Building a practical fundraising

strategy and plan

Nick Swain MInstF (dip)

Building a Practical Fundraising Strategy and Plan

The Information in this presentation is provided ‘as is’ and recognising
that a fundraising strategy and plan needs to be tailored to each
organisations individual circumstances and needs.
© Zorva Consulting Limited, 2014

For more information please contact:

Nick Swain MInstF(dip)

t: 0203 286 7044
e: nick.swain@zorva.info

Building a Practical Fundraising Strategy and Plan

Before we start

Why have a strategy and a plan?

• Strategy focuses on vision and impact : high level, agreed by Trustees

• Plan focuses on how : details

“Plans are nothing; planning is everything.” - Dwight D Eisenhower

“Vision without execution is hallucination.” – Thomas Edison

3
Building a Practical Fundraising Strategy and Plan
Before we start

Working assumption - you already have

• Organisational strategy

• Vision and Mission

• Buy-in to the process from everyone

Building a Practical Fundraising Strategy and Plan

Before we start

Values Promise
• Legal • Committed to high standards
• Open • Honest & Open
• Honest • Clear
• Respectful • Respectful
• Fair & Reasonable
• Accountable

Building a Practical Fundraising Strategy and Plan

Before we start

Stages in building the strategy and plan

• Where are we now?

• Where do we want to be?

• How will we get there?

• How will we know when we have arrived?

• Reminder of the 7 big mistakes to avoid

• Sources of more help and information

Building a Practical Fundraising Strategy and Plan

Where are we now?

Building a Practical Fundraising Strategy and Plan

Where are we now?

Key questions

From organisational strategy

• What sort of organisation are we?

• Who are our beneficiaries?

• Who are our supporters?

• Who are our stakeholders?

• How will all this change in the next 6 months to 3 years

• What is the state of our fundraising now?

Building a Practical Fundraising Strategy and Plan

Where are we now?

Conduct a Fundraising audit

• What are we doing now?

• What works / doesn’t / needs to be kept for other reasons

• External factors

• Market changes

• Competitor analysis

• Opportunities for collaboration

• Internal readiness

• SWOT

Building a Practical Fundraising Strategy and Plan

Where are we now?

Conduct a Fundraising audit - STEEPLE

• Social - how people are feeling and attitudes

• Technological - changes and developments

• Economic – employment and wealth

• Environmental – legislation and views

• Political – government stability and initiatives

• Legal – charity, employment, trading law

• Ethical – street and legacy fundraising

10
Building a Practical Fundraising Strategy and Plan
Where do we want to be?

Building a Practical Fundraising Strategy and Plan

Where do we want to be?

In practical terms

Starting with organisational objectives based on outcomes and impact

Build a budget for what resources we need and when

• Money
• Volunteers
• Other resources e.g. Trustees

Provide a mechanism for regular 360°review

Keep testing against vision, mission and organisational strategy

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Fundamental choices

Do more of the same

and/or

Do something new

may involving setting some things aside

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Managing the risk of new things

Fundraising, Promotional and Campaigning techniques

Ansoff Matrix (Ansoff, 1987)
Existing New

1 2

Existing Improve existing New techniques on

Target
approach existing supporters
Groups /
Audience
Lowest Risk Intermediate Risk

3 4

Existing techniques New techniques

New
to new groups on new groups

Intermediate Risk Highest Risk

Building a Practical Fundraising Strategy and Plan

 How are we going to get there?

Testing appropriateness

Internal Appropriateness
Portfolio Matrix (Dittrich, 1988)
High Medium Low

1 2 3
High
Invest/ Develop Invest/ Develop Evaluate Carefully

External 4 5 6
Medium
Attractiveness Invest/ Develop Evaluate Carefully Consider closing

7 8 9
Low
Evaluate Carefully Consider closing Consider closing

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Fundraising plan

Take the following steps:

• Build the case for support

• Divide your supporters into segments

• Consider each fundraising stream

• Prepare journeys and messages

• Underpin everything with technology and passion

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Build the case for support

Frame within Organisational objectives, vision and mission

Include

• How things are now and why they have to change

• Why your organisation is the best one to change things

• What you will accomplish with their help

• Call to action

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Build the case for support

Tips
• Use present tense

• Describe Impact not features

• Tune messages to audience

• Consider value of partnering

• Use personal stories of outcomes

• Test the case for support with everyone and relate it back to organisational objectives,
vision and mission

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Divide your supporters into segments

Decide which segments are relevant based on

• Demographic - census statistics (age, family, occupation)

• Psychographic - outlook on life, memberships of clubs, politics, attitude to us

• Behavioural – activities, involvement with school/charity work

• Geographic - where we live, work, support

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream

Fundraising streams

• Direct marketing
• Major Donor
• Corporate Fundraising
• Static and Collection fundraising
• Trading
• Legacy fundraising
• Tributes
• Face to face fundraising
• Events
• Community fundraising
• Trusts & Foundations

