How to Achieve Your Fundraising Goals: Complete Guide
Fundraising Goals Wall Chart
Nonprofit fundraising is a giant topic and it can be incredibly complicated.
Nearly all 501(c)(3) public charities need to fundraise and there are over 1 million of these organizations in the US.
The number of websites, tools, and resources aiming to help nonprofits with fundraising is mind-blowing – and growing every day.
It can be hard to know where to start – especially if you’re a new fundraiser, executive director, or board member. You don’t need endless options.
You need simple, timeless, battle-tested fundraising information that you can put to use immediately. You need to start raising money yesterday.
Help is here. This guide to achieving your fundraising goals is a free and comprehensive resource to help you to think about fundraising, goal-setting, tool utilization, and compliance.
To keep things simple yet comprehensive, I’ll break down this guide into four Ps: The Pitch, The Platform, The People, and The Plan. But first, let’s talk about fundraising goals.
Looking for more support fast? Check out our suite of nonprofit fundraising trainings and tools.
What Is a Fundraising Goal?
Fundraising is the act of seeking and soliciting voluntary contributions to a cause, candidate, or campaign. A fundraising goal describes how much money you need to raise, by when, and through what methods in order to achieve your organization’s desired impact.
Setting goals for fundraising can feel silly to some. Isn’t the goal to raise as much as you can? Trust me when I say that setting goals for your activities and your outcomes will get you much further than just aiming for the moon.
Plus, we know from tons of research that goal-setting is incredibly effective at behavior change - any kind of behavior change (weight loss, productivity, and yes…fundraising).
“We know from tons of research that goal-setting is incredibly effective at behavior change - any kind of behavior change (weight loss, productivity, and yes…fundraising.)”
Most nonprofit fundraising goals start with the budget. Typically a nonprofit board will pass a budget at least a few weeks before the start of the new fiscal year, laying out exactly what the organization expects to spend.
Unlike many for-profit companies, nonprofits and their budgets are driven by impact, not stock price or profit margins. Thus fundraising goals are not just about dollars, they’re about the impact those dollars will create.
To accomplish their mission, nonprofits must either raise money, sell something of value, or dip into savings. The vast majority of nonprofits don’t have meaningful savings so they must raise new money every year - which really means they are raising money all the time.
So if the “Save the Kids Foundation” plans to spend $3 million toward its mission in 2024 it will pass a budget showing, in broad strokes, how it will raise that money so it can spend that money. The budget is your first real fundraising goal.
Fundraising goals should be specific and time-bound. In this case, it would be “Save the Kids Foundation aims to raise $3M in the next 12 months.”
The good news is that setting goals is powerful, effective, and free. I recommend checking out the SMARTIE goal-setting method.
You can even track your success during the year with a nifty wall thermometer!
Enlarge it, laminate it, and use it for every fiscal year.
How Do I Achieve My Fundraising Goals?
Most successful fundraising efforts combine clear goals with an equally clear fundraising plan. (If you want a jumpstart, grab my fundraising plan template.)
A key part of setting fundraising goals and writing a fundraising plan is to get very specific and very realistic. You need to decide who will do what and by when. I strongly encourage you to think very strategically about setting goals so that you’re accomplishing multiple things with each task.
You may even want to look at your plan as a calendar. Using a calendar for fundraising can help you carve up a better division of labor across the organization and make sure you aren’t packing all your activities in the same few months.
The Fundamentals of Fundraising
I think of fundraising as mostly consisting of three Ps:
The Pitch (what you say do donors)
The Platform (how you deliver that pitch)
The People (who is doing the fundraising)
The Fundraising Plan (how you will coordinate the other 3 Ps to achieve your goals)
Let’s break this down further.
The Pitch
Money doesn’t just appear from the sky. You must ask for it verbally, in writing, or online (or in other ways).
You must have a compelling, consistent, and accurate explanation of why what you do matters. I call this a pitch, though it can also be known as a “case statement” or “needs statement.”
A case statement follows a very popular format also used in raising money for startup companies. Here are the basic elements:
There is a problem in the world that needs fixing
That problem is solvable
My organization has a great/unique/best way to solve it
This is what it will cost…
Call to action: will you pitch in?
