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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