As the world of fundraising evolves and becomes more interconnected, successful non-profit organizations are increasingly in need of a new, more holistic approach to growing their organizations.

What is a Holistic Fundraising Strategy?

A holistic fundraising approach is a strategy that aligns fundraising, financial management, communications and organizational polices. This is in contrast to pursuing these elements on their own, which unfortunately happens all too often.

Fundraising

Generally, fundraising is a major strategic focus for most organizations. Effective fundraising should first involve the creation of a “Fundraising Portfolio” – a fundraising plan consisting of diversified fundraising channels. (grants, galas, third party events, capital campaigns, high net worth donors, corporate partnerships, membership campaigns, etc.) A Fundraising Portfolio will present a coherent strategy that balances the associated investment of organizational resources and the expected generated revenues of each fundraising initiative. The value of a Fundraising Portfolio is that it provides a strategic organizational direction and promotes organizational sustainability because it prevents reliance on just one or a few revenue sources.

Another important aspect of fundraising is adopting a fundraising strategy founded on the belief that strengths and weaknesses can be leveraged by building strong networks. Thus, it is vital that foundations endeavour to create winning teams; often consisting of charitable organizations, high net worth donors, politicians, grassroots groups, businesses and funders.

Finally, fundraising is too important a task that it should not be left to just the fundraising department; it is something that everyone in an organization should be part of. For example, obtaining grants require a good proposal describing an innovative program, metrics, community support and sustainability. Therefore, a good grant proposal requires the input from program staff, participants, and community stakeholders; furthermore, it should be supported by strong board policies as well as financial statements.

Financial Management

With greater success in raising capital, a non-profit organization must be able to successfully manage its capital.

Proper financial management must be a comprehensive process as opposed to independent organizational initiatives. An Investment Policy Statement (IPS) is the first step in financial planning. An IPS describes how funds will be investment and managed according to future goals as well as anticipated needs; additionally, it includes a strategy than incorporates contingency plans. (For example what do to with the invested funds should there be a drastic change in the market.)  An IPS should also be aligned with a Fundraising Portfolio. An IPS is expected by individual high net-worth donors, corporate partners,  or planed giving arrangements. An IPS is especially important for a capital campaign. Without an IPS an organization looks immature and unprofessional. Donors want to know what policies exist to safeguard the proper use of their funds.

Communications

All foundations have a message that needs to be communicated; good communication is about reaching and connecting with the target audience.

A focal point are Web 2.0 communications channels that should include:

• a SEO optimized website that captures the attention of visitors
• an opportunity for online giving
•  a blog or e-newsletter that shares important news and information
• Twitter and Facebook pages that allow for discussion of issues with your supporters

Whether it’s an Annual Report, AGM Presentations, a video advertisement on YouTube or a thank you card to volunteers, all communications initiatives should be linked into a cohesive message.

Constant communication builds a brand and a solid brand is vital for growth. The end result of a good brand is name recognition, awareness of your message among the public, increased media coverage and a sense of trust from potential donors. A good brand will help your organization recruit and retain the best people.

Events are an important aspect of communications. Events can celebrate organizational achievements, recognize donors, showcase programs, etc. An expert event planner not only provides superior event services, they also provide media and public relations expertise.

Organizational Policies

Effective organizational polices integrate seamlessly with fundraising, financial management and communications. Job descriptions must exist. By-laws should be to update. Financial statements should be clear and also up to date. Most importantly, all non-profit organizations must have a multi-year strategic plan.

How to create a holistic fundraising strategy?

A good start to creating a holistic fundraising strategy would be having a team meeting with staff from all departments and discussing how to better collaborate to achieve goals. This process should be led by an experienced management.

For organizations that lack experience, it is best to find a professional team that offers fundraising, financial management and communications consulting. Such teams are made up of individual firms (or self employed professionals) that have a history of working together in order to better serve their clients. Usually such a team will consist of financial professionals, communications specialists, fundraising consultants, event planners and web experts.

Please feel free to contact me for questions or advice on how to implement a holistic fundraising strategy. I can be reached at jorge@jorgeleclair.ca

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As a Business Development Consultant, I am often asked questions and advice regarding writing a Business Plan. In this article, I share answers to common questions.

What is a business plan?

A Business Plan is a strategy for successfully starting and operating a business based on management, environmental, economic, industry, marketing, operational and financial information. It is a map taking an idea from a concept to a revenue generating business. Developing a business plan for a business idea is a way to for entrepreneurs to assess the requirements, challenges and advantages of their business.

