How to Set Fundraising Goals for Your Nonprofit

Learn how to set achievable fundraising goals for your nonprofit with this strategic, step-by-step guide. Plan effectively and boost your impact.

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24 Nov 2025 — 4 min read

Effective goal-setting is a cornerstone of any successful nonprofit organization. Yet, many nonprofit leaders find themselves overwhelmed by the process of setting realistic yet ambitious fundraising goals that align with their mission. In this guide, inspired by insights shared by nonprofit leader Amber Melanie Smith, we’ll explore step-by-step strategies to establish fundraising goals that not only resonate with your community impact objectives but also position your organization for sustainable growth.

Whether your nonprofit focuses on child sponsorship programs or other vital causes, this guide will equip you with the tools and frameworks needed to plan, budget, and strategize effectively for the year ahead.

Why Fundraising Should Start with Community Impact

A common mistake nonprofits make when setting fundraising goals is starting with a monetary target. While understandable, this approach can lead to arbitrary figures disconnected from the true needs of your mission. Instead, the process should begin at the heart of your organization: the impact you want to create.

Step 1: Define Your Community Impact Goals

At the core of your fundraising strategy lies the question of impact: What do you want to achieve for the community or population you serve? Smith emphasizes the importance of gathering your team to discuss and brainstorm the following:

What’s working well in your current programs that you’d like to sustain?
What isn’t working as intended and could be scaled back or adjusted?
Should you aim for wider impact (serving more people) or deeper impact (providing enhanced support to the same individuals)?

For example:

If your program served 100 children with free lunches last year, do you aim to expand to serve 150 children?
Alternatively, could you deepen your impact by providing additional support to the same 100 children, such as helping their families access food pantries?

Engage your community through surveys and conversations to ensure that your goals are informed by the needs of those you serve.

Research and Budget: The Backbone of Strategic Planning

Once your community impact goals are clearly defined, the next step is to determine how much it will cost to achieve them.

Step 2: Conduct Comprehensive Cost Research

Breaking down programmatic and operational costs is crucial for building an accurate and actionable budget. Consider the following steps:

List all necessary resources: Identify everything needed to achieve your goals, from program materials to staffing, and research their costs.
Leverage past data: If you’re continuing or expanding an existing program, review historical budgets to estimate future expenses.
Involve your team: Delegate cost research by department (e.g., programs, operations, marketing). This not only shares the workload but helps everyone understand the financial realities of advancing your mission.

Step 3: Build a Draft Budget

Using the information gathered, create a comprehensive budget document. A simple spreadsheet can suffice, with columns detailing:

Current annual expenses
Estimated costs for growth or new initiatives
Total projected expenses

Include a buffer for an emergency fund (10% or more, if possible) to safeguard against economic fluctuations or unforeseen challenges.

Setting Fundraising Goals: Beyond Balancing the Budget

With your budget in place, you can now set a fundraising goal that aligns with your projected expenses. Importantly, your fundraising target doesn’t have to match your expenses exactly - building surplus funds for an operational reserve is a sign of financial health.

Developing a Smart Fundraising Strategy

A well-articulated fundraising strategy is essential for turning your goals into action. This involves assessing past revenue streams and projecting future income.

Step 4: Map Out Funding Sources

Identify the various funding sources available to your organization, such as:

Individual donors
Corporate sponsors
Grants (government or private foundations)
Program fees or earned income

Use historical data and current conversations with donors to estimate how much you can reasonably expect from each source. For example:

If a foundation gave $10,000 last year and has expressed interest in renewing its support, include this in your estimates.
If a corporate partner is considering sponsorship, make an informed prediction based on ongoing discussions.

Step 5: Account for Funding Probabilities

Not all funding is guaranteed, so assign probability percentages to each potential revenue stream. For instance:

Committed/expected: Funding with a 100% likelihood (e.g., verbal or written commitments).
Applied: Grant applications submitted, with a 50% likelihood of receiving funding.
Likely: Strong prospects without formal pledges, estimated at 75%.
Stretch prospects: New or untested sources, with a 10% chance.

By categorizing funding sources, you can calculate your total likely revenue and identify any gaps.

Addressing Funding Gaps and Leveraging Strengths

Once you’ve identified gaps between projected income and expenses, focus on strategies to close those gaps. Smith advises leaning into your organization’s fundraising strengths. If corporate sponsorships are your strongest revenue stream, prioritize seeking additional sponsors rather than pivoting to new, unfamiliar methods such as grants.

This targeted approach helps you maximize efficiency and capitalize on your team’s expertise.

Key Takeaways

Start with Impact: Define your community impact goals before setting a financial target. Decide whether to aim for wider or deeper impact.
Research Costs Thoroughly: Build a detailed budget by listing resources, estimating costs, and leveraging past data.
Involve Your Team: Encourage collaboration in cost research and strategy development to foster ownership and awareness.
Set Realistic Goals: Align your fundraising target with projected expenses, including a buffer for an emergency fund.
Diversify Funding Sources: Analyze past revenue streams to estimate future contributions and assign probabilities to potential funding.
Close Gaps Strategically: Focus on strengthening your most effective fundraising channels rather than overextending resources.
Track Progress: Use tools and data to monitor campaign performance and adjust strategies as needed.

Conclusion

Setting impactful and achievable fundraising goals for your nonprofit doesn’t have to be an overwhelming task. By grounding your strategy in the community impact you seek to create, conducting thorough research, and leveraging your team’s strengths, you can build a plan that not only meets your financial needs but also furthers your mission.

Remember, the success of your fundraising efforts depends on alignment - between your goals, your strategy, and the needs of the population you serve. By following these steps, your nonprofit can set itself up for a year of growth and transformational impact.

Source: ""How Do I Set Fundraising Goals for My Nonprofit?"" - Amber Melanie Smith, YouTube, Nov 9, 2025 - https://www.youtube.com/watch?v=EiEPocFTPcg