Self-Test: Are Your Income Projections Realistic?      

Joe was hired four months after the start of the new fiscal year. Among other duties, he was asked to raise money for his organization. The income he was responsible for included $150,000 in grants, $100,000 from corporations, and $90,000 from individuals. Was Joe set up for failure? Or was he given realistic goals that incorporated a reasonable growth stretch?

Unreasonable income expectations include too little stretch, like not seeking any growth to meet inflation. They also include too much stretch, like going from zero to a half million dollars with a new funding source. The first causes underperformance and reduced revenues. The second, too much stretch, stresses everyone out and results in budget shortfalls. Joe, you, and your leadership want and need expectations that are "just right," that is, expectations that are realistic and positive. These are expectations that include growth to cover expected inflation and to respond to the increased effort you make. Use this test to determine if your projections are realistic. To take the test, read the sentence below and then check each true-for-your-organization description.

Expectations about the nonprofit income to be raised next year are based on:

(  ) 1. Experience.

Does the income estimate represent reasonable growth based on your experience from recent years? In the last three years, Joe's organization raised $120,000, $90,000, and $80,000 respectively from individuals. Joe checks yes.

(  ) 2. Industry Standards.

Do nonprofits, ideally in your sector and genre, regularly achieve this level of income or income growth? For example, according to American for the Arts, fifty percent of nonprofit arts organizations' income is earned. Joe calls his statewide service association to confirm that the level of corporate support is common. He marks a second yes.

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More Resources about Fundraising and Income  

For more about setting realistic income projections see: 

Setting Realistic Expectations   

For more on nonprofits and funding opportunities, purchase from our collection of audio downloads, especially:

Money-tastic #2: Nonprofit Income Opportunities   

Money-tastic #3: Creative Revenue Streams for Your Nonprofit.    

Both are great ways to learn new fundraising and income ideas to help your nonprofit.

#23. Let's Communicate, Not Just Talk. Create a vocabulary list that includes commonly used vocabulary. Share this with your board, staff, and volunteers. Over time nonprofit income and fundraising has become lingo-driven. List terms like donor pyramid, capital campaign, feasibility study, planned gifts, and endowments. Add this list to your board and staff orientation packet. Give a prize when newbies add a word being used but not listed. Post it on your website for easy reference. Fundraising is easier with shared meaning.  

With our series of tips booklets Grant-tastic!, Time-tastic! (Nominated for the Terry McAdams Award,) and Money-tastic!, you can improve the the way you write grants, save time and earn more money at your nonprofit organization Order copies today.     

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Is Direct Mail Dead or Very Much Alive? Learn how direct mail fits with all your other social media efforts, how you might get started if this is new territory plus tips for seasoned direct mail users. Audrey shares what she knows based on 34 years of successful direct mail fundraising.

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