For many of our clients, summer brings a bit slower pace…and with it, time to plan for the year ahead. I am currently working with several clients on either updating or creating an annual Development Plan. Do you have one for your organization? If not, now would be as good a time as any to create one! Here are a few things to consider.
Determine your fundraising goal for the year
This is often easier said than done! Ideally, the Executive Director and Director of Development, in conjunction with Finance and the Board, should identify a realistic – yet stretch – fundraising goal for the year. This goal should NOT be based on a “gap” in the budget. Too often, when asked how the fundraising goal was identified, the answer I receive is, “Well, we determined the annual operating budget for the year, and there was a shortfall, so Development is responsible for “funding the gap”. This almost always backfires and positions the Development office for failure. This goal should be based on objectives and outcomes from the prior 1-3 years, along with an understanding of any specific needs in the year ahead. A realistic stretch goal will challenge everyone to work a little harder – and smarter – to accomplish this objective.
Identify specific objectives and outcomes to ensure success
Events are an easy place to start. Look at your revenue and expenses for each event from the prior 1-3 years. Set a realistic target – perhaps a 10% increase – to determine your fundraising goal for each event. Next, identify ways in which you plan to attain those goals. Are you doing enough to increase the number of sponsors for each event? Is it time to raise the ticket price? Are you giving away too many tickets? Are there creative ways in which you can cut expenses?
The Annual Fund is another key component. How many appeal letters are you sending annually? Is it enough? Are you sending too many? What is the ROI on each appeal? Once you have the facts, you can set your goal to increase your raise for the year. Make sure you are considering all aspects of your appeals, which includes possibly segmenting and personalizing your letter. Also, be sure you are telling a story about the work of your organization to make the letter more emotionally appealing. Consider whether to incorporate Giving Tuesday into your annual fundraising process. (Note, while there are a lot of great outcomes from Giving Tuesday, I do not feel it is the best use of time for every organization, so I recommend you do your homework and approach this thoughtfully and strategically.)
Consider other sources of revenue for your organization. Do you have a Planned Giving Society? Is your organization eligible for grants and/or corporate partnerships? Set financial goals and specific objectives for each revenue stream.
And…I save the most important for last. Your individual donors. Have you defined your giving levels, including major donors (For example, those who give $1,000 or more annually)? How are you cultivating donors at each level? Once you have determined the baseline for each level, set a goal to increase the number of donors at each level and identify the objectives to ensure you meet these goals. And here is the key: Meeting this goal will require you to set aside time each week for donor cultivation.
Look at all aspects of your Development operation to ensure that everything you do is supporting your fundraising goals. Does your monthly newsletter highlight a donor? Do you list your donors in the Annual Report? Are you, your staff and/or your Board members calling donors to say Thank You? Are you strategically publicizing your activities through press releases and other external communications? How does the website highlight donors?
Creating a strong and realistic Development Plan takes time. But by investing the time, creating the roadmap and ultimately working the plan, I am confident you can achieve your fundraising goals for the year. Good luck!
by: Susan Bottum Matejka, Vice President, HUB Philanthropic Solutions