How to Build a Fundraising Plan: A Step-by-Step Guide

Most Development Directors have a fundraising plan. Most of those plans are a list of appeal dates and revenue targets sitting in a Google Doc, disconnected from any real data, outdated before the fiscal year begins.

A real fundraising plan is a strategic document — grounded in prior year performance, built on donor segment analysis, and structured to be measured and updated throughout the year. Here is how to build one that actually guides decisions.

Step 1: Situation Analysis — What Did Last Year Tell You?

Before setting goals, understand where you are. Pull actual data from prior year performance across every revenue source:

• Total revenue by channel (major gifts, annual fund appeals, events, grants, recurring giving, bequests)
• Donor retention rate overall and by segment (first-time donors, repeat donors, major donors)
• Average gift size by channel
• Number of active donors by tier
• Top 10–20 donors by giving amount and their year-over-year trends
• Lapsed donors from the prior year — how many, what was their total giving?
• Grant pipeline — what renewed, what lapsed, what is in application?

This analysis surfaces your revenue risks (a major donor whose giving is declining, a grant that is ending) and your opportunities (a segment of mid-level donors who have never been asked to upgrade). Without it, goal-setting is guesswork.

Step 2: Set SMART Goals by Channel

Work from the bottom up. Set a goal for each revenue channel based on your situation analysis, then sum them to your total fundraising goal. Do not start with a total number and divide it arbitrarily.

For each channel, your goal should reflect:

• Prior year actual: What did you actually raise?
• Retention assumption: What percentage of donors from last year will give again?
• Acquisition assumption: How many new donors do you expect to add?
• Average gift assumption: Will average gifts change based on your planned asks?
• Known major gift opportunities: Are there specific major gift conversations in process?

A healthy revenue mix for most mature nonprofits:

• Major gifts (typically top 5–10% of donors): 40–60% of total contributed revenue
• Annual fund (broad base): 20–30%
• Events: 10–20%
• Grants: 10–20%
• Recurring giving: growing component of the annual fund total

Reduce dependence on any single source, especially on one or two major donors whose giving represents outsized revenue risk.

Step 3: Define Your Donor Segments and Strategy

Different donors require different approaches. Your plan should define the strategy for each major segment:

Major gift prospects ($10,000+): Personalized cultivation, relationship-driven, multi-touch strategy with a specific ask amount and timing. Assign a portfolio manager to each.

Mid-level donors ($1,000–$9,999): Often the highest-ROI segment to develop. These donors typically receive annual fund treatment but are ready for more personal engagement. Consider a mid-level giving society, a phone call from the ED, or an invitation to a behind-the-scenes event.

Annual fund donors (under $1,000): Direct mail, email, and digital appeals. Segmented by recency (LYBUNT, SYBUNT, active) with different messaging for each group.

Lapsed donors: Targeted re-engagement campaign with a specific reactivation ask. Lapsed donors who once gave at higher levels are your highest-priority acquisition targets — they already know and trusted your organization.

Monthly sustainers: A separate track. The goal is retention (reduce churn) and upgrade (increase monthly amount). Do not treat them as part of the general annual fund.

Step 4: Build Your Channel Mix and Calendar

Map out every planned fundraising activity by month, including:

• Appeal dates and formats (email, direct mail, phone, in-person)
• Events and their revenue targets (gross and net of expenses)
• Grant deadlines and expected award dates
• Major gift ask timing by donor
• Year-end campaign structure and timeline

Most organizations run three to four appeal cycles: spring (February–April), summer (July — often the weakest cycle), fall (September–October), and year-end (November–December, typically the highest-yield period). Year-end should receive your most significant investment because donor giving is highest and tax motivation is real.

Step 5: Set Your Fundraising Budget

Fundraising has a cost. Include it in your plan explicitly:

• Staff time allocated to fundraising activities
• Direct mail production and postage
• Event costs and venue
• Digital advertising and paid social
• CRM and email platform costs
• Consulting, copywriting, and design

Track your cost to raise a dollar by channel. Direct mail typically costs $0.20–$0.50 per dollar raised. Major gifts cost less per dollar but more in staff time. Events frequently cost more per dollar raised than direct appeals — knowing your actual event ROI is essential for planning decisions.

Step 6: Define Your Metrics

A plan without metrics is aspirational, not operational. Define what you will track monthly:

• Revenue vs. plan by channel (actual vs. goal, actual vs. prior year)
• Donor acquisition (new donors this month vs. plan)
• Donor retention (rolling 12-month retention rate)
• Average gift by segment
• Lapsed donor reactivation rate
• Major gift pipeline (number of prospects at each stage, projected revenue)
• Monthly giving growth (new sustainers, churn rate, net new MRR)

Review these metrics monthly as a team. A plan that is reviewed quarterly is a document. A plan that is reviewed monthly becomes a management tool.

Using Data to Plan in Real Time

The fundamental problem with most fundraising plans is that they are built with stale data. A plan assembled in October using the prior fiscal year's numbers is already months behind before it launches.

sherbertOSOS's reporting suite gives you the current numbers your plan needs: donor retention rates by segment, giving patterns by tier, campaign results as they happen, and LYBUNT/SYBUNT reports that identify exactly which donors need re-engagement outreach. When you build your plan from live data and track results against it in the same system, planning becomes a continuous process rather than an annual document.

Frequently Asked Questions

How far in advance should I build a fundraising plan?

Build your annual plan two to three months before the fiscal year begins — early enough to make staffing and budget decisions, late enough to have current data from the prior year. Supplement with quarterly reviews and rolling 90-day action plans that adjust for what the data is showing.

What percentage of revenue should come from each channel?

There is no universal answer, but a well-diversified portfolio typically has major gifts generating 40–60% of contributed revenue, the annual fund generating 20–30%, events generating 10–20%, and grants generating 10–20%. Reduce dependence on any single source or donor that represents outsized risk.

How do I set realistic fundraising goals?

Start with last year's actual revenue by source. Apply your historical retention rate to the existing donor file to project renewals. Estimate new donor acquisition based on your planned investment. Factor in specific major gift opportunities you know are in process. Sum to a total goal, then pressure-test it against your budget and capacity.

What if we miss our goal mid-year?

Review the data by channel and segment to diagnose where performance is lagging. Is retention lower than planned? Are new donor numbers short? Is a specific major gift delayed? The diagnosis drives the response. A plan you are measuring monthly gives you time to course-correct before year-end.

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