The Ultimate Guide to Nonprofit Budgets + 3 FREE Templates

Blackbaud Financial Edge NXT®️ delivers intuitive cloud fund accounting software designed specifically to meet the needs of nonprofits and tax-exempt organizations. Put simply, revenue is the money you bring in from normal business operations. Because nonprofit funding accounting services for nonprofit organizations is often very flexible, it’s absolutely necessary to have many diverse revenue streams.

Internal Audit Budget Templates in PDF DOC

• As explained above, indirect expenses are generally all of our administrative expenses – those expenses that support the overall management of the organization.
• Establishing realistic financial goals is a critical step in the budgeting process for nonprofit programs.
• Excel is another popular tool for creating nonprofit budgets due to its ease of use and plethora of useful features.
• This will also show you which funding sources are most reliable, especially true of recurring donations and multi-year grants.
• A board can either be very hands-on or hands-off, depending on how you want to use them as a resource.
• This will ensure that everyone is aware of the organization’s financial position, goals, and priorities, and it will help create a sense of ownership and accountability.

Understanding nonprofit budgeting is only one part of the equation; accurate accounting practices are equally essential. 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. List program expenses (staff salary, insurance, supplies, fundraising fees, etc.) to see your total nonprofit program expenses vs. your actual revenue. Keep monthly and quarterly tabs on your nonprofit’s cash flow with this all-inclusive, customizable template. Pre-filled income sources — such as grants, donations, etc. — enable you to track monthly and quarterly income actuals.

Facilities Costs

The data is already available for nonprofits that track time for grants and contracts