Your expected revenue should be separated and allocated by each fundraising source. Use past data from your development team to better understand and predict how much you’ll raise from each source.
There are two methods of forecasting that you can use to predict your nonprofit’s future revenue. Each of these forecasting methods creates some flexibility in the budget so that your organization is more likely to be on target throughout the year. These two methods of forecasting are called the discount method and the cutoff method:
A nonprofit accountant will be able to help walk your team through the decision of which forecasting method is best for your budget. Plus, they’ll be able to work with you to determine the probability rates for your forecasting.
It can be dangerous to predict that you’ll have 100% success with all of your predicted revenue. It’s better to be cautious when planning ahead so that you’re more certain that you’ll have the funding you need to achieve your goals, no matter what external circumstances occur.