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##### Progression Tracker
Introduction
Do You Need a Funding Plan?
Introduction to the Six Steps
Step 1: Establish Priorities
Step 2: Assess Capacity
Step 3: Set Fundraising Goals
• Creating a budget
• Calculating a fundraising goal
Step 4: Identify Funding Sources Step 5: Evaluate & Select Funding Sources
Step 6: Write & Implement Plan
Final Quiz
Sample Finance Plans
List of Case Studies

# Step 3 (continued). Calculating an Annual Fundraising Goal

To establish an overall fundraising goal, there are two simple methods:

1. Create an expense budget and use the amount of your total expenses (plus a modest surplus) as your fundraising goal.
2. Start with last year's income. Add a modest amount to allow for realistic increases in fundraising. Subtract any amount from unusual sources that you don't expect to be repeated this year (e.g. a bequest).

If you already have some expected income and simply want to calculate how much additional fundraising you will need to do, use the following formula:

1. Add up all of the program expenses (both direct and indirect) from your budget, taking into account any cost reduction methods you may have employed.
2. Next, calculate the guaranteed revenue for the next year. Guaranteed revenue is income that has already been secured for the upcoming fiscal year. This revenue could include multi-year grant money, interest income from an endowment, or earned income from renting a portion of your property.
3. You can now calculate your fundraising goal by subtracting your guaranteed revenue from the total of your program expenses:

Additional fundraising goal = expenses (plus 5%-10% surplus) - guaranteed revenue

Below is an example of a calculation of an additional fundraising goal.

Example formula for calculating your fundraising goal.

The example shows a worksheet for a sample watershed group showing costs and expenses totaling \$279,650, a 5% surplus of \$13,983, and expected revenue of \$275,500. The answer is calculated using \$279,650 (expenses) plus \$13,983 (5% surplus) minus \$275,500 (revenue) for a fundraising goal of \$18,133.

Costs & Expenses Revenue & Support Calculation Worksheet Salaries \$109,275 Taxes & Fringe Benefits 27,550 Consultants 16,500 Workshops/Trainings 14,000 Printing 14,750 Staff Travel 5,000 River Festival 31,750 Telecommunications 10,500 Postage & Shipping 10,500 Materials & Supplies 13,125 Occupancy 13,000 Insurance 4,500 Donor Recognition 2,200 In-kind Expenses 7,000 Total Expenses \$279,650 5% Surplus \$13,983 Foundations \$75,000 River Festival \$55,000 Corporate Giving/Sponsorships \$40,000 Individual & Workplace Giving \$40,000 Government Contracts \$34,000 Fees for Service 10,000 Board Contributions 10,000 Sale of Materials 5,500 Interest Income 1,000 In-kind Donations 5,000 Total Revenue \$275,500 Fundraising Goals \$18,133

Citation: See Resources, Works Cited #8

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