As stated on the project's site, the goal is actually to raise $1 million, but inXile head Brian Fargo had agreed to put $100K of his own scratch on the line -- it's looking like that won't be necessary any more. Which isn't to say there aren't plans should the team raise even more money. If they reach $1.25 million, the extra dough will go to "making the world bigger, adding more maps, more divergent stories and even more music."
If the fundraiser reaches $1.5 million, that depth goes further, with, "more adventures to play, more challenges to deal with, and a greater level of complexity to the entire storyline. We'll add more environments, story elements, and characters to make the rich world come alive even more." Oh, also, it'll come to OS X. So, hey, how about we get things to $1.5 million so your buds at Joystiq can play the game on their writing machines? That'd be just capital.