Setting the right expectations has never been more important

It’s that time of year when the development of budgets for 2009/2010 is causing late nights and loss of sleep due to overcomplicated phasing spreadsheets, whilst managing campaigns at one of the busiest times for the sector.

However this year our thinking has to be even more considered than usual. In the current economic climate it has never been more important to look at different scenarios and to plan for what the next year to eighteen months might hold for fundraising.

Each day we are met with doom and gloom from the media about the economy and with predictions that the country will feel the real impact in the next financial year – we need to be prepared.

At TW CAT we help our charity partners to produce their budgets and as a result of the recession we are now presenting more than one scenario in order the better to manage expectations. Typically this means:

1) the plan we would be confident of meeting if the economic forecasts don’t worsen and

2) a worst-case scenario if we see fundraising income dropping.

Although our teams are optimistic that supporters will keep giving even if they are affected by the recession, communicating the possibility of falling income to the Finance Director, Trustees or Chief Executive is crucial.

Not only this but you need to show that investment in retaining all the donors you already have is key to maintain future income growth.

So do spend a little extra time this year setting expectations with the senior management team and you’ll be well placed to weather the uncertain climes ahead.