FUNDRAISING STRATEGY
FUNDRAISING STRATEGY FOR A STRONGER ORGANIZATION
Fundraising is hard work, and, if you’re going for big donors and investors, it’s a dance of expectations between your organization and your funders. You may feel like you’re spinning your projects – or even developing them – to fit funders’ agendas, even though you and your colleagues know that what the world needs from you has changed. Given the reality that fundraising takes a lot of resources and can condition your organization’s pathway, it’s pretty fundamental to make sure it truly serves the organization’s vision for the work it needs to carry out.
A well-crafted fundraising strategy is more than just a means to secure resources; a well-designed strategy process can enhance your organization’s overall strength and ensure internal alignment. It can be a catalyst for broader organizational success. Here’s how aligning your fundraising efforts with your overarching mission can not only drive financial support but also fortify your organization from within.
1. Aligning Fundraising with Organizational Vision
At the heart of every successful organization is a clear, compelling vision. This vision defines the problem the organization exists to solve and shapes its long term goals: what is your vision for what should be different in the world, and what are the key strands of your work for making that change? Your fundraising strategy should be a direct extension of this vision – providing resources for the main strands of your work, designed to support and advance your mission.
Why Alignment Matters:
Focus on what is most crucial for you to achieve in the world: Aligning fundraising efforts with your mission ensures that the resources you secure are used in ways that directly advance your goals. This may seem obvious, but intentional, strategic allocation of funds maximizes impact and avoids the pitfall of chasing short-term gains that don’t contribute to your long-term vision.
For example, imagine you are a community organization, and your current funding comes from a city grant to engage the city’s youth in afterschool programming. But you see an unmet need to address systemic racism in your city, where some politicians are trying to advance themselves by putting down the people of color who have lived in your city for generations – and threaten to cut funding for programs that help a range of urban youth. Without a fundraising strategy that plans for how to expand your resource base to do anti-racism education as well, your staff and volunteers will either run themselves ragged trying to do both without enough money and may eventually burn out, or you won’t be able to tackle the emerging area of work you see as crucial. If you take a pause and get everyone together to discuss vision and priorities and then build a fundraising strategy to support it, everyone can be bought into the organization’s decisions and pathway – including making some space to dedicate to extra fundraising.
Engage new and existing donors: Many donors need to understand how your work will help them deliver their own changemaking strategy, but they also (usually) want to understand your vision and how your strategy supports that. Good philanthropic organizations are open to hearing from beneficiary organizations about how the situation is evolving, what the emerging needs are, and how they may need to innovate or tailor their strategies. You can help bring the donors along on the journey, aligning their understanding of the challenges and needs to your own – both data and powerful stories can help. You may also find that, if you expand your focus of work, you may be eligible for grants in new areas.
In the example above, you may be able to explain to trusted donors why they should expand their funding to cover anti-racism work and how one area of your work flows into and reinforces the other, intensifying your and their impact. You can explain how your organization has a unique opportunity to cover this ground in an informed, community-centered way. Having a strategy and aligning all your stakeholders around it is a crucial step in your organizational growth and evolution.
Consistency in messaging: When your fundraising strategy aligns with your organizational vision, your messaging becomes more coherent and compelling. Donors are more likely to contribute to an organization that clearly articulates its mission and demonstrates how their contributions will further that mission. You might find that you need to tweak your branding or external communications as a result of the shifts you’re making.
2. Building Internal Alignment Through Fundraising Strategy
Creating a fundraising strategy is not just a financial exercise; it’s a moment for everyone to reflect on where your focus should be and to ensure that staff and resources are aligned around priorities. Engaging various stakeholders in the development process and using participatory facilitation techniques to make sure that everyone’s ideas emerge, can foster a sense of unity and shared purpose within your organization.
Why go through internal consultations?
