There’s never a wrong time to set – or reset – fundraising goals. Knowing how much money you need to operate your nonprofit isn’t a static thing, and it isn’t a last-minute activity. You have to project future needs long before the future is here. This is preferable to finding yourself in “emergency fundraising” where you do anything and everything you can to secure the resources you need. Here are three suggestions to help you set fundraising goals.
First, your fundraising goals should be aligned with your mission and strategic plan. You will know what you intend to do in the short term and the long term if you are working from your mission and strategic plan. Knowing what you want and need to do lets you look at the cost to implement. After you calculate your costs, review them to ensure they are inclusive of all costs. When creating program budgets make sure these include a percentage of costs related to facilities, insurance, internet and phones, marketing and communications, legal, and other expenses tied to the overall operations. Remember to check with program staff to gain their input. While staff takes the first pass at compiling costs, these need to be shared with both the finance and fundraising committees of the board. The actual goal setting is a joint effort between the board and staff, and board members will have a lot to add as well as questions that will help refine goals.
Next, look beyond anticipated costs, and review the organization’s performance against past goals. For example, when provided with the necessary funds, is the organization able to deliver on its goals? Equally important, what is the history of reaching prior fundraising goals? You need to look at reports that show sources of revenue and how they have fluctuated over time. Review these closely to identify where funding could come from. We suggest that you “over plan.” For example, if you need to raise $300,000 or $3 million, we recommend building a pool of qualified prospects equal to three times your goal. Don’t expect that everyone you ask for a gift or grant will say yes. You have to be prepared to succeed even if your “sure thing” prospect says no.
Finally, you have to know who will make the ask. Do you have a team of people willing and capable of asking? Do they have relationships with your prospects? Will they make a gift of their own? In the case of grants, do you have someone who can write a proposal that clearly makes the case for your organization in a clear and concise way that answers the funders’ questions? When all parties agree on a fundraising goal it is more likely they will work together to reach it. But, if your financial and fundraising goals are pulled from thin air, or otherwise unrealistic, it is unlikely your team will work to implement it. Our bottom-line recommendation: Take the time to build realistic goals that are rooted in real numbers.
Copyright 2023 – Mel and Pearl Shaw of Saad&Shaw – Comprehensive Fund Development Services. Video and phone conferencing services always available. Let us help you grow your fundraising. Call us at (901) 522-8727.