While the format is simple, sometimes the most challenging part is figuring out how to say a lot with a few words. So if you’re just getting started or are struggling with your pitch, I offer trainings on how to create an effective pitch.
Another element to keep in mind when crafting your pitch is the power of storytelling. While facts, statistics, or lists of programs are important, storytelling is often what moves donors to action.
Here’s an example of a case statement that uses storytelling:
Detroit is an iconic city with a complicated past 50 years. Never before has a city seen a million people leave and, with them, the city’s tax base. Our client, Rebecca, has lived in Detroit for 70 years. She’s witnessed the city’s shift from its heyday as a cultural and business hub, into a struggling community starved for resources. Disheartened, she even considered leaving. But something started happening once our organization, Detroit WINS, began collaborating with businesses, government, and creatives to make Detroit THE place for events, conferences, and new home development. Rebecca has decided to stay in her hometown where everyone and everything she has ever loved has been. Detroit is changing for the better. But there is still so much more work to be done – and we can’t do it without you. Will you join us as a title sponsor for our annual WIN WINS Breakfast?
One of the most important things about your pitch or fundraising language is your impact. As your organization ages, it will hopefully rack up successes. Donors want to learn about your impact and successes. Fold these into your case for support, particularly part three where you describe how your organization is uniquely able to address the problem.
The vast majority of fundraising derives from your case statement, which is why you want to take the time to make it clear and compelling.
The Platform
Once you know what you want to communicate, it’s time to share it with the world. The “platform” is the means by which you will deliver your pitch or case statement. Your platform could be email, website, face-to-face, mail, or at the podium at your gala.
Some people get overwhelmed at the platform planning stage, simply because there are so many directions it could take. But again, our goal is to keep it simple and effective.
Direct One-on-One Solicitation
For direct solicitation of one person by another, there are tips and tactics that can improve your effectiveness. To learn how fundraising experts do it, check out my Major Gifts Masterclass.
As you engage people to give to your organization, it’s imperative to not just focus on one single gift. You want people to give again and again over time. If you are lucky enough to have major donors and companies supporting your organization, you’ll want to explain the benefits that come with deeper commitments.
As your organization grows you’ll have dedicated fundraising staff and possibly someone whose entire job it is to deal with major gifts.
The best bang for your buck is to get average donors to become sustainers. When you get donors to commit to monthly giving, the lifetime value of that donor goes up and you spend less time and energy getting every single donor to renew every single year.
It’s easier for donors, too, and can help them feel more connected to your work.
Online Fundraising
Most organizations will ask for money on their website and you should have fundraising software that works easily with your website, your donor database, and your bookkeeping/reporting software. Websites are sometimes called Content Management Systems (CMS) and email blast software and donor databases may be called Constituent Relationship Management (CRM) software.
For those raising money on social media, there are specific tools on Facebook and Instagram to help you raise money. I am bullish on Facebook as the standout best platform to raise lots of money quickly with no restrictions and no fees. Get trained on Facebook fundraising here.
You can use Facebook for birthday fundraisers, personal fundraisers, campaigns, and more. You can also raise money for individuals on Facebook, not just charities.
Marketing Materials
Many nonprofits will create marketing and fundraising materials throughout the year to share in person, at events, or through the mail. One popular tool is an annual report which can be used in all sorts of ways for years to raise money. Spruce up your annual report with fundraising graphics and images of your work. This tactic is called “show, don’t tell” and has value in showing the work instead of just telling possible donors about what you do.
Grants
Grants tend to be larger but they usually have restrictions and involve reporting. Make sure you have the capacity before embarking on a grants program. If you’re ready to get started, I have a free grant template that can help.
Events
Many nonprofits produce online or in-person events. Events are great for building energy, getting people more engaged, and finding new people to support your organization. They can be as simple as a house party or as complicated as a marathon or gala. Events can take a lot of staff and volunteer time to produce, however, so you’ll want to be sure you’re considering the event cost against fundraising potential.
The People
No organization can raise all the money it needs with one person doing all the work alone. People need people.
To hit your fundraising goal, it's important to have a division of labor - who does what by when (WWW). Everything is easier if everyone shares the load.
