Fit for the future

The digital fundraising strategy – a winning formula for data-driven fundraising

Having a fundraising strategy that keeps pace with the demands and opportunities of the digital age is critical for any nonprofit organisation. Without one, organisations risk missing out on valuable fundraising potential and failing to achieve their goals. A well-thought-out fundraising strategy can be the difference between stagnant growth and dynamic development. Imagine being able to reach more supporters, make your fundraising campaigns more effective, and optimise your resources – all possible if your fundraising strategy is data-driven. We’ll tell you how to do it, and what the key elements are.

What to expect in this article:

• Data-driven fundraising strategy, a must?
• It starts with a vision
• Looking inwards – and outwards
• The digital fundraising strategy guide
• The roadmap for implementation
• From vision to action
• Digital fundraising strategy, ready, go!
• For the highly motivated!

Data-driven fundraising strategy, a must?

An organisation’s online presence is critical to its success – that much is clear. Online platforms allow NPOs to operate more cost-effectively, as digital campaigns often require fewer resources than traditional fundraising methods. But the real key is to use this presence strategically to attract targeted supporters and build long-term relationships. This is where data plays an important role. The ability to use data to make informed decisions and measure the effectiveness of campaigns makes digital strategies essential. Through digital channels, nonprofits can communicate their messages in a more targeted and personalised way, leading to higher donor retention and satisfaction. Without a well-thought-out digital strategy, organisations risk falling short of their goals and missing out on valuable opportunities.

It starts with a vision

A successful digital fundraising strategy always starts with a clear vision. It is at the heart of any strategy and sets out where we want to go. The first step is to look forward. Organisations should ask themselves where they want to be in the next 5 to 10 years. Once the destination is clear, the path to get there can be mapped out. To make this vision a reality, it is important to strike a balance between a big vision and small steps. This turns a big dream into a clear plan that shows the way. To do this, it is essential to take stock: Where are we today? What are our strengths, and what challenges do we face? This analysis forms the basis for a realistic vision and the development of strategies that pave the way to achieving the goals set.

Looking inwards – and outwards

To develop a sound strategy, it is important to consider both internal and external perspectives. Internal analysis evaluates existing strategies and resources, and identifies challenges and opportunities. External factors such as market conditions, competitors, trends and challenges in the world of fundraising are also analysed. Particular attention should be paid to the following three approaches:

• Donor experience:In order to develop a successful strategy, it is crucial to put on the donor’s glasses to get their perspective. The donor experience should be carefully analysed to ensure that the donor journey runs smoothly.

• Competitive analysis:A direct comparison with competitors or sister organisations helps to assess your own position in the market. This will show where the organisation stands in relation to the benchmark and the best in the industry, and where there is a need for action.
• Market analysis: This step in strategy development examines the opportunities an organisation can exploit, the risks it should be aware of and the trends that are relevant to the organisation.

Analysis of the status quo makes it easier to define and prioritise tactics for achieving goals, as it provides a comprehensive insight into what is currently working, where there is room for improvement and what external influences need to be taken into account.

The digital fundraising strategy guide

A solid strategy needs clear objectives. The goals determine which tactics need to be implemented. The tactics, in turn, need to be translated into an actionable roadmap. Defining goals is a crucial part of strategy development and should be done using the SMART criteria:

• Specific: The objective should be unambiguous and clearly stated. It must describe exactly what is to be achieved.
• Measurable: There should be criteria for measuring progress and achievement of the goal. Quantifiable indicators help to evaluate success.
• Achievable: The goal should be realistic and attainable. It should be challenging but still achievable.
• Relevant: The goal should be relevant and important to the organisation’s overall goals and strategies. It should have a clear benefit or purpose.
• Time-bound: There should be a clear timeframe for achieving the goal. A deadline helps to maintain focus and urgency.

These goals represent stages on the way to the organisation’s long-term vision. It is important to define indicators to measure the achievement of the objectives and to set concrete targets. During implementation, progress needs to be monitored continuously to ensure that you stay on track and can make adjustments if necessary. A strategy is not static, but should be flexible enough to respond to changing conditions or new evidence. Through regular review and adjustment, the organisation can ensure that it is achieving its goals.

The implementation roadmap

Once the status quo has been captured and the goals clearly defined, tactics are developed and set out in an achievable roadmap. This roadmap contains clear action steps, priorities and the resources required for implementation. A one- to two-year roadmap helps translate the vision into concrete, measurable actions. Each step of the roadmap should be described in detail:

• What actions are needed?
• Who is responsible for them?
• What is the priority of each task?
• What resources are needed?
• Can we cover everything with our internal resources, or do we need external support?

Clear allocation of responsibilities and resources ensures that the strategy is implemented effectively.

From vision to action

Once the strategy has been developed and the roadmap defined, implementation begins. For strategy implementation to be successful, organisations should strike a balance between the overall vision and the individual steps. Achieving smaller milestones ensures that momentum is maintained and motivation is increased.

What should organisations be aware of? A change process will follow! The strategy will trigger a change process that may lead to uncomfortable or difficult friction. But change only happens through friction. During our work with the ICRC, we encountered similar challenges and learned a few things. We have a valuable piece of advice to counter this: Share the vision repeatedly with all stakeholders and supporters of your strategy. Look for allies from the outset, the so-called ‘early adopters’, who will infect and inspire others with their enthusiasm.

Celebrate small wins to motivate the team and show progress. These wins show that the strategy is working and give everyone involved the confidence to continue on the chosen path. You are already changemakers – dare to drive change!

Digital fundraising strategy: get set, go!

By using data, setting clear goals and developing a detailed roadmap, organisations can optimise their fundraising efforts and ensure long-term success. Change can be challenging, but it’s also an opportunity to achieve great things.

Ready to get started? Then consider the following:

• Use data to guide and prioritise!
• Keep moving forward, whether the steps are big or small.
• Stay flexible and prepared to change course if new circumstances arise.
• And don’t stop dreaming! Even if you take small steps, keep your eye on the big picture.

Now nothing stands in your way!