Financial Resource Development Planning for Jewish Day Schools and Nonprofits

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One of the most critical challenges facing our schools and nonprofit institutions today are their ability and capacity to leverage and raise financial resources for operations, programs and special initiatives.

Although the leadership of these institutions view fundraising as a sine qua non for their survival, many view fundraising as a laborious, difficult and daunting challenge. To be sure, in today’s environment, it is far easier for schools and organizations to recruit senior c-suite leaders, managers and operational ceo’s than it is to attract and recruit high quality and top level fundraising executives.

Having said that, a review of c-suite executive job descriptions suggests that more and more schools and organizations are now requiring experience, expertise and knowledge regarding fundraising than ever before. Moreover, many more schools and nonprofits are viewing fundraising from a “total resource” perspective – meaning, that in order for these institutions to thrive (and even survive) in today’s competitive environment, they must view fundraising, advancement  and development from a comprehensive and holistic perspective.

This comprehensive fundraising  approach and challenge is referred to as Financial Resource Development (“FRD”)….when institutions or organizations take into consideration the wide desperately needed financial requirements of their entities from a short and long term perspective

The FRD Plan

As many of us in the nonprofit leadership field know, successful fundraising takes an inordinate amount of hard work, perseverance and expertise…..especially if the institution, whether it be a school, yeshiva or nonprofit is running a long-term complex campaign. In fact,  its crucial to have a carefully outlined and detained fundraising plan to keep your institution’s plan on track to meet its goals.

These fundraising initiatives include but are not necessarily limited to:

• Annual campaigns
• Capital campaigns
• Major gifts
• Designated giving
• Legacy and endowments
• Special events

Each one of these fundraising  modalities, when viewed in their totality, comprise the art and discipline of  Financial Resource Development.

Planning, launching, executing  and assessing strategic fundraising campaigns whether they be local, regional, national or global, play a critical role in scaling up an organization’s work in sustainable ways.

Crafting a robust FRD strategic plan is crucial for any nonprofit aiming to strengthen its impact beyond just fundraising. To be sure, a comprehensive FRD strategic plan provides the organization with a process to renew its organizational purpose, vision, defined holistic goals and a clear direction for all aspects of the institution’s mission – whether it be a day school or a nonprofit organization,,

By engaging in a FRD strategic plan, the institution involves itself in a holistic view of the organization, focusing on long term vision alignment and resource allocation within a structure and a flexible framework.

So how does an organization embark upon this process?

First and foremost, the institution must be able to clearly identify a philanthropic base of  supporters, donors or potential supporters and benefactors. This takes place through comprehensive research and careful analysis.

Although there are a variety of models, this writer’s preference relies heavily upon a comprehensive engagement model. This means engaging prospects in a variety of very focused and meaningful conversations regarding their personal and familial philanthropic interests, motivations and aspirations.

Never begin the process by “aiming for the ask”. Going from zero to one-hundred never really works for new and prospective prospects. It’s all about engagement and cultivation. It requires a deliberative process which engages the donor in meaningful thought, reflection and conversation.

Even if the donor is a current contributor to your organization, never take the person’s generosity for granted. As such, treat each donor with utmost respect and derech eretz and always try to determine if the donor’s interests are  still aligned with your organization’s, mission, vision and direction.

As your organization engages in this process, its critical to determine whether the donor is a candidate for a targeted gift, a long term gift, a designated contribution or a one-time only campaign gift. This process requires due diligence, patience and a willingness to cultivate a trusting relationship with the donor.

Getting Started:

It is imperative that the organization’s development team determine up front, which donors to approach, cultivate and solicit for which aspects of the institution. It is also essential that the organization’s donor-base be expanded via referrals from current donors

An integral part of a successful  FRD program, each nonprofit organization is responsible for determining the feasibility for raising funds from different sources and for developing a plan to raise the money using methods appropriate to the organization.

A plan must have more than goals. An effective fundraising plan must identify what resources will be required to carry out what tasks over a specific period of time.

Critical elements or components of an effective financial resource development plan include:

• an analysis of current resource development efforts including strengths and weaknesses;
• a clear articulation of goals for how much money will be raised from various sources;
• strategies for how these sources will be pursued; and
• plans for building relationships with potential donors and funding sources.

In the final analysis, crafting a robust strategic plan is crucial for any nonprofit aiming to strengthen its impact beyond just traditional fundraising. To this end, it must provide an engaging process to renew the organization’s purpose, define holistic goals and set a clear direction for all aspects of the organization’s mission.

Keeping Your Eye on the Donor

Critical to the success of any high quality and high impact fundraising program is anchored in a protocol entitled Moves Management. 

This protocol affords the institution the opportunity to “move” donors from one level of philanthropic giving to the next. It also ensures that stewardship and donor engagement remains fresh, relevant and effective.

Whether the scope of the institution’s philanthropic reach is local, regional, national or global, it is imperative that a lay governance structure be in place in order to ensure, accountability, transparency and quality assurance.

Finally, it is essential  whether the development team is comprised of  two or fifteen professionals  that the group receive ongoing supervision, direction and feedback from the development/advancement director. This holds true as well regarding the level of supervision and executive (CEO or Head of School)  oversight in order to ensure professional growth, development, success and effectiveness of the senior development/advancement professional.

Moving Forward…..

Regardless of whether individual solicitations are made by the development professional, lay leader/trustee or a combination of the two. the interlocking partnership between lay leader and professional must be in place continuously in order to ensure high level engagement . It is an indispensable partnership and collaboration which creates tremendous institutional and communal synergy.

As schools and nonprofits increase their fundraising needs, capacities and requirements, it will be imperative that these institution embark upon a process which is embedded in best/model practice.

Fundraising is an art and a skill. But above all,  it is a celebrated passion which demands  unswerving due diligence.

( Note: this blog is based on a presentation made by this author to nonprofit  c-suite executives).