You dont ensure success in fundraising for charities simply by a strong desire to help. You have to make plans, strategize, and get specific actions rolling. Moreover, fundraising for a cause usually involves recurring activities. You should be prepared to do them on an ongoing basis.
Here are specific steps that go into funding a nonprofit:
* Establish specific fundraising targets
Determine how much money you need to generate. List down all of your expected revenues and expenses.
* Do reliable prospect research
Review your nonprofit. What is the nature of the services that it provides? What is its locale? Look at similar nonprofits and determine how they raise funds. What are their resources?
Then take a look at their profile of resources. For example, similar nonprofits may get 50% of their funds from personal donations from individuals, 25% from government support, 15% from grants, and the remaining 10% from various fees.
It may be to your advantage to aim for a similar mix of fund sources.
An excellent prospect research shouldnt be limited to making a list of foundations you can send your proposals to. It can be as varied and expansive as possible.
* Determine the specific sources of funds from this mix of prospective fund sources
Identify your prospects. These prospects should include names of individuals, government agencies, foundations, and fees charged for services to be rendered.
* Develop clear and specific action plans
Discuss the list of prospective fund sources with the board members and the fundraising committee. Determine which board members and fundraising staff should approach specific target sources. Make sure that each one is clear about his or her assignment.
* Make a fundraising plan based on the abovementioned steps. Get the board to approve the plan.
This plan details more than just the sources to approach. It should be your road map for funding a nonprofit. It should be your general guide for generating revenues for your cause.
It should identify a wide range of sources and explain how you identified these sources. It should specify how much money you realistically expect to raise from these sources. It should detail the action plans and the time frame by which the targets should be accomplished.
* Put in place the administrative systems for tracking donations and grants
Make sure that youre able to accurately document the sources and amounts of funds as they come into your nonprofit. Formally acknowledge the receipts. Monitor the grant requirements. Include fundraising information in IRS documentation if called for.
Some people think that when you choose members for a fundraising committee for a nonprofit, you should always pick out people simply because they have deep pockets or big names. Some think that the job is limited to asking for donations or looking for grants.
A fundraising committee plays an important role in generating funds for a nonprofit. Members should have the ability to think in strategic terms, to develop well-thought-out plans, and design administrative systems to implement and monitor these plans.