Fundraising Planning and Strategic Management Flashcards

What is the primary purpose of an annual fundraising plan?

Answer: To outline goals, strategies, timelines, and resources for all fundraising activities over the coming year

An annual fundraising plan provides a roadmap covering revenue goals, fundraising strategies, timelines, and staffing to guide all development activities for the year.

Which of the following is the correct formula for calculating 'cost to raise a dollar'?

Answer: Total fundraising expenses ÷ total funds raised

Cost to raise a dollar (or fundraising efficiency ratio) is calculated by dividing total fundraising expenses by the total funds raised during the same period.

A SWOT analysis in fundraising strategic planning stands for:

Answer: Strengths, Weaknesses, Opportunities, Threats

A SWOT analysis evaluates internal Strengths and Weaknesses and external Opportunities and Threats to inform strategic fundraising planning decisions.

What is 'prospect research' in the context of fundraising?

Answer: The process of identifying and evaluating potential donors' capacity, inclination, and connection to the organization

Prospect research involves gathering and analyzing information about potential donors to assess their philanthropic capacity, philanthropic history, and connection to the organization's mission.

In a fundraising context, 'diversification of revenue streams' is important because:

Answer: It protects the organization from financial risk if any single funding source declines

Revenue diversification reduces dependency on any single funding source, making the organization more financially resilient if grants, events, or major gifts fluctuate.

Which metric helps evaluate the health of a direct mail program?

Answer: Response rate, average gift size, and net revenue per piece mailed

Direct mail program health is assessed through response rate (percentage of recipients who donate), average gift size, and net revenue generated per piece mailed.