Are you setting smart #fundraising goals?
This weekend I received an email from a nonprofit asking if I could help them decide on an acceptable year-over-year growth goal. Was 15% right? Maybe 20%? The development team had been asked to decide on a rate of annual growth that they would stick to on an annual basis.
My guidance to this organization (and to you!) was that setting an arbitrary goal like this is a really bad idea. Instead, set goals based on the data available to you, and the smart assumptions you can make based on past experience. Review the status and health of each revenue stream, and ask yourself some critical questions about every aspect of your work.
What do you know about the donors in each area, and whether they will maintain, increase or reduce their giving in the coming year? What do you know about the costs associated with each revenue stream for your organization? Will costs decrease in the coming year (not likely, right)? Will they increase — and if so, by how much? If costs will increase this means you have to make some important decisions. What new strategies and tactics can you bring to market to grow you revenue enough that you can offset the increased costs? Are there other revenue streams that are working just as hard for you and that you could shift budget into? What new or different resources, strategies, and support structures do you need to put in place in order to succeed in the coming year?
Instead of picking goals out of thin air and committing your success to them blindly, follow this process to create goals that are specific, realistic, and achievable.
Image via startupstockphotos.com