What information should a business plan contain?

The content and length of a business plan will vary based on the business, however at a minimum a business plan should be 30+ pages and contain the following sections: (note film projects and non-profit organizations will use a different format which are not discussed in this article)

1. Management – Biographies of management team and board of directors.
2. Business Profile – Vision and mission statement, business registration, business model and company history.
3. Product and Services – Description of products and services being offered.
4. Business Operations – A detailed explanation of how the business will be operated.
5. Industry Analysis – Industry research proving viability – national/regional trends, regulatory requirements, stakeholders, SWAT and competition analysis, risk, success factors, required due diligence.
6. Marketing Plan – 3 year Marketing Plan, including a detailed monthly first year plan.
7. Financial Plan – Detailed financial plan that includes income/revenue, monthly cash flow, break-even analysis and annual balance sheet statements.
8. Implementation Plan – Work plan with measurable, time bound milestones, plus a synopsis of future goals.
9. Funder/Investor/Lender – Offer and proposed return.

In addition to these sections a social enterprise will also include the following sections in their business plan:

10. Organizational Purpose – Description of population served and cause being addressed.
11. Community Impact – Short/long term economic, social, technological and environmental benefits.
12. Organizational Support – Identification of target supporters, donors with a connection with the organizational mission (grassroots and high net worth individuals), development of a fundraising portfolio using both new and current diversified fundraising channels such as government funding sources, corporate partnerships, grants, web 2.0 fundraising, third party events and memberships.
13. Acknowledgement – How the social enterprise will acknowledge supporters.

How should information be presented?

Given the detail required in a business plan, it is reasonable for a business plan to quickly become a lengthy document. However, lengthy documents can be overwhelming to read; therefore it is important that a Business Plan present information clearly and creatively in a way that captures the reader’s attention. To the business manager a Business Plan is a guide, but to lenders, investors, or other stakeholders a business plan is an advertisement that must inspire. Designing a business plan with a creative look, using graphics and diagrams to explain concepts is a must.

Who should develop a Business Plan?

Given the importance of a Business Plan, it should be developed by a business professional. A business plan writer should not be just a writer; rather they should be a business professional with a strong background in finance, marketing, operations, management, research and proposal writing. Their service should not be limited to developing the plan, instead their added value should involving coaching and advice with implementation.

At the least, it is important that a business plan be reviewed and critiqued from an unbiased third person point of view; that is another key service that a business development consultant provides. A Business Plan provides a reality check. For example, it is easy for an entrepreneur to become so excited about their idea that they develop an unrealistic belief in the success of their idea. Business history is full of innovative products that failed because they did not have a clear path to market or insufficient business resources. A Business Development Consultant can also educate a business owner on how to prepare and adapt to the future. I have sometimes been contacted by business owners in a bad financial situation because they did not have a business plan that properly predicted future cash flow needs.

Can a Business Plan help me raise capital for my business?

There are many exciting opportunities for financing including private investors, bank loans, government backed loans, grants, subsidies, hiring incentives and business incubators. All types of funding require presenting a business plan that clearly explains your business concept in away others can understand; it should clearly state what you want to achieve, where you want your business to go and how you plan to get there. However, not all businesses are eligible for funding.

Conclusion

A persuasive, detailed and creatively designed business plan is the first step towards starting a business. The difference between simply having dream and making it real, is the decision to start implementing the dream and remaining dedicated. That is exactly what separates dreamers from entrepreneurs. A Business Plan is the first step in turning imagination to income.

Questions about business plans? Please feel free to contact me at jorge@jorgeleclair.ca

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According to a Kintera/Luth Nonprofit Trend Report, ¹ “65 percent of donors visit at least one of the websites of the charities they support, and 40 percent always go online before making a giving decision.”

Online fundraising has the potential to be a huge windfall for non-profit organizations. An advantage of online fundraising is that it has overall lower costs. Another key strength is that when a donor gives, metrics software can provide vital information that includes donors contact details as well as demographic and psychographic data that can help a NPOs marketing/donor relations team. The bottom line is that a non-profit organization that is not engaged in online fundraising is missing out on a major donor segment.

Why are NPOs not pursuing online fundraising? The main reasons are a lack of understanding of the value of online fundraising, not possessing the skills to implement it or believing that they don’t have the budget for it.

