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Section 1: Introduction to the Problem
Nonprofit organizations are legal entities created to meet a stakeholder's needs
(Kenton, n.d.). Nonprofit organizations must maximize income, protect their interests,
and meet their mission. This study identified the client organization as Quality Reliable
Services (QRS), a pseudonym for the client's nonprofit organization. QRS is a nonprofit
organization that works to serve the homeless population through direct services and
advocacy.
QRS provides an integrated system of services that partners with homeless service
providers, local municipal government, state officials, and the faith community. QRS
operates and provides coordinated assessment/entry and manages an electronic case
management system. This case management system assesses the needs of the homeless
and prioritizes them. Approximately 450 users allow the providers to quantify
homelessness and track services provided to the community.
Fundraising is vital to the sustainability and growth of a nonprofit organization.
This activity increases awareness of the organization's mission and strengthens its
operations. According to the Director of Operations, QRS has no strategies for an annual
fund or major donor programs. Also, additional strategies are needed to increase private
and family foundation grants.
QRS has primarily depended on federal funding sources for its operation. In this
paper, I used qualitative research to identify needed fundraising strategies for the annual
fund, major donors, and increasing private/family foundation fundraising. The result of
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this study is a report recommending appropriate fundraising strategies for these three
sources of nonprofit organization funding.
Problem Statement
QRS leads the integrated services for the homeless in a southeast state. They
submitted collaborative applications for funding that provides approximately $10 million
for individuals and families experiencing homelessness. The organization's mission is to
prepare and empower the community in preventing and ending homelessness through
advocacy, education, and coordination of services. Fundraising is a vital component of
the operation of this nonprofit organization.
There is never a guarantee of the number of funds raised, but how an organization
administers those efforts must be consistent with its vision. Consistency with donors is a
plan that speaks to the number of times actions are repeated. Each time an action is
repeated, this improves that effort, generates growth, and deepens the relationship with
the donor (Why Is Consistency Key With Donors, 2021). Through this study, I aim to
assist the QRS organization in creating strategies to enhance the organization's ability to
raise needed funds in a way that demonstrates integrity, positive stewardship, and
professionalism. As of May 2022, QRS has not created or administered those strategies
for obtaining foundation grants, annual funds, or major donors.
Funding is essential, but it is equally important to understand the extent of
homelessness. The number of individuals experiencing homelessness and the
characteristics of this population provide awareness. The demographics and needs are
gathered and used by the federal government.
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In January 2022, more than nine hundred individuals received services in a single
night (Xxx Xxxxx 2022). This count is a mini census that helps the community
understand the homeless population’s needs. These individuals and families usually
receive services in an emergency shelter, transitional housing, and a haven in one night.
QRS is the lead agency for the integration of services and, therefore, leads this effort.
Foundation grants, an annual fund, and major donor policies and procedures assist the
organization in fulfilling its mission. In addition, policies and procedures guide the plans,
ensure ethical practices, and increase the effectiveness of the services offered.
Purpose Statement
This qualitative study reviewed existing organizational documents to add
background information and understand QRS's financial needs. Eight interviews were
conducted with developmental staff or leaders of nonprofit organizations who have
successfully created and implemented foundation fundraising and individual donations
through annual funds and major donor programs. Interviews, findings, and related
literature supported the data necessary to develop recommendations for the annual fund,
major donors, and foundation QRS fundraising strategies. The results of this study lead to
a report that documents the research results and recommendations for appropriate new
foundation grants, the annual fund, and major donor programs strategies.
Guiding Question
What fundraising strategies are needed for a growing nonprofit organization to
implement an annual fund, major donors, and foundation fundraising efforts to increase
and diversify its funding sources?
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Nature of Study
This research included a review of existing organizational documents to add
background information and understand the financial need. In addition to a significant
literature review, the research consisted of eight individual interviews with
developmental staff or leaders selected from similar nonprofit organizations who
successfully implemented foundation fundraising and an annual fund and major donor
programs. The interviews were semi-structured with open-ended questions. The results
were coded and interpreted for patterns and themes. Patterns and themes are seen as
trends representing a norm shift. This shift can ignite a change in best practices in
developing fundraising strategies (Mishra, S. & Dey, A.K., 2022).
Significance of Study
When fundraising strategies are absent, the organization lacks the resources to
accomplish its objectives. The findings of this study directly benefit the QRS
organization with strategies to raise funds through foundations, an annual fund, and major
donor programs. The findings provide strategies for QRS to diversify its funding
portfolio. Once implemented, the new strategy can further empower the organization to
meet its mission.
Fundraising spans several platforms. More than the financial benefits that
fundraising yields, it supports a cause, promotes the mission, and educates the
community. Fundraising becomes the catalyst for social change and addresses the root
cause of problems. Moreover, fundraising brings people together, enriches the
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community, and expands other areas. As a result, this ongoing cycle improves
community competitiveness and sustains the economy.
Fundraising also plays a critical role in community and economic development.
Funding creates more opportunities, moves families out of poverty, and builds
relationships between businesses. The impact models can help demonstrate how
fundraising has been effective. Impact drives the funds and is a conduit for positive social
change.
Summary
Section 1 revealed the lack of fundraising strategies in the QRS organization
related to foundations and individual giving. A new strategy to raise additional funding is
critical in establishing a solid foundation and diversifying funding based on QRS. New
strategies to raise additional funding are essential in establishing a solid foundation and
diversifying funding based on QRS. In Section 1, I stated the problem and purpose of this
study, noting that a qualitative research approach was used through individual interviews.
Interviews included eight individuals who have successfully implemented foundation
fundraising, annual funds, and major donor programs. In Section 2, fundraising strategies
are examined through scholarly literature.
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Section 2: Conceptual Approach and Background
Introduction
According to Christensen (n.d.), organized fundraising gained attention during
both World Wars. The National Society of Fundraisers was organized during the 1960s
and served as a source and instruction for professional fundraisers. Since then, the
increase in electronic fundraising, the evolution of development platforms and programs,
and the diversity of funds raised and donated have positively impacted the ability of
nonprofit organizations to meet their missions and increase demand for services.
The significant growth of fundraising has expanded beyond grassroots nonprofit
organizations. Donations from various sources are used to meet the needs of schools,
politics, and other institutions. With this growth, there is a need to create guiding
principles and place governance to evaluate and establish accountability within nonprofit
organizations. As a result, the Sarbanes Oxley Act of 2002 was created to help protect
shareholders, employees, and the public from fraudulent practices (Lutkevich, 2020).
The Sarbanes Oxley Act led nonprofit organizations to review their practices,
evaluate their activities, and make the necessary adjustments. Many nonprofit
organizations found that developing policies and procedures were critical in gaining
donor trust and establishing ethical fundraising standards. When an organization lacks
governance, they are at risk for ethical issues (Lutkevich, 2020). QRS organization is an
established nonprofit that has become dependent on federally funded grants and few
donations. Additional funds can allow QRS to meet the increasing need and demand for
services.
