ARTICLE
Flip Your Fundraising Strategy On Its Head: How To Build A Usable Development Plan
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Updated - 02/11/2025
Every year, nonprofits sit down to craft their strategic development plans, outlining bold revenue goals and the activities needed to achieve them. And every year, many of these plans fail—not because the goals are too ambitious, but because they’re built backward, without a solid foundation of data.
I’ve been there. As a former chief development officer, I remember being handed a directive: increase development revenue by 10% across the board. No additional staff. No cutting events. No adjustments to the model. And worst of all—no real plan on how to make it happen.
The problem: Starting with the goal, not the reality
Too often, fundraising plans begin with an arbitrary revenue target and then attempt to fill in the gaps with activities and campaigns that (hopefully) generate that amount. But hope isn’t a strategy. A more effective approach is to flip this process on its head.
Instead of setting a goal and working backward, start with the data—your organization’s actual past performance. Let that data drive a realistic, actionable plan that ensures growth is both strategic and sustainable.
In this post, I’ll show you how to reverse-engineer your development plan for better results. Let’s get started.
The fix: Build your development plan based on metrics, not aspirations
A strong development plan isn’t about wishful thinking—it’s about calculated growth. Before setting your revenue goal, answer these critical questions:
- How much did we actually raise last year? Break it down by revenue stream—individual donors, grants, corporate giving, events, major gifts, etc.
- What percentage of our donors gave again? Knowing your donor retention rate is crucial. If your attrition rate is high, your first goal should be to understand why your attrition rate is high. Are you not thanking donors appropriately? Do you ask too often? Are you not communicating enough? Dig into the details and work on a plan to improve attrition.
- What was our ask rate? How many donors did you solicit, and how many gifts did you close? Did you ask enough, or did you leave potential money on the table?
- What was our grant success rate? If you won 30% of the grants you applied for, increasing grant revenue means either applying for more grants or improving the quality of your proposals.
- Do we have reliable recurring revenue? Monthly giving programs are one of the easiest, most sustainable ways to increase funding—far easier than securing new grants or increasing one-time major gifts.
Best practices for a usable fundraising strategy
1. Don’t increase revenue goals without a clear path to get there.
If you’re projecting 20% more in donations, your ask rate, donor outreach, and gift sizes must increase accordingly. Build that plan into your strategy.
2. Prioritize donor retention.
Acquiring new donors is expensive. If your retention rate is below 50%, focus on stewardship—personalized thank-yous, donor impact updates, and consistent engagement.
3. Segment and personalize asks.
Not every donor should get the same appeal. Recurring donors should be asked to upgrade, lapsed donors should receive targeted re-engagement, and major donors need personalized outreach.
4. Diversify wisely.
If events made up 40% of your revenue last year, is that sustainable? Should you grow a different revenue stream instead? Be strategic about where to focus your efforts.
- Look for the low-hanging fruit. Instead of spending thousands on mailers, expensive galas, or first-time events with an uncertain return, invest in “give back nights” or small donor gatherings at the home of a board member. These events take far less staff time, build stronger relationships, and often lead to repeat giving.
- Consider cost vs. return. If an event requires significant upfront costs and staff hours, evaluate whether a smaller, high-touch alternative might be more effective.
- Leverage existing supporters. Ask a board member or major donor to host a fundraiser, tap into local businesses for small but frequent partnerships, and focus on repeatable, scalable efforts instead of one-time, high-risk events.
5. Be strategic about grants.
Grants can be a game-changer, but they require time and a solid track record. Strengthen your grants strategy by doing the following:
- Track your renewal grants. Are there grants that are continuing? Write them down and prioritize renewals and reporting on these renewals before chasing new funding.
- Identify your top 5-10 new funding prospects. Which funders have the highest potential to support your organization? Put a plan in place to build relationships with them.
- Use your network. Can a board member or current donor introduce you to a program officer? Do you have connections who can help set up an initial conversation?
- Request sit-down meetings. Don’t just send in applications blindly—meet with potential funders, share your impact, and understand their priorities before applying.
- Plan ahead for new grants. If you’re increasing your grant revenue goal, ensure you have the capacity to apply for (and win) more grants. That might mean hiring a grant writer, refining your storytelling, or improving data collection.
6. Measure and adjust.
A fundraising plan isn’t set in stone. Track performance quarterly and tweak as needed. If a campaign isn’t working, pivot. If one area is over performing, lean in.
The bottom line
A development plan should be usable, realistic, and built on data—not just aspirations. Start with where you are, analyze past performance, and only then map out how to grow. Nonprofits that take this approach build sustainable revenue instead of chasing unattainable goals.
How to Write a Fundraising Plan in 2 Steps!
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