Nonprofits exist to create impact, to drive change, and to make the world a better place. But too often, organisations are working only to a budget and not to a funding strategy.
A beautifully crafted Strategic Plan—full of bold objectives, transformative programs, and measurable outcomes—can only be realised if there is a clear and sustainable funding strategy to support it.
Yet, many nonprofits and their board fail to plan for the all important funding element of their Strategic Plan.
Your Strategic Plan Is Only As Strong As Your Funding Model
Think of your Strategic Plan as a destination—where your organisation wants to be in three to five years.
Now, think of your Funding Strategy as the vehicle that gets you there.
Without a well-thought-out funding strategy:
✅ You risk overpromising and underdelivering.
✅ Your team may be stretched too thin, chasing funds reactively.
✅ Funders may question the financial viability of your vision.
✅ Your board won’t have clear visibility on financial sustainability.
In short, without a funding strategy to support your strategic priorities, your plan is just a wish list.
The Board’s Role in a Funding Strategy
A strong funding strategy is not just a fundraising team responsibility—it must be embedded at the board level. Too often, boards approve ambitious strategic plans but fail to demand a financial roadmap to make them happen.
Here’s why every nonprofit board must ensure there is a funding strategy aligned with the strategic plan:
1️⃣ Financial Oversight – Boards have a duty to ensure the organisation is financially sustainable. A funding strategy provides a clear picture of how strategic goals will be resourced and allows the board to track progress.
2️⃣ Accountability & Tracking – Just as a board reviews financial reports, it should review progress against a funding strategy. Are revenue targets being met? Are fundraising efforts aligned with strategic priorities? What adjustments are needed?
3️⃣ Board Engagement in Fundraising – A well-structured funding strategy allows board members to see where they can actively support fundraising efforts—whether through donor introductions, advocacy, or strategic partnerships.
4️⃣ Risk Management – A nonprofit without a funding strategy is at financial risk. Without clear revenue projections and diversified income streams, the board cannot effectively mitigate funding shortfalls or cash flow issues.
From an Idea to an Actionable Plan
Every board should be asking:
• Where is the money coming from to support this strategic plan?
• What revenue targets do we need to meet each year to stay sustainable?
• How will we track progress and adjust if needed?
By embedding a funding strategy into board discussions and governance processes, nonprofit leaders can ensure financial sustainability, track progress effectively, and empower board members to contribute meaningfully to fundraising efforts.
A strategic plan without a funding strategy is just a wish list—but with one, it becomes a real roadmap to impact.
Boards approve strategic plans—so why aren’t they ensuring the funding strategy is in place to back them up? Let’s change that. If your nonprofit doesn’t yet have a funding roadmap, now’s the time to make it happen.
Stay tuned for Part 2, where I’ll walk you through how to develop a funding strategy for your nonprofit—so you can turn your strategic plan into a fully funded reality.
OR
Please send me an email to set up a time and we can talk further about helping your nonprofit create, embed and implement a funding strategy that supports your Strategic Plan: Catherine@epadvisory.co
#NonprofitLeadership #FundraisingStrategy #BoardGovernance #FinancialSustainability #StrategicPlanning #FundingTheFuture
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