Setting Realistic Goals in Your Fundraising
It is vital to establish realistic fundraising goals based on sound research and thorough planning. Realistic goals reflect both the organization’s understanding of its financial structure and its capability to challenge existing and prospective donors. To learn more about financial goal setting for your campaign, check out our related article.
Setting Realistic Fundraising Goals
Start with a Campaign Feasibility and Planning Study
A professional feasibility study or planning assessment is one way to assess the viability of funding goals. In a professionally directed study, confidential interviews are conducted with organizational and community leaders, donors, potential donors, constituents, vendors and others to determine the viability and level of acceptance of the priorities and goals. After careful evaluation of the data, a realistic goal can be set that is based upon personal opinion, a strong case for support, identified volunteer leadership and potential donors.
It is good to aim high while remaining realistic. Challenges that are successfully met engender renewed commitment. With that fresh energy comes enthusiasm, involvement, and interest. Setting challenging goals that are realistic enough to be met is the first step to achieving those goals.
Think of Your Organizational Needs
When setting funding goals, the first consideration should be the organizational needs. Are the program goals going to require funds that are far too great—or are such goals too small to warrant a capital campaign? The wisest leaders will budget to a plan rather than plan to a budget. Establish the goals of the organization, then determine what resources are needed to achieve those objectives.
Think about how much money is needed to fund specific new projects, such as land acquisition, new construction, renovations, or programs. Establish preliminary costs as accurately as possible. Consider the following questions:
- What portion of current income can be allocated to the new projects?
- Which income sources are most reliable? Which are least reliable?
- Which income sources have the most growth potential?
When you understand your budgetary strengths and weaknesses, you are better prepared to initiate a fundraising campaign to reach specific funding goals.
Don’t Aim Too Low!
Setting goals too high is not the only risk. All too often, organizations aim too low when setting fundraising goals. In an atmosphere of scarcity, the leadership may believe there are simply too few donors or too little wealth to attain any degree of growth in contributions. This attitude of doom and pessimism translates into loss of not only funding potential, but also of the enthusiasm and encouragement attained by successfully meeting challenges. Professional guidance through a feasibility and planning study is a practical way to establish an appropriate fundraising goal.
Summary
A great deal of positive momentum is created when a realistic goal is set and achieved. If the needs have grown or the cause warrants additional funding, consider a challenge goal that compels new giving. As with the initial goal, a challenge goal should be achievable. Successful fundraising involves a number of strategic factors that are determined through careful study and planning. One of the most important factors for success in fundraising is setting a realistic goal.
CDS has been a leader in nonprofit fundraising for the past three decades. Contact us for more intensive help with your major gift fundraising, strategic planning, or preparing for a capital campaign.