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Major Donors, Strategic Planning

Big Vision = Big Dollars

by Kent Vanderwood
October 31, 2020

Is your ministry vision big enough to capture your donors’ attention? Major donors look for organizations that can make an eternal impact. They desire to fund ministries that are not content with the status quo but those that have a compelling plan to meet a significant need. Why should a major donor consider giving to your ministry? Your answer begins with an agile and comprehensive strategic plan.

Strategic planning is a very broad and often confusing topic. All non-profit organizations need a plan, but less than half have one – or a current one at least. The life cycle of a strategic plan is five years maximum and should be reviewed every three years. Consider these three questions:

1. What is a strategic plan?
2. Why does your organization need a strategic plan? 
3. How can you best leverage this plan for maximum fundraising results?

WHAT IS A STRATEGIC PLAN? Here is a definition: “A strategic plan results from an intensive process in which highly invested stakeholders reach consensus about the future direction of the organization over the next 3-5 years.” A strategic plan usually involves:
• Reviewing the organization’s purpose (mission), vision, and core values.
• Examining who you serve and/or should be serving in the future.
• Analyzing your organizational strengths, weaknesses, opportunities, and threats (SWOT).
• Understanding your “competitive advantage,” what you do better than anyone else.
• Establishing a limited number of “strategic goals” or objectives for the next 3-5 years.

Strategic planning is related to, but different than annual and long-range planning. While both are important, they should be driven by your strategic plan.

Annual planning generally happens in conjunction with your fiscal year and focuses on annual needs and operations. It may include items like budgets, projected personnel costs, staff assignments, facility maintenance, programming, and estimated costs of doing business.

Long-range planning generally happens every two to three years and focuses on what new programs you will add and what facility upgrades you need to make to accommodate these programs. It may also involve changes in staffing levels, service statistics, replacement of major equipment, and leadership succession plans.

WHY DOES YOUR NON-PROFIT ORGANIZATION NEED A STRATEGIC PLAN? A strategic plan accomplishes five critical goals.

1. It shows you are serious about your organization’s mission and that it is worth continuing.
2. It builds strong ownership and “buy-in” from stakeholders.
3. It helps you stay focused on what is most important—”doing the right things, the right way.”
4. It prioritizes your funding needs and
5. It provides incentive for donors to support you.

Donors give to your ministry for three reasons:

1. They believe in your mission (why and what you do).
2. They appreciate your vision for the future (as opposed to status quo).
3. They trust your leadership (this comes from relationships).

All three reasons are connected to your strategic plan. 1) Why you are in business, 2) what you want to accomplish, and 3) as a leader, will you do what you say you’re going to do.

People give to vision. A strategic plan helps you frame and present your vision.
Strategic vision provides long-term direction for your organization. What is your BHAG? (big, hairy, audacious goal, or better yet, big, holy, audacious goal). Your vision statement needs to be far reaching, but attainable. Here are two vision statements that may have sounded crazy at the time:

“We will put a man on the moon before the end of the decade and bring him back.” (President John F. Kennedy)

“A computer on every desk and in every home using great software as an empowering tool.” (Microsoft)

HOW CAN YOU MAXIMIZE YOUR STRATEGIC PLAN TO ENHANCE YOUR FUNDRAISING PLAN? Here are some tips to consider:

• Make sure your plan is current; if more than five years old, refresh it, or better yet, start over.
• Encourage your board to review and update your plan annually.
• Post a short version of your plans on your website to engage your entire constituency.
• Tie your annual fundraising goals/needs to your strategic plan initiatives.
• Take a copy with you to every donor cultivation meeting.
• Personalize the ask; if an initiative or goal in your strategic plan aligns with the donor’s interest area or “hits a hot button,” emphasize how their gift will accomplish that key strategic planning goal.
• Highlight your annual progress. Use a checklist or colorful graphic. Show what you have accomplished!
• Include your strategic plan, along with an update on progress, with every corporate or foundation proposal you submit. Smart foundations will request it.
• Rethink your strategic plan every five years. It gets stale setting on the shelf.

A good, current, and compelling strategic plan will greatly enhance your fundraising efforts. Please contact us at The Timothy Group if you need help creating big vision that will attract big dollars!

Author: Kent Vanderwood, Vice President

Development

Fine-Tuning Your Annual Fund Plan

by Kent Vanderwood
August 23, 2020

Are you fine-tuning your annual fund plan regularly? Like strategic planning, good fund development planning builds unity and harmony across your organization and constituency. Practice makes perfect, so it’s helpful to begin by understanding the basics.

