What to Do When You Have a Mid-Year Budget Shortfall

I’ve heard something like this at least a half-dozen times this week…

“We used to receive grant funding but that is way down.” Or “We received PPP money and that’s running out.” Or “During and after the pandemic our donors really stepped up, but they aren’t giving like they used to.”

Here’s what’s going on in most cases: most nonprofits set their budget based on giving the previous year.

But we just lived through a three-year period that was anything but normal. So if you based your 2023 budget on 2022 giving, you may find yourself with a funding shortfall the second half of the year begins.

This means you need to do all you can to raise as much money as possible the second half of this year.

Even though you’re faced with this problem, this is actually GOOD news for your fundraising. Why? Your shortfall is a problem donors can solve!

Figure out where your funding gaps are, and ask your donors for help filling them. Major donor development, mass donor appeals and even a special event are all successful tools nonprofits use to erase their shortfalls.

The fundraising shortfall you’re facing is a fundraising opportunity for your donors to step up to help in a big way.

Do not fear! Make the most of this time to be bold and confident in your fundraising outreach. You can do it!

Donors love to feel needed. And I suspect you’ll be surprised and encouraged with the results!