4 Strategies to Successfully Fill Your Nonprofit’s Annual Fund

At any nonprofit, it can be easy to get caught up in the excitement (and stress!) of planning and executing special fundraising campaigns, such as capital campaigns, giving days or one-off events. 

However, there’s a less flashy — but no less important — fundraiser that must be run successfully each year in order for your nonprofit to stay in operation: Your annual fundraising campaign. 

An annual fundraising campaign is a campaign your nonprofit uses to fill its annual fund, which holds the unrestricted funding that covers your nonprofit’s essential operating costs. In other words, your annual fundraising campaign helps to keep your organization’s lights on and doors open. 

Some nonprofits develop annual fundraising strategies and strong donor relationships that allow them to raise more than is needed to cover their annual operating expenses. In this case, organizations use the extra money to supplement other campaigns, programs or projects as needed. 

At the end of the day, your nonprofit’s annual fundraising campaign is essential for the health and sustainability of your nonprofit’s operations. Here are four strategies to plan your campaign with care.

1. Set a Goal Within Your Reach

The key to annual fundraising success is to set a revenue goal that challenges your team while still being attainable. This will allow you to not only break even on your operating expenses but also devote extra funds to other projects. 

Here are a few strategies for setting a realistic goal: 

• Take a look at last year’s operating expenses, considering day-to-day costs like rent, utilities and staff member salaries.
• Plan how and when you’ll use the money you earn to strengthen your nonprofit’s foundations and make furthering your mission possible. 
• Consult your team members to determine how much more they think your organization can earn this year based on their experience fundraising for your organization.

Using this data and staff feedback will help your organization to set an ambitious but achievable annual fundraising goal. 

2. Be Flexible

Every nonprofit leader knows that learning to adapt is essential in the fundraising landscape. At the beginning of your annual fundraising campaign, make a point to accept the fact that your campaign will likely not go as planned. Even if you have the most detailed and intricate fundraising plan, you’re bound to encounter the occasional hurdle. 

Prepare for the twists and turns of annual fundraising by: 

• Setting a flexible fundraising goal — consider setting a bare minimum goal, a stretch goal and an even more ambitious goal.
• Working with a fundraising consultant who can guide you through challenges as they arise.
• Keeping up with current fundraising trends so you can adapt your strategies to raise more. 
• Communicating openly with your team, letting them know when you encounter obstacles and encouraging everyone to weigh in on the best way forward. 

An old saying rings true with annual fundraising: “Blessed are the flexible, for they shall not be bent out of shape!”

3. Embrace the Year-End Giving Season

Toward the end of the calendar year, donors often feel much more generous. After all, the holidays help create a spirit of giving, and many individuals like to give last-minute donations before the end of the year to maximize tax benefits. 

Ensure you have a special annual fundraising push planned for November or December. To get donors excited about making gifts, you can even participate in the global day of giving, GivingTuesday. A special event or social media campaign can help your organization stand out on that day, so make sure to start planning early! Key Takeaway: Year-end giving season can be a great boon to your annual fundraising campaign—jump in with both feet, especially on GivingTuesday.  

4. Focus on Building Relationships

Annual fundraising isn’t just about meeting your goal and keeping the lights on at your organization. It’s also a wonderful opportunity to connect with your donors and build relationships that will last far beyond one annual giving campaign. 

Try out these techniques to strengthen your donor relationships during the annual fundraising process: 

• Meet with major donors one-on-one to discuss the importance of your annual fund and how they can help you reach your goal. (Fun fact: About 60% of your annual fund will be provided by major donors!) 
• Send regular campaign updates so donors know how close you are to reaching your goal. 
• Personalize fundraising appeals as much as you can, thinking through your donors’ communication preferences and giving capabilities. 
• Thank your donors in heartfelt ways once the campaign is over.

Don’t get caught up in the numbers when it comes to annual fundraising — make the time to bolster your donor relationships, too. 

Your annual fundraising campaign is essential to the health and longevity of your nonprofit. Use the tips in this quick guide to start planning your next campaign. 

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.