How to build and develop your fundraising strategy

What is a fundraising strategy?

An effective fundraising strategy will give your team focus, clarity and direction. It will unify thinking and mobilise action towards a series of attainable goals. It is your rudder - a tool to make sure everyone is pulling together in the same direction and that the compass is pointing to future growth.

Not sure where to start? Check out our handy guide to help get your organisation on the right path.

Laying the foundations of an effective fundraising strategy

STEP 1: Clarify your vision

It might sound obvious, but before you can plan and deliver effective fundraising strategies you need to be clear on your vision and timeframe. Don’t restrict yourself to a 12 month planning cycle. It can take years to build and grow a new income stream, so give yourself the space to be ambitious. Don’t worry too much about the details yet. What’s important is that you lift your sights, set them to the future, and that your whole team knows exactly where you’re headed.

TOP TIP: Don’t cut corners. Take this chance to give your team the time they need to reflect on, reset and refocus their fundraising ambition.

STEP 2: Decide which type of fundraising strategy you’re going to use

According to Charity Fundraising, there are two main types of fundraising strategies [1]. The first, a ‘Research-led’ fundraising strategy will draw on organisational history and trends to forecast fundraising income and set new targets. In contrast, ‘Organisation-led’ strategies are designed to mobilise ambition as defined by your Board of Trustees and/or Senior Management. Struggling to decide which way to go? That might be a good thing – because we recommend a mix of both.

TOP TIP: Don’t let short-term aims undermine long-term ambition. Fundraising is about lifetime value, and you need to make sure this is reflected in the type of strategy you choose. 

Step 3: Analyse past performance

You can’t plan a journey if you don’t know where it starts. Use your data to analyse historic income and trends. Are you dependent on one source or funding pot? Is there a stream that has grown faster than expected, or one that hasn’t done so well? A charity CRM like Access Access Charity CRM will make it quick and easy for you to rotate and analyse this information – giving you a clear baseline to help identify fundraising priorities.  

TOP TIP: If knowledge is power, then data is your guiding light. Learn from the past and focus your fundraising strategy on the channels with the most growth potential (and data to prove it). 

Understanding the factors that influence strategy design

Step 4: Use a framework tool to understand the external landscape

If the past two years have shown us anything, it’s how vulnerable fundraising is to external events. We don’t just mean COVID. You need to consider how social, technological, environmental, economic, political and legal factors can impact your fundraising and plan accordingly. It might sound daunting, but don’t panic. The Directory of Social Change recommend using a STEEPLE analysis to guide your thinking and capture the risks and opportunities the external landscape presents [2]. We do too!

TOP TIP: Don’t develop your strategy in isolation. Involve your team, peers and colleagues. Share concerns, ideas and inspirations and work together to co-create a plan of action.

Step 5: Research sector trends

No charity is an island, and it is important that you understand the trends that shape your sector. If you’re a regular reader, you will know that cashless donations, social media, hybrid events, QR codes and artificial intelligence are five of the top trends to look out for in 2022. That doesn’t mean you should try and keep up with the Jones’, but it does mean you should design your fundraising strategy with a knowledge of broader fundraising trends in mind.

TOP TIP: If you can, why not take some time out to talk to other charities? Fundraising is a community, and if we work with rather than against each other, we can break the window of opportunity wide open.  

Turning theory into fundraising strategy action: implementing fundraising strategy

Step 6: Set SMART objectives

You’ve set your vision, you know your baseline and you understand the external environment. The time has come to use this information to set objectives and prioritise actions. There can be a lot of moving parts to consider, so we recommend working through each income stream and setting SMART objectives for each one - using Steps 1-5 to help balance organisational ambition with research-based targets.

TOP TIP: Make sure you give yourself the time for this. You will need to consider each income stream carefully, and set headline and supporting objectives for each one.

Step 7: Assess your resources ready to implement your fundraising strategy

Once you have the basic plan, it’s time to think about what you need to mobilise it. You have to spend money to make money, so don’t be afraid to make a business case to invest in:

• Fundraising skills: Despite all the progress charities and non-profits have made, according to the latest Charity Digital Skills Report ‘skills’ are the third biggest barrier to achieving digital success. Don’t let this hold you back. Investing in and upskilling your team is sure way to raise your game [3].
  
  
• Digital infrastructures: It is hard to fundraise effectively if you do not have the right tools and systems. A charity CRM is one piece of this puzzle. So is your website. Outdated systems cost time and money and can leave your organisation vulnerable to breaches and cyber-attacks. No cost-saving drive is worth that.
  
  
• Core systems and policies: UK charities often hit the headlines for the wrong reasons. It’s important that the policies and processes underpinning your fundraising strategy protect people’s privacy and work together to promote responsible, diverse, inclusive and accessible practice.

Helpful reading and resources

Want to find out more about how to implement an effective fundraising strategy? Check out these handy resources and reading by the Charities Aid Foundation (CAF), Directory of Social Change and Charity Fundraising Ltd.