Should We Check or Should We Raise? A Short Guide for Fundraisers

My number one question from fundraisers, sometimes even before having an initial intake or kick-off meeting, is: "How much should we raise?" As the fundraising coach, with experience, knowing the trends and have the data (In the crowdfunding world less in the poker arena). I can understand the other side's expectation for a quick answer. This is also a crucial question and of greater concern than many other questions. The question is usually followed with sentences like: "How much did organizations like ours, same size, same neighborhood… raise?" Though an answer to all those questions may paint a picture, it still will not prompt an answer from me just yet.

One of the most common misconceptions some non-profits make when setting fundraising goals is assuming that a higher goal will always lead to better outcomes. This can lead to several pitfalls that can ultimately undermine the success of the campaign and damage the organization’s credibility and relationships with donors and ambassadors.

Here’s a small guide to help you determine an optimal fundraising goal for your next campaign.

• Understand Your Needs – I have been given answers in the past like "We need a million dollars!" or "As much as possible." We need to start from the basics: what is our organization’s or this specific project's financial need? Break it down. This question is usually followed with: "But we also need…" or "That amount doesn't cover…" or "Our expenses or our activities have grown." This is understandable and fine; it should all be calculated in the financial need.
• Analyze Your Donor Base – Your existing donor base is a crucial factor in determining a realistic fundraising goal. A: Engage with your major donors early on to see if they will give a contribution (the same or bigger) to the campaign. Is their contribution a donation or matching funds? B: Average donor behavior, average donation size, and the number of repeat donors. C: Average donor/small donor – Can they play the role of an ambassador in this campaign instead?

All this information will also tailor our strategy and ultimately the fundraising goal.

• Assess Your Resources – Ambassadors – What is the strength of your volunteer network? How big is our community? Followers? Supporters? Board members? I love to ask my clients the following question: "If you were to write a blast email tomorrow to your entire non-profit network saying: 'We are so sorry to inform you that due to lack of funding, we are closing our doors,' I want to know who the first people to call or email you back saying, 'We can't let this happen; how can we help prevent this?' Those people MUST be on our ambassador list; these are your alpha fundraisers.
• Self-assessment - Resources and Capacity – This includes the availability of staff, volunteers, team leaders, marketing resources, influencers, and technological tools necessary to run a successful campaign. I will expand on this subject in one of my next articles.

Setting an appropriate fundraising goal is crucial for the success of your campaign. By setting a well-informed and achievable goal, you are not only increasing the chances of achieving the goal. But also motivating your ambassadors and donors effectively, ensuring they feel connected to the cause and appreciated for their contributions (For the short and long run). By using these categories and others (like SMART goals and more) as a guide, you will help strike a balance between ambition and realism.

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