Every organisation should know where it wants to go and how it intends to get there. It’s just as true for a charity as it is for a business providing services or products.

In the commercial world, that journey is usually set out in a business plan but I’m often surprised that some charities approaching me for help with a fundraising campaign still haven’t written one for their own organisation.

When should a charity write a business plan?

I understand that in the excitement of setting up a charity for a good cause, such administrative details can get forgotten. But when your charity plans to raise funds, particularly if you’re asking a trust, corporation or an individual for financial support, then a business plan - for your charity and your campaign - is very important.

Why is a fundraising business plan so important?

History has many examples of charitable money getting wasted - a business plan is therefore a good way of demonstrating professionalism and efficiency.  During the early days of the National Lottery, there were occasions when money would go to a capital project, only for the project to collapse and money to be lost. Insufficient thought had been put into revenue generation so the project would become unsustainable.

A generation ago, charities were often able to request money from many donors, including trusts, on the strength of an emotive letter only. However, in recent years, charities have come under more scrutiny (often for the wrong reasons), and nowadays more accountability is required. Donors will expect to be provided with a sensible plan to reassure them that their money isn’t just going into a black hole of debt, and that the project or charity will remain sustainable.

What should a fundraising business plan cover?

It’s important to have a clear idea of what your goals are and a business plan covering the following points can be a great help:

• What are the details of the project and your charity’s aims?
• What are your fundraising goals and monetary targets?
• Why do you need to raise funds (both capital and/or revenue), and how much do you need initially?
• What are the ongoing costs of the project, and how will you cover them?
• What are the likely sources for funding?
• What is your fundraising and communications plan?
• How will the funds be managed and accounted for?
• What are the legal & administrative issues?
• What happens when the fundraising is completed?
• What happens when the project meets its aims and comes to an end?

Your business plan doesn’t have to be a great big tome. I’ve been brought in to advise a range of charities and helped them put together a plan in a few pages. You may not only want to take advice from a professional fundraising consultant but also experts in legal, accounting and tax matters.

It’s good to start as you mean to go on and time spent on your business plan, no matter how detailed it is, will be time very well spent, especially when you need to be taken seriously.

Stefan Lipa Consultancy helps charities to meet their fundraising targets

Stefan Lipa Consultancy helps charities to achieve their fundraising goals. We work in areas including heritage, religion, education, youth, culture, museums, theatre, music, health and community services.

We offer bespoke, impartial and honest advice with consultancy and management services for capital campaigns and revenue fundraising.

We work on projects with targets between £100k and millions of pounds, mainly in Hampshire, the Midlands and the South of England, providing accurate, impartial and frank advice and assessments, every step of the way.

Our services include:

• Resources / feasibility studies for capital campaigns
• An audit of existing campaign strategy to identify areas for improvement
• Strategic planning, capital campaigns, major gifts, revenue fundraising
• Trust, grant and Lottery applications
• Volunteer and staff recruitment, providing training to increase effectiveness
• Setting up in-house fundraising departments
• Charity management, advisory and support services to help you get the best out of your organisation and volunteers.

Free initial consultation

Contact the Stefan Lipa Consultancy or ring us on 01264 860003 to arrange a meeting to discuss your particular circumstances and fundraising requirements. This meeting is completely free of charge, with no obligation.

11.07.2019

For more information, call us on 01264 860003 or send an email.