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The question remains about what fundraising strategies are needed for a growing
nonprofit organization to implement an annual fund, major donor, and foundation
fundraising strategies to increase and diversify its funding sources. In this section, I
explore the definitions and best practices of foundation fundraising strategies, an annual
fund, and major donors. This research provides a comprehensive review of what could
offer a sustainable plan for developing fundraising strategies.
Conceptual Framework
The theory of change is a model created to evaluate community initiatives. The
origin of this model is connected to methodologists such as Chen, Rossi, Patton, and
Weiss. The theory of change details the connections between programs, activities, and
outcomes (DeJonckheere & Vaughn, 2019). It is critical in building a foundation for
giving. Chase (2022) claimed, “A theory of change is why taking action or making a
donation might plausibly make a difference about something the audience cares about”
(para. 4).
The theory of change approach perfects the planning and implementation of an
initiative, measures the data, and evaluates long-term goals or outcomes. This method can
make the mission of a nonprofit organization more relevant and effective. Although
fundraising campaigns focus on the donors and strengthening the relationship between
the donor and the organization (Cornetto, 2020). This simply means that the theory of
change in fundraising will lead to consistent outcomes.
QRS organization is working towards increasing and diversifying its funding
sources through fundraising strategies. Diversity is essential to engaging stakeholders and
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improving fundraising outcomes (Schiller, 2022). The theory of change provided an
understanding of the process from inputs (key people who will run the activities),
activities (fundraising strategies), outputs (how activities are measured), and outcomes
(including short and long-term goals).
Figure 1
Theory of Change
Note. The model in Figure 1 describes how these activities are expected to lead to the
desired result, positive impacts. The Figure is created from the information adapted from
5 Steps for Creating a Theory of Change. (Nitsche, 2022). The contents of the figure is
my own work.
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Relevance to Public Organization
For-profit organizations provide a service or product in exchange for payment. In
contrast, a nonprofit organization's sole purpose is to provide a service with no
expectation of compensation. In an effort for a nonprofit organization to operate and
support its cause, they solicit donations. According to the National Council of Nonprofits,
(2020), 1.3 million charitable nonprofits feed, heal, shelter, and educate people of every
age, gender, race, and socioeconomic status throughout the United States and beyond.
The community can see the direct benefits that families experience, but there are
also indirect benefits. Nonprofits employ people and consume goods and services,
impacting the economy, generating civic engagement, and influencing public policy.
Nonprofits raise awareness, and funding causes lean credibility to nonprofits. Fundraising
strategies, therefore, generate revenue that contributes to this impact.
Civic Engagement
Civic engagement means making a positive difference in the lives of others. Civic
engagement is individual or collective actions designed to address issues that concern the
public. Civic engagement covers a myriad of activities, from volunteerism to
organizational involvement. Some examples include community projects, public health,
recycling, social justice, and advocacy, to name a few.
Fundraising is needed to raise money to support a cause and increase awareness.
Funds are essential in creating awareness, researching an issue, lowering overhead
expenditures, and securing the workforce. One example of how fundraising impacts the
community may be found in the Southern Poverty Law Center in Montgomery, Alabama.
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The Southern Poverty Law Center announced the first round of grants totaling $5.435
million for the Vote your Voice Initiative in August 2020. (2020). This funding supported
its Vote Your Voice initiative, and the effort was a partnership with the Community
Foundation of Greater Atlanta. The goal was to increase voter participation among people
of color in Alabama, Florida, Georgia, Louisiana, and Mississippi (2020).
Sociologists have defined social change as the alteration of cultural and social
institutions resulting from changes in interpersonal relationships and interactions. These
adjustments happen regularly and gradually, and the developments throughout time can
significantly impact society. Fundraising is a conduit for nonprofit organizations. The
funds are raised to ensure the organization’s longevity, and those activities are funded
(2019).
Organizational Background/Context
QRS organization was incorporated in 1991. The central focus of QRS was to
serve those who were homeless or at risk of becoming homeless through advocacy,
education, and coordination of services. There are distinct programs where the population
receives services. QRS uses coordinated assessments with its partners as a requirement of
HUD.
Coordinated assessment is a unique tool used to assess those at risk or those who
experience homelessness. The case management system includes software, hardware, and
internet service and training for various partner agencies in their joint effort to fight
homelessness. This system is mandated by the federal government to provide case
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management, track the number served, and qualify those in need. More than six hundred
agencies and two hundred users actively participate in the system (Xxx Xxxx, 2022).
The continuum represents QRS and its partnering agencies. QRS leads the effort
to decrease homelessness. The other responsibilities that QRS has include submitting a
competitive annual grant request to HUD, evaluating the continuum-funded programs,
and ensuring efficiency. QRS also recommends best practices in funding programs. The
responsibilities are significant; additionally, funding is needed as the organization
continues to grow and the need expands beyond homeless individuals, families, veterans,
youth, and chronically ill. With those needs, an increased and diverse amount of funds
becomes critical.
Fundraising Strategies
Nonprofit refers to organizations that have a social goal. Funds are necessary for
resource development and allowing the organization to fulfill its mission. Grant awards
through the federal government are essential, but few organizations can sustain
themselves through this funding stream alone. Effective organizations should have a
diverse financial base beyond government funding ("Nonprofit Resources Development
and Fundraising," 2020).
Composing a plan of action or strategy is critical in developing a fundraising
action plan. A solid foundation fundraising plan includes four items: bringing awareness
by building interested participants or donors, educating the audience on the organization's
mission, inviting potential donors to the organization's events, and encouraging
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volunteerism (Love, 2022). Finally, the organization should promote stewardship by
showing the participants how they are effective (Lien, 2017).
Foundation Fundraising Strategies
Foundations exist to give money in the form of grants. The goal of a foundation is
to fund or connect with a nonprofit that shares the same or similar missions in making a
positive change. When forming a foundation fundraising plan, it is essential to obtain
input from the board of directors, staff, and volunteers. Fundraising is more than raising
money for an organization.
The most reliable source for the increase and consistent growth is building
diversity. A nonprofit organization can develop diversity through the increase of people.
Board members may be considered donors. Engaging donors is a strategy that includes
receiving monetary donations, securing in-kind donations, donating time, investing
skills/gifts, and recruiting other donors through networking ("Fundraising for Social
Change - Ohio" n.d.). Once the elements are understood, the fundraising activities should
be delegated to the development staff for goal setting and execution.
A solid foundation plan is not limited in its efforts to gain funds. The diverse
types of foundations include operating foundations that work independently, private
foundations managed by the owner, public foundations that rely on foundations and
corporations, and nonoperating foundations that follow up with grants. The strategies
under each foundation serve as a guide to carry an organization through that specific
campaign (2022).
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Most nonprofit organizations intend to pursue an approach that supports financial
growth. Financial growth must not be a one-time event but an ongoing strategy to
stabilize the organization. A funding model is described as an organized and standardized
approach. This approach focuses on developing reliable revenue to support an
organization's programs and services (2016) Funding models possess three
characteristics: funding, the funding decision maker, and the funder's motivation.
Funding models are beneficial in identifying beneficiaries and cultivating funders.
