In this series on fund development, we began by discussing how your organization can have a diversified revenue portfolio. We have discussed having different sources of revenue coming multiple “buckets” and strategies to leverage each of those funding opportunities. Today, we are focusing on your fund development goal and plan.
Annually, nonprofit organizations establish a budget based on expected revenue and expenses. Simultaneously, nonprofit Boards should also have an annual fund development goal and a 3-year fund development goal. These fund development goals should be divided amongst your different revenue “buckets” and each should be included in your annual budget, so that your Board, executive team and fund development staff can track your progress against your current budget and your “goal” budget. We know that what gets measured, tracked and monitored gets done.
The fund development budget goal should be approved by the Board and the entire organization should take ownership of accomplishing the goal within the specified timeframe. At least quarterly, Board should review the progress made and discuss strategies. The Executive Leadership and Development team should use the fund development goal and plan to establish their priorities.
It is important to celebrate your successes and accomplishments along the way with all of the stakeholders – staff, Board members and volunteers. If your organization is not on track, then determine what you can do to improve results. Remind the “team” of the purpose of this goal, which might be to grow an endowment, save for a rainy day, expand services or a geographic area. This will also help the Board get excited about their giving and getting.
Nonprofits should set a fund development budget goal based on a thoughtful, well-informed planning process. It is important for the goal to be a “stretch” but also achievable. Transform Consulting Group can help your organization develop a Fund Development Plan. To see an example of how we assisted the Indiana Afterschool Network in growing their funding, check out our featured projects. Contact us today for a free consultation!