- Stronger ideas: As we have discussed, a strong fundraising strategy derives from a strong vision and organizational strategy – and these are best created by going through a series of analyses of the external environment and horizon analysis, the strengths and weaknesses of the organization, threats and opportunities, and so on. The more voices you have contributing to mapping the environment, the fewer blind spots you’ll have on the one hand, and the more clever ideas will emerge, based on people’s unique intelligences and perspectives. When team members have a hand in shaping the fundraising strategy, when they feel bought into a co-created plan, they’re more likely to collaborate effectively. This increased collaboration can lead to higher trust, more innovative approaches and a stronger, more cohesive team.
- Shared Understanding: By involving staff, board members, and other key stakeholders in the development of your fundraising strategy, you ensure that everyone has a shared understanding of the organization’s goals and the role they play in achieving them. This collective insight helps avoid misunderstandings and misalignments down the road.
- Increased Buy-In: Internal alignment is bolstered when stakeholders feel their input is valued. This buy-in is crucial for the successful implementation of your fundraising strategy, as it ensures that everyone is motivated and committed to the plan.
3. Strategic Planning and Execution
A strong fundraising strategy is grounded in thoughtful planning and execution. This involves
setting clear, achievable goals and developing a detailed plan to reach them.
Key Elements of a Successful Strategy:
- Goal Setting: Define clear, measurable goals that align with your organizational mission. Whether you’re aiming to increase individual donations, secure major grants, or expand your donor base, having specific targets helps focus your efforts and measure success.
- Diversification: Relying on a single source of funding can be risky. A robust fundraising strategy incorporates a mix of revenue streams, such as individual donations, corporate sponsorships, grants, and events, to build financial resilience.
- Donor Cultivation: Building relationships with donors is crucial. A strategic approach to donor cultivation involves understanding their interests, keeping them informed about your impact, and engaging them in meaningful ways.
4. Measuring and Adapting
Effective fundraising strategies are dynamic and responsive. Regular evaluation and adaptation are essential for maintaining alignment with your organizational goals and adapting to changing circumstances.
Why Measurement Matters:
- Tracking Progress: Regularly measuring the success of your fundraising efforts against your goals helps you understand what’s working and where adjustments are needed. This ongoing assessment allows you to stay on track and make data driven decisions.
- Flexibility: The ability to adapt your strategy in response to new opportunities or challenges
ensures that your organization remains agile and responsive. This flexibility can help you
navigate unforeseen obstacles and capitalize on emerging trends. - Continuous Improvement: The insights gained from measuring and adapting your strategy contribute to continuous improvement. By taking the time to learn from past experiences in a structured way across your organization, you can refine your approach and enhance your effectiveness over time. Even a little bit of reflection and discussion can go a long way!
5. Building Organizational Strength and Resilience
Beyond immediate financial gains, a well-executed fundraising strategy contributes to the overall strength and resilience of your organization.
Strengthening Your Organization:
- Capacity Building: As your organization develops a successful fundraising strategy, it often necessitates strengthening internal processes and systems. This capacity building enhances your overall operational efficiency and effectiveness.
- Community Engagement: Effective fundraising strategies often involve engaging with the community and building partnerships. These connections can provide valuable support and resources, further bolstering your organization’s impact.
- Reputation and Credibility: Consistently meeting fundraising goals and demonstrating a strong alignment with your mission enhances your organization’s reputation and credibility. This, in turn, can attract more supporters and open doors to new opportunities.
CONCLUSION
A good fundraising strategy is much more than a financial plan; it’s a foundational element that can enhance your organization’s sharpness and effectiveness. Whether it’s a local community center, a national NGO, or a global health initiative, the principles of aligning fundraising with the organizational vision, involving internal stakeholders, and continuously adapting strategies can drive success. Each organization, regardless of its scale or scope, benefits from a cohesive approach that integrates fundraising efforts with its mission, strengthens internal cohesion, and ultimately supports greater impact. This strategic approach not only secures the resources you need but also strengthens your organization from within, ensuring that you are well-positioned to achieve your mission and make a lasting impact.