The funding sources look at historical data, examining revenue streams from the past.
These data show what is consistent, what revenue streams are working, and what needs to
change. Funder motivation provides an understanding of why funders will help an
organization. Sometimes the funder is motivated by the organization's record or
successful outcomes. In addition, a motivator may be the funder, and the organization
shares an interest in the served population. Finally, the funder may have a personal
relationship with leaders (Kim et al., 2011).
In foundation fundraising, some lessons help an organization prepare for
unexpected circumstances and vulnerable areas and examine the funding approaches.
These are insights that assist an organization in developing strategies and diversifying
funds. A comprehensive list of fundraising platforms offers unique opportunities for
raising funds. As extensive as the list of fundraising strategies is, foundations provide
many benefits.
Diverse types of foundations offer funding streams. Foundations are often more
flexible than government funding, with broader grant guidelines. Foundations operate on
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a strategic plan that initiates ongoing funding streams that are often renewable based on
achieved outcomes. These funding streams add to the overall diversity in funding
disseminated to nonprofit organizations. The variety of funding streams supports the
mission and extends the ability to continue services and renew funds (“Guide to
Foundation Fundraising “- Columbia University, 2019).
There are many fundraising strategies to generate gain and create diversity in
fundraising. Some fundraising strategies include individual giving, major donor giving,
corporate giving, and annual giving. One of the most effective fundraising strategies is
peer-to-peer campaigning. Peer-to-peer campaigning is an economical way to raise funds;
it reaches its goal quickly and grows the organization’s network (Izmailova, 2021).
Annual Fund Strategies
A strategy is an action plan or policy development designed to achieve an
important goal. Strategies are significant because they prepare for the unforeseen or the
probable and assist with predicting the possibilities. Strategies define the mission, vision,
and direction of the organization. Strategies also bridge the gaps between an organization
and where it wants to be (MSG Management Study Guide, n.d.).
Strategies are therefore necessary for the financial planning of all nonprofit
organizations. The systems and methods used to execute those plans may differ, but still,
the goal is to fulfill the mission, expand the organization, and secure funds. An annual
fund is a fundraising strategy used by nonprofit organizations. This plan seeks to raise
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funds throughout the year. In addition, the process works towards increasing funds
through existing donors so they will donate again.
An annual donation program requires recurring demands yearly, with
progressively more meaningful results over time, increasing the number of donors and
the amount raised. The program must generate predictable cash revenue at specific times
of the year, depending on the promotional activities. Annual income from donations is
not limited to this; still, it fully covers the organization's needs in terms of current
funding.
Various annual fundraising programs meet the established criteria and the usual
annual fund mailing and online solicitation. This fundraising strategy may also include
yearly sponsorship as well as other methods. Developing strategic annual donations
involves identifying new donors and creating multiple means of improving existing
donors’ participation and involvement (Alford Group, 2020).
The strategic plan's foundation focuses on the financial goals agreed upon as part
of the overall vision of where the annual donation program will be in 3 to 5 years from its
inception. The next step in setting goals is gathering data. This data will include historical
data showing the donors who donated over time, the amount donated, and the donation
frequency (Alford Group, 2020a). This information can reveal what is received and what
actions are needed to obtain the goal. This information can also help an organization
identify weaknesses in donor retention, donation level gaps, and potential issues that the
plan wants to address (Alford Group, 2020).
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An annual fund is the foundation of all fundraising. This strategy establishes a
base for donors and serves as accountability. An annual fund has several approaches.
Outreach to donors occurs through dedicated events, direct mail, online platforms, and
other activities. It is a carefully devised and implemented plan that has proven successful.
The primary objective of the annual fund is to secure gifts and repeat, construct a donor
base, expand the donor base, raise unlimited funding, encourage gift plans, and generate a
yearly report (Rosso, n.d.).
To reiterate, an annual fund collective name for all the funds that a nonprofit
organization continuously raises during the year. Donations to this yearly fund are
unrestricted funds, which means that an organization has the freedom to use the funds in
any area of need. An annual fund provides more than unrestricted funds, it reinforces the
mission of the organization, increases the donor base, and establishes giving patterns
(2022). Acquiring funds is only one small part of securing the finances of a growing
nonprofit organization.
A fund development plan should entail diversifying. Diversification is a key
strategy. Every nonprofit organization needs a variety of funding streams. In other words,
no organization should depend on a sole source to operate. This method secures operation
and its solvency. Diversified fundraising should typically be no more than 25% of an
organization’s income from a sole source. This ratio supports that income should come
from a variety of sources (Rees, 2022a).
Another reason nonprofits should diversify is to prepare for uncertainty. Failing to
do so makes organizations vulnerable. The continuance of service is critical and can be
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achieved through fiscal management. The organization is seen as flexible when it
possesses an adequate balance sheet, appropriate allocations, positive operating income,
and diverse revenue streams. In addition, diversity in funding streams is a reduction in
one fund and enhances autonomy (Hung & Hager, 2018). These are all considered
advantages of choosing different strategies in fundraising and building a stronger
community network.
Major Donor Program Strategies
Major gifts are the most significant donations that a nonprofit organization
receives. The donations assist with meeting fundraising goals and addressing specific
needs. The dollar amount that determines major giving will vary. For a smaller nonprofit
organization, the amount may be as small as $1000 or as significant as $100,000.
The primary donor strategy is designed to establish a long-term relationship to
provide significant donations. This strategy is critical in developing ongoing funds and
guarantees a stable operation (2021). Specific components must be considered when
developing a major donor strategy. A nonprofit organization must determine the amount
that defines a major donation for them. A team must be appointed to market the plan and
secure major gifts.
The impact of the gift determines whether the contribution is significant. Major
donors may be secured through solid relationships, often referred to as donor cultivation
(Cychowski, 2021). Donor cultivation is a continuous process of adding new donors,
encouraging existing donors to repeat their giving, and motivating those who have given
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smaller gifts to increase their amounts. The purpose of donor cultivation is to influence
repeat giving (Eisenstein, L. , 2021).
Major donors are often secured through solid relationships. These contributions
are provided for future use. These gifts are considered planned giving. Both fundraising
strategies complement one another. They require ongoing stewardship, a careful
approach, and large individual donations (“Major donor strategy: The basics and best
practices for small nonprofits,”2021).
Relationships with organizations and their staff, volunteers, board of directors,
and donors are integral to the sustainability of the future of the organization.
Relationships with donors are often considered unrestricted funds and can provide
services and resources that may otherwise be unavailable (Shaker & Wiepking, 2022).
Donor cultivation is a collaborative effort that involves two or more people.
Often, the donor cultivation cycle identifies potential donors and encourages them to
give. These donors are traditionally categorized in three areas: the frequency of giving,
the most recent gifts, and those who give the largest amount. Nurturing those
relationships over time shows the donors’ appreciation and they learn how impactful their
contributions are (Eisenstein, A., 2020).
