Happy (Fiscal) New Year!
Happy (Fiscal) New Year!
If my blog title has conjured for you unwelcome images of snow drifts and freezing temps, I apologize. However, there are some among us who are staring down the financial barrel of a June 30 year-end close.
Why June 30?
The decision to end the fundraising fiscal year on June 30 rather than December 31 is typically determined by an organization’s bylaws. Sometimes, the purpose is to align operations with a programming cycle, such as an academic year. The choice can also reflect an element of strategic planning: by choosing a mid-year fiscal close, organizations can avoid the complexities and distractions of aligning their fundraising calendar with the hectic end-of-calendar-year period, which is often dominated by holiday activities and donors’ year-end personal financial considerations.
Why not June 30?
Did you know that June is the second-best month of the year for giving?
The calendar year-end is typically a competitive time for charitable giving, as organizations capitalize on the season’s holiday spirit while vying for donations before December 31 to help donors leverage tax benefits.
Ending on June 30 provides a unique advantage in terms of donor engagement and stewardship. Fundraisers have the opportunity to evaluate campaigns and donor trends at a less crowded time, enabling more targeted planning and outreach.
The clock is ticking.
If June is the last push of your nonprofit’s fiscal year, you know that May is crucial to your year-end results. Here are a few tips for capping off your fiscal year well:
See where you are. How close are you to your annual goal? Which strategies over the past year were most effective?
Set a goal and create a plan. Determine what you hope to achieve in the next six weeks and outline the steps and target dates to get there.
Segment your data. Who has yet to step up with a gift in this fiscal year? Who, based on past years’ giving, has demonstrated willingness to give more than once within a year? Target these groups with special outreach.
Think about the message. The average donor won’t appreciate the idea of a fiscal year-end and you won’t be able to lean on tax- or holiday-focused themes. You will need to be a little inventive in creating a sense of urgency. Take advantage of the overall mood lift inspired by longer days and a more temperate climate. Spring is also a great time to promote gifts “in honor of” others as a way to celebrate Mother’s Day, Father’s Day, graduations, engagements and weddings!
Lean on fundraising fundamentals. Add personal touches as often as possible. Visits and phone calls are crucial to building long-term donor relationships. Identify those donors who are ready for a more comprehensive approach and pursue a unique plan for each.
Involve your volunteers. Outdoors-y get togethers can be staged to encourage volunteers to “bring a friend” as a way to introduce your work to new potential donors.
Don’t forget stewardship! June is a great time to share impact reports. Make them brief (you don’t want to overwhelm your audience with data) but meaningful (make sure they get the point).
A June 30 fiscal year-end will make a spring push imperative. But even if you have another six months to make your goal, why not use these strategies to help get you there sooner? You may just find a whole new donor segment that is more receptive, and more generous, when the world is in bloom.
Click here to learn about More Than Giving’s fractional fundraising professionals. We have the expertise you need to cap off a winning fiscal year!