What to do about the
fiscal year-end that finishes
in the worst giving time
of year? We all know
the downward curve in giving
from January to August,
and then the wonderful fall
giving season begins.
But what about all of
the organizations (especially
schools) that end their
fiscal year on June 30th
and begin a new year on
July 1? What is the motivation
for giving for our donors
at this time of year?
First, we have to put
ourselves in the mindset
of the donor. Why would
I be motivated to give to
a ministry by June 30th?
It is not the usual time
for “extra” gifts. That
is usually done during October,
November, and December.
So what is my motivation
for giving now?
I suggest it could be
one of the following:
- I am personally
involved in this organization
(or my children or family)
and I care about its
success.
- I care about the
cause (camping, education,
poverty, the arts, etc.)
and I will give extra
gifts to further that
cause.
- I believe this is
a solid organization
and I want it to be
successful at year-end.
Maybe you can add some
other ideas. The important
thing is to focus on the
DONOR’S need to give not
on what YOU need to meet
your budget goals.
You must answer the question,
“Why is this organization
worthy of my support?”
This is what the donor will
consider.
It is important that
your organization reach
its development or annual
fund goals. Here are some
reasons:
- It demonstrates
wise planning by your
leadership.
- It allows all ministry
programs to be fully
funded.
- It puts the organization
on a stable foundation
for the next fiscal
year.
The calendar year versus
fiscal year is always a
bit of a struggle for the
development office. For
fiscal management considerations
a fiscal year in June/July
or August/September can
provide a better financial
position and annual report
than a calendar year end
when bank accounts might
present a false notion of
“money in the bank”.
From a donors’ point
of view the calendar year
is the most important. They
do their giving based on
the calendar year as they
count their yearly giving
for tax purposes. They remember
whom they give to by the
year, even remembering multiple
years back.
So the organizations
that do not have a calendar
fiscal year must work EXTRA
hard to create motivation
for giving at the June 30
fiscal year end. It is not
a natural ending date to
the donor.
As you communicate with
your donors now, remember
to “re-teach” them about
the fiscal year versus the
calendar year end. Remember
to let them know that pledges
for the end of 2009 are
very wonderful, but they
do not meet the budgeted
needs or the ministry already
implemented.
A June 30th Fiscal Year
End is a more difficult
path for the development
officer. But when you try
to look through the donors’
eyes and hearts, it is easier
to find a way to connect
them to the ministry they
care about and at the same
time meet the management
goals of the ministry.
My prayer is that this
will encourage you in your
ministry of development
– blessings to you!
John
Dr. John R. Frank, CFRE
