CHALLENGING AND ACHIEVABLE GOALS LOOK FORWARD - NOT BACK

 

When setting fundraising goals—whether for annual contributed revenue or a multi-year campaign—many organizations default to looking at past performance. But here’s the thing: basing your goals only on what’s been done before can be limiting.

I would advocate for setting goals based on potential, not history. Imagine driving a car while focusing only on the rearview mirror—you won’t get very far. The windshield, however, offers a clear and expansive view of the road ahead. You check the rearview for safety, but it’s the windshield that shows where you’re going.

Looking Through the Windshield: Setting Fundraising Goals on Potential

Focusing on what could be achieved with the right leadership, resources, and vision opens opportunities for growth. This forward-looking approach fosters continuous improvement, innovation, and sustainable campaigns. It also establishes a solid data-driven foundation for setting goals and measuring annual performance.

A practical step: Ask your development team to review every name, prospect, or donor in their portfolio and assign each a low, medium, and high potential gift number based on your knowledge of donor capacity. Carefully review and incorporate the data from your most recent prospect screening in the goal setting process.

After gaining a clear understanding of the screening report’s capacity data, calculate your best planned result-based discussions around individual donor capacity and their inclination. Then set your goal based on real potential. This not only challenges your team but also inspires them to think bigger, beyond last year’s results and just adding some percentage for growth. Help the team to see their expectations are being established based on real data.

Why It Matters: Donors Want to Be Part of the Mission, Not Just Covering Expenses

Goals that are simply designed to cover your organization’s increased operating costs don’t inspire donors. How many times have you seen fundraising goals tied to covering rent increases or rising utility bills? That’s not why people give. Donors are motivated by impact—they want to know how much more you can achieve with their support.

By setting realistic capacity-based goals, based on data you can present a compelling vision of the future, motivating boards, staff, and campaign leaders to rally around a shared goal of mission advancement. As well, given fundraising staff high turnover rates, we must be honest with our teams about goals and expectations and demonstrate they are based on data, rather than just needing to raise more to meet the expense side of the budget. In exit interviews, unrealistic goals and expectations remain a leading reason for fundraising staff turnover. In this process goal setting is based on a study of donor capacity rather than staff being left to “just find the answers.”

The Risk vs. Reward of Potential-Based Fundraising Goals

While setting potential-based goals carries some risks, the rewards are often greater. Yes, these goals can feel more ambitious and stretch your team’s capabilities, but they foster a forward-thinking, dynamic culture. They allow your organization to have an in-depth conversation about a donor’s alignment with your cause, and what steps should be taken to helping them see your mission placed in their top 3 – 5 charities of choice. This process will not occur without the setting of objectives based on capacity data. So often when goals are based last year’s results, the tendency will be to ask for a gift to be renewed with a small year-over-year increase. We are already teaching our donors to think that way with many of our direct marketing appeals that list a specific gift request and an option for the request plus a small percent increase. We’ve all seen these appeals with 3 or 4 gift amount boxes to check. Those requests do not help you learn more about your donor’s intentions or understanding of your mission.

Data from previous years can help balance your approach, and understanding of the steps you need to take, but don’t let the past dictate your future. Instead, test your capacity and inspire donors with the impact they can help create. The future is bright—so focus on the windshield, not the rear view mirror.

For both those responsible for establishing fundraising goals, or those who want a better understanding of how their objectives are established take some time over this year and ask:

  • Are we/ Am I achieving the greatest potential for my organization?
  • In goal setting are we making the best use of our prospect screening data to better understand donor capacity and inclination?
  • Are we simply basing future performance expectations on past results?
  • Do our staff members have a clear understanding of donor potential and the impact they can achieve?
  • How does our performance management program and annual goal setting process support our teams to feel—and be—successful?

The road ahead is full of possibilities, if you’re looking in the right direction.

 

Take ActionAt DBD Group, we have a bias for action. Plans are great, but they’ll never go anywhere unless you take action. This month, the DBD team will be sharing ways for you to jump start your work in 2025.

 

 

 

 

Posted by Gary Laermer
Gary Laermer

Written by Gary Laermer

Gary is an experienced nonprofit and fundraising professional who brings a unique perspective to his work having led nonprofit organizations and collaborated with campaign consultants. He understands what nonprofit volunteer and staff leaders need from a trusted advisor, coach, and partner.

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