Before You Build Next Year’s Budget, Take an Honest Look at This Year
Once your donor data is organized, it’s tempting to jump straight into next year’s fundraising projections.
But before you do that, pause.
One of the most valuable things you can do during budget season is look honestly at your fundraising results from the current fiscal year.
Not what you hoped would happen.
Not what was in the plan.
What actually happened.
Because fundraising rarely unfolds exactly the way we expect — and that’s okay.
The goal here isn’t perfection.
It’s understanding.
Step 1: Compare Your Fundraising Budget vs. Actual Results
Start with a simple but powerful exercise:
Compare your fundraising budget vs. actual revenue for the current fiscal year.
Look at each major revenue stream:
Individual giving
Major gifts
Events
Corporate sponsorships
Foundations
Monthly giving
Peer-to-peer campaigns
Ask yourself:
Where did we meet or exceed expectations?
Where did we fall short?
Were there any surprises (good or bad)?
This step helps you understand where your projections were accurate — and where they may have been overly optimistic.
Step 2: Calculate Your Donor Retention Rate
Donor retention is one of the most important indicators of future fundraising success.
Pull your numbers for:
Total number of donors last fiscal year
Total number of donors this fiscal year
Number of donors who gave in both years
Then calculate your donor retention rate.
Current donor Retention Rate = (Donors who gave in both years ÷ Donors from last year) × 100
If you don’t already track this regularly, this is the moment to start.
Because for many organizations, the biggest opportunity for growth isn’t finding new donors — it’s keeping the ones you already have.
Step 3: Identify Donors Who Increased Their Giving
Next, look at donors who upgraded their gifts this year.
Ask:
How many donors gave more this year than last year?
What was the average increase?
Did these increases follow specific touchpoints (events, meetings, stewardship)?
These donors are incredibly important. They are signaling that they want more engagement with your organization.
They are often your future major donors, and they can play a significant role in next year’s budget.
Step 4: Separate Repeatable Revenue from One-Time Gifts
This is one of the most important (and most overlooked) steps in budget planning.
Not all revenue is created equal.
Look for:
One-time large gifts
Special campaign spikes
Unique sponsorships
Events that may not repeat
These gifts are wonderful — and worth celebrating.
But they shouldn’t automatically be carried forward into next year’s budget.
Understanding what is repeatable vs. exceptional helps you build a much more realistic fundraising forecast.
Step 5: Look at When Gifts Came In
Timing matters more than we often realize.
Take a look at your current fundraising calendar and ask:
When did most gifts come in?
Which appeals or campaigns performed best?
Were there any periods that underperformed?
This helps you plan next year’s fundraising calendar more intentionally — and avoid repeating strategies that didn’t work.
A Fundraiser’s Reminder:
If you’re feeling a little uncomfortable looking at your numbers, you’re not alone.
Most fundraising programs have areas that didn’t go as planned.
This exercise isn’t about judgment. It’s about listening to what your donors — and your results — are telling you.
Because those insights are what make your next budget stronger.
Action Steps for This Week
Compare your fundraising budget vs. actual revenue.
Calculate your donor retention rate.
Identify donors who increased their giving.
Separate repeatable revenue from one-time gifts.
Review when gifts came in throughout the year.
In the next post, we’ll bring it all together and walk through how to build a realistic fundraising budget — one that pushes for growth without overpromising.
You’ve got this!