Planning your fundraising work can feel overwhelming, especially when there are so many possible ways to bring in revenue. A good plan helps you cut through the noise, focus on what matters most, and make sure everyone is working toward the same goals. Plain and simple: organizations with a plan fundraise more money than those without a plan. Think of it as a map that guides your nonprofit from where you are now to where you want to be financially.
When I started as a fundraiser, I focused on recreating what I could see on the surface. Things like email appeals, letters around the end of the year, and bake sales for members. I didn’t yet understand that there was so much more to fundraising that only your development team, fundraising volunteers, and leadership truly see. There are lunches with donors. There is grant research and writing. There is data entry and collection to make sure you retain donors year after year. There is outreach to potential sponsors that takes weeks or months to build into real relationships. All of this takes resources that need planning.
I have sung with four GALA choruses, served on the Board of one, and now worked as the Executive Director of two. Each had its own culture around fundraising. But in every one of them, one thing was consistent;: there was always some chaos and disorganization in the process. We would follow leads in real time, hoping things would stick and that we would reach our goals.
Sometimes, the leads we chased depended entirely on who was available that year. Maybe one year we had a volunteer who knew how to run a gala, so that became the focus. Another year, a volunteer with corporate sponsorship experience meant we leaned heavily in that direction.
The first time I implemented a real fundraising plan, it was like someone turned down the noise and for the first time I could truly focus. The plan didn’t just make us more organized, it gave us clarity, direction, and the ability to be intentional about where our time and energy went.
One of the most valuable things about having a plan is that it gives you a roadmap. Throughout the year, people will come to you with new fundraising ideas. Some of those ideas may be great, but time and resources are limited. Every new activity you add may mean one of your planned efforts gets less attention. A solid plan allows you to either say “no” or perhaps a softer “that is interesting, let’s consider adding it to next year’s plan” without losing focus on the goals you committed to.
A fundraising plan also helps you:
This is not just common sense. Studies show that a written fundraising plan produces measurable results. In one survey of over 300 nonprofits, organizations with a written plan integrated into their budgeting process saw first year donor retention increase by about 9 percent, with similar gains in later years. They also expected 10 percent less income loss during the disruptions of COVID-19 compared to those without a written plan (Philanthropy Institute, 2020).
The biggest long term gains happen when planning is backed by a culture of philanthropy, data informed decisions, and full leadership and board engagement. Nonprofits that embrace these elements have doubled, tripled, or even quadrupled revenue over time (Giving USA, 2020).
Research from multiple nonprofit studies shows that the cost to raise a dollar varies widely by fundraising method. The following list is a great tool to use when discussing fundraising strategies with your board - especially when deciding how to invest dollars and, most importantly, staff and volunteer time:
This metric is important because it lets you compare the efficiency of different activities. The “cost” is not just money spent on a vendor or materials, it is the total investment required to make that fundraising activity happen. That can include:
When you calculate cost per dollar raised, you divide the total of these costs by the total revenue that activity generated. A well rounded plan includes a mix of methods, but when deciding between two activities, the one with a lower cost per dollar raised often delivers more impact for your time and resources (Nonprofit Pro, Pride Philanthropy, RallyUp).
From my experience leading development efforts for nonprofits, the most effective plans include the following 8 sections:
A few things to remember with this template: budgeting and development planning have to happen in tandem. There is often a disconnect between how much money your organization “needs” vs. how much the current fundraising and development team can raise. Have these conversations before budgets and development plans are set to avoid shortfalls. Not every item on the development plan will have a dollar amount associated with it. It is still valuable to include these. You can add or drop as many lines or sections into this plan as make sense for your organization!
Download the Development Plan Template and then follow these steps to customize it for your choir:
This Development Plan Template is detailed enough to guide experienced fundraisers but simple enough for smaller nonprofits just getting started. It includes a small bit of sample data so you can see how to use it and plenty of blank space for your own goals.
Remember - your plan should be a living document. Schedule quarterly check-ins to see what is working, what needs to change, and what opportunities have emerged.
What is your experience with fundraising planning? What have you learned and what tips for developing a fundraising plan do you have? We want to hear from you - share in the comments below!