One of my more difficult clients was a long-time community organizer who resisted every suggestion I made. (He probably found me difficult, too.) His board of directors, having learned of their fiduciary responsibility, asked to see a budget. He hired me to help put one together, and I suggested he also create a fundraising plan. As it turned out, he did not want to do either, finding both efforts a waste of time. Finally, in exasperation, he said, “We do what needs to be done with the money we have. That’s my plan and that’s my budget!” I often think of him when I think of planning. In many ways, he was simply more up-front about his method than many organizations I work with that operate the same way.

All nonprofits want to have enough money to do their work, but many cannot name what amount that would be. They certainly want to use the time and money of volunteers and donors wisely and make progress in accomplishing their goals, but the work of defining exactly what that would mean often is not done. The founder, if she is still in the picture, and her friends are often working from a “plan” kept in their heads and revealed to others on a “need to know” basis. This is not an effort to be secretive so much as a failure to articulate the plan and a habit of operating from (usually good) instincts. The budgeting process is: “We need money—whatever we can get. We’ll spend what we have, but it won’t be enough. We’ll end up with heartburn in either case.” The fundraising plan is: “Help! Write a grant proposal, quick! Let’s do an event—what’s fast? Does anybody know anybody they can ask for a big donation?” If you thrive on this chaotic, crisis approach to budgeting and planning, then don’t read the following chapters. But if you think, “There has to be an easier way,” you are right. In fact, the time my client spent resisting me was about the same amount of time it would have taken to create a budget and a plan.

Because time is our most precious nonrenewable resource, all efforts that use time respectfully, efficiently, enjoyably, and with the greatest results for the time invested ought to be our top life priorities. Developing a financial plan—that is, a budget—and a fundraising plan will let you use your time to maximum effectiveness with minimum heartburn.