Have you decided the fundraising goal for Q4?
How did you determine the amount?
Did you:
Add 10% to last year's number?
Choose a number that felt ambitious?
Use a board recommendation?
Base it on what you hope to raise?
Most nonprofits know what their fundraising goal is but cannot always justify how they arrived at it. And this can be an issue because:
…your fundraising goal shouldn't be the starting point. It should be the result of a planning process.
Here's what I mean.
Imagine your total expenses next year are expected to be $400,000. Also imagine you already know you'll receive $225,000 as follows:
$150,000 in grant funding
$50,000 in earned revenue
$25,000 in committed sponsorships
That leaves a gap of $175,000.
In other words, your fundraising goal isn't $175,000 because it sounds good.
It's $175,000 because that's what the organization needs to fund its plans – all things bring equal.
This is called your funding gap. And surprisingly few nonprofits calculate it and instead start with a fundraising goal and build a budget around it.
If you do it this way, you will know what your fundraising goal is but you may not be able to justify how you arrived at it.
Here is the risk?
When fundraising goals aren't tied to actual financial needs, you can end up with one of two problems:
1. You raise less than you need without realizing it until later.
Or…
2. You make spending decisions based on revenue assumptions that never materialize.
Neither is a position you want to be in.
That's why I believe budgeting and fundraising should be part of the same conversation.
Before setting a fundraising target, ask:
What are we actually trying to fund?
How much revenue is already committed?
What gap remains?
What happens if we miss our goal?
Those questions can reveal whether your fundraising target is grounded in reality or simply an educated guess.
As we head into year-end giving season and start planning for next year, this is one of the most valuable exercises your organization can do.
Because the purpose of a fundraising goal isn't to inspire your team.
It's to fund your mission.
So whether you need help with ongoing, accurate financials; or need guidance with budgeting and cashflow projections, I'm offering a limited number of complimentary 20-minute planning calls.
This is a no-cost, no obligation, conversation to get clear on where you are and what next steps are right for you.
Cheers to your impact
Carol
PS: With the fundraising season kick-off in the next few weeks, now is the time to make sure your newsletter is doing more than sharing updates. The resources below can help you turn your newsletter into a tool for engaging donors and raising more money.
1) Never wonder what to say in your newsletter or on social media again. Get the Nonprofit Email Newsletter Content Vault with
200+ Story prompts covering ALL areas including fundraising, impact, volunteering, education, crises response etc.
A simple story collection form to gather stories from stakeholders so you’ll never start with a blank screen again.
There are also subject lines and clear calls to action that drive-up open rates.
CLICK HERE to access it.
2) If you want to turn your newsletter into a fundraising engine while writing less, then you need the Automated Email Sequences. Welcome your supporters, nurture them, turn them into donors and keep them engaged year round. The templates are Done-For-You. Just plug-and-play, set them up once and let them run in the background while you focus on your mission. CLICK HERE to access it