Creating a Development Plan for Nonprofit Donors

Fundraising Cycle Strategies to Raise More Money

Jul 24, 2009 Molly Schar

The top reason why donors do not give to a specific organization is actually quite simple. They don't give because they weren't asked.

Today, nonprofit organizations must build a relationship with each donor so that when the time comes, the nonprofit's fundraiser can appropriately solicit a donation and get it. An organization’s development plan should address each step in the fundraising cycle to create a workable and effective approach to building donor relationships.

A well-thought-out development plan is critical to a successful fundraising program. The development plan outlines the five W’s of fundraising activities – who, what, when, where and why – in the context of the different fundraising cycles (identification, cultivation, solicitation, negotiation, stewardship).

Identification of Prospective Individual Donors

Nonprofits must identify individuals inclined to support the mission and projects of the organization. People will be so inclined for different reasons. They may have been affected by the work of the organization, or know someone who has. They may live within the community served. Or they may be friends with a board member or a volunteer.

Cultivation of Prospective Individual Donors

This is the period when prospective donors get to know the organization, and vice versa. It’s also the period when fundraisers determine when to ask for a gift, and for how much.

Solicitation and Negotiation of Charitable Gifts

The actual request for funding may take a number of forms. The strongest approach is an in-person request made by someone the prospect knows and respects (peer solicitation). It might also be made by another individual in person, by phone or by letter or email.

The prospect may have questions about what the gift will be used for or the amount requested. “No” rarely means “no.” The job of the nonprofit representative in the negotiation is to determine the real issue and address it effectively. To do so will result in a gift or formal pledge.

Stewardship of Nonprofit Donors

Last, but not least, comes the stewardship period. Once the gift is made, prompt, genuine thanks only begin an effective stewardship program. There is much relationship-building to be done during this period, including ensuring the donor her gift has been put to work, reporting back on results, and determining when and how to make another solicitation.

Translating the Fundraising Cycle into a Development Plan

It is a fundraising cycle because stewardship circles back to solicitation and negotiation as long as the nonprofit donor and the organization continue a productive relationship.

For “major donors” – those giving at a level of significance for the organization – the nonprofit may have an individual development plan for each donor. That’s because organizations should invest more resources in those donors more likely to give greater amounts.

For donors at lower levels, the nonprofit may have an annual development plan that guides groups of donors through the fundraising cycle on a more set schedule. This could mean identification by exchanging a mailing list with a similar organization, cultivation with an informative mailing, solicitation by letter and stewardship with tailored newsletters and reports.

Creating an effective development plan is important for nonprofit organizations large and small. It guides the nonprofit to being able to make that all-important ask, and then being able to do it again.

Learn more about the phases of the fundraising cycle: identification, cultivation, solicitation, negotiation and stewardship.

The copyright of the article Creating a Development Plan for Nonprofit Donors in Non-Profit Management is owned by Molly Schar. Permission to republish Creating a Development Plan for Nonprofit Donors in print or online must be granted by the author in writing.

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Development Plan Will Focus Fundraising Activities	Hitting Nonprofit Fundraising Target Requires Plan