How to Set Your Grants Goal for Next Year (Without Guessing or Overwhelming Yourself)

Every Executive Director eventually faces this moment:

You’re updating your fund development plan…
You get to the Grants section…
And then you stop.

“How do I actually decide what my grants goal should be for next year?”

Do you just add 10%?
Do you try to double it?
Do you copy last year’s number?

None of these work.

A strong grants goal must be based on renewal likelihood, realistic growth, new funder potential, and your actual capacity.

Here’s the exact method I teach nonprofit leaders to set achievable—and strategic—grant revenue goals.

Start With What’s Predictable: Your Renewal Base

Your renewal base is the total amount you can reasonably expect to renew next year.

Look at each funder and ask:

Did your outcomes align with their priorities?
Did they express satisfaction or interest in continuing?
Was the reporting manageable and submitted on time?
Is this a multi-year relationship?

Example:

This year’s grants:

ABC Foundation – $25,000
Greenwell Trust – $10,000
Erickson Family Foundation – $50,000

Based on alignment and relationship strength, you may determine:

ABC → likely renewal
Greenwell → very likely renewal
Erickson → strong relationship, high renewal likelihood

Your renewal base is therefore:
$85,000

This is your starting point.

Identify Realistic Growth From Existing Funders

Growth comes from:

stronger relationships
cleaner reporting
better communication
funder hints about increasing support
multi-year conversations

Example:

Erickson Family Foundation mentioned interest in multi-year support → potential +$10,000
ABC Foundation struggled with incomplete data → no increase unless systems improve
Greenwell Trust typically gives flat gifts → keep flat

Realistic growth: +$10,000–$15,000. This is grounded in evidence, not optimism.

Add 1–2 New Aligned Prospects (No More)

This is where most of us overstretch.
We like to add 10+ new funders and expect huge growth.

But best practice is:

Add only one or two new prospects that deeply align with your mission.

Look for funders who:

support organizations like yours
have a clear geographic or issue alignment
typically give amounts in your range
you can get a warm introduction to

Example:

You identify a new funder whose average grant size is $10,000–$15,000.

Use the conservative amount: $10,000

Now your working goal projection becomes:

Renewal base: $85,000
Growth from current funders: $10,000–$15,000
New funder: $10,000

Projected grants goal: $105,000–$110,000

Factor In Your Actual Capacity (The Most Overlooked Step)

Ask yourself honestly:

How many grants can you realistically manage next year?
How much time did reporting take this year?
Were any grants unusually stressful?
Are you hiring additional support?
Are you improving your tracking and reporting systems?

Your capacity determines your grant ceiling.

Example:

In your grants table, ABC Foundation had a stress level of 4 because data tracking wasn’t consistent.

If you:

implement a simple system
start tracking monthly
set up calendar reminders

You not only decrease stress, you also increase your competitiveness.
This strengthens your renewal and growth potential.

Set a Goal That Balances Aspiration + Achievability

Healthy nonprofits grow their grants revenue by 5%–20% per year, depending on size and stage.

Using our example:

This year: $85,000
Next-year reasonable goal: $100,000–$115,000

Not $200,000.
Not doubling your grants overnight.

Sustainable growth comes from:

strong renewals
small but meaningful increases
one or two new funders
improved systems

This creates predictable funding and reduces stress.

Sample Grants Goal Statement

Here’s what you can write in your fund development plan:

“Our grants goal for FY2025 is $110,000.
This includes expected renewals ($85,000), a potential increase from Erickson Family Foundation ($10,000), and one new highly aligned funder ($10,000).
This goal is based on relationship strength, reporting improvements, and realistic fundraising capacity.”

Start With What’s Predictable: Your Renewal Base

Identify Realistic Growth From Existing Funders

Add 1–2 New Aligned Prospects (No More)

Factor In Your Actual Capacity (The Most Overlooked Step)

Set a Goal That Balances Aspiration + Achievability

Ready to create your own plan? Get your free Fund Development Planning Template below.

Ready to create your own plan?
Get your free Fund Development Planning Template below.