Summary

Many nonprofit organizations insert fundraising goals into their strategic plans. However, this is a result of muddled thinking about the different functions of strategic planning and fundraising. While strategic planning is a process to set direction for the future, fundraising is a process to secure adequate resources to make that future a possibility. Fundraising therefore is not a future direction, and fundraising priorities are therefore not "strategic priorities." For this reason, it is preferable to insert fundraising goals and objectives into a separate fundraising plan.

The Background

Let`s see how this might work in practice. At the annual strategic planning retreat of Education Unlimited (a nonprofit that provides mentoring opportunities to low-income children), a discussion arose about how the organization was going to raise money for three new programs, and for general operations. Some board members felt strongly that the best way to raise this money was to make it one of the priorities in the strategic plan. Another board member then reminded the board that while fundraising had to flow from strategic planning, the two functions had to be performed independently to avoid the tendency of allowing one`s mission to be shaped by financial considerations (also known as mission creep).

The Solution

The board agreed to create a separate fundraising plan containing their fundraising goals and objectives.

Lessons Learned

This example illustrates how easy it is for a board to confuse its direction-setting and resource acquisition responsibilities. When the distinction between the two becomes blurred, a board can easily start to believe that it is providing direction when, in fact, it is simply chasing after the next dollar. The result in extreme cases is an organization that is constantly being pulled in different directions by actual and potential funders. Strategic planning therefore serves as the rudder that steers the organization through hot and cold water currents that are inevitable when building relationships with donors.