Moreover, the nonprofit organization's staff plays a significant role in donor
cultivation efforts. This process will provide clarity for the donor. The donor will gain an
appreciation of what the nonprofit organization does, its short and long-term goals, and
how critical funding is for its operation. The ultimate purpose of cultivating donor
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relationships is to create connections and inspire the donors to motivate them to give
again (Eisenstein, L., 2021).
Donor Cultivation is a critical stage in the fundraising cycle. The fundraising
cycle encompasses six stages. The steps are identifying donors, engaging donors,
evaluating, soliciting, recognizing, and stewarding. The fundraising cycle applies to
individual donors as well as major donors. The focus continues to be on building
relationships because it is considered the backbone of fundraising. The donor cultivation
begins with the first gift. The momentum builds and establishes financial security
(Matics, n.d.).
For-profit and nonprofit organizations have applied the Pareto Principle to their
financial practices. Pareto Principle, also called the 80/20 rule, believes that 20% of the
clients or donors generate 80% of the profit (Team, 2022). The Pareto Principle was often
applied in fundraising, suggesting that 20% of the major donors supported the
contributions of a nonprofit organization.
Fundraising is more cost-effective to raise large sums of money than insignificant
amounts. The 80/20 rule teaches that a small number of more generous donors account
for the most significant amount that an organization receives. The substantial profit
supports the need for a fundraiser or fund developer to focus on more time. Effort and
money on major donors (Team, 2022).
The 80/20 Principle or Pareto's Law is used frequently in business. Vilfredo
Pareto was a controversial economist who authored a book that contained a law on
income distribution. Pareto utilized a mathematical formula to illustrate the unequal but
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predictable distribution of wealth in society, where 20% of the population produced 80%
of the wealth and income. Pareto's law defines that 20% of the inputs produce 80% of the
outputs. (Team, 2022). The objective of putting strategies and practices through this
analysis is to discover the organization's weaknesses. It will also eliminate those
weaknesses and find the strengths. In summation, it is relationships that sustain an
organization.
The recruitment of donors is the initial funding step; donor retention is critical to
financial security. Retaining donors produces sustainability and allows the organization
to serve long-term. Therefore, organizations are unable to grow without retaining donors.
Donors should be engaged continuously. One way of maintaining the donor's support is
to share how impactful their donations are.
There are several strategies for donor relationship retention. Some of the most
common are demonstrating the impact through newsletters by sharing success stories,
posting updates via social media, and creating quarterly and annual reports with fiscal
and programmatic updates. Another strategy is handwritten thank you notes to add
personal appreciation to donors. Another method is creating and maintaining a donor
database to track the donor's giving patterns and provide transparency. Also, the donor
database can tailor campaigns and provide notifications of changes and upcoming events
(Pun, 2022).
During 2009-2010, some research was shared through the Fundraising
Effectiveness Project, where donor retention was studied (Donor retention matters -
urban institute n.d.). The trends and patterns that measured nonprofits' connections with
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the communities where they served. This research revealed that there was 70% repeat-
donor retention, which was three times greater than new donor retention. Another factor
that supports that donor retention matters because the relationships are lasting and
consistent and will typically be more likely to give major gifts. Often, many of the major
gifts represent the organization's total revenue (Urban Institute, n.d.)
Role of the DPA Student/Researcher
My educational background includes a Bachelor of Arts in Communication from
Alabama A&M University. Following my undergraduate studies, I volunteered for Big
Brothers/Big Sisters. I served as a Big Sister and as a committee member for planning
activities for six years. I continued volunteering with other nonprofit organizations: the
League of Women Voters, and Better Basics (tutoring second-grade students in reading),
obtaining additional training with the Baptist Association, and teaching adults how to
read.
My work with nonprofit organizations began with a parenting program with a
local school system. My next job was with a Welfare-to-Work program where I served as
a Job Coach/Developer. My next position was as grants monitor in the local County
government, where I provided oversight to eleven welfare-to-work programs; I decided to
obtain a master’s degree in public administration. My work continued with emergency
funds, serving evacuees from Hurricane Katrina in 2005. I represented the Center for
Workforce Development and partnered with the Chamber of Commerce. Partnerships
were developed with the member businesses. The funding provided jobs, housing, and
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supportive services for several families. These services were followed by a job fair that
placed more evacuees in employment.
My work experience includes 25 years with nonprofit organizations. Three of the
nonprofit organizations I employed were born out of churches that desired to fulfill
community needs. Two of the three organizations were challenged with obtaining grants
due to their desire to share the gospel of Jesus Christ. The third organization received a
federal grant because its mission differed.
The remaining agencies where I worked were well-established in the community
with proven service records and could secure federal grants regularly. In addition, I had
the opportunity to work with programs funded by the Department of Labor. My
experience included program development and interpreting federal regulations. The
federal rules and regulations had to be applied: understanding who qualified for services,
developing a recruitment plan, offering services, and creating interventions for
participants.
The federal rules and regulations also dictated follow-up for participants.
Participants served included at-risk youth, welfare recipients, the homeless population,
and those who faced multiple barriers to employment. Each organization's mission may
have differed, but there was a common thread. They were similar in serving the
community and helping them achieve self-sufficiency. The service was the initial step,
but documenting those activities was critical in ensuring that funding was maintained,
and that the organization could apply for future funding.
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I was developing partnerships as necessary to provide supportive services and
incentives to participants. Partnerships often meant in-kind donations and letters of
support when preparing grant proposals. Every aspect of my experience entailed
qualitative and quantitative reporting, tracking activities, developing strategies for goal
attainment, and monitoring the cost per participant.
My experience taught me the importance of funding. The budgets for direct and
indirect costs determine the operations of an organization. Documentation is required and
validates the work completed.
My volunteer work has continued as I have provided job readiness to women in
homeless shelters and led business clothes drives for women in the job search. Additional
volunteer work included providing job leads and resources to individuals and families in
the local area and neighboring counties. Moreover, I volunteered at the Second Chance
job fair with several community agencies in the local area for those with criminal
backgrounds.
My experience in nonprofits encompasses paid and non-paid positions. I have
seen the urgent need for funding. I have an appreciation for numerous causes. I desire to
increase my ability to develop strong fundraising strategies for the QRS organization and
offer options for creating diversity in their fundraising efforts. This method, I believe,
will be helpful for other nonprofit organizations with increasing and expanding services.
Summary
QRS recognizes that each donation is necessary for decreasing the number of
people experiencing homelessness. Additional funds are essential in creating diversity
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and supporting financial security. A strategy is considered an available resource used to
achieve these objectives. Fundraising is a strategy that allows a nonprofit organization to
fulfill its mission and achieve short and long-term goals (Xxx Xxxx, n.d.)
In Section 2, three fundraising strategies were introduced to assist this small
nonprofit organization in generating financial growth through foundation fundraising. An
annual fund is a strategy that addresses specific purposes and covers everyday expenses.
The third strategy will create long-term relationships that generate significant funds.
These fundraising strategies allow the organization to evaluate, make informed decisions,
and determine.
