Setting and Reaching Your Annual Fund Goals
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Mike Spencer |
By Mike Spencer
Does this phrase sound somewhat familiar? "Our board wants to double our annual fund over the next five years."
Whether it's a 100% increase, or some other arbitrary goal, two questions surface immediately:
- Is this a reasonable goal?
- If so, how will the goal be achieved?
To answer the first question, you must calculate all the relevant performance indicators to see which formula gets to your desired goal. The essential variables to consider include:
- The number of new donors acquired each year
- The current number of active donors
- The retention rate of active donors
- The current number of lapsed donors
- The recapture rate of lapsed donors
- The percentage of donors at each giving level
If the expectations of each item are reasonable, then the goal is likely to be reasonable - assuming of course that your solicitation strategy is appropriate.
For example, if increased donor retention rates and lapsed recapture rates are needed, the solicitation plan must be adjusted accordingly (i.e. more appeals, personalized letters, phone follow-up, etc.). If more revenue is the ultimate goal, then more investment should be a given expectation.
On a positive note, most annual giving programs have significant untapped potential. With proper evaluation, reasonable goal setting, effective strategies, and adequate investment, there's an excellent chance you can achieve goals that will make everyone happy.
Learn about our Goal Planner Tool!
The BEN Donor Portrait report features an interactive Goal
Planner tool that enables you to plug in your own detailed performance indicators to see how they calculate - in terms of donors and revenue - over the next five years.
For more information:
Contact Mike Spencer at 802.865.4100
mike@spencergroupinc.com
