How do you create and manage a realistic fundraising budget and plan for your non-profit?

Another area to consider is if you are simply raising funds or looking to build capacity. If you are raising for a specific program, how much will you need? If you are looking to increase capacity (add staff, buy a CRM, etc) try to gauge how much money that will cost/save you immediately and in the future.

Before planning your fundraising, assess your current situation. Review financial statements, analyze past fundraising performance, and identify strengths, weaknesses, opportunities, and threats. Align your nonprofit's vision, mission, values, and strategic objectives with your fundraising priorities. **Example:** If a nonprofit's mission is to support education, assess past performance in securing educational grants and donations. Identify strengths like strong community ties and weaknesses such as limited online presence. This assessment helps in setting focused fundraising goals and strategies that align with the organization's core objectives.

Your goal should speak to expenses that ensure your charity both survives and thrives. These include: core expenses, continuity of programs, capacity building (improved knowledge/systems/strategic planning) and enhancement and expansion of programming. These categories help to define, for both your charity and donors, where and how a gift can make a difference.

After setting your goals, develop your fundraising strategies. Outline approaches for each income source, such as grants, events, campaigns, major gifts, and online giving. Consider your target audience, value proposition, communication channels, and engagement tactics. Assign a responsible person, set a timeline, and allocate a budget for each strategy. **Example:** For an online giving campaign, identify key donors as your target audience, highlight your nonprofit's unique impact, use social media and email for communication, and plan engagement tactics like matching gift challenges. Assign a team member to manage the campaign, set a two-month timeline, and allocate funds for digital advertising.

A fundraising budget is essential for estimating and managing income and expenses related to fundraising activities. Include expected revenue from fundraising sources and other income, such as interest, fees, or sales. Account for all direct and indirect costs, including staff salaries, materials, travel, and fees. Also, allocate a contingency fund for unexpected costs or shortfalls. **Example:** If planning a charity gala, project income from ticket sales, sponsorships, and donations. Expenses might include venue rental, catering, marketing, and staff. Include a contingency fund to cover unexpected expenses like additional AV equipment or last-minute decor.

After creating your budget, implement your fundraising plan by executing your strategies, adhering to your timeline, and efficiently using resources. Monitor progress by tracking key indicators and documenting results. Communicate regularly with stakeholders, including donors, staff, board members, partners, and beneficiaries, updating them on achievements and challenges. **Example:** If launching a crowdfunding campaign, execute marketing strategies, follow the campaign timeline, and manage resources. Track donations and engagement metrics. Send regular updates to donors and stakeholders via newsletters, highlighting milestones and addressing any challenges.

The final step is to evaluate your fundraising results by comparing actual income and expenses with your budget, and analyzing any variances. Measure the impact of your activities on your nonprofit's mission and objectives. Celebrate successes, acknowledge failures, learn from feedback, and revise your plan for the next cycle. **Example:** After a fundraising event, compare the total funds raised and expenses with your initial budget. Assess how well the event met your mission goals, such as community engagement or awareness. Review what worked well and what didn’t, and use these insights to improve future events.