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Section 3: Data Collection Process and Analysis
Introduction
According to Pettey and Wagner (2007), no longer can fundraisers function under
the assumption of “one size fits all,” when it comes to fundraising strategies for a wide
variety of funding sources. Diverse funding sources have identifiable, valuable, and
significant philanthropic characteristics and traits. Similarly, nonprofit organizations need
diversity in their funding to fulfill their mission. QRS is a growing nonprofit operated on
federal funds, a small percentage of foundation grant funding, and individual donations.
Section 2 presented three strategies to further the goals that are outlined in an
organization's mission statement. The data gathered were used to provide a preliminary
comparison of the fundraising tactics. This research promotes higher standards of public
service. In addition, the data were examined for best practices of the organizations that
everyone represents. The information derived from the interviews assisted with bridging
the gap between theory and practice.
Practice Focused Research Questions and Design
Sources of evidence for the study came from three sources: literature,
organizational records, and individual interviews. The literature was documented to
establish definitions and evidence through published research and outcomes from 2007 to
2023. QRS currently possesses few fundraising practices and donor relations; therefore,
the research represents results from the best practices of the nonprofit organizations
selected for this study, the fundraising strategies used, and the policies and procedures
enforced by their specific teams. In addition, the evidence resulted from the one-on-one
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interviews administered and the results analyzed of those interviews with the Delve
software. I conducted semi structured interviews; the responses were then transcribed and
structured into themes and patterns for analysis. The search terms included in this
research included, but were not limited to, fundraising strategies, qualitative research,
donor engagement, fundraising impact, and theory of change.
The results offered options of how a fundraising strategy can increase and
diversify funds and convey the impact. The following practice-focused interview
questions assisted me in gathering information useful to conclude the study’s guiding
question.
1. How vital are major donors, an annual fund, and foundation grants in achieving
the mission or vision of your organization?
2. What are the key strategies for implementing a successful individual donor
program?
3. What are the key strategies for implementing a successful annual fund program?
4. What are the key strategies for implementing a successful foundation funding
program?
5. Is there anything else you want to tell me about strategies for implementing
successful annual fund, major donor, and foundation funding programs?
Roles of the Researcher and Client Organization
The client organization, QRS, is a growing nonprofit that needs strategies to
implement an annual fund, major donor, and foundation grants to increase and diversify
its funding sources. Due to the small staff, there needs to be a designated person to
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manage fundraising efforts. As a researcher, I know that research must show the existing
plan, the goal, and the strategy to attain the goal. Thus, conducting research with those
participants who possessed fundraising experience was essential.
I had no prior relationship with the client organization. The participants of this
research all represented local nonprofit organizations. My work experience included
working with nonprofit organizations for more than 25 years, and therefore, I was
familiar with five of the eight organizations represented in this research. These
organizations were local and have provided services and resources to the community for
several years. One of the organizations was a former employer, but the staff member who
participated in this research was not on staff during my employment. The participants of
this research were not current nor former supervisors, nor did I supervise any of them.
There was no conflict-of-interest present.
Methodology
Research methodology has been defined as a strategy where the researcher
develops an approach to solve a problem. (Jamshed, 2014) The research question initiated
the study of what strategies are needed to implement an annual fund, major donor, and
foundation to increase and diversify funding sources for a growing nonprofit
organization. The qualitative approach was selected because it provided more options for
this problem. The qualitative approach encourages discussion and answers the why and
how questions, allowing me to explore solutions.
This study had eight participants and five questions in the semi-structured
interview. The interviews were scheduled for 30 minutes and designed face-to-face via
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Zoom video conference call. The interviews encompassed open-ended questions that
generated a variety of responses. These responses represented the primary data of this
study. There were obstacles in this study. Due to staffing issues and availability, three of
the eight interviews were conducted via email.
Strategy for Data Analysis
Semi structured interviews are considered an effective method for data collection.
This method allowed me to collect qualitative, open-ended data. Semi structured
interviews are a two-way communication that goes beyond scripted, prepared questions.
This approach also allowed freedom in the feedback from the
strategies for a growing nonprofit organization. Eight interviews were conducted via
Zoom conference call, which permitted audio recording.
As seen in Appendix B, the open-ended questions prompted follow-up questions
and yielded enough feedback/evidence for this qualitative study. I selected interviewees
from local nonprofit organizations without affiliation with the QRS organization. The
participants who were interviewed successfully raised funds through foundation
fundraising, individual fundraising, major donor fundraising, and major donor
solicitation.
The participants were interviewed, and the names of the organizations were
masked to ensure anonymity and privacy. Each participant was required to read the
Informed Consent form and respond via email by responding, “I Consent.” The objective
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of gathering data through the interviews was to develop aggressive fundraising strategies
for a growing nonprofit. I shared the purpose of this study with the participants.
In addition, the study was voluntary, and each participant had the right to decline
or stop the process at any time. I established the time commitment, understanding that a
follow-up may be necessary to clarify details shared during the initial interview. Further,
no compensation or incentives were offered or extended before or following this process.
This qualitative research did not require nor involve any demographic details.
This information was optional to fulfill the purpose of the study. The data collected were
transcribed from the audio of the semi structured interviews and then coded and analyzed.
The Delve qualitative data software correlated the codes into a theme. Following the
analysis, I composed a narrative ( “Essential Guide to Coding Qualitative Data,” n.d.).
I saved two hard copies and an electronic copy in a separate Google drive under a
password and a USB drive. The hard copy of the final report, interview notes, supporting
documents, and USB drive are locked in a fireproof safe lock. All files of this qualitative
research study will be secured and stored for 5 years. After 5 years, I will appropriately
cross-shred all paper documents, delete electronic copies, and reformat information to
ensure that all records are properly destroyed.
Issues of Trustworthiness
Research must be trustworthy to be relevant. Qualitative research describes the
methods used and the new knowledge discovered. The most common issue with
trustworthiness is that qualitative research needs more rigor and quality. Qualitative
research includes video, audio, concepts, and experiences. In other words, qualitative
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research usually consists of a narrative based on the experiences of those participating in
the study (Stahl & King, 2020).
It is essential to discuss how qualitative researchers establish trustworthiness in
qualitative research. The four criteria elements are creditability, transferability,
dependability, and confirmability. These criteria are necessary because qualitative
research needs an instrument with established metrics for validity and reliability. The first
criterion is creditability, which asks if the findings agree with reality. The conclusions
should share some relationship. Another example may be found in member checking,
such as face-to-face interviews. These responses confirm validations in research.
The second criterion is transferability, which explains the ability to transfer
research findings from one group to another. In other words, the same data collection can
be applied regardless of the demographic group. This element also describes observations
and interpretations, and often thick descriptions (Stahl & King, 2020).
The third element in the trustworthiness criteria is dependability. The researcher
reacts to findings and shares the interpretation, like a member check, but it is a peer-level
member.
The final element is confirmability, which refers to the researcher pursuing
objectivity and relying on precision and accuracy in their research. In addition, this
practice verifies the findings shaped by participants more than the researcher. The issue
of trustworthiness includes a need for more transparency, analytical procedures in the
findings, and creditability. One significant challenge can be found in how the researcher
interprets the patterns, themes, and meanings (Stahl & King, 2020).
