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 6: Write & Implement Plan
Sample Finance Plans
List of Case Studies
References & Additional Resources
Step 3 (continued). Calculating an Annual Fundraising Goal
To establish an overall fundraising goal, there are two simple methods:
- Create an expense budget and use the amount of your total expenses (plus a modest surplus) as your fundraising goal.
- 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:
- 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.
- 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.
- 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|
|Taxes & Fringe Benefits||27,550|
|Postage & Shipping||10,500|
|Materials & Supplies||13,125|
|Revenue & Support|
|Individual & Workplace Giving||$40,000|
|Fees for Service||10,000|
|Sale of Materials||5,500|
Citation: See Resources, Works Cited #8