Nonprofit operations exist at the crossroads of intention and execution. Strategic planning is the process of mapping out the steps and resources necessary to guide a nonprofit organization from aspiration to achievement.
A strong fundraising plan helps nonprofits meet challenges effectively and take advantage of new opportunities by enabling leaders to visualize the organization’s path to success. Through nonprofit strategic planning, these organizations can systematically align their overall mission with their financial goals and capabilities, boosting nonprofit performance.
The importance of strategic nonprofit planning
Strategic planning creates a blueprint for sustainable impact, ensuring nonprofits can work efficiently towards their mission. A well-defined strategy aids in allocating resources, making decisions, and setting realistic goals. Ultimately, this plan will guide fundraising efforts by outlining the steps and resources necessary for continued progress.
Integral components of a nonprofit strategic plan
As with many aspects of business, no two fundraising strategic plans will look the same. Individual strategies are heavily based on the unique needs and vision of the nonprofit. Several commonly used types of strategic plans exist to navigate general circumstances, such as issue-based planning and department alignment. However, the specific elements of a fundraising strategy are different for each organization.
Despite this variation, virtually every nonprofit strategic plan should include the following components, in some form, to be effective:
1. Mission statement
Mission statements are the backbone of nonprofit strategy. A nonprofit's overall mission and vision should be the basis of its planning process and drive strategic priorities. All goals and objectives should align with this mission and contribute to its success.
2. Needs assessment
It’s critical to conduct a thorough needs assessment, such as a SWOT (strengths, weaknesses, opportunities, and threats) analysis, to identify opportunities and areas of concern. This deep dive allows organizations to acquire insights regarding internal capacity, community needs, revenue operations, and more.
3. Stakeholder engagement
Nonprofits must ensure key community partners, staff, and board members are involved in shaping the strategic plan. Input from stakeholders will help keep goals realistic and relevant. Assign roles and responsibilities for accountability and a sense of ownership in achieving fundraising objectives.
4. Clear goals and objectives
One way to ensure fundraising goals are clear is by applying the SMART framework. Developing specific, measurable, achievable, relevant, and time-bound (SMART) goals will help the organization answer essential questions, including:
- What are our fundraising targets?
- How do current initiatives support the fundraising goals?
- Is our strategy still relevant?
How to develop a fundraising strategic plan
If your organization is unsure where to begin with creating a strategic plan, start by outlining the four key elements above in the context of your nonprofit. This preliminary step will provide the skeleton for a more detailed fundraising strategy with actionable objectives.
Nonprofits can tailor their strategic planning process to address specific fundraising challenges and opportunities. A comprehensive fundraising strategy should align with the organization’s overall strategic plan and include tactical initiatives for:
Diversifying revenue streams
Effectively managing income streams requires a detailed understanding of your organization’s mission, target audience, market demand, differentiators, and budget. When exploring different types of income streams, there are plenty to pursue, including (but not limited to):
- grants
- memberships
- events
- sponsorships
- crowdfunding
- merchandise
Strategically diversifying revenue streams means choosing approaches that align with your nonprofit’s overall vision and complement organizational processes.
Converting donors
Specific measures should be in place for building and nurturing relationships with potential donors. This process should include researching your organization’s audience, engaging with donors where they’re communicating, and ideally converting them through targeted messaging. An organization’s donor cultivation strategy is the key to unlocking prospects and incentivizing donations.
Leveraging technology
The applications that make up a nonprofit tech stack should provide your organization with the tools necessary to grow and scale its online fundraising programs. Your nonprofit’s choice of software provider should support fundraising objectives and promote a positive donor experience. With so many options available, investing in technology solutions can be overwhelming, but a robust and reliable tech stack is invaluable to nonprofit strategy.
Implementing and evaluating the fundraising strategy
The strategic planning process is dynamic, meaning it must constantly evolve to meet the organization's changing needs. An effective fundraising strategy is by no means a “set it and forget it” plan—it requires refinement or remodification based on shifts in trends, priorities, and demands.
Properly implementing a nonprofit strategic plan means the organization must:
- establish both long- and short-term goals
- prioritize clear and open communication
- regularly assess leadership buy-in
- perform ongoing evaluations
Performance metrics or key performance indicators (KPIs) are used to track progress and evaluate the effectiveness of a strategic plan. Setting benchmarks using these metrics helps fundraising teams visualize their successes and identify any efforts that may have missed the mark. Your nonprofit should establish which KPIs it wants to track before beginning a fundraising program to maintain consistency.
Simplify nonprofit strategic planning with Fundraise Up
Effective nonprofit strategic planning transforms aspirations into tangible impact, igniting change and amplifying your organization’s mission. By creating a solid and scalable fundraising strategy, nonprofit organizations like yours can meet challenges effectively and take advantage of any new opportunities that arise.
Fundraise Up makes nonprofit strategic planning simpler than ever with our user-friendly, all-in-one online fundraising solution. Create your nonprofit’s plan, track campaign progress, nurture connections, and maximize resources with one comprehensive tool that requires no web design experience. It’s time to set a new standard for online giving with Fundraise Up.