In order for nonprofits to determine how much money they require to operate, they need an accurate way to account for all income and costs. It’s important to differentiate between what might be a startup and one-time initial costs and regular costs. Some startup costs might transfer over to the regular budget, while others may not need to be included in future budgets. Creating a budget, planning finances for the future, and analyzing financial data will set you apart early on as an organization to funders and partners, and make daily and strategic planning easier. Contact us if you have any questions about our non-profit templates free resources or NGO templates free downloads and budget for nonprofit template outlined in the sections below.

• Once you have your program activities defined and a list of needs for the program, it’s time to get quotes and estimates for each line item you plan to include in your nonprofit’s first budget.
• It needs to be taken care that the grants and its effective use do not stop.
• These elements work together to create a comprehensive financial framework that supports both day-to-day operations and long-term strategic goals.
• Involve board members, department heads, program managers, and financial officers.
• Donors and stakeholders demand transparency in how their contributions are utilized.

Understand Your Organization’s Goals

• These are the services you offer to your audience — for example, animal care, education, childcare, or advice.
• Budgeting is essential for nonprofits to be successful and achieve their goals.
• The cost of return envelopes to be included in a fundraising mailing would be assigned directly to fundraising.
• Examples of income that is assigned directly to a program include contract or fee income for a preschool program or a grant that is received for a tutoring program.

Creating a budget for your nonprofit organization is an important step in ensuring your financial success. By estimating your income and expenses, you can make sure that you’re using your resources in the most efficient way possible. And, by reviewing your budget often, you can make sure that you’re on track to reach your financial goals. There are also a number of accounting software programs that can help you create and manage your nonprofit budget.

What is an Operating Budget for a Nonprofit?

You might https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ be able to switch providers to save, or introduce corporate tablets to help your team communicate and collaborate across distances. Maybe you’ve run a one-off live class or earned income from a partnership project with a major brand. Group income from these activities together under a miscellaneous section. For some people, the functionalities of a nonprofit organization remain unclear. We empower those who champion the collective good to scale their impact online through branding, web design & development, integrated marketing, and technology.

Free Balance Sheet Template for Non-Profit Organizations

• Budget projections for both the income and the expenses must be achievable.
• A budget is a guide that can help a nonprofit plan for the future as well as assess its current financial health.
• In this section, we’ll look at a few key steps you’ll need to create an effective nonprofit budget sample.
• Including contracted services in the budget lets you plan and allocate funds for these essential services.
• Here we have collected a few sample nonprofit budget templates for you.
• We’d love to hear your feedback about this content and anything else you would like to see more of from NFF.

No matter what happens with your nonprofit, you never stop needing a budget! Set up your budget so it’s as simple as filling in the blanks come next year. Do what you can to structure your budgets similarly over the years—this will make it easier to compare them side by side as you track your growth. Your budget is full of a lot of information, but it doesn’t have to be overwhelming. Go one category at a time, and don’t panic about getting overly detailed. You want your budget to be a useful tool, not something you’re too intimidated to look at.

Your assumptions could include the number of beneficiaries you are working with, the number of staff, amount of supplies or equipment. When making a budget, it’s also important to track inflation and fringe benefits, especially if you are building a projected budget over several years. Contact us if you have any questions about our free balance sheet template for non-profit organizations or any of our free nonprofit tools. Contact us if you have any questions about our free simple non-profit budget template or any other budget template for non-profit organizations. Download this CSV template to use in Excel, Google Sheets, or your preferred spreadsheet software.

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. The best way to ensure your budget is accurate and actionable is to have expert nonprofit financial professionals create it for you—like our team at Jitasa. We work exclusively with nonprofits, so we understand the unique complexities of your organization’s financial situation and can use our experience to develop tailored solutions for your needs. If you’re ready to dive into creating budgets for your nonprofit, there are various templates available online to help you get started.

• So whatever project your organization’s board of directors is planning to do, it should have a corresponding project budget.
• Mastering cash flow management helps prevent these timing mismatches from disrupting your mission-critical work.
• With the right tools and strategies, your nonprofit can confidently build a financial foundation for 2025 that ensures stability and amplifies your mission.
• Most financial experts recommend nonprofits maintain cash reserves equal to 3-6 months of operating expenses.
• Not only that, we also have some important insights about the budget document written on our article!
• An operating budget for a nonprofit is a financial plan that projects the organization’s revenues and expenses for a specific time period, usually a fiscal year.
• You might be able to switch providers to save, or introduce corporate tablets to help your team communicate and collaborate across distances.

Nonprofit Bookkeeping and Accounting Services from Charity Charge

Come up with accurate figures when you are calculating both the expenses and income so that it gives you appropriate results. In case your expenses are more than your income, then know where do you need to reduce spending money. When it’s time to create 5 Main Benefits of Accounting Services for Nonprofit Organizations an operating budget for your nonprofit, it can feel impossible to know where to start – and to be sure you’re doing it right. Regular nonprofit budget reviews help identify trends, catch potential problems early, and adapt to changing circumstances. Modern accounting software can automate much of this monitoring process, saving time while improving accuracy. The first step is understanding true program costs across both hidden and obvious or necessary expenses.