Fundraising Sources and Approaches.)

Basic Overview of Sources and Advantages/Disadvantages of Each

1. Name nine major types of sources of funds. (HINT: Individuals, small corporations, large corporations ...). (See "Typical Funding Sources and Advantages/Disadvantages of Each" in Overview of Nonprofit Fundraising Sources and Approaches.)

2. Name at least two advantages and disadvantages of each of the nine types of sources of funds. (See "Typical Funding Sources and Advantages/Disadvantages of Each" in Overview of Nonprofit Fundraising Sources and Approaches.)

Board's Role in Fundraising -- Organizing Internal Resources

1. What is the board's role in fundraising? How can they best carry out their role? (See How Can Our Board Members Help Raise Money? (go to Fundraising), How Can I Get My Board Involved in Fundraising? (go to Fundraising) and Five Things One Board Member Can Do to Raise $100 to $5,000.)

2. How do you best organize your internal fundraising efforts? (See How To Recruit Your Volunteer Fund-Raising Team and Development Director Needs More Than A Smile And A Shoeshine, But It's A Good Start.)

Registration for Fundraising

1. Why does a nonprofit have to register in order to conduct fundraising? (See How is Fundraising Regulated in the U.S.?)

2. Is it clear whether fundraising on the Internet/Web is required? (See Does Fundraising on the Internet Require Registration in Every State?)

Figuring Out How Much to Ask For and Asking for It -- Grants and Proposals

1. How does an organization figure out how much to ask for? (See How Do I Figure Out How Much to Ask Someone for My Organization? (go to Fundraising)) and Rating and Evaluating Prospects: Whom Do You Ask For How Much.)

2. What is the best approach to asking for money? (See Asking For The Money: If You Don't Ask You Don't Get.)

3. What is a proposal? (See Getting Started and Is It Grant Writing or Proposal Writing?)

4. What goes into a proposal? How does someone write a proposal? (See The Inner Secrets of Successful Proposals,Getting Started, What Characterizes a Good Proposal?, Is It Grant Writing or Proposal Writing and The Inner Secrets of Successful Proposals).

Should You Hire a Fundraiser -- and If So

1. What are some considerations regarding hiring a fundraiser? (See Asking For The Money Is The Job Of The Leadership And Friends Of A Non-Profit Organization: Never Hire Someone To Do What Is Their Responsibility) .

2. It helps to understand the perspective of the fundraiser when considering your organization. What might he/she be thinking about regarding your organization? (See To Consult, Or Not To Consult - That Is The Question, Beginning A Career In Non-Profit Fund-Raising and So, You Were Asked To Volunteer And To Work On A Fund-Raising Campaign!)

3. If you hire a fundraiser, how should they be paid? (See If You Hire a Fundraiser, How Should They Be Paid?)

Fundraising Software

1. How can software be useful in fundraising? (See How Do We Select Fundraising Software?

2. What must be considered when buying software to manage fundraising? (See How Do We Select Fundraising Software)

Fundraising on the Internet/Web

1. How can you benefit from fundraising on the Internet/Web? (See How Can We Use the Internet for Fundraising?)

2. What are at least three advantages to doing fundraising on the Internet/Web? (See How Can We Use the Internet for Fundraising?)

3. What are at least three disadvantages to doing fundraising on the Internet/Web? (See How Can We Use the Internet for Fundraising?)

4. Name at least four Internet/Web-based types of activities that a nonprofit could conduct to generate revenue. (See How Can We Use the Internet for Fundraising?)

5. What are some cautions that nonprofits should have when considering doing fundraising on the Internet/Web? (See "But Be Careful" in the section Fundraising Online Using the Internet/Web.)

6. What is an online donation service? (See "Online donation services ..." in the section Fundraising Online Using the Internet/Web.)

7. What is an online shopping mall? (See "Online shopping malls ..." in the section Fundraising Online Using the Internet/Web.)

Evaluating Your Fundraising Efforts

1. What is one approach to evaluating your fundraising efforts? (See Campaign Assessment and Review: What Was Accomplished and What Was Learned.)

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ACTIVITIES TO BUILD SYSTEMS AND PRACTICES

• Learners are strongly encouraged to complete the following activities, and share and discuss results with peers, board members, management and staff, as appropriate.
• As you proceed through the following activities, be sure to note any incomplete actions in the Action Item Planning List.

Basics -- Getting Ready

1. Is your organization ready for fundraising? If so, write down the reasons why you think so. (See Are You Ready for Fundraising?)

2. What and/or who will be involved in the fundraising efforts of your organization? Write down your answers. (See "General Guidelines ..." in Overview of Nonprofit Fundraising Sources and Approaches.)

Basic Overview of Sources and Advantages/Disadvantages of Each

1. Considering the major types of sources of funds, write down your first impressions of which ones are most suitable for your nonprofit to approach. (See "Typical Funding Sources and Advantages/Disadvantages of Each" in Overview of Nonprofit Fundraising Sources and Approaches.)

Board's Role in Fundraising -- Organizing Internal Resources

1. What will be your board's role in fundraising? How can they best carry out their role? Write down the answer to these questions. (See How Can Our Board Members Help Raise Money? (go to Fundraising), How Can I Get My Board Involved in Fundraising? (go to Fundraising)) and Five Things One Board Member Can Do to Raise $100 to $5,000.)

