One of the things I love about summer – aside from the obvious loves like swimming, family trips and watermelon – is that the slower pace allows time to take a step back and find a better way forward. For nonprofit leaders, summer is a great time to take a hard look at how you bring money in the door and figure out a more sustainable way to do so.
It’s time to trash your ineffective fundraising plan.
A Financing Plan, unlike a traditional fundraising plan, is an integrated, thoughtful, and strategic way to help a nonprofit raise enough money to achieve its programmatic and organizational goals. Instead of asking the question:
“How much can we accomplish with what we can raise?”
you are asking the question:
“How much should we raise to accomplish our goals?”
The Build a Nonprofit Financing Plan Guide walks you, step-by-step, through building a financing plan for your nonprofit. It shows you how to:
- Align Money, Mission and Competence
- Create Revenue Goals
- Create a Capital Goal
- Create a Fundraising Infrastructure Goal
- Operationalize the Plan
- Monitor the Plan
This guide gives you the knowledge and the step-by-step guidance to get more effective at bringing money in the door.
Here’s an excerpt from the Build a Nonprofit Financing Plan Guide:
The Financing Plan Framework
Your final financing plan will be made up of goals, objectives and an operational plan. Here’s how the financing plan framework breaks down.
Your final financing plan will have approximately 5 broad goals. These goals come in three types: revenue goals, a capital goal, and a financing infrastructure goal. Below is what differentiates these three types of goals. And don’t worry if this is still a little muddy, I will go into more detail and give you some examples a little later in the guide.
1. Revenue Goals
Remember, revenue is the day-to-day money you need to meet the expenses of your strategic plan. You will have 1 revenue goal for each revenue source that is appropriate to your organization:
- Private dollars (foundations, corporations, individuals)
- Public dollars (government grants)
- Earned revenue (sales of goods or services)
Your revenue goals will make up 3 of the 5 goals of your final financing plan.
2. Capital Goal
Remember, capital is the one-time organization-building money you need to fund special or infrastructure-related purchases within your strategic plan. So it might be the money you need for a program evaluation, or a new data-gathering system, a new database, etc. If you require capital investments to make your strategic plan a reality, one of the goals of your financing plan will be a capital goal.
3. Financing Infrastructure Goal
This goal is not a money goal, but rather an activity goal. If you want to significantly grow the revenue that flows to your nonprofit, you will have to make some improvements to the financing infrastructure of your organization. This means you might want to add additional development staff, buy a new donor database, upgrade your website, create marketing materials, etc. One of the goals of your financing plan should focus on what improvements you will make to the internal systems, staffing and technology you use to bring money in the door.
Each of these goals will be broken down into objectives (or pieces) to make them achievable. For example, you might have a revenue goal that describes how much private money you will raise. You would then break that total private revenue goal into the individual donor, corporate donor and foundation grant objectives necessary to achieve that goal.
Once you establish your goals and objectives, you will break each objective into the activities, deliverables, people responsible, and due dates. This becomes your very tactical operational plan with which you will execute on and monitor the financing plan. It ensures that the goals and objectives actually come to fruition.
So let’s get started creating your financing plan…
To continue reading and building your nonprofit’s financing plan, download the Build a Nonprofit Financing Plan Guide now.
Photo Credit: Steven Depolo
No comments yet.
Leave a comment
- Download a free Financing
Not Fundraising e-book
when you sign up for email
updates from Social Velocity.
Sign Up Here
- Reinventing the Nonprofit Leader
It's time for a new kind of nonprofit leader, learn how to become one in this Social Velocity webinar.
- The Problem with Strategic Planning
- Social Media and the Future of Fundraising
- 9 Ways Board Members Can Raise Money Without Fundraising
- Calculating the Cost of Fundraising
- Financing Not Fundraising: Moving From Push to Pull
- Financing not Fundraising
- Financing Not Fundraising: 5 Lies to Stop Telling Donors
- 5 Nonprofit Trends to Watch in 2011
- Financing Not Fundraising: The Plan
- What is Social Innovation?