What is an annual fund plan?

It’s closely partnered with your organization’s multi-year strategic plan. In fact, your annual fund plan is one of those sub-plans that rolls out of your strategic plan. The strategic plan provides the framework and foundation for your organization’s work. Then you create a fund development plan—guided by the organization’s strategic plan—to secure the financing to support that strategic plan.

Like institutional strategic planning, good fund development planning is a process that builds organization-wide understanding of and ownership for fund development. Like the process of institutional planning, the best fund development planning process generates learning and change, and produces alignment and shared accountability. And, just like institutional strategic planning, effective fund development planning also produces results.

What is a strategic plan?

A process devoted to developing a shared vision of the organization’s future.

A determination of the best way to make this vision happen.

A map that connects the dots between the vision of your organization and your fundraising efforts.

A two-fold plan; an annual plan based on needs and a long-range plan based on history.

What are 4 key steps to fine-tune your annual fund plan?

Assess (or compose) your fund plan.

Synchronize your fund to your strategic plan.

Compile the key pieces in your fund plan.

Play to the right markets.

Where can I find more specifics to help build a masterpiece plan?

You can start right here! Below you will find an in-depth slide presentation, sample calendars, sample plans, graphics and more. 

AFP-August_2020_Fine-Tuning-Your-Annual-Fund-Plan_Kent-Vanderwood_The-Timothy-Group

Sample_Academy-3-Year-Annual-Fund-Plan-1

Sample_Annual-Financial-Development-Plan_The-Timothy-Group

Sample_Annual-Development-Calendar-for-2021-2022

Sample_Ask-Piece_Immanuel-Schools_The-Timothy-Group

Sample_Ask-Piece-Personalized_Immanuel-Schools

Sample_Ask-Piece_Open-Door-Christian-Schools Sample_Ask-Piece_ World-Mission   About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Development, Fundraising, Stewardship

2 Ways To Directly Impact Development By Year’s End

by The Timothy Group
August 7, 2019

Ready for Fall?

Back to school sales are already in full swing. Summer is winding down and Fall kick-offs are only weeks away. As hard as it may be to believe, Fall is upon us. The most critical fundraising months of the year are around the corner.  So, let’s ask the tough question: Are you ready?

Are you ready for budgeting and spreadsheets?

Are you ready for Fall Campaigns?

Are your social media strategies in place?

Is your calendar filling up with major and mega donor appointments?

Is your vision story-crafted well and ready to share?

Is your first Fall newsletter template done, copy complete and formats proofed?

When it comes to development, we all understand the 24-7 nature of the beast. That said, however, Fall offers a uniquely timed opportunity each year and here are two ways to directly impact your organization’s development by year’s end.

1. Top 10/Next 20 lists

That’s right, contrary to what some may think, there is a biblical precedent for categorizing and segmenting donors according to capacity. Look back at the leadership of Moses and Aaron in Exodus 25:2-8:

“Speak to the people of Israel, that they take for me a contribution. From every man whose heart moves him you shall receive the contribution for me. And this is the contribution that you shall receive from them: gold, silver, and bronze, blue and purple and scarlet yarns and fine twined linen, goats’ hair, tanned rams’ skins, goatskins, acacia wood, oil for the lamps, spices for the anointing oil and for the fragrant incense, onyx stones, and stones for setting, for the ephod and for the breast-piece. And let them make me a sanctuary, that I may dwell in their midst.”

Starting with the most valued material and continuing all the way through to stones, these leaders understood that in order to construct this mobile worship center (the Tabernacle) there would have to be a variety of gifts from mega-level gifts to common gifts. What do your lists look like? How are your lists categorized? What does your organization consider a mega gift, major gift and so on… Developing and maintaining these lists adds clarity, urgency and understanding to the overall development efforts of your organization.

2. Vision Dots

Every organization on the planet has a story or, more likely, a litany of stories that describe the history, past projects, successes and stories of impact. These are all important. However, stories are secondary to key points of vision or Vision Dots. Vision Dots are those bullet-point items that are timely, strategic initiatives that frame or put into context the stories of your organization.

Vision Dots are leaping off points that you can quickly share in an ‘elevator pitch’ but can also lead to stories that reinforce their value and impact. For example, ABC Rescue Mission shares a story of impact detailing the journey of a young adult who was strung out, at rock bottom, stumbled through their doors at the mission and is now teaching classes to people struggling with addiction.  This is an impactful story of redemption. However, this story should naturally flow from a Vision Dot that describes an aspect of the mission such as:

Leadership Development – 60% of all classes at ABC Rescue Mission are taught by former addicts. Help us continue to train and equip those who God brings to us to recover and lead.

