A budget reviews the actual cash flow and expenses to determine whether or not it is as you expected it to be. This free operating budget template can simplify the budgeting process. It can help you organize revenue and expenses, track performance, and make data-driven decisions to support your mission and your organization’s financial sustainability.

A Step-By-Step Guide to Creating Your Nonprofit’s Annual Budget

The basic purpose of budgeting is to control and manage accounting services for nonprofit organizations the organization’s financial resources. If you want to give a charity in the secure hands that convey it to the needy people, nonprofit organizations play an important role in the betterment of the needy people. Some people donate money or other things to serve other people, but some provide community service for their community. The stakeholder of a specific program makes some critical decisions based on its budget.

Free Resources

At a minimum, you will be creating and reporting on an operating budget. Joan Garry is an internationally recognized champion for the nonprofit sector and a highly sought after executive coach for CEOs of some of the nation’s largest orgs. Even if you have the perfect idea for a new project, you will still lose out on funding if your grant budget isn’t feasible and in line with the funder’s priorities. We interviewed over a dozen grant consultants and professionals to understand what grant budgets need to pass the sniff test with funders and convince them to open up checkbooks. Take a demo with BILL to see how our integrated platform can provide your business with seamless AP, AR, and spend and expense management.

• When estimating fundraising income, don’t forget to look at multi-year trends in your organization’s fundraising.
• It’s not designed to cover large expenses such as capital projects, i.e buying a building.
• Your budget template should serve as both a planning tool and a monitoring system.
• Building a budget can be complex, but by following a sequential plan, you’ll find creating a nonprofit budget isn’t as daunting as you might have thought.
• Before you download your free nonprofit budget template, here are some last bits of advice.
• You’ll also want to get a clear idea of your revenue streams to understand where your money is coming from.

Sample Organizational Operating Budget

Finding sponsors for your events can help you earmark a larger portion of your fundraising for your mission program expenses. Let’s dive into the details of a nonprofit operating budget—what it is, what to include, and how to put it all together. Explore all of the different sources of funding for nonprofits, popular funding models, and five simple steps for kickstarting a funding strategy for your organization. Nonprofit organizations need physical space to conduct their work, including office space and employee parking.

Budget Templates for Your Nonprofit

For templates exclusively in Microsoft Excel formats, check out our collection of Excel Budget templates. There are even detailed instructions about how to use all the features of the template which includes multiple sheets and self-calculating formulas. If the board has feedback (or pushback), you will likely need to incorporate those changes into a second draft and re-present the budget for approval.

Government vs Foundation Grants: Key Differences in Writing for Federal vs Private Funders

For example, your goal for 2025 can be to increase fundraising revenue by 20% to support a new educational outreach program. Get the input of your volunteer head, executive director, fundraising leader, and other department heads into the budgeting creation. However, if you feel that it is more important to have a budget that is easier to create and that reflects past spending patterns, you may want to use a historical budget. If you are looking for a more transparent and accountable budget, you may want to consider using a zero-based budget. This is a standard accounting report that shows how much was budgeted year to date compared to how much has actually been spent. It can also help to identify areas where the organization may have been overspending or under-earning, which can then be addressed in the budget.

However, a solid budget helps you navigate these challenges, ensuring your nonprofit can operate effectively while making a meaningful impact. Some companies make small mistakes while creating the financial budget; that’s why their budget is not successful. Below we discuss the mistakes that companies or organizations make with their solution. For a budget plan that you can use for the entire year, check out our collection of Yearly Budget templates. For templates that you can use to make personal budget plans, check out our collection of Personal Budget templates. Figure out how much money will be coming in and from where—looking at last fiscal year’s budget (if you have one) can help.

Your expenses will include the costs of running your nonprofit organization; such as salaries, rent, office supplies, and marketing. To estimate your expenses, review your organization’s financial history and base your estimates on that. If you don’t have a financial history to review, tally up the expenses you expect to incur. A nonprofit budget is more than just a collection of numbers; it’s a strategic blueprint that reflects an organization’s priorities, goals, and mission at a foundational level. It outlines expected income and planned expenses for a specific period, typically a fiscal year, ensuring that resources are allocated efficiently and transparently.

Figure Out Your Cash Flow Projection

You’ll need a program budget every year, so get your docs in order for the years ahead and plan a clear budgeting process. It demonstrates your ability to responsibly manage financial resources and provides a roadmap for activities in the upcoming year. Plus, with a budget plan you’ll be better able to manage operations with limited funds. If you’re running events or have a new program coming up, you’ll probably need to print materials to https://holycitysinner.com/top-benefits-of-accounting-services-for-nonprofit-organizati/ let people know all about it. Group your print and postage costs together here, so you can get a feel for how much you’re spending on sending out materials to your audience.