It’s surprisingly common for not-for-profit organisations not to have a strategic plan in place, or if they do have one it is not up to date and does not properly take into account measurable outcomes, policies and resource requirements.  This is despite the fact that some donors and many foundations insist that organisations have one in order to feel confident about who they are allocating funds.

Aside from funder requirements, there are many other reasons why having a good strategic plan is important for your fundraising.

It helps you to create a vision-driven organization. 

All strategic plans should be headlined with a strong vision statement, which is a simple, concise statement that describes the long term change that you want to see as a result of the work that you do.  The best visions are inspirational,  clear, memorable, and concise and is not to be confused with the mission statement which articulates how you intend to achieve your vision.  Examples of some short and clear vision statements include “a just world without poverty” (Oxfam) and “a world where everyone has a decent place to live” (Habitat for Humanity).

Donors know that you are forward-thinking

In line with demonstrating that you are visionary in your approach, by having in place a plan that is looking several years ahead, in terms of tangible goals and measurable objectives, donors have the opportunity to feel that they are getting involved in something that is looking to the future, and not just the next six to twelve months (even if short-term planning forms part of your strategic plan).

You can keep your promises!

A strategic plan can help to ensure that your organization has fully committed to going down a particular path with a view to achieving a certain measurable result. Without one, an organization is at risk of appearing to be rudderless.  The impact of not making such a commitment to any kind of plan to your fundraising operation can be significant. If, for example, an organization decides to change direction, without your fundraising team being aware of this possibility, it could result in you damaging relationships with your donors.

You can demonstrate that you have what it takes to succeed

One of the reasons why organizations fail is because they do not have the systems, procedures and infrastructure in place to run the organization effectively. Donors know this and are often weary of organizations that do not have a strong backbone that can support the delivery of its programs and outcomes. They like to know that their funding will be spent wisely but just as importantly, that the organization is going to survive for the long-term.

This infrastructure and “business-like approach” includes making sure that you have a revenue generation strategy that suits your needs and obligations, but also that you have the right resources in place, from financial to human, to manage your operations effectively. Your strategy should also consider the policies and procedures you need to have to ensure that you run your organization according to your values, while succession planning and risk evaluation helps you to manage the unexpected.

Developing the right fundraising strategy

Most importantly, having a written strategic plan can help to ensure that your fundraising strategy (including your Case for Support) and your strategic development are on the same lines.  As highlighted, when they are not it can lead to confusion and could potentially damage relationships with donors.  It also helps make sure that you are focusing upon fundraising for the right things, in the right way, at the right time.

For example, if your organizational strategy highlights an urgent need to raise funds in the short term, a focus upon planned giving as your only option would not be advisable.  If, however, you are looking to launch a major capital campaign in a few years, perhaps your fundraising strategy should focus upon building up your major gift portfolio in preparation for this.  By properly understanding what you need funding for (program versus operational costs), you can also properly recognise and balance the need for restricted and unrestricted funds in the creation of your fundraising strategy.

So if you already have a strategic plan in place, figure out whether it needs to be updated. Is your vision sufficiently inspiring?  Does it lead you towards an end-state that would make the world a better place?  Does the plan properly articulate your goals and measurable outcomes that you need to demonstrate to move you towards the achievement of your vision?  How closely aligned is your Case for Support to your strategic plan?

By answering questions like these, you can move towards better integration between fundraising and organizational direction, ultimately leading to better results.