Stories carry much greater weight and donor impact if they can be shared in relation to a Vision Dot or ministry core value. The more you can root a story in the context of a key initiative the easier it will be for the donor to see where their dollars are going and understand the reach of their giving.

And in case you are still skeptical, here are some of the ways Vision Dots are greater than stories:

Big picture thinking to showcase the reach of the ministry

Reveal the inherent understanding that the leaders of your organization have more than just a passion or well-intended hope,

but that there are plans and well thought-out strategies in place.

Quick and easy to share

Easy to remember

Pave the way for donors to ask about other key Vision Dots / initiatives within your organization

Fall is practically here. We hope all your lists are ready and your key vision initiatives are in place! Happy sharing!

*Interested in a planning session to discuss segmenting your donor lists or identifying your organization’s key Vision Dots? Schedule your free consultation today!

Donor Relations, Fundraising, Strategic Planning

Raising the Bar

by The Timothy Group
August 21, 2017

When Warren Buffet purchases a company, he requires his new managers to purchase stock. He believes that executives with “skin in the game” make better decisions. Buffet is unknowingly expressing a biblical truth, “For where your treasure is, there your heart will be also” (Luke 12:34). Board members who don’t give show that their heart isn’t really aligned with that ministry’s mission or vision. Every board member may not be able to give or get $100,000, but every board member should give a generous, sacrificial, annual gift.

How can you engage your board in fundraising? Paul wasn’t writing with nonprofits in mind, but he offers four applications for board members:

“Our counsel is that you warn the freeloaders to get a move on. Gently encourage the stragglers, and reach out for the exhausted, pulling them to their feet. Be patient with each person … ” (1 Thess. 5:14 MSG).

1. Warn the freeloaders to get a move on. Some boards are populated by “obit” members who only serve to build their obituary resumes. A board member’s job isn’t just to set policy to manage the money you already have, it’s to help you find more money. One board member commented, “Every one of our board members should constantly be in conversations with people to find out where God is hiding money!” Board chairs should prompt “obit” members to get a move on, or graciously ask them to move on.

2. Gently encourage the stragglers. The most successful fundraising is peer-to-peer. Some board members agree to raise money, but don’t follow through with their assignments. They keep promising to contact a potential donor, but they never call. They talk a good game, but it’s just talk. Solomon describes these board members, and even a few donors this way: “Like clouds and wind without rain is one who boasts of gifts never given.” (Prov. 25:14). It’s not what you expect, but what you inspect that actually gets done. Encourage board members to take an active role in fundraising. If nothing changes, refer to step one.

3. Reach out for the exhausted. Don was a rare board member who jumped into a capital campaign with abandon. As he made donor calls, he discovered that many of his contacts weren’t as excited about the ministry as he was. At one board meeting he shared, “This is hard work. I’d rather be out digging dirt with a shovel than asking people for money.” Don was doing a great job and needed encouragement. Donors weren’t giving because the ministry had done a poor job of telling its story, not because Don was doing something wrong. Don kept asking and by the end of the campaign he had raised three times more than anyone else. Reach out to exhausted board members and pull them to their feet.

4. Be patient with each person. The stress level at board meetings usually tracks with the monthly financial reports. As gift income rises so does everyone’s mood, but when donations go down, attitudes often follow. The executive director looks at the board and wonders why they aren’t helping. The board looks at the executive director and wonders why he or she doesn’t visit major donors. Paul ends with, “And be careful that when you get on each other’s nerves you don’t snap at each other. Look for the best in each other, and always do your best to bring it out.” (1 Thess. 5:15 MSG).

How can you bring out the best in your board? Have the “skin-in-the-game” conversation with your board chair. As a group, set giving and getting expectations and hold one another accountable. Start with a small assignment. Ask a board member to invite a friend to meet you for lunch. Good things happen when ministry leaders and board members work together.

 

This article can be found in the Summer 2014 issue of Outcomes Magazine

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Development, Strategic Planning

Change: What Do You Mean, Change?!

by The Timothy Group
July 18, 2014

So how many leaders in your organization does it take to change a light bulb?  Answer: Change – what do you mean, change?!

Change does not come easily for many.  That’s true with individuals and it’s true in the leadership of many nonprofits.  While too much change certainly can do major harm, not enough change can be equally damaging.  We all learn from successes and failures.  Over the years, I’ve encountered both and have learned some lessons.  Allow me to share a few.

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