Most nonprofits depend upon the generous contributions of their donors to survive, thrive, and achieve their goals. Fundraising is a major portion of the work done in nonprofit organizations. Geranda Projects is an experienced and effective source of fundraising guidance, support, and information for nonprofit organizations looking to set reasonable and achievable fundraising goals, and then work to surpass those goals.
Show me the money.
Donations to a typical nonprofit organization come from many sources. Donations may come in the form of cash from casual giving, pledges of funds from rallies and events, and public sources like municipalities and states. Geranda Projects knows that an important tool in effective fundraising is to make a template detailing the various streams through which donations are received. Categories may include:
- Board Solicitation
- Individual Gifts Solicitation
- Local Public Money
- Private Money (from foundations and corporations)
- State and National Public Money
- Fundraising Events
Each of these categories should detail the specific need, approach to fundraising, and a plan of action. A cost/benefit analysis is also a handy tool when fundraising for a nonprofit organization.
Plan for success.
There is no appropriate ratio or number figure that makes setting fundraising goals an exact science. Each nonprofit organization needs to monitor its ins and outs financially and manage their costs appropriately. Many nonprofit boards plan for rainy days with an operating reserve of cash.
A reserve fund helps a nonprofit organization sustain itself in situations where a funding source may dry up or an immediate need (like a roof or parking lot) emerges, and it’s an important part of managing a nonprofit organization. The National Council of Nonprofits reports that “only 23 percent of responding nonprofits have more than 6 months of cash in reserve… And 12 percent had less than thirty days of reserve. “
Review your progress.
A responsible annual budget, approved by the nonprofit’s board, is a building block of setting a nonprofit organization’s fundraising goals. The budget provides a guide for the financial activities of an organization. It should be flexible and resourceful in how it allots its costs as conditions may change throughout the life of the budget. An open and transparent accounting of a nonprofit’s business activities is crucial to the credibility and sustainability of an effective nonprofit organization.
Follow the leaders.
The Nonprofits Assistance Fund recommends these 10 tips to understanding a nonprofit’s annual budgeting considerations.
- Determine the budget guidelines.
- Agree on the goals.
- Understand the current financial status of the organization.
- Agree on a budget approach.
- Develop a draft expense budget.
- Develop a draft income budget.
- Review the budget.
- Approve the budget.
- Document budget decisions.
- Implement the budget.
Geranda Projects has been helping nonprofit organizations define, achieve, and surpass their fundraising goals with smart strategies and an expert knowledge of the nonprofit landscape. Geranda has the experience to help your nonprofit with:
- Assessment and Program Development
- Mentoring to Provide the Tools to Succeed
- Community Awareness and Social Enrichment
- Board Engagement – Strengthening Not-for-Profit Boards