The fiscal year-end, and especially the last quarter of the year, is an especially trying time for fundraisers. September always seems to be over-programmed, with people trying to get back in the “work/school” mode, after taking some well-deserved time off in the summer. Can you actually save (or salvage) 2024?
For those fundraisers with a December 31 year end, this time of year is usually a “make it or break it” time. Many major donors will not fulfill their commitments until the end of the year, even if they have agreed to pledge a certain amount earlier in the year. The reason is quite simple — they would rather hold on to the cash and make it work for them (and perhaps even earn a modest return) for the rest of the calendar year. A charitable receipt dated December 31 has the same effect on next year’s taxes as does a charitable receipt dated January 31 of the same year.
During the last quarter of the year, nonprofits frequently engage in year-end appeals (direct mail), submit proposals to supporting foundations (I have always found Q4 to be busier in the grant writing arena than any other quarter), and organize galas. Requests for support from many worthy causes overwhelm prospects and donors.
And, more of than not, our budget runs on a calendar year.
Some shops analyze their results compared to their goals on a quarterly basis. Some shops do this exercise on a monthly basis. The more frequently you undertake this exercise, the more likely you are to be ever-aware of how your year will eventually shape up.
The Answer? How to Save 2024
In reality, the time to save 2024 was in 2023. Good fundraising requires great planning. Effective direct mail campaigns require careful planning and cannot be thrown together at the last moment. Galas often take almost an entire year in order to be memorable. Pace-setting gifts from donors don’t happen overnight — they often take 18 to 24 months to move from prospect to donor.
Far too often, I have had potential clients reach out to me in the fourth quarter of the year, realizing that they will not reach their intended goals. They are looking for me to wave some sort of magic wand and save them by getting them back on track. Unfortunately, I have never found such a magical device (and doubt that one actually exists).
Please don’t take my candor as an excuse to “call it in” for the rest of the year. It is still a lot of work to reach your year-end targets and save yourself from missing your target. Don’t let your foot off of the accelerator. BUT, pulling a magic saviour out of your fundraising bag is not likely to happen. (That being said, now and then, a prospect/donor surprises you with a gift that far exceeds your expectations. But that is not the norm.)
2024 may be on a certain trajectory. Now is the time to ensure that 2025 is the year that you want/intend it to be. Fundraising is intentional. As I have said many times, if you aren’t asking for financial support in a meaningful way, it is highly unlikely that you receive that support. Add up all the “asks” that you will make in 2025. If that adds up to your budget for 2025, you are toast!
Total asks
I have often said that one reason an institution isn’t raising enough money is because they aren’t asking for enough money. I not only keep a record of the funds raised/committed, but I also inquire about the amount requested. Many times this number is anywhere from two to five-fold the budgeted number.
Tracking your asks will also help you map out your year financially. It is pretty unrealistic (and actually disrespectful to prospects and donors) to put all the asks in Q4 and expect a great finish to the year. If you plan that way and miss having enough solicitations in Q4, there is no room on the calendar to make up for it. Missing your numbers in Q1 allows you time to re-jig your plans and get you back on track for a possibility of a Q2/Q3/Q4 target.
Conclusion
A good fundraiser doesn’t wait for the finance department to inform them of the success or failure of their last quarter. They (should) know this information already. They have been diligently planning, assessing, and re-assessing their fundraising plan. By the time they receive the financials for the quarter, they are likely many weeks into the following quarter. So, the theme of this post is PLAN AHEAD! Way ahead.
Until next time,
L’chaim.
jack
