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.”