Create a financial overview that wows donors
Your financial overview should tell a compelling story
All too often I read a terrific proposal narrative about your project and I am sold. However, then I read your financial overview and it is the opposite of compelling - instead it is confusing and hard to understand. All too often you, my nonprofit friend, forget that the story you tell through your financial overview is as important as the proposal about the project you spend so much time writing up for us donors to review.
Read on to learn how to explain your financial overview for a good result.
Reminder: This blog post is part of a seven part live training series that I published on my podcast to help you, my nonprofit friend, be the best fundraiser possible. I care about your success. Check out my podcast on any of your favorite streaming sites, and type in “Do Your Good.”
Use this plug and play template to be clear about what you want funded:
Our budget is _____ [X Amount]
We are requesting ______[X Amount] from you to achieve success at __________ [describe]
Top ten list:
Writing an accurate and compelling financial overview for your organization is not for the faint of heart because it takes time. The good news is once you’ve put it together you can use the narrative over and over again - with small updates each month/year.
Ok …. now for the top ten things you should include in a financial overview
Do you have a cash reserve/or rainy day fund?
Is your budget balanced?
Do your actuals align with your budget (and if not explain)?
Do you have anti-fraud measures in place?
Do you understand when you can and can not ask for money to lobby?
What is the overhead you charge on a routine basis to accomplish your goals?
Are you paying staff living wages?
Do you have diverse funding sources?
What is your fiscal year?
What are other funders contributing to your cause?
If you want to learn even more about the top ten list … I made a short video that gets into quite a lot of detail. Check out that link here (be sure to scroll down to the “Crack the Code” course to find the lesson titled “Deep Dive into Budget and Finances.”) I also have a downloadable resource I offer below that also offers you more information about the top ten list.
Project versus a general support
A project focuses on funding for one program you wish to accomplish. As such, the donation will be restricted only to accomplishing that particular project. Whereas, a general support request asks a donor to fund your entire organization with no strings attached. You may prefer to ask for a general support proposal, but often times a donor is interested only in one of your projects. You definitely want to raise money from both types of donors - don’t leave money on the table. I offer you a downloadable template you can use to help you write up a project proposal when that is what a donor requests.
Avoid this mistake
You don’t include your income and only expenses, or you forget to include the top ten items in your financial narrative (the only time it’s ok not to include any of the top ten things, is if a donor tells you they do not need the information).
Please download my free information that can help you to create a project budget, and more detail about the top ten things to include in your budget.