Revenue Sources
Step 4 Identify
and Select an Appropriate Revenue Source | Step
6 Verify Your Results and Make Modifications
Step 5 Execute Your Revenue Resource Plan
Page: 1 | 2 | 3Once you have completed the four steps, you must specify and execute the plan itself. Your revenue source plan needs to include five parts: plan objectives, a revenue source, a summary of costs, adjustments to systems and schedule. These can be described in a Revenue Source Plan Summary (see Appendix).
Plan
Objectives
Your statement of objectives should be a simple statement of what
you want to accomplish by when. It will detail not only the dollars
you expect to raise but any additional goal you identified in Step
1. Plan objectives are best stated with a measurable output by a
specific date. Example objectives could include:
- Acquire 1,000 new names by January
- Re-activate 1,000 lapsed supporters by year end
- Raise $50,000 at a 4:1 ROI not to exceed a $12,000 level of investment this fall
Select
a Revenue Source
List the several alternatives you have for either enhancing or starting
a revenue source. Select one and describe the answers to the questions
what, how, who, and when. This kind of information is useful to
you in the future as it provides a record of when you launched this
income strategy.
A
Summary of Costs
Provide a brief detail of the start-up and continuation costs. Describe
the hard costs where funds are directly spent on the revenue source
and any soft or hidden costs.
Adjustments
to Your Systems
Your organization’s internal systems and disciplines must
prepare to manage a new or enhanced revenue source. Several revenue
sources create additional unanticipated costs, generate overhead
and add stress to staff in your organization. Affected areas include
accounting, gifts handling or processing, data management and record
keeping or central files. Adding or enhancing revenue sources brings
additional policy and procedure requirements, valuation and substantiation
capacity and registration and reporting to Federal and state agencies.
There are additional costs apart from direct costs driven by demands
on your systems and additional reporting expenses. These hidden
costs show up as additions to your general and administrative expenses
(G&A). These include printing, overtime, contract labor, fulfillment,
etc.
Step 4 Identify
and Select an Appropriate Revenue Source | Step
6 Verify Your Results and Make Modifications