Happy New (fiscal) Year!
Happy New (fiscal) Year!
Many of us began a new fiscal year today or maybe it starts next month. All your revenue counters and dashboards roll back to zero and it is a 365 day climb to the next deadline.
My inbox was full of fiscal year-end solicitations to help nonprofits meet their budget goals - or is it mission? Sometimes there was a match, sometimes not. But it was more about an artificial deadline than inspiring the donor to make a difference. The fiscal year changeover is more important to the finance department than it should be for fundraising, if you’re doing it the right way.
Here is my #1 recommendation to make next year’s fiscal year end a lot less “important” than this year.
Identify all your revenue sources before the year begins.
You should know exactly where 80% of your fundraising revenue is coming from.
Major donors, reliable foundations and a realistic assessment of other large gifts and annual fund gifts should help you clearly identify where a significant majority of your revenue is coming from.
Use the 3-1 ratio when planning for the unknown 20% of revenue could be
Identify your fundraising gaps and identify three times as many prospects as you need to fill this gap.
For every three asks, you may secure one gift.
Put numbers to names:
For the reliable revenue, identify opportunities to ask some donors for more money this year. Hopefully, you have spent time with them over the past year and you have built a strong enough foundation for a larger ask.
For the unknown revenue, also put numbers to names. For high-net worth individuals or businesses identify other nonprofits where they donate. For foundations, review their 990s and determine and average gift from what they have given previously.
It takes a lot of work to plan a realistic fundraising budget and set reasonable goals. Just like with any business, you need to know your customers, plan accordingly and move down your list to confirm these gifts as soon as you can. Don’t wait until the end of the fiscal year, pleading to close the gap. Inspire donors in their own time and provide them an opportunity enjoy their philanthropy with a meaningful and well-planned ask.