Step 3: Create Your Fundraising Plan

Welcome to Step 3 of building your nonprofit's fundraising system. If you've completed Steps 1 and 2, you now have a targeted list of ideal funders and irresistible offers (your Value Offer, Impact Offer, and Double-Impact Fundraising Offer™) ready to go. But without a clear plan to engage those funders and deploy your offers, your efforts can feel scattered and ineffective. That's where your fundraising plan comes in—it's the strategic roadmap that turns prospects into supporters and ensures consistent revenue.

What is a Fundraising Plan?

A fundraising plan is a comprehensive and actionable document that outlines how your nonprofit will raise the necessary funds to sustain and grow its mission. It's not a vague wish list; it's a detailed blueprint that covers your goals, target funders, engagement processes, team roles, necessary materials, and budget. Think of it as a business plan specifically for fundraising—it specifies what you'll raise, from whom, how you'll approach them using your offers, who will execute it, what tools you'll need, and how much it will cost to implement. Typically 3-5 pages long, it can be created in a Google Doc or spreadsheet and should be reviewed quarterly to adapt to results.

Why is a Fundraising Plan Important?

Without a plan, fundraising often defaults to reactive tactics like sporadic emails or one-off events, leading to burnout, inconsistent results, and missed opportunities. A well-crafted plan changes that by providing clarity, focus, and accountability. It aligns your team around shared goals, makes your efforts measurable (e.g., tracking conversion rates), and builds donor trust through structured engagement. Research from organizations like the Association of Fundraising Professionals shows that nonprofits with formal plans raise up to 3x more than those without. Ultimately, it shifts you from "hoping for donations" to "predictably funding your mission," reducing stress and amplifying impact.

The Different Sections of the Fundraising Plan and How to Create Each One

Your fundraising plan has six key sections. Below, I'll explain each one, why it matters, and step-by-step guidance on how to brainstorm and create it yourself. Set aside 45-60 minutes per section in a quiet space with a notebook or digital doc. Draw from your work in Steps 1 and 2 (your ideal funders list and offers) to make it specific to your nonprofit. Focus on realistic, mission-aligned ideas—no need for perfection on the first draft.

1. Fundraising Goal

This section defines your target amount, timeline, and the impact it will achieve. It's the "what" and "why" of your fundraising, tying everything to measurable outcomes. Why it matters: A specific goal creates urgency, motivates your team, and helps donors see their role in a bigger picture. It also allows you to track progress (e.g., 50% raised by the midpoint). Steps to create it yourself:

Step 1: Review your nonprofit's annual budget and programs. Calculate the funding gap (e.g., if programs cost $100,000 and you have $50,000 secured, your goal is $50,000).

Step 2: Set a SMART goal: Specific (amount), Measurable (trackable), Achievable (based on your funders list—aim for 20-40% conversion), Relevant (tied to mission), Time-bound (e.g., by end of year).

Brainstorm: "What transformation will this enable?" (e.g., "Serve 500 more youth").

Example: Raise $75,000 by June 30, 2026, to provide mentorship and skills training to 500 underserved teens, reducing dropout rates by 20% in our community and fostering long-term career success.

2. Different Types of Ideal Funders

This section profiles your target funders from Step 1, categorizing them into individuals, businesses, grantors, and foundations. Include details like motivations, capacity, and how they align with your 8 categories (e.g., Benefit Funders, Mission Alignment).

Why it matters: It ensures you're focusing on high-potential prospects rather than a scattershot approach, increasing efficiency and success rates. 

What to do:

Pull your ideal funders list from Step 1 and group them into the following categories: Individuals (e.g., parents, alumni), Businesses (e.g., local companies), Grantors (e.g., government programs), and Foundations (e.g., family funds).

Create a simple table: Columns for Type, Profile Description, Motivation, Target Number.

3. Fundraising/Sales Process to Raise Money from Each Type

This is the "how"—a step-by-step process to engage each funder type using your Value Offer, Impact Offer, and Double-Impact Offer. For donations, adapt the know, like, trust, ask framework, with follow-ups and stewardship. Why it matters: It builds relationships gradually, avoiding abrupt asks that scare funders away. Tailoring by type (e.g., personal calls for individuals, proposals for foundations) boosts conversions to 40-60%.