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream

Fundraising streams Channels

• Direct marketing • Post

• Major Donor • Social media
• Corporate Fundraising • Telephone
• Static and Collection fundraising • Online
• Trading • SMS
• Legacy fundraising • In person
• Tributes • Email
• Face to face fundraising • Events
• Events • TV and Radio
• Community fundraising • Print and online advertising
• Trusts & Foundations

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream - Direct marketing

• Examples Letters and catalogues, unsolicited and anticipated

• Good for: Recruiting new donors

Targeting right audience with right message
(Developing relationship) and sharing stories

• Be aware: Needs strong brand and messages

Targeting of right audience with right message
Needs multi-channel approach

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Major Donors

• Examples Unknown and celebrity

• Good for: Large projects

Public relations (sometimes)
Building on relationships

• Be aware: Has its own development process

Needs investment of time
Need to be able to provide feedback on impact

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Corporate fundraising

• Examples Morrison's and Save the Children, Sainsbury's and Fegans

• Good for: Raising funds

Raising profile (locally and/or nationally)
Employee participation (volunteering)

• Be aware: Autonomy vs Dependence for income and brand

Planned exit strategy
Be prepared to negotiate

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Collections

• Examples Red Cross week, tin shakes, pub collection boxes

• Good for: Utilising volunteers

Local awareness raising

• Be aware: Licence(s) almost certainly needed

Brief your collectors with key messages
Check local regulations

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Trading

• Examples Catalogues, merchandise, virtual gifts

• Good for: Seasonal focus

Community fundraising

• Be aware: Protecting your brand

Service levels
Regulations

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Legacies

• Examples Pecuniary, residual, gift in kind

• Good for: Long term messages

Every charity needs a legacy programme

• Be aware: Legacies instructions peak between 50-65 years

Understand influencers - gender, assets, family need
Unpredictable (value and timing)

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Events

• Examples Fun run, gala dinner, climbing mountains, awards evening

• Good for: Raising awareness of your cause

Recognising achievement
Educating supporters and public
Fundraising

• Be aware: Is the event appropriate? (esp challenge events)

Manage the messages
Try to underwrite overhead costs
Contingency planning

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Community fundraising

• Examples Bake sale, fete stall, sponsored silence

• Good for: Volunteer led activities

Engagement with local groups
Building community
Professional networks

• Be aware: Controlling your brand

Local regulations
Development involves effort including evenings and weekends

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream – Trusts and Foundations

• Examples …….

• Good for: 8,800 in UK

Need to award £3 billion annually
Specific projects

• Be aware: Make individual applications

Research the criteria
Understand application cycle

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Consider each fundraising stream

Choose mix of fundraising streams that will give the needed outcome for least resources

Outcomes Money
Awareness
Recruitment
Commitment
Education
Recognition
Retention

For least Spend

Time
People

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

Fundratios
Median Return on Investment per £1 invested

Total Voluntary… £4.24

Local fundraising £1.75
Committed… £3.54
Direct Marketing £1.67
Special Events £1.94
Competitions/Lott… £1.73
Major Donor… £3.17
Legacies £25.50
Trusts £7.00
Corporate £4.43
Copyright: Centre for Interfirm
Comparisons/Institute of Fundraising

Building a Practical Fundraising Strategy and Plan

How are we going to get there?

For each segment

• Prepare journey and messages

• Use fundraising streams to maximise supporter lifetime value

• Build into campaigns, appeals and segments

• Schedule and budget

Underpin with

• Simple and effective technology

• Creative ways to share your passion

Building a Practical Fundraising Strategy and Plan

How will we know we have arrived?

Building a Practical Fundraising Strategy and Plan

How will we know we have arrived?

Monitoring

• Be clear about your Outcomes, Impact

• Build budgets and regularly refer to them
• Critically evaluate everything against your vision and mission
• Be prepared to set aside and start new things
• Consider supporter lifetime value (not just money)

Decide 3 key measurements

• Relevant for your organisation

• Easy trackable
• Able to benchmark

Building a Practical Fundraising Strategy and Plan

How will we know we have arrived?

Continual response to change

Building a Practical Fundraising Strategy and Plan

7 8 big mistakes to avoid

Think your organisation is too small / big / busy / successful to need one

Be anything other than crystal clear about your vision and mission

Don't involve everyone in the discussions

Pretend you operate in a vacuum

Make it sound too good to be true

Thinking donor rather than supporter

Make the case for support too complicated

Decide to build or revise your fundraising strategy and plan, but don't

Building a Practical Fundraising Strategy and Plan

What to do next

Source of information

Zorva Consulting – helping your charitable, membership or faith based organisation

achieve the best supporter lifetime value through improved strategy, fundraising,
communications and IT

Institute of Fundraising website

• Code of Fundraising Practice
• Fundratios

Exchange details now or connect on LinkedIn to receive

set of useful links and fundraising strategy and plan template.

39
Building a Practical Fundraising Strategy and Plan
 Thank you for listening

For more information, contact us at:

0203 286 7044
nick.swain@zorva.info
www.zorva.info

Building a Practical
2 Old College Fundraising
Court, 29 Priory Strategy and
Street, Ware, Hertfordshire, SG12 Plan
0DE