Nonprofit Leaders: Why Is Your Strategic Plan Falling Short?
There’s a pretty famous quote, “A goal without a plan is just a wish.” I’d like to add to that by saying that a plan is just a plan until there’s action.
When it comes to growing (thus, funding) your nonprofit, that action also needs to be really well-defined. In my recent discussion with Katie Appold, on the Nonprofit Hub’s podcast, “Good to Growth,” we delved into why nonprofit organizations—even the most ambitious ones—aren’t able to fund what is in their strategic plans.
When it comes to scaling revenue, one culprit is rooted in nonaction, or misguided action. Too often, the nonprofit’s leaders, team members, and board aren’t fully (or effectively) communicating the true financial need of the organization to its donors. The invitation to shift and stop focusing on the same old transactional activities you’ve done in the past is now.
The Time Management Myth
It’s true. Building the kind of relationship with donors that ultimately leads them to giving their best gift takes time. Fostering that connection might require six, 12, even 24 months. It’s far easier to lean into something more urgent, like an event or grant proposal. You have a deadline! You’re doing something! That’s action, right?
But is it the most effective action?
I’ll admit something… I’ve been accused of not liking events, or appeals, or campaigns. Not only do I like them, I love them. I go to them, and I give to them. But when those efforts are taking up all of your team’s time—and sometimes your board’s time, your leaders’ time—then you’re not giving your best hours, your best attention, to forming and solidifying donor relationships that can actually make a long-term difference in your organization's growth.
We must tell the financial story of the organization, full stop. It’s a conversation many fundraisers avoid, whether they’re not confident enough to do so or they think donors don’t want to know that story. Believe me, investment level donors do. They want to know your true financial need.
So, the question becomes: How do you ensure your organization is giving donors that option? It all comes down to allocating spend where it matters most.
Strategy Lives in the Numbers
One of the first conversations I have with my nonprofit clients revolves around numbers. Sometimes, that takes people aback. “Aren’t we here to talk about fundraising?”
If you want to reach (or exceed) your goal every year, we have to start with the numbers. Are you actually spending enough to yield what’s in your strategic plan? Does your $5 million need actually need to be $5.5 in order to finance all the things you need to generate diversified, unrestricted, reserve-healthy funds?
Knowing the true financial need informs what fundraising activities you go on to perform. Maybe you do keep your 5k walk or gala. But at least you know exactly what hours your team needs to be dedicating, and how they spend those hours.
And, as a nonprofit leader, you know which areas need the most support. Maybe you have people killing it on the transactional side or are grant writing magicians. Yet you lack those integral team members who are skilled at building relationships. Or, knowledgeable enough to educate your board. Your budget needs to include room for either bringing those folks into the fold or training current staff.
Look to the Future, Learn from the Past
In the nonprofit sector, the door has never been so wide open for organizations to achieve everything in their strategic plans. Donors are hearing stories differently. They’ve seen nonprofits really show up the last couple of years, and they’re open to having deeper conversations. And I’ve seen organizations grow by millions because of it.
But, there’s a danger here, too. A recurring theme I’ve heard from clients and colleagues over the past few months is, “We don’t want to go back to the way it was.” My answer? Don’t! Choose to operate differently than before. Push forward. Don’t waste the crisis we all went through.
The organizations that are drawing that line in the sand and pivoting forward towards growth are the ones attracting investment level donors. Will you join them?
More on this topic from my recent podcast episode with Katie Appold, host of the Nonprofit Hub’s “Good to Growth” podcast is packed full of insights - in just a half-hour’s time.
You can find the full episode here: https://nonprofithub.org/podcast-how-to-tell-your-nonprofits-financial-story/
Then, when You’re Ready…
I hope you get a chance to listen to the podcast episode with Katie! In the meantime, here are THREE things you can do next:
👣 Follow me on LinkedIn and subscribe to my podcast, The Business Behind Fundraising // I give away insider info every week - the same lessons I teach my clients about what they can do to attract larger gen-ops dollars and add 7-figures+ to their bottom line.
📝 Read my WHITEPAPER to see what’s keep you from having enough gen-ops funding each year // You’ll learn THE BIG FUNDRAISING SECRET that keeps nonprofits from securing money for programs AND infrastructure initiatives in their strategic plans. Here to get it.
📈 Work with me to put your organization on a 2X - 10X revenue trajectory // If you’re raising MILLIONS of charitable revenue each year but scaling your team’s fundraising efforts to match your aggressive growth initiatives feels unclear, just send me an email (Sherry@QuamTaylor.com) with the subject line “grow.” Tell me a little about your org and your need to scale.