NPOs do not need to be experts in online fundraising, they just need to be able seek out the services of a consultant that can help them. Hiring a consultant is not as expensive as one might think. While consultants working at firms with high profile clients will be at the expensive end, independent consultants or student/interns will be at more affordable end. An independent consultant will charge approximately $4000 – $6000 for a website with online donation capability; this fee will also include coaching on how to maintain the website, staff training, plus designing a strategic plan to use the site to build better donor relations and reach fundraising targets.

Another option for NPOs is to use Canadahelps.org – a cost effective web service that simplifies online fundraising by allowing individuals to donate to charities of their choosing through Canadahelps.org. For charities it’s an easier less expensive means of raising funds online and for donors it’s a trustable, one stop shop for giving.

Canadahelps.org is a simple process. NPOs create a profile that describes their cause. In the interest of transparency, charities can even permit donors to designate their funds directly to specific projects, a capital campaign or a room in a new building, etc. Potential donors can search for any charity in Canada and donate using their credit card. Donors can donate once or through a payment schedule. Canadahelps.org also accepts cash or securities such as stocks and bonds. What Canadahelps.org does not allow are payments for non-charitable gifts such as memberships, event registration or product purchases. Since it’s a registered charitable foundation, donors are issued a tax receipt. Donations are transferred to a NPO’s bank account minus a 3% transaction fee. Charities are notified by email that their accounts have received a donation. The website also provides donor research data that can be used to foster better donor relations.

An alternative that Canadahelps.org provides is that allows a NPO to use its own website a donation portal while processing transactions through Canadahelps.org. This is accomplished by adding a simple “Donate Button” to an NPO’s existing website.

Online fundraising is constantly evolving and new trends are constantly appearing. The most important trend is that online fundraising is here to stay and will continue to grow. It should be part of any organization’s comprehensive long term and sustainable fundraising strategy.

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To understand how this misconception came to be requires explaining 3 points. First, who exactly are the Millennials? Second, why are they regarded as politically disengaged? Third, how are they involved in their communities?

The Millennials are a generation born between 1980 and 1995, although some include those born up until 2000. Defining characteristics include liberal beliefs, high education, tech-savviness, quick embracing of change or innovation, high value on independence plus uniqueness, distrust in large media as well as government, a fervent belief in not compromising on their dreams or their lifestyle and a strong interest in social/environmental issues. Millennials are also a feminist generation, where today approximately 60 per cent of university graduates are women, with more women entering medical and law schools. ¹

The belief that Millennials are politically disengaged comes from the fact that they have had weak turnouts in past elections at the municipal, provincial and federal level. This problem is also present in other developed Western nations. ² Most young Canadians are also not interested in participating in party politics or staying informed through traditional news formats such as TV news stations and newspapers. From this point of view Millennials are disengaged and disenfranchised.

The truth is that Millennials care a lot about the world and are engaged; but the majority just don’t feel connected to traditional political institutions. According to Elections Canada, some Millennials argue that none of the mainstream political parties address issues that are relevant to their generation such as high car insurance rates, tuition fees, the need for student loan restructuring, modern internet laws, etc. Donald Green and Alan Gerber have been studying American federal, state and municipal elections in 12 states since 1998; their book – “Get Out the Vote! How to increase voter turnout “, links declining voter turnout in western democracies to the depersonalization of politics. In Canada, the theatrical and scripted style of Question Period is not compatible with the expectations of this generation. Even former PM Brian Mulroney said (2009), “If you look at Question Period, you can see that it’s often the theatre of the absurd. There’s no relationship whatsoever to the problems of ordinary Canadians, and that’s one of the reasons why ordinary Canadians turn off so quickly in politics.”

Millennials are not political dropouts. According to a study by D-Code and the Canadian Centre for Philanthropy, Millennials are involved. They buy products using their social conscience. They donate to charities. They try to use public transit and prefer green cars. They volunteer. They organize. They expect corporate social responsibility. They express news, share opinions and mobilize through blogs. They promote workplace equality by pushing for flattened hierarchies. They pursue social entrepreneurship, combining business and social change. They join causes on social networking sites. The World Values Survey supports this and shows data that compared to older generations, Millennials are just as likely to volunteer and discuss social/environmental issues with friends but they are almost twice as likely to pursue non-traditional political methods such as boycotts, ribbon campaigns, marathons and social movements like Earth Hour or Pride Week.

Yes Millennials should vote more and if they are properly engaged they will. After all, Millennials played a significant role in helping Obama win the 2008 US Presidential Election. There are many young, inspirational Canadians driving transformational change and improving the world; they are just doing it innovative ways.

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