Too often, nonprofit organizations set goals that resemble wishes rather than realistic targets. These numbers reflect aspirations rather than what historical data suggests is possible. While it is important to aim high, unrealistic goals can lead to frustration, burnout, and unmet expectations. This is especially true for new development staff who are often tasked with achieving targets that are not grounded in reality.
For example, an organization might set a $5 million fundraising goal despite raising an average of $500,000 annually over the past three years. Or they might expect a new chief development officer to triple revenue, even though their historical growth has been only 5 to 10 percent year over year. This approach sets the stage for disappointment.
Here is a practical way to set goals that are both achievable and inspiring for your team.
Step 1: Let History Be Your Guide
Begin by reviewing your fundraising performance over the past five years. Analyze the percentage increases and decreases during this time to understand your organization’s growth trends.
For instance:
- If your average growth rate has been 15 percent annually, use this as your baseline and set a goal that reflects a 15 percent increase over last year’s total.
- If growth rates have fluctuated, calculate the average of the past three years while excluding outliers such as one-time gifts or grants that are unlikely to recur.
Using historical data provides a clear benchmark and ensures your goals are grounded in past performance.
Step 2: Create a High-Low Range
Once you establish your baseline, consider any new opportunities or commitments that might increase your fundraising potential. Have you built strong relationships with donors likely to give more this year? Are there new initiatives or campaigns in place?
Incorporate these factors to create a high-low range for your goals. For example:
- A low goal reflects your baseline growth, such as a 15 percent increase.
- A high goal includes potential revenue from new initiatives or donor commitments.
This range creates a realistic framework that accounts for both predictable growth and opportunities for expansion.
Step 3: Communicate Goals Clearly
Share the data and reasoning behind your goals with your board and stakeholders. Explain how you arrived at these targets and why they are both ambitious and attainable.
If board members feel the goals are too modest, involve them in the process. Ask how they can help increase the organization’s fundraising capacity. They might:
- Use their networks to introduce potential donors.
- Participate in a board giving program to lead by example.
- Advocate for the organization in their professional and personal communities.
By engaging the board, you create a sense of shared responsibility and collective ownership of the goals.
Step 4: Build Success with Thoughtful Planning
Data-informed goals provide clarity and set a strong foundation for success. They allow your team to focus on meaningful work instead of chasing targets that are out of reach. Grounding your planning in historical trends and realistic projections helps ensure that everyone is aligned and ready to work toward achievable outcomes.
When your goals are clear, your team and board can channel their energy into building relationships, securing resources, and advancing the mission. With thoughtful planning and collaboration, your organization can meet and exceed its goals in a way that inspires confidence and supports sustainable growth.
