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. This example shows the estimated expenses and revenues of a nonprofit organization that runs community programs. The organization has planned to spend $102,500 on operations and projects (expenses) and expects to raise $135,500 through donations, fundraising events, and program fees (revenues).

• One key reason many nonprofits struggle when it comes to accounting and finances is their failure to treat their organization as a business.
• This is how they get their revenues that they use as a budget for all their expenses.
• 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.
• The budget also plays a key role in forcing organizations to prioritize their activities so as to determine those that are most critical for fulfilling their mission.
• You can also see more on Non-profit Budget in Google Sheet Templates.

Connect the Budget to Your Goals

A budget for a nonprofit gives structure and substance to its plans. The budget also plays a key role in forcing organizations to prioritize their activities so as to determine those that are most critical for fulfilling their mission. Before you can develop an accurate budget, you’ll need to gain a clear understanding of the nonprofit’s financial situation. This will require examining your past budgets, current assets and liabilities, cash flow, https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ and fundraising performance.

How to create a budget for a nonprofit organization

Whether you’re managing general operations, launching a new program, or amplifying your marketing efforts, a thoughtful budget can be the difference between a successful year and a strained one. But, there’s a place in the nonprofit universe for a surplus in the budgets too. Reserves are critical to an organization’s long-term sustainability. They can mean the difference between surviving a rough patch and being forced to close down. Having extra cash can help stabilize your nonprofit and absorb an unexpected delay in receiving funds, a shortfall in revenue for a special event, or unbudgeted expenses. No matter who’s in charge, nonprofit budgeting can be overwhelming.

Step 3: Debts

Take note that the amount of your financial resources must be the latest. One key reason many nonprofits struggle when it comes to accounting and finances is their failure to treat their organization as a business. While nonprofits and small businesses differ in many ways, managing your nonprofit’s finances similarly to how you’d run a business is essential for success. In order for a nonprofit event to be a success, you must also have the right budget for it. You may ask yourself how you want to create your nonprofit event budget, but the most basic ways are going to be listed below in the following steps. See How to Create a Nonprofit Budget and How to Prepare a Nonprofit Grant Proposal Budget Examples.

Bonus – Donorbox Free Webinar on Successful Budgeting & Forecasting for Nonprofits

Some expenses are assigned to the indirect category specifically, such as the audit. Others are allocated to the indirect category, such as a portion of rent and telephone. For this reason we wait until after all the direct allocations are completed before we turn to allocating the indirect costs.

• However, to make these projects successful, an allocated basic budget is needed.
• Stay up to date on nonprofit news, funding deadlines, job opportunities, and more with the Nonprofit Notes newsletter.
• Evaluate current financial health by analyzing the current year-end forecast, current budget variances, and balance sheet strength.
• A budget acts as a guide that can help plan an organization’s future.
• Then, assess your best and worst-case scenarios for generating funding.

For a wider selection of budget tracker templates, check out more options here. Google Sheets budgeting templates are the perfect solution for correctly appropriating funds and expenses, resulting in a workable cash accounting services for nonprofit organizations flow, so you can continue to focus on your mission. Once everything’s set, finalize your nonprofit budget by appropriately distributing your organization’s current funds to your predicted expense items. Make sure that the expense amount doesn’t exceed the total current funds. Effective financial management is the backbone of a thriving nonprofit, ensuring stability, transparency, and informed decision-making. Our free courses provide in-depth knowledge on key accounting principles, budgeting strategies, and reporting requirements to help your organization thrive.

This budgeting template can also be used as a checklist to ensure that your program has sufficient backing financially to be fruitful. Elizabeth Morgan Burrows, JD, principal of Burrows Consulting, stresses that you should have a detailed budget that lists each of your expected expenditures for the entirety of your project. That way, the funder has a clear understanding that your nonprofit has the means and manpower to complete the proposed project. There are several types of grant budgets you might use in a grant proposal. Software designed for nonprofits and churches with fund accounting, donor management, giving tracking, reporting, and more.

Revenue & Expenses: What to Budget For

In our collection, you can find perfectly designed non-profit budgeting form templates that help you track your income and expenses efficiently. For a non-profit organization, donations and grants are may the only way to meet the expenses that they face in helping others. You can find a tremendous collection of donation receipt templates that you can use to let the donor know that the donation he/she has made has been received successfully. Non-profit organizations have different operational activities with profit companies. Thus, it is essential to take note of the incoming and outgoing of the organization’s acquired funds to achieve the objectives as set by the organization.