Glossary
Analytics & Forecasting

Revenue Forecast

By: Alec Hollingsworth
Updated:  
July 16, 2025

Definition:

A revenue forecast predicts the amount of income a nonprofit expects to receive over a future period, guiding financial planning and resource allocation.
A Revenue Forecast is an estimate of the income a nonprofit expects to receive over a specific period, usually based on historical data, current commitments, and anticipated fundraising activities. This projection helps organizations plan budgets, allocate resources efficiently, and set achievable financial goals. Revenue forecasting may include multiple income streams such as donations, grants, event proceeds, and membership fees. By anticipating future revenue, nonprofits can better manage cash flow, identify potential shortfalls early, and develop strategies to mitigate risks. Accurate forecasting is essential for sustaining programs, maintaining staff, and ensuring organizational growth.

Key Takeaways

  • Revenue forecasting estimates future nonprofit income.
  • Supports strategic budgeting and resource allocation.
  • Helps identify potential funding gaps early.
  • Informs fundraising and program planning.

Why It Matters

Accurate revenue forecasts help nonprofits plan budgets, avoid cash flow issues, and support mission-critical programs.

Real World Example

Imagine a nonprofit that relies on annual fundraising events and recurring donations. By analyzing historical donation patterns and upcoming grant opportunities, the finance team creates a revenue forecast for the next fiscal year. This forecast projects a dip in the summer months, prompting the team to schedule a mid-year campaign to bridge the gap. With this insight, the organization maintains steady cash flow, avoids program disruptions, and confidently commits to new initiatives, knowing anticipated revenue will support their mission.

Frequently Asked Questions

What is a revenue forecast?

A revenue forecast is an estimate of the income a nonprofit expects to receive over a future period, based on historical data and upcoming fundraising plans.

Why is revenue forecasting important for nonprofits?

It helps nonprofits plan budgets, allocate resources, and anticipate funding gaps, ensuring financial stability for their programs and operations.

How can Keela help with revenue forecasting?

Keela's analytics tools track donor trends and campaign outcomes, enabling organizations to generate reliable revenue forecasts and make informed decisions.

What information is used to create a revenue forecast?

Nonprofits use historical financial data, current donor pledges, expected grants, and planned fundraising events to project future revenue.

Related Terms

Accessibility Compliance
Automation Trigger in a Nonprofit CRM
Average Gift Size
Board Member Profile
Bounce Rate
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