A sample nonprofit budget is a fillable document that simplifies the budgeting process for you as it includes all the typical line items of revenue sources and expenses, saving you time creating your own. Start with a nonprofit budget template excel sheet that includes all the expenses you can think of. When creating your budget, you will need to estimate the income you expect to receive. Unlike companies, however, most of your income will be in the form of donations.
What’s included in a nonprofit operating budget?
Using these programs, you can easily set up financial reports that display the organization’s finances over time, track expenses and revenue, and create graphs that display your financial data over time. In conclusion, non-profit operating budgets play a vital role in the financial management and success of non-profit organizations. An operating budget is not just a financial document; it’s a reflection of a nonprofit’s commitment to achieving its mission.
Best way to plan a Nonprofit Budget Template
- When you’ve got big marketing dreams, a financial breakdown will help you decide where you really want to allocate your resources.
- These five areas are not exhaustive but offer a good starting place when reviewing current fiscal practices using an equity lens.
- They support complex calculations, web and Excel integration, donation tracking, and invoicing.
- The most common basis for allocating fundraising costs is based on percentage of total support received by each program.
- It details expected income and breaks down operating expenses and overall costs.
- Since different funding sources often come with specific restrictions, your budget should carefully allocate resources to cover each need effectively.
The most common basis for allocating fundraising costs is based on percentage of total support received by each program. This method matches the percentage of fundraising expense charged to a program to the percentage of contributed income that program receives. We leave this step until last because some funders, including many government funders, will not allow fundraising expenses to be charged to their grants or contracts. Regardless of whether a funder will pay for fundraising expense, it remains part of the total cost of running each program and we need this information to be truly informed. While each of the previous tips offers specific guidance for your nonprofit budget, bringing them together into a cohesive financial management system takes careful orchestration. Your strategic plan should include clear timelines for implementing these budgeting practices.
Evaluate your organization’s readiness
Prepare your nonprofit financial statements with ease by understanding the four common types outlined in this helpful guide. Cash flow projection refers to the monthly movement of funds coming in and going out of your nonprofit organization. Tracking this number tells you how much you have with you at any given point. Still, be careful — don’t allow yourself or your managers to think you have an extra 1% to spend on this event or that project. The contingency line is there https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ to offset against the truly unknowable expenses, not to be lumped into another pre-existing project or expense. Some nonprofits also have earned revenue and an analogous process will work for that portion of the revenue side.
It should be clear by now that your grant budget can make or break your chances of winning funding. The examples, insights, and expert advice in this guide should provide you with the resources you need to craft an effective and compelling budget in your next proposal. Project budgets should outline your overall spending plan for your entire project, from successfully executing it to evaluating its impact and sustainability. Make sure your budget clearly outlines the key components needed to sustain operations, so all stakeholders understand how financial resources are being managed.
Now that you know what should be included in your nonprofit budget, it’s time to start creating one. The process of creating a nonprofit budget is similar to the process of creating a budget for any other type of business. They can be one time, recurring, or anything in between—if it costs you, then it’s an expense!