Fund Development Plan: Your Key to Success

In the last couple of years I’ve learned a lot about myself, as a consultant and a trainer. One thing I’ve come to realize is that I really like to talk about the fundamentals. In fact, just last year I wrote a blog post about the fundamentals key to development success.

As I reflect on 2015 and what I could write in my last blog post of year, I find myself coming back to the basics. I’ve said it before, real success isn’t about silver bullets and is rarely bright and flashy. In fact, success often lies in what we can read in black and white, in a strategic and thoughtful fund development plan.

So I was particularly excited by a recent study by Heather Yandow of Third Space Studio. In her report, posted by the Stanford Social Innovation Review, she shares that in the organizations she studied, the clearest predictor of success was the existence of a formal fundraising plan.  Additionally, she found some interesting correlations between investments in staff, time spent on individual donors and the effect of face-to-face meetings. But these correlations could only be found in those organizations that had a formal plan in place.

The work we do is highly quantifiable with a number of ways to measure progress and effectiveness, and yet, many organizations look at one metric, revenue, to determine success. A solid plan to reach revenue goals, supported by action steps, timelines and progress metrics allows fundraisers to create a clear path that is as helpful in determining what they will do, as what they won’t.

How many of us have heard “you know what we should do, we should have a (insert event name here)” or the classic “that organization does a (insert event name here) and they raise a ton of money, we just need to do one of those.” Having a plan in place allows you to sort through these ideas from a strategic perspective. Maybe a new fundraising activity fits perfectly with existing strategies, or you find that your plan won’t allow for the extra staff time and resources a new event would require. Either way you can point to the development plan as the rationale for your decision.

An effective plan puts you in control of how you spend your time and allows you to prioritize strategies. It puts front and center those activities that you believe will provide the greatest return on investment and creates a system for measuring effectiveness and adjusting strategies when necessary. In fact, we explored this in more detail during a webinar earlier this year.

Yes, writing a development plan takes time, and yes, reviewing your progress toward that plan takes time, but the truth is, you’re already spending that time spinning your wheels on ineffective strategies and a lack of prioritization. The good news is that once you have a plan in place and make a few adjustments in your management systems, you can start to see immediate results.Image result for make a plan

For help in creating and implementing an effective fund development plan, join me on Thursday, January 28th at 2:00pm EST for a free webinar: Register Now

December Major Gift Countdown for Success

December-2015-Calendar-Images-3 (002) You are so busy! December is packed with work and personal obligations. The key? Set priorities.

  1. This week, (December 1-4), list every $1,000+ donor and prospective donor yet to make a gift. Moving from the top down, assign someone to make a personal call. At the very top of the list, if possible, invite for coffee.  Try not to rely on email. Pick up the phone! If $1,000 is too low because you have too many donors at the level, go to $2,500 or $5,000. If $1,000 is too high, start at $250 or $500. Whatever your situation, work the top of your pyramid.
  2. Next week, (December 7-11), list every donor who gave you $1,000+ in the last six months. If you’re a small shop, Every $1,000+ gift n 2015. Big shop with too many donors at that level, move up the pyramid and/or make the time frame shorter. Call. Say thank you again. Specify the difference he, she, the family, the foundation, the company made.  Get help with these calls. Everyone on the team can make a call a day. Mission staff and board members can call. Students, clients. “I hope you received our holiday card. Just wanted to add my voice. We appreciate all you’ve done to help (the people or cause you serve). Your investments have made a significant difference. Thank you.”
  3. Week three, (December 14-17), finish your calls and cards by Thursday. If you’re behind, save some to wish a Happy New Year the first week of January.
  4. Week three, (December 14-17), review the data you want collected for January assessment and planning. Ouch. It’s been all fun up until now. Closing and thanking. But we have to hit the ground running January 4. At a minimum:
    • Retention rates for all $1,000+ (ideally for all gifts of every size). New donors, donors giving for 2-4 years, donors giving 5 plus years. If you’re able, do it by giving program — monthly donors, direct mail, phone, board solicitations and so forth.
    • Upgrade rates. Percentage of donors who were asked to increase and said yes. Percentage who upgraded without a specific request.
    • Yes rates. Percentage of yeses to requests; percentage of yeses to 85% or more of the amount requested at the $1,000+ levels.
    • Progress against goals. How are you doing?
    • Check out this free recorded webinar on metrics.
Throughout the month, remember to take care of yourself. Try to find time to exercise, even if it’s only a quick walk at lunch time, or walking during phone calls. Keep in mind that office and donor holiday parties are working events. Either don’t drink or nurse a glass. Covey QuoteAre you good at power napping? Put your feet up above your heart (on a desk for example). Close your eyes for 20 minutes before an event.
And say, “No thank you.” It’s okay. No matter the request or requestor. You are a December major gift priority. For more on saying no, check out this blog post.