Why Your Organization Needs an Annual Fund Plan

What do dating, courtship and marriage have to do with fundraising? Everything!

To build a truly epic fundraising program, one that will provide the funds needed for long-term sustainability and growth, your organization must have a year-round campaign program that includes personal contacts, communication, and relationship building. In short, you need an annual fund campaign. An annual fund campaign is a broad-based, organized, fundraising program designed to raise money for your organization’s ongoing operational expenses.

Annual giving is the cornerstone for all the other development programs. It is where the initial donor contact is made and it is the building block for your major gift, planned giving, special event and other fundraising campaigns. It establishes a base of donors and is the mechanism to involve, inform, and bond your supporters to your organization.

Beyond the obvious monetary goals, other goals of the annual fund include building a steady, ongoing base of support for operations, expanding the visibility of your organization, and lays the foundation for all your other fundraising efforts.

Organizations without a clearly defined annual fund that includes a compelling case for support, a well-planned direct mail and a communication strategy often find themselves involved in a perpetual “crisis fund raising” mode. We’ve all seen appeals for support based on the immediate, urgent and crisis needs of the organization. The truth is, this so-called strategy fails miserably. The hard truth is donors are less concerned with your mission than you might hope and more concerned about their own mission and reasons for giving. Donor communications need to be focused on the donor and their needs, not your organization’s needs.

So what do dating, courtship and marriage have to do with fundraising? Again, everything!  If you are married, think back to the day you met your spouse for the first time. Now think about all that transpired between your first meeting, or your first date, the marriage proposal and eventually your wedding. If you’re like most, over time, after multiple dates and a period of courtship, your relationship eventually evolved to marriage. First-time givers to your organization are not donors, they are explorers. Just like you were on your first date. I believe it takes three or more gifts from a donor before they even enter the dating phase with your organization. “Marriage” is your goal; i.e. donors who support your mission with consistent giving over the long-term. Getting to this point with any donor takes time. Getting to this point with a large number of donors takes time, effort and an effective plan for direct mail, email and the overall donor communication strategy.

One goal of the annual fund is to identify, involve and then cultivate prospective major gift donors. The 80/20 rule applies to fundraising; a significant portion of the funds your organization raises will come from a relatively small percentage of your overall donor base. Moving annual fund donors in the “dating phase” to major gift givers is a function and result of a well-structured major gift campaign.

A successful donor-centric fundraising program, built on the foundation of a strong annual fund campaign, will create a broad base of support that will consistently raise the funds your organization needs for its ongoing operational expenses and sets the stage for the development of your major gift and other fundraising programs.

To learn how Accelerating Philanthropy can help your organization create a comprehensive strategic plan for fundraising, including effective annual fund and major gift programs, please visit our website.