2. How do you best organize your internal fundraising efforts? Write down your answers to these questions. (See How To Recruit Your Volunteer Fund-Raising Team and Development Director Needs More Than A Smile And A Shoeshine, But It's A Good Start.)

Registration for Fundraising

1. Does your nonprofit have to register to raise funds in your state? How do you know? Write down your answer to these questions. (See How is Fundraising Regulated in the U.S.?)

Figuring Out How Much to Ask For and Asking for It -- Grants and Proposals

1. How much money will your organization ask for? How did you determine this amount? Write down your answers to these questions. (See How Do I Figure Out How Much to Ask Someone for My Organization? (go to Fundraising)) and Rating and Evaluating Prospects: Whom Do You Ask For How Much.)

2. Who will you approach? What is the best approach to asking them for money? Who will ask for it? Write down your answers to these questions. (See Asking For The Money: If You Don't Ask You Don't Get.)

3. Take a shot at writing a proposal. Don't worry about getting it perfect. Start simple, but start. (See The Inner Secrets of Successful Proposals,Getting Started, What Characterizes a Good Proposal?, Is It Grant Writing or Proposal Writing and The Inner Secrets of Successful Proposals).

Should You Hire a Fundraiser -- and If So

1. Should you hire a fundraiser? If so, then why? If not, they why not? Write down your answers to these questions. (See Asking For The Money Is The Job Of The Leadership And Friends Of A Non-Profit Organization: Never Hire Someone To Do What Is Their Responsibility .

2. If you decide to approach a fundraiser, what might he/she want to know about your organization? Write down your answers to this question. (See To Consult, Or Not To Consult - That Is The Question, Beginning A Career In Non-Profit Fund-Raising and So, You Were Asked To Volunteer And To Work On A Fund-Raising Campaign!)

3. If you hire a fundraiser, how should they be paid? How do you know? Write down your answers to these questions. (See If You Hire a Fundraiser, How Should They Be Paid?)

Fundraising Software

1. What software might you need to better manage your fundraising efforts? What must you consider when getting this software? (See How Do We Select Fundraising Software? (go to Fundraising)

Fundraising on the Internet/Web

1. Should you do fundraising on the Internet/Web? Why? What are the advantages? Disadvantages? Write down your answers to these questions. (See How Can We Use the Internet for Fundraising?)

2. What types of activities might you conduct to generate revenue on the Internet/Web? Write down your answers to this question. (See How Can We Use the Internet for Fundraising?)

3. What cautions must you consider in how you plan to use the Internet/Web for fundraising? Write them down. (See "But Be Careful" in the section Fundraising Online Using the Internet/Web.)

4. Will an online donation service be useful to you? Write down your answer to this question. (See "Online donation services ..." in the section Fundraising Online Using the Internet/Web.)

5. Will an online shopping mall be useful to you? Write down your answer to this question. (See "Online shopping malls ..." in the section Fundraising Online Using the Internet/Web.)

Draft Your Fundraising Plan

1. By now, you have already developed the basic components of a broad fundraising plan. You can compile your plan by collecting your answers to the questions in this section "Activities to Build Systems and Practices".

2. Obtain board approval of your fundraising plan. (If you have been working with a board committee to answer the questions and conduct the activities suggested in this module, then board approval should be fairly straightforward at this point.)

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ASSESSMENT(S)

1. Answer the questions about "Fundraising Indicators" in the Checklist of Nonprofit Indicators. List an action plan to complete items suggested by the audit, but not done by your organization.

2. Also see Campaign Assessment and Review: What Was Accomplished and What Was Learned.

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REMINDERS FOR THOSE IN THE ON-LINE DEVELOPMENT PROGRAM

1. Are you exchanging feedback with others about what you're learning in this program?

2. Are you sticking to your study schedule for this program?

3. Are you practicing your basic skills in management and leadership, including in problem solving and decision making, planning and meeting management?

4. Are you communicating throughout your organization by using your skills in internal communications?

5. Are you managing yourself? How many hours a week are you working? Are you noticing any signs of stress? If so, what are you doing about it?

6. One of the ways you might be able to tell if you're stressed out and/or losing perspective might be whether you're tracking details or not. Are you using the action item list referenced above?

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TRACKING OPEN ACTION ITEMS

1. One of the first indicators that an organization is struggling is that open action items are not tracked and reviewed. (Open action items are required actions that have not yet been completed.) Instead, organization members only see and react to the latest "fires in the workplace". Whether open action items are critical to address now or not, they should not entirely be forgotten. Therefore, update and regularly review a list of open action items that includes listing each open action item, who is responsible to complete it, when it should be completed and any associated comments. When updating the list, consider action items as identified during discussions, learning activities and assessments in this module. Share and regularly review this action item list with the appropriate board, management and staff members in your nonprofit. You can use the following Action Item Planning List.

2. What remaining questions or comments do you have that you want to pose? Pose them in ODNet-Nonprofits, a free online discussion group..

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(Learners in the nonprofit organization development program can return to the nonprofit organization development program.)

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For the Category of Fundraising (Nonprofit):

Related Library Topics

Recommended Books

The following books are recommended because of their highly practical nature and often because they include a wide range of information about this Library topic. To get more information about each book, just hover your cursor over the image of the book. A "bubble" of information will be displayed. You can click on the title of the book in that bubble to get more information, too.

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