Realistic fundraising goals: Budgeting for Nonprofits with Maria and Caitlin

Too many small nonprofits build their budgets on optimism alone, dreaming big without the strategy or infrastructure to back it up. This episode is all about why that’s a problem, and how to stop the cycle of setting fundraising goals that hurt more than they help. 

In this episode of The Small Nonprofit, Maria Rio and co-host Caitlin McBride get real about what it means to set realistic, strategic fundraising goals, and what happens when you don’t. From pressure-filled board expectations to outlier-year budgeting mistakes, they unpack the ripple effects of extremely optimistic thinking and offer grounded ways to move forward. 

Want to avoid budget burnout and build goals that actually serve your mission? This episode is your guide. Listen now and share it with your board.  

Realistic Fundraising Goals – The Highlights 

1. Unrealistic fundraising goals hurt everyone. 
When goals are set without evidence or planning, it’s frustrating and it’s harmful. Fundraisers feel like they're being set up to fail, and the community loses access to reliable services. 

2. Outlier years aren’t a the baseline. 
Got a huge planned gift or a surge of support during a major global event? Great. But don’t build your next budget assuming that lightning will strike twice. 

3. The board can’t just wish money into existence. 
When leadership insists on big numbers without offering support or resources, they undermine the very people doing the work. Fundraising isn’t magical, it’s methodical. 

4. Growth means more than dollars. 
A 40% increase in revenue equals a 40% increase in workload. If you’re not adding capacity, you’re adding stress. 

5. You need to track leading indicators.
Revenue is a lagging indicator. Things like donor meetings, emails sent, and stewardship actions are what create that revenue. Track what’s in your control. 

3 Actionable Tips for Setting Realistic Fundraising Goals: 

1. Use real data, not wishful thinking.
Look at historical trends, capacity, and the types of revenue you’ve secured. Don’t budget based on what you want to happen, budget based on what’s likely. 

2. Break down your revenue streams. 
Separate out grants, major gifts, recurring donors, etc. Goals should be specific to each stream, not one vague number slapped across the board. 

3. Consider organizational context. 
If your staff just turned over, your website crashed last Giving Tuesday, or inflation is affecting your donors, factor that in. Not every year is a growth year. 

• Resources and Links 
• Connect with our host, Maria Rio 
• Connect with our cohost, Caitlin McBride 
• Support our show. We are fully self-funded! 
• Watch this episode on YouTube 
• Need help with your fundraising? 
• Liked this episode? Have an idea? Send us a text HERE :) 

Liked this episode? Have an idea? Send us a text HERE :)

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