This budget template is designed to help nonprofits quickly and accurately estimate operating expenses while creating a plan to reach their goals in the new year. Every nonprofit is unique, so feel free to adjust the categories and templates to fit your needs. Here’s your step-by-step guide to creating an effective and sustainable budget to fulfill your organization’s mission. The primary purpose of nonprofit budgeting is to ensure that the organization can meet its goals without running out of money. It involves tracking where your funds are going and identifying areas where you may need to cut back or raise more money. I began to enjoy the process of penciling in numbers and evaluating an event’s potential profitability, and gained confidence in my ability to anticipate both expenses and revenue.
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Effectively managing your nonprofit’s finances allows you to fund that mission, and one of the most important accounting documents to leverage is your budget. Budgeting helps https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ your nonprofit allocate resources by breaking down your revenue and expenses in an organized way. Simplify your nonprofit budgeting process with Zeffy, the only 100% free fundraising platform. By choosing Zeffy, you can save more on your nonprofit’s expenses and keep 100% of your donations, with no hidden charges. However, this doesn’t mean that your nonprofit’s overhead spending can go unchecked or should be prioritized over program expenditures.
TechSoup Budget Planning Resources
This is particularly valuable for organizations with limited finance staff. Moreover, the ability to track restricted funds simplifies compliance and reporting requirements for grants and donations. BoardSource templates have been widely adopted across the nonprofit sector.
- Board directors should be careful to consider the state of the economy and any unusual or unforeseen financial situations of their contributors.
- Still, creating a solid nonprofit budget is an essential foundation for being a financially healthy organization and having the basis you need to go about advancing your mission.
- Often, the definition of programs is evident in how your organization delivers services and functions internally.
- Travel may be necessary if staff members or volunteers attend conferences, meetings, or events related to your mission.
How to Apply Your Nonprofit Budget
Your nonprofit’s budget will be different, depending on the size, income and expenses of your organization. This will help ensure that your estimates are accurate and that you’re on track to reach your financial goals. Once you enter expenses, you can quickly view your marketing plan’s projected subtotal to date. This template also includes a separate budget plan tab for related nonprofit marketing budget plans.
Candid’s budget templates have proven useful for organizations of all sizes. Small community nonprofits often rely on them when applying for their first grants. Social service agencies frequently utilize them for government contracts, appreciating the templates’ detailed breakdowns of personnel and program costs. Even established environmental organizations seeking foundation proposals find value in the standardized format and comprehensive line items.
Accounting Software
Direct program costs include staff salaries and benefits, materials and supplies, dedicated facilities, transportation, marketing, participant materials, and essential equipment. A budget for non-profit organizations must prioritize reserve building through intentional planning and disciplined execution. This The Key Benefits of Accounting Services for Nonprofit Organizations balanced approach to cost management strengthens your organization’s resilience while ensuring resources remain available for mission-critical work. For example, if your year-end campaign consistently brings in 40% of annual donations, factor this timing into your financial planning. Congratulations – you now have the basics of your nonprofit operating budget!
Divide resources and funds accordingly, prioritizing activities that directly contribute to your goals. Including contracted services in the budget lets you plan and allocate funds for these essential services. As you walk through your event list, add the amounts you’ll need to make each one happen. Budget-to-actual performance should be reviewed monthly by both management and the Board. Budget-to-actual variances could be a sign of personnel issues, funding problems or poor financial management. It could also be a sign that significant changes in the operating environment have occurred and that the nonprofit budget should be revised.