I am a firm believer that boards, in a way, “own” the nonprofit organization. In the eyes of the government, boards are ultimately responsible for being stewards of the organization, its mission, and its money.
Boards should pass budgets and then show up for the raising, not just the spending of money.
Nonprofits enjoy special status and prestige under the law so board members should be pitching in to deliver the pitch through multiple platforms.
In short, board members own the nonprofit corporation and all owners of corporations are responsible for revenue. Even if board members were not told when they were onboarded that fundraising was in their job description, it is.
So fundraising starts with the board. The board may hire an executive director and delegate most fundraising to them. And then that executive director may hire more people to help with fundraising, but the board is always helping.
Working with boards throughout my career, I’ve compiled a list of 100+ ways your board can fundraise without having to ask people directly for money. If your board is ready to help (even reluctantly) a board fundraising worksheet can get them moving and keep them on track.
I have also found that boards need training and structure. Boards will frequently create a fundraising committee to hold the board accountable for fundraising. I offer board training to help you get your board fundraising and delivering results.
The Fundraising Plan
The fundraising plan is where you bring the other three Ps together in a written document. Like a project plan, a fundraising plan lays out your goals and the steps you’ll take, and the resources you’ll need to get there. It also includes a calendar element to make sure activities happen on time (so that dollars will be accessible when you need them).
While some fundraisers like to create a veil of “complexity” around fundraising planning, the truth is a fundraising plan does not have to be complicated. It simply needs to be clear, specific, and goal-oriented. To get started, you can check out my fundraising plan template.
Fundraising Compliance
If you are just fundraising for your local river clean-up effort or to help a friend with medical expenses, you probably aren’t going to encounter many rules. But for those of us raising money for tax-exempt organizations, there are many things to consider to stay on the right side of the law.
There are a few critical areas of compliance for the board and staff of 501(c)(3) organizations, as well as compliance responsibilities for executive directors.
Federal Fundraising Compliance
Once you are approved for 501(c)(3) tax-exempt status you generally have it for life, but you are expected to file a Form 990 annual information report and if you don’t file three years in a row, the IRS will strip you of your status, whether you were raising money or spending money in this period at all. You always want to make sure that you are thanking donors with a receipt, raising and spending money for approved tax-exempt purposes, and staying true to your mission. Avoid self-dealing, conflicts of interest, or any appearance of or actual usage of money raised for private gain or prohibited purposes.
Find out more at Bolder Advocacy, Harbor Compliance, and Nonprofit Law blog. *(I am not an attorney and do not give legal advice. Confirm all this with an in-state attorney.)
State Fundraising Compliance
Nonprofit organizations incorporate in states. The state you started in has rules about renewing your status regularly (usually annually). In addition to re-registering, you may also have to be approved by your state’s secretary of state or attorney general for a solicitation license, which lets the state know you are asking people for money and therefore creates legitimacy for you if anyone were to accuse your organization of being shady or a scam.
You can point to your state solicitation license and registration as proof you are legit.
If your organization lobbies elected or appointed leaders you may need to file paperwork for that as well. Depending on how regulated your sector is or how sensitive the topic that you work on (like serving children), there may be additional compliance requirements.
Finally, if you accept government money or are engaged in “games of chance” like raffles, sweepstakes, or contests, or offer alcohol at fundraising events, there may be additional rules to look into.
Some other jurisdictions like cities or reservations may have additional rules. Don’t let all these rules scare you, though. Spend an hour or two talking with an expert or attorney and keep track throughout the year.
Yes, Fundraising Goals Are Achievable
Fundraising is a huge industry with lots of complexity. New data, articles, and studies are coming out all the time but if you stick to the battle-tested and tried and true tactics you will be way more likely to achieve your fundraising goals.
To keep things easy, think about fundraising as three Ps: your Pitch (your message to potential donors), your Platform (where you will do your asking/pitching, and your People (the individuals helping with fundraising tasks). Taken together this is your Fundraising Plan - who does what by when (WWW).
In addition to nailing the fundraising strategy, steps, and planning, you also need to think about compliance so that none of your fundraising leads to violations (or worse) at the state or federal level. If you use the tips, resources, and links in this article you will be ahead of 80% of the nonprofits out there.