Question to ask yourself for each funder type:

How can I get this prospect (business, individual, grantor, foundation) to know, like and trust me and my organization before making the ask?

Example: For each funder type, outline the 4-step process: Know You (intro email/video), Like You (value add like a webinar), Trust You (impact report/site visit), Ask (present offers—e.g., "Sponsor 10 youth with a $1,000 Double-Impact Offer").

For your value offer, you can use your sales/donation page to build your know, like, and trust before making the ask on the same page. 

Another example of a sales channel is: Awareness (e.g., a story post on social media), Interest (e.g., a beneficiary video), Decision (e.g., a donation pitch), and Action (e.g., a Donorbox link).

Follow-up for non-givers: If no response is received, create a step-by-step framework to follow up until you ask again.

Example: Send a gentle nudge after two weeks, such as "I wanted to follow up on our invitation—here's a quick impact story." If still no, move to nurture mode (quarterly updates) or deprioritize.

Stewardship for givers: For those who give, move immediately to stewardship.

Example: Thank them immediately (in a personal note), update them on the impact (e.g., photos of funded packs), and invite them to deeper involvement. Aim for repeat gifts: After 6 months, ask again with a new offer.

4. The People Needed to Execute the Fundraising Plan

This outlines roles and responsibilities for your team, even if small (e.g., 2-3 people). Why it matters: Fundraising succeeds with shared effort; solo execution leads to burnout. Defining roles ensures accountability and leverages strengths. Steps to create it yourself:

Step 1: List core roles based on your fundraising process, e.g., Leader (oversees asks), Email Marketer and Social Media Marketer (handles outreach), Appointment Setter (sets up appointments), Researcher (builds prospect list), and Volunteer (follows up).

Step 2: Brainstorm responsibilities (e.g., Leader: High-value asks; Coordinator: Email campaigns) and skills needed (e.g., communication, organization). Estimate time (e.g., 5-10 hours/week).

Step 3: Identify sources (e.g., board members, volunteers from your network). If gaps exist, note the recruitment efforts (e.g., posting on volunteer match, LinkedIn, etc.).

Step 4: Create a table with Columns for Role, Responsibilities, Who (name or "to recruit"), and Time Commitment.

5. The Materials Needed to Execute the Plan

This lists tools and collateral like emails, reports, and graphics. Why it matters: Professional materials build credibility and streamline processes, making engagement more effective. Here's what to do.

Step 1: Tie to the process: e.g., Know You (intro email template), Ask (proposal PDF with offers), Stewardship (thank-you card).
Step 2: Brainstorm 8-10 items: Digital (e.g., video, social graphics) and physical (e.g., brochures). Note free tools (e.g., Canva for designs).
Step 3: Prioritize by urgency (e.g., start with email templates). Estimate creation time.
Step 4: List in bullets or a table: Item, Purpose, How to Create (e.g., "Write in Google Docs").

6. The Fundraising Budget

This estimates costs to implement the plan (e.g., tools, events). Why it matters: It ensures ROI and prevents overspending, while justifying expenses tied to revenue. Here's what to do

Step 1: Review materials and process: Categorize costs (e.g., software $100/month, events $500).
Step 2: Brainstorm totals: Low-end (free tools) vs. ideal (paid ads). Include contingencies (10% buffer).
Step 3: Tie to goal (e.g., $5,000 budget for $50,000 goal). Calculate ROI (e.g., cost per donor).
Step 4: Create a simple budget table with Columns for Category, Estimated Cost, and Notes.

Once you've brainstormed and compiled these sections, review your plan for cohesion—does it align with your mission and resources? Share it with a trusted advisor for feedback, then refine.

Action Step

To wrap up: Spend 30-60 minutes brainstorming these components. Compile into a simple document or spreadsheet. Then, use AI prompts (in the workbook) to build a comprehensive plan: First, prompt for the goal and offer; second, for the engagement process by donor type; third, for the team, materials, and budget.

This plan isn't set in stone; it will be reviewed quarterly. With it, you're investing in relationships, providing value, and positioning asks for success.

Pause now, grab a piece of paper, and brainstorm your goal and offer. In Step 4, we'll build your team. You're doing great, let's turn prospects into partners! See you soon.

