Roadmapping: Fundraising Planning for Nonprofits, Part 3

This is the third post in a series that advocates for a written annual fundraising plan as a strategic and tactical tool for development—your departmental roadmap ably steering your efforts in the right direction. You can find Part 1 and Part 2 at these links. So far, I’ve provided the rationale for a plan, addressed the executive summary, and reviewed approaches to board and major/planned giving. Today’s post considers annual giving methods alongside institutional and corporate giving.

Annual Giving
The annual fund is the engine propelling any individual giving program. With range that can be both broad and deep, annual giving is the philanthropic fuel that drives recurring and increased giving from community members who believe in your cause. And contrary to any naysayers out there, direct and electronic mail still deliver results.

Have you fine-tuned a feasible mailing schedule that is the right frequency for your donors and prospects? Are your written appeals donor- and beneficiary-centric, compelling in their storytelling and clear about what philanthropy makes possible for your organization? Do your solicitations share stories about specific programs or initiatives that are engaging and create a sense of urgency to contribute? Are you using AI to customize your approach to past donors?

Are your direct mail packets well-designed and do they employ a variety of printed formats, such as postcards, self-mailers, and reply forms? Do you use proven direct mail techniques, like suggested gift levels, matching gifts, endorsements, and monthly giving options to encourage participation? Is your online giving platform accessible, secure, and easy to use, and does it generate automatic receipts? Are you partnering with marketing colleagues on active engagement opportunities to bring potential new donors into your orbit?

Here’s a sample annual giving program for a mid-sized organization with an active donor base that corresponds to this raised revenue summary chart referenced in Part 2 of this series:

Goal: $450,000 for general operating support (GOS), a 5 percent increase over the prior year

Prospects: 12,000 current and recent past donors in the database

Strategy: Hard copy mailing to current and past donors in mid-October and two electronic reminders in late November and mid-December; hard copy mailing in mid-April to donors, as well as new marketing engagement captures and peer-exchanged lists, and two electronic reminders in late May and early June. Integrate mailings with digital media promotions and Giving Tuesday participation. Customize stewardship of mid-level donors designed for retention. Analyze results to inform and improve future efforts.

Who: Annual giving specialist, marketing staff, mailing house

Institutional & Corporate Giving
Many organizations rely on grantsmanship to secure substantial support from foundations, government agencies, and corporate funding programs, even today as federal government allocations have been reduced under the current administration.

Which foundation and corporate funders can be expected to renew their operating or program support? Which government agencies offer suitable funding opportunities for vital programs and projects? Are program staff available to assist in preparing proposals for prioritized initiatives? Does the finance staff provide needed budgetary data for proposals and reports? Are you developing meaningful partnerships with your institutional funders? Does your nonprofit offer persuasive benefits to corporate sponsors? Do you have robust research tools to identify new prospects and a reliable project management system to track deadlines, submissions, and reports?

Goal: Foundations: $100,000 for GOS; $525,000 for program support. Government: $300,000 for program support. Note the anticipated 26 percent drop in institutional giving due to XYZ Foundation shifting its funding guidelines and eliminating eligibility. Corporations: $175,000 for general support, $75,000 for program

Prospects: 95 qualified prospects

Strategy: Focus on general operating grants and prioritized projects. Research, build relationships, and pursue past, current, and new funders whose guidelines and interests align with organizational and program goals. Maintain up-to-date grants calendar to facilitate submitting proposals and reports on time. Invite funders to periodic programs and events, and include institutional funders in annual gratitude event.

Who: Institutional giving specialist, program staff, finance staff

In a prior museum role, I led a three-person institutional development team responsible for raising money from foundations and government. At the beginning of the fiscal year, we mapped a precise plan for renewals and new prospect proposals to support programs, operations, and a facility restoration project. We also distributed our expertise: one colleague focused on general operating support and education, the other on exhibitions and public programs, while I managed major initiatives and capital projects. In one year, we increased grant funding for programs and operations by 74 percent and secured $7 million for the restoration from a municipal grantor that had never previously supported the museum. We also honored our funders with a thank you breakfast that became an annual spring celebration. All of this resulted from having a solid, working plan and collaborating with colleagues.

Now pull over at the next rest stop and get some coffee because we’ve got one more adventure ahead. My upcoming final post in this fundraising roadmap series addresses special events and other information.

Image Credit: Highway Intersection Aerial View, detail, by wirestock, n.d. Courtesy of Freepik.