Establishing a Budget
“How do I establish a budget for my project?” is one of our most frequently asked questions. Depending on how you approach the issue, the answer can be simple or more complex. If at all possible, it is best to plan ahead. If most of your funds have already been raised, then obviously pre-planning is not possible, but you will still need to set a budget.
TIP Donor recognition used early as a marketing vehicle produces more funding than a display installed after the money has been raised.
Over the years, many fundraisers have stated that 1% – 3% of the fundraising goal should be spent on donor recognition. If only it were that easy, the decision would be done. But, as we look closer we discover there is much more than picking a percentage and moving on.
- First, analyze your historical recognition in comparison to your local market competitors. After all, you are using donor recognition not only to thank donors but also to market your brand and make it easier to solicit future gifts. If your local not-for-profit competitors have weak or ineffective recognition, then you can, without spending large sums, create a display that will provide you with an advantage in the fundraising arena.
Conversely, if other not-for-profits have well-planned donor recognition (you probably need to visit a number of other organizations to see for yourself), then you’ll need to plan diligently—not necessarily to outspend them, but to outshine them. Donors want to feel needed and important to your organization. They want to know how you have used their funds to improve your mission. They want to be acknowledged, in front of their peers, for their thoughtfulness. They do not want you to over-spend on recognition. This is why a donor recognition display should communicate and fundraise simultaneously.
- Second, you need to determine the type of funding you are recognizing (annual, capital, endowment, planned, or future) and determine the time frame of the gifts. All donor recognition must be able to accommodate some growth, though some recognition needs significantly more room to grow than others. A capital campaign, as an example, will have a fairly defined life and will not need as much growth and flexibility as a cumulative gift display.
A major factor in the decision process is whether or not you desire the ability to update and add donors in-house. Usually the more upscale the donor recognition, the more significant the gifts being recognized, thereby increasing the need to rely on the fabricator to provide updates to the display.
Repeat funding campaigns, such as annual funds, are more easily and more cost-effectively managed and updated in-house. We designed our Changeable Recognition and Information Display to meet this need, examples of which can be found on our website. It gives the not-for-profit the ability to do frequent changes using their own printers.
Even if you are budgeting for upscale donor recognition, the Changeable Recognition and Information Displays can be a useful part of the campaign. Changeable Recognition and Information Displays provide ongoing Communication and Donor Recognition during the fundraising campaign. It allows you to market the campaign to all who enter your facility, and to recognize and communicate with donors during the campaign, thus assisting in fundraising.
- Third, integrate the following factors into the budget process: the number of donors, the number of giving levels you wish to recognize, and how the investment in your organization is paid (promises made versus pledges paid). The number of gift categories recognized can improve the size of many gifts pledged, but it also increases the cost of the display.
- Fourth, the media used to create the recognition display, whether it be made in Corian, Granite, Glass, Bronze, Wood, Stone, etc., will have a direct bearing on the cost of the display. Originality and complication of design, material costs, ease of fabrication, difficulties in shipping, and installation all affect the total cost of the recognition display.
- Fifth, where you begin the individual recognition affects the display size and cost. If a $250 gift is considered good, then that might be the starting range. Conversely, if $250 is not a significant gift, but $2,500 is, then begin individual acknowledgment at that level and either group gifts below this threshold in tablet form or leave off entirely.
So, once you have scoped out the competition, determined the type of campaign you are recognizing, determined the number of actual or expected donors, determined the desired style and media preferences, and determined the beginning recognition level, where do you go from here?
Perhaps the easiest solution is to complete the RecognitionMap found on our website and submit it to us for analysis and personal, no-obligation consultation. Completing the map will help you focus on the questions raised above, and will allow us to address the cost and budget issues with you. Early consultation can help you focus your thoughts, and early design can assist you in your fundraising. In addition, early donor recognition can lead to increased gifting and earlier completion of your campaign.
To learn more about RecognitionMap please visit our website at www.recognitionart.com.
RecognitionArt’s Artistic Value
RecognitionArt is committed to ensuring that your donor display beautifully represents your organization using various forms of art. Our designs are one-of-a-kind and we truly care about your success. Our displays are known for their art and text used to ensure a compelling reason to view the piece and to inspire giving throughout its longevity.
With a high retention rate of clients, RecognitionArt is considered one of the premier donor recognition companies in the country. Contact us today to learn more about how we can help you design an artful and beautiful donor wall.