Example: Detailed Fundraising Plan for a Youth Empowerment Nonprofit

Let's apply this to a youth empowerment nonprofit focused on providing mentorship, skills training, and career guidance to underserved teens in urban areas (e.g., to reduce dropout rates and build leadership).

• Their Value Offer: $50 resume-building workshop (virtual session with templates).
• Impact Offer: $100 funds one month of mentorship for a teen.
• Double-Impact Offer: Buy a $50 workshop (get skills) and fund a $50 mentorship match (create impact).

Fundraising Goal

Raise $75,000 by June 30, 2026, to provide mentorship and skills training to 500 underserved teens, reducing dropout rates by 20% in our community and fostering long-term career success.

Different Types of Ideal Funders

• Individuals: Parents, alumni, and community members with affinity for youth development (e.g., Triumph Over Need category—former mentees). Motivation: Personal connection; capacity: $50-500 gifts. Target: 100 prospects.
• Businesses: Local tech firms and retailers (e.g., Benefit Funders—gain from skilled future workforce). Motivation: CSR and employee engagement; capacity: $1,000-10,000. Target: 30 prospects.
• Grantors: Government education programs (e.g., Mission Alignment—focus on workforce readiness). Motivation: Measurable outcomes; capacity: $10,000-50,000. Target: 15 prospects.
• Foundations: Family foundations supporting equity (e.g., Giving History—fund similar programs). Motivation: Scalable impact; capacity: $5,000-25,000. Target: 20 prospects.

Fundraising/Sales Process to Raise Money from Each Type

Individuals:

• Week 1 (Know): Send intro email with mission story.
• Week 2 (Like): Invite to free webinar.
• Week 3 (Trust): Share success testimonial.
• Week 4 (Ask): Pitch Double-Impact Offer via call ("For $100, get a workshop for your teen and fund mentorship for another").
• Follow-up: 2-week nudge email. Stewardship: Personalized impact update quarterly.

Businesses:

• Week 1 (Know): LinkedIn message with alignment pitch.
• Week 2 (Like): Co-host employee event.
• Week 3 (Trust): Send customized impact report.
• Week 4 (Ask): Propose Value-Led Double-Impact ("$5,000 sponsors 50 workshops for employees, funding 50 teen mentorships").
• Follow-up: Phone call.
• Stewardship: Co-branded recognition in newsletter.

Grantors:

• Month 1 (Know/Like): Submit LOI with program overview.
• Month 2 (Trust): Provide data and site visit.
• Month 3 (Ask): Full proposal with Impact Offer scaled ("$25,000 funds 250 mentorships").
• Follow-up: Status check email.
• Stewardship: Detailed outcome reports.

Foundations: Similar to grantors but personalized:

• Week 1 (Know): Research-aligned intro letter.
• Week 2-3 (Like/Trust): Virtual meeting with stories.
• Week 4 (Ask): Pitch Impact Offer ("$10,000 for 100 mentorships").
• Follow-up: Thank-you note.
• Stewardship: Annual impact event invite.

The People Needed to Execute the Plan

• Leader (Founder/ED): Oversees asks, high-value meetings (10 hours/week).
• Coordinator (Staff/Volunteer): Manages outreach, emails (15 hours/week).
• Researcher (Volunteer): Verifies prospects, prepares reports (5 hours/week).
• Ambassador (Board Member): Handles stewardship, events (5 hours/week).

The Materials Needed to Execute the Plan

• Intro emails/templates (for Know step).
• Impact reports/PDFs (for Trust).
• Proposal packets with offers (for Ask).
• Webinar slides/graphics (Canva).
• Thank-you letters/certificates (for stewardship).
• Social media posts (for promotion).
• Tracking spreadsheet (Google Sheets).

The Fundraising Budget

• Software/tools (e.g., email platform): $200.
• Events/webinars: $500.
• Printing/materials: $300.
• Contingency: $200. Total: $1,200 (1.6% of goal; expected ROI: $62 per $1 spent).

This plan positions the nonprofit for success, leveraging offers to engage funders authentically.

Ready to build or refine yours? Click the button below to access AI prompts that can generate a customized plan from scratch or improve your draft.