---
title: A Step-by-Step Guide to Building a Fundraising Budget
description: Let us walk you through building a successful fundraising budget for your nonprofit.
---

[TWB Fundraising Blog](https://blog.twbfundraising.com)

# [A Step-by-Step Guide to Building a Fundraising Budget](https://blog.twbfundraising.com/step-step-guide-building-fundraising-budget)

 Written by [Marilyn Foster Kirk, CFRE](https://blog.twbfundraising.com/author/marilyn-foster-kirk-cfre) | December 18, 2017

Budgeting for fundraising should include estimating both contributed revenue and fundraising costs in order to arrive at projected net contributed revenue.  Follow the steps below to build a successful fundraising budget for your organization.

**Quantify fundraising performance data from the past three years, eliminating outliers (one-of-a-kind transactions not likely to be repeated):**

- Net Contributed Revenue = Total Contributions less Total fundraising expense
- Retained Gift Dollars = Dollar value of contributions from last year’s donors
- Reactivated Gift Dollars = Dollar value of contributions from prior donors who did not give last year
- New Gift Dollars = Dollar value of contributions from first time donors

**Analyze qualitative information:**

- From which sources, e.g. individual donors, foundations, corporations, is there potential for realistic growth in the year ahead? New donors?  Increased giving from past donors?
- What is the basis for arriving at the estimated potential?
- What is the estimated dollar value of that growth potential?
- What additional fundraising costs will be incurred in order to realize that potential?

**Synthesize past performance with potential:**

- Projected fundraising costs to arrive at
- Projected net contributed revenue.
- Include a budget narrative documenting the data and the reasons behind your projections.

**Integrate with the larger organization:**

- Synchronize fundraising budget and goals with the organization’s annual budget
- Secure Board approval

[View full post](https://blog.twbfundraising.com/step-step-guide-building-fundraising-budget)

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