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Ethical Procedures
The prerequisite for each participant was experience in fundraising/fund
development with successful outcomes. The participants recruited were in Birmingham,
Alabama. No demographic details were required nor retained for this study, nor were
these participants in a vulnerable group. I masked the participant's identity. Privacy of
each interview was maintained. These participants were also able to decline their
participation at any time.
The consent form was emailed in advance, and the language was simple and
understandable. The consent form included the study purpose, procedures, sample
questions, the volunteer nature of the study, and risks and benefits. I did not offer nor
provide gifts or compensations to the participants for participating in this study. In
addition, no personal information of the participants was used for any purpose outside of
this study. Walden University’s approval number approved this research for this study is
05-23-23-0201198. It expires on May 22, 2024.
Once the participants agreed to participate in the study, they were required to
email, "I consent simply." The interview was scheduled upon receipt of the consent form.
Those who submitted their responses via email followed the same process and were
required to email, "I consent." The consent form stated that all information obtained
would remain confidential.
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Summary
Research is critical in bridging the gap between theory and practice. The research
must be valid and trustworthy, and the data collected must be protected through ethical
procedures. The data collection is analyzed to develop best practices for the client
organization. These findings can contribute to understanding the connection between the
two. The results of the research provide new knowledge that can be used to answer the
guiding question in this study.
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Section 4: Results and Recommendations
Introduction
Traditional grant-related fundraising methods are no longer as effective as they
have been in years past. Raising adequate organizational fundings requires multiple
efforts and sources to create sustainability and meet the goals set. Adequate funding
increases the ability of a nonprofit organization to meet its mission.
QRS has depended on federal funding through the United States Department of
HUD. Additional funding has come through private foundations, some donations have
been contributed by individuals and board members, and a small percentage of funding
has been generated through annual membership dues. In this study, I used qualitative
research to identify needed fundraising strategies for an annual fund, major donors, and
foundation grants. Increasing fundraising strategies can increase and diversify QRS
funding streams.
This qualitative study included reviewing existing organizational documents to
add background information and understand the need for a diverse portfolio of funding.
Organizational records showed that QRS has been the recipient of federal grants for 20
years. However, QRS has not been equally successful in cultivating and soliciting donors.
Currently, QRS has seen a decrease in the number of individual donors and the number
of donations in the last five years.
The guiding question for this study was as follows: What fundraising strategies
are needed for a growing nonprofit organization to implement annual funds, major
donors, and foundation fundraising efforts to increase and diversify its funding sources? I
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conducted eight individual interviews with developmental staff or leaders of nonprofit
organizations. These participants experienced successful outcomes in creating and
implementing foundation fundraising and individual donations through annual funds and
major donor programs. While I intended to interview all eight individuals face to face, I
needed to complete three interviews via email due to the participant’s staffing issues and
availability. These participants emailed their consent and responses to each question
provided.
Data Collection
I chose the qualitative study method to obtain the most in-depth understanding of
fundraising strategies to develop the best practices for a growing nonprofit organization.
This qualitative study included reviewing documents of the client organization that
supported a need. All documents were qualitative. To obtain information from those
experienced with fundraising, I sought individuals with at least 3 years of experience with
an annual fund, major donors, and foundation grants. Each research participant possessed
successful outcomes in these areas.
The interviews conducted were semi structured, with five practice-focused
questions. The goal was to interview a minimum of eight participants. The intention was
to conduct audio recorded Zoom video conference interviews for all eight participants.
However, only five of the eight interviews were conducted via Zoom. The interviews
each lasted 30 to 35 minutes. No follow-up meetings were required after the initial
interview. Due to the participants’ staffing issues and availability, I needed to complete
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three of the eight interviews via email. These participants emailed their consent and
responses to each question provided.
Two hard copies of the interview results were saved in addition to an electronic
copy kept in a separate Google drive under a password and a USB drive. The hard copy
of the final report, interview notes, supporting documents, and USB drive will be locked
in a fireproof safe lock. All files of this qualitative research study will be secured and
stored for 5 years. After 5 years, I will appropriately shred all paper documents, delete
electronic copies, overwrite information with a series of characters, or reformat to ensure
all information is destroyed.
Coding is a process in research that breaks down data to make something new and
then organizes it in a relevant way. Coding allows all data gathered to be simplified and
determines its relation to the research question. Codes make data collection more
descriptive, revealing not only the obvious but also patterns. Therefore, coding is a
process of making decisions (Elliott, 2018)
I used Delve coding software in this study. This software allowed the responses to
be processed and developed to structural coding and themes. Codes are short phrases
aligned to data. The codes summarize and analyze the data. The codes in this study were
volunteers, annual funds, major donors, foundation grants, and strategies. Reading the
data gathered helped discover the patterns and how these results would provide best
practices in developing the fundraising strategies needed.
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Data Analysis
The following practice-focused interview questions were administered to the
participants for this qualitative research.
1. How vital are major donors, an annual fund, and foundation grants in
achieving the mission or vision of your organization?
2. What are the key strategies for implementing a successful individual donor
program?
3. What are the key strategies for implementing a successful annual fund
program?
4. What are the key strategies for implementing a successful foundation funding
program?
5. Is there anything else you want to tell me about strategies for implementing a
successful annual fund, major donor, and foundation funding program?
The questions answered were derived from the participants' experience gained
over time from various employers. The participant’s current work experience provided a
new perspective on strategies applied in years past.
Question 1
Question 1 was as follows: How vital are major donors, an annual fund, and
foundation grants in achieving the mission or vision of your organization?
Each participant agreed that developing fundraising strategies should be
intentional and is critical in fulfilling the mission of an organization. Fundraising
strategies were vital to day-to-day operations, serving participants, improving services,
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and long-term operations. Participant 5A was once told, “No money, no ministry.” This
is true for any organization. An organization that does not obtain contributions regularly
will fail to succeed. All organizations need financial stability to continue services.
Question 2
Question 2 was as follows: What are the key strategies for implementing a
successful individual donor program?
Two of the eight (25%) participants believed that a successful individual donor
program begins with strong donor management, by first recording donations, next
tracking the data, and finally being good stewards. Participant 3L commented, “Being a
good steward, means providing an impact report, engaging the donors, and showing
gratitude immediately.” Donor management is critical to developing fundraising
strategies.
Six of the eight (75%) participants believed that building relationships was the
key strategy. The initial step is sharing the mission and vision with potential volunteers
and engaging them in service, mentorship, and other activities. Overall, the participants
of this study believed that meeting with potential and existing donors is most successful
when meeting in person. The individual meetings should be consistent and take place in a
casual setting.
The conversations should not only be focused on the business of the organization
but shared personal interests. The participants of this study found that strong relationships
provided multiple benefits. Some of the benefits included, but were not limited to,
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increased donations, connections to these donor networks, an expansion of business
partnerships, increased volunteers, and resources from local churches.
Question 3
Question 3 was as follows: What are the key strategies for implementing a
successful annual fund program?
