What is a fundraising strategy and why do we need one?
Ensuring that your organisation has the right level and types of funding and finance it needs, when it needs them, is critical if you are to be able to deliver your mission effectively. Fundraising takes time and resources. Therefore working out what fundraising activity you need to do, and how you will do it is an important task for any organisation.
A fundraising strategy need not be a long or complicated document. A one to two page summary is much more likely to be useful than a lengthy document.
The basic information every fundraising strategy – or plan – should include is:
- What funding is needed – how much, what types of activities, when?
- Where funds will come from?
- What activities need to happen to raise funds, when do they need to happen and who will do them?
A fundraising strategy would normally form part of the wider business plan for an organisation. As with a business plan, it’s useful to plan fundraising in broad terms three to five years ahead – and have more concrete targets and plans 12 months ahead.
If you are a small organisation, fundraising is likely to form a part of your wider role and writing a strategy can help identify what you need to do in this area of your role. It can also identify where you may need additional support from Trustees or volunteers.
For larger organisations where an individual (or individuals) has responsibility for fundraising, developing a fundraising strategy can be a useful way to establish what colleagues will expect of you and where you will need input from other colleagues (e.g. finance or project managers).
Whether you are a large or small organisation, the basic elements of your fundraising plan are very similar. Working through the questions in our checklist will help you develop your own simple strategy.
Developing your grant fundraising strategy: checklist
What kind, and how much, funding do we need? | - What kinds of activities (and costs) do we need to fundraise for in the next 12-24 months?
- How much funding do we need for each area?
- If you planning to seek project funding, do you know what the full cost of the project will be (rather than just the direct costs)?
Learn about full cost recovery. - Are there other funding or finance options that we could use to deliver this activity?
Explore potential income sources. - What happens when funding comes to an end?
Learn about exit strategies.
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| Where will funds come from? | |
| What activities do we need to undertake? | - What information will we need to gather together for our application?
Take a look at our section on the grant cycle. - What are the key deadlines for grant funding: when are programmes launched? When is the deadline for applications? When would we hear whether we are successful? When do we need to provide reports of activity? When would funded activity need to happen by?
Explore how long does it take to apply for grants? - What opportunities do we have to promote our organisation to funders? How might we improve our profile?
Learn about building relationships with funders - Do we have a clear case for support that outlines what we need (and why) to potential funders?
Find out how to make a case for support (PDF)
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| What resources will we need? | - Do we need to improve our financial reporting systems to be able to understand our costs better, or to be able to report on grants?
Find out more about full cost recovery - Can we monitor the impact of our activity and demonstrate our success to potential funders?
Have we identified who will undertake the research, preparation and submission of each application? - Who will be responsible for reporting on any grants received and liaising with funders?
- Might staff need any training?
- Can my local Council for Voluntary Service provide help with applying for and managing grants? Do they offer any training?
Find extra support. - Could we use volunteers in our fundraising activity? What will other staff need to do to support fundraising? E.g. can finance help prepare budgets? Can project managers help identify participants who could provide testimonials to include with our applications?
- How might Trustees support fundraising? Do any Trustees have links with, or experience of, the funders we plan to approach?
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