Recently I spoke with an executive director who’s considering a capital campaign. One of the first questions I ask anyone who’s planning a campaign is this:
How much do you raise annually?
Side note: If in response to this question a number pops into your mind’s eye — hooray! (Even if you wish that number was higher than it is.) Knowing that number is important!
After a brief pause, the executive director admitted that she didn’t know. Let that sink in.
The Key Metric Every Nonprofit Leader Must Know
I’m not trying to shame anyone if you don’t know your number (especially you, dear reader). But I do want to throw a flag on the field. Red, yellow, white — whatever color flag you think is warranted.
Because a nonprofit leader who doesn’t know how much their organization raises annually is neglecting an important part of the job.
Sadly, it happens more than you’d think. Approximately 25 percent of nonprofit leaders I speak with don’t know their fundraising number (or even a ballpark estimate) of how much is raised each year.
Reviewing Your Nonprofit’s Finances
As a nonprofit leader, it’s important to review the overall finances of your organization every month, including fundraising and other sources of income.
If you were asked today:
How much did you raise this year and last year? And how did you raise it?
Would you be able to answer those questions (at least with guesstimates) without looking it up? Because how much your organization raises is a number every nonprofit leader should know.
If you don’t know how much your organization raises — or how you raise it — stop reading and run to your bookkeeper or donor database and do whatever it takes to find out how much you raise.
8 Sources for How Much You Raise
Specifically, you want to know how much you raise from:
- Individual donors (which will include direct mail, online gifts, events, etc.)
- Fundraising events
- Direct mail
- Online giving
- Grant writing
- Board members
- Recurring gifts
- Major donors (however you define them)
If you tend to avoid fundraising like the plague, it’s not going to get better by ignoring the problem. You can face it head on, create a goal, and do better starting right now!
How to Track this Metric Going Forward
First, create a system for reviewing fundraising numbers regularly.
Begin by familiarizing yourself with the numbers and having your bookkeeper or accountant explain them to you. Review the report format and don’t hesitate to ask questions.
Next, create a system for monthly accountability. Report to the executive committee and the board each month. Force yourself to report out and answer questions. If you don’t know an answer, that’s okay. Find out for next time.
There’s no shame in admitting you don’t know something. But there is shame in knowing you don’t know and not doing anything about it.
So if that’s you, it’s time to get started. No excuses — just action.
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