From Fundraising to Fund Development: A Strategic Shift for Nonprofits
"My board won't fundraise!"
"My staff doesn't understand that we all need to be fundraisers!"
These complaints are common among nonprofit leaders who are feeling alone in their fundraising efforts.
The Solution?
Shift from "fundraising" (often associated with asking for money) to "fund development" — a comprehensive strategy with roles for everyone.
Fund development helps raise unrestricted support for today’s priorities like staff development, reserves, or endowments. If’s unlike the restricted funds from capital campaigns and program grants.
When you create a Fund Development Plan, board members hear less, "Ask your friends for money," and more, "Here's your specific role in this initiative." This lessens board fatigue from constant fundraising requests, and lets the board know where their specific strengths, talents, and connections are most needed.
A well-designed Fund Development Plan includes:
The Mission — The "why" driving everything.
Current Fundraising Situation — Donor base, challenges, participation needed and from who.
Clear Goals and Objectives — Amount to raise and purpose, broken into categories.
Fundraising Strategies — Specific approaches for each objective.
Timeline — Activities by quarter.
Budget — Projected income and expenses.
Evaluation Metrics — Donor acquisition/retention rates, donation amounts.
Board and Staff Input — Share drafts for feedback to build alignment.
Once You Have Your Plan
Present your plan to both board and staff for feedback. Listen carefully to objections — they may reveal important constraints rather than simple resistance.
In today's environment, nonprofits need comprehensive plans that include both short-term strategies and long-term relationship-building approaches.
What steps is your organization taking to adjust, update, or address fund development?
I’d love to hear more about how you’re approaching fundraising challenges. Get in touch!