The annual fund is funds applied to the regular or day-to-day expenses. The most
productive way to build that fund is typically through an annual campaign. Eight (100%)
of the participants in this study actively participated in annual campaigns. The annual
campaigns were as unique as the organizations.
An annual campaign takes on a distinctive look: a gala, a walk/race, engaging
with and creating new business partnerships. The participants in this study determined
that realistic planning included identifying goals and understanding the cost to achieve
the goals. Many believed that separating donors or creating new donors specifically for
annual campaigns was essential for growth, sustainability, and preventing burn out. The
common thread with the other fundraising strategies continued to be relationships.
Question 4
Question 4 was as follows: What are the key strategies for implementing a
successful foundation funding program?
Only two (25%) of this study’s participants had been a recipient of foundation
grants. Both were members of an organization that was a recipient of funds from major
donors and/or endowments. These funds allowed them to distribute funds to nonprofit
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organizations in a competitive grant process. The funds awarded allowed nonprofit
organizations to cover administrative and programmatic costs.
Another two (25%) of this study’s participants understood the importance and
benefits of grants but had not pursued any applications to move their organization
forward. The remaining 50% of the participants had received funds through grants. One
of the organizations believed that hiring a grant writer was the best investment that could
have been made.
The participants agreed that building relationships with foundations is beneficial
when the organizations’ visions are in alignment. The foundation grants are also found to
be a simpler process, and less documentation is required. Overall, the funding received
can provide opportunities for diversity in funding and strengthen the organization.
Question 5
Question 5 was as follows: Is there anything else you want to tell me about
strategies for implementing a successful annual fund, major donor, and foundation
funding program?
The participants in this study shared a myriad of responses to this question. All
eight (100%) of the interview participants noted that more than one fundraising strategy
was needed to increase funds, cover daily expenses, increase awareness, grow their
network, and establish long-term stability. Two (25%) of the participants suggested that
an organization should always reassess its board of directors. The members of the board
represent major donors, which leads to their networks and an increase in donors. Board
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members provide oversight and guidance and hold the organization accountable for its
actions.
The funds gained as a result of the fundraising strategies used play a pivotal role in
empowering donors and creating long-term giving. The participants in this study offered
giving options through businesses, memorial gifts, stocks, endowments, and legacy
giving, to name a few. These options ensure growth that expands beyond the present into
the future. Although there are numerous fundraising strategies, all the participants in this
study concurred that relationship building is key.
Findings
This qualitative data analysis encompassed five distinct codes. As seen in Figure
2, the distribution of codes represents the patterns discovered with major donors that play
a significant role in annual funds, volunteerism, serving on the board of directors, and
other fundraising strategies. Also, major donors represent a relationship between donors
and an organization's leadership, fulfilling the organization's mission and establishing
trust. This ensures that the contributions made are making an impact (Shawna Bullard,
2023).
Major donors are more inclined to connect with an individual or organization
whose values and interests align. Also, when a mutual interest exists, those same donors
create buy-in or a sense of belonging. This creates relationships that go beyond the
immediate financial need. These relationships have more depth and allow for
sustainability for the program/organization.
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Figure 2
Distribution of Codes
Note. Figure 2, Distribution of Codes represent the main ideas repeated in the
qualitative research. Each code represents the fundraising strategies that are most
used by participants in this research study. This is my own work. Delve software
was used to organize and analyze the data. Qualitative Data Analysis Software.
Delve. (n.d.). https://delvetool.com/
Deliverables and Recommendations
In this study, I aimed to determine what fundraising strategies are needed for a
growing nonprofit organization to implement annual funds, major donors, and foundation
fundraising efforts to increase and diversify its funding sources. This guiding question
directed this study of the fundraising background, current strategies, and options that can
lead the organization to an increase and diverse funding.
As previously seen in Figure 1, the theory of change describes inputs, activities,
outputs, and outcomes. The objective is setting goals, documenting inputs and activities,
and tracking change. The next step is to measure those outputs, which describe the results
of those activities. The outcomes represent growth opportunities and identify gaps and
their impact. In this study, the impact showed what fundraising strategies work and what
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the social impact is. The social impact or fundraising strategies are the conduit for
positive change that attracts donors and provides evidence of effectiveness. Relationships
are, therefore, the key element to every fundraising strategy, and the depth of that
relationship increases and diversifies funding.
The research results confirmed that relationship development is critical to
fundraising strategies. Regardless of the donation amount, donor relations are essential
because it is never known how each donor will give and how their gifts will develop. A
donor may begin with a small monetary donation or commit to volunteering for a few
hours a month. Relationships become more effective once trust is established and
transparency is consistent. Relationships are critical to every strategy, major donor,
annual fund, and foundation fundraising. Nonprofit organizations must be intentional
about introducing to each potential donor at every event. Relationship-based fundraising
is based on long-term dialogue with donors (Why fundraising is really about Relationship
Building 2023).Shared visions create a sense of belonging. Relationships strengthen once
a donor is more invested in the initiative or program.
The consensus in this study was that relationships based on mutual respect and
cooperation will promote growth and sustain the organization long term. The study
revealed that simple acknowledgments made significant impacts on relationship
development and increased donations. For example, send thank you notes or emails out
immediately upon receipt of a gift, share impact stories, use handwritten notes because
they always add a special touch, survey donors for feedback that can improve or increase
services, or encourage donors to become involved with those individuals/families who
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being receiving assistance with their monetary donations. It is important to make it
personal, show appreciation, and establish accountability and transparency. The
recommendations for this study include developing SMART goals, establishing metrics
for an impact report, and providing best practices to develop relationships.
Evidence of Trustworthiness
One of the first teams to create standards for qualitative research was Guba and.
Lincoln. They began with the concept that valid values are required for all research
(2015). Guba and Lincoln created distinct standards for every example to assess the
study's validity. Criteria are dependability, objectivity, and internal and external truth.
Later, these criteria were composed by Lincoln and Guba in 1985 as transferability,
credibility, reliability, and confirmability (Lub, 2015).
The criteria above assist with adding value to qualitative research and determining
trustworthiness. Confirming trustworthiness says that the data gathered are significant
and sound. In this study, member checking was present through the interviews conducted.
There was feedback from the participants on the accuracy and relevance of the findings.
The participants responded to the questions and confirmed the information shared
through additional examples to validate the accuracy of this information.
Sources of evidence for the study came from three sources: literature,
organizational records, and individual interviews. The literature provided definitions and
examples of fundraising strategies. Organizational records confirmed the existing
fundraising strategies used. The personal interviews provided information that
encompassed the research participants' experience, the strategies that they have used, and
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their best practices. The best practices shared include successful outcomes and are
transferable and ideal for a growing nonprofit organization. The critical element for all
fundraising strategies was found to be relationship development.
Strengths and Limitations of the Study
The findings in this study were consistent with the literature of previous studies.
The results also provided clarity on the importance of the strategies. One of the strengths
of this research is the semi-structured interviews. The open-ended questions initiated the
conversation, leading to other questions, clarifications, and flexibility during the
interviews. Multiple data collection was used, including organizational records and
interviews. The research results revealed some best practices not limited to a small
organization but any size program.
There were some limitations to this research. The outcomes of this study cannot
be generalized to all nonprofit organizations. There was a small sample size of
participants who consented to participate in the research. Many potential participants
needed to possess adequate experience.
There was a total of eight participants in this study. The limitation is that a small
sample can sometimes reduce the strength of the research and increase the margin of
error (Deziel, 2019). One significant rule is that researchers have the task of interpreting
what is heard or seen; whether that feedback is good or bad, it may be interpreted
differently by another person. Different interpretations would make the qualitative
research subjective.
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Summary
This study, like many others, is not free of limitations. Research is a tool to ensure
that the rules do not prevent achieving the goals. The strengths should promote new
questions and build a framework for better practices and new knowledge. Section 5 will
provide details for a fundraising plan with best practices gained in this study.
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Section 5: Discussion and Recommendations
Introduction
The final section of this professional administrative study documents the
integration, synthesis, and evaluation of the literature and interview data as it relates to
the study research question: What fundraising strategies are needed for a growing
nonprofit organization to implement an annual fund, major donors, and foundation
fundraising efforts to increase and diversify its funding sources? The literature and the
results of the study interviews revealed that diversified funding is necessary for any
nonprofit organization.
Diversity in fundraising allows flexibility in planning, setting goals, and goal
attainment. In addition, diversity creates stability, better partnerships, and overall growth.
For these reasons, an organization should never depend on one funding stream.
Fundraising strategies go beyond earning donations, moving the organization’s mission
forward, and increasing its influence or social impact in the community.
In this study, there was a fundraising gap that impeded growth. Closing this gap
can promote growth as new fundraising strategies are applied. Having more funds and
donors can lead to a greater social impact. This impact can have positive effects on
individuals, families, and the overall community. Generally, social impact is seen through
goal attainment, favorable outcomes, activities, and policy change. For this study, social
impact and positive change involve increasing homelessness awareness, decreasing
homelessness in the local area, and providing safe and affordable housing for youth, older
adults, and survivors of violence and abuse.
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Developing a fundraising plan is necessary for organizing actionable goals to
implement fundraising strategies promoting growth and diversity. In addition, an
organization must know its audience when conducting fundraising to ensure clarity in
communication, provide an understanding of expectations in goal achievement, obtain
feedback to assist with best practices in future fundraising activities, and remember that
relationship development represents potential donors, financial sustainability, and
mission fulfillment.
The strategies needed to implement an annual fund, major donors, and foundation
fundraising vary from organization to organization. An annual fund should set goals and
consider the lower givers, midlevel givers, and the major givers. The next step is building
relationships and laying the foundation for the following year.
In this study, one of the participants shared one of the most unique and successful
strategies for implementing an annual fund. The strategy involved developing corporate
partnerships where the staff of those partners are on loan for a few weeks during the
summer/fall of the year to raise funds for various initiatives. These volunteers are trained
for two weeks in sales and public speaking. There are a total of 150 volunteers that make
up this campaign cabinet.
Corporate partnerships also utilize volunteers to make up to nearly five hundred
visits to for-profit and nonprofit organizations, share information on the myriad of
services offered to the community, and request donations. Overall, they have gained
5,000 donors as a result of these partnerships. The number of company participations
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measures the success of this fundraising strategy. According to Participant B, in 2022,
$39 million was raised and prepared.
The strategies to implement major donors begin with a plan strengthened by
cultivating the donors acquired. Another study participant found that recruitment was
successful, starting with one-on-one relationships. Building relationships begins with
orientation and encouraging each to volunteer in one of three areas:
• Providing lunch
• Develop a mentor relationship with the participant.
• Serving as a guest speaker
Once volunteers understood the mission and committed to serving, many began
donating to the organization. Nurturing the volunteers increased volunteer hours and
donations. According to Participant G2, donations grew from a few hundred dollars to as
much as $10,000 to $100,000 from a single donor.
Recommendations
Every nonprofit organization needs to be financially viable to ensure long-term
success and meet its mission. This includes a fundraising plan that details strategies to
cultivate, solicit, and obtain funding from a variety of funding sources. The fundraising
plan tells an organization where they are, where they must be, and how to get there
(Donahue, 2023). A fundraising plan is crucial for a growing nonprofit organization as
they create strategies.
The initial steps include setting goals, analyzing previous events, building a solid
consideration for the activities and campaigns to raise funds, donor development, and
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monitoring and evaluating the activities to determine if revisions are required. Specific,
measurable, achievable, realistic, and timely SMART goals are vital for an organization's
success (Rees, 2022b). Some examples of SMART goals are as follows:
• Specific: Define specific goals; for example, major donors - establish long-term
relationships by engaging individuals to serve as mentors, board members, or
volunteers.
• Measurable: Develop criteria that measure vital performance. An example is
measuring the number of donors serving to increase the number of donors by 5%
each and measure donor retention.
• Achievable: Develop attainable goals. For example, set an attainable fundraising
goal. Set short and long-term goals.
• Realistic: Develop goals that could be more ambitious and the goals that are
relevant to the mission. An example is to increase the number of grant proposals
annually to increase sustainability.
• Timely: Create a timeline for activities and campaigns; this will support the
metrics of measuring progress and outcomes. An example is setting activities and
special events monthly, quarterly, and annually.
Summary
The participants in this study's research shared many of their best practices that
can be useful for a growing nonprofit organization. These include setting the following
SMART goals:
1. Build a dedicated team.
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2. Reevaluate the board of directors.
3. Reevaluate donor software.
4. Consider investing in a grant writer.
5. Know your audience.
6. Develop performance measures to track, monitor, and analyze progress.
7. Recruit individuals who can serve in multiple roles: volunteers to serve in
different activities, mentors, and assistance with marketing.
8. Meet with potential volunteers one-on-one and share the organization's
mission before engaging them in activities.
9. Build a donor base.
10. Demonstrate the needs and earmark the funds in different areas. Assign
donors to donate in specific areas to prevent burnout.
11. Serve in excellence: Develop measures where accountability and transparency
are present.
12. Create an impact report so the community knows how their dollars are making
a difference.
13. Create a unique way to tell the organization's story differently. Many share an
electronic newsletter, and some continue to provide a hard copy. Other
examples are sharing the organization's story with local churches on a social
media platform.
14. Develop a relationship with the local chamber of commerce, and sharing
through their membership connections.
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15. Be intentional by acknowledging donations immediately. Consider
handwritten notes.
16. Consider donor feedback through a survey. These results will assist in the
development and readjusting of plans.
The list of best practices is endless, but of all the strategies and methods used, the
one standard method was relationship development. Relationships may begin with a short
pitch about why funds are needed and where the funds will be applied, but only once
there is buy-in. It is, without a doubt, the most significant investment for any
organization. The relationship builds trust, and both parties become aligned through
sharing mutual interests.
Relationships foster a sense of belonging and expand internal growth. More than a
one-time donation, relationships expand external relationships that offer access to major
donors and unavailable funds. Relationships also build long-term giving in the form of
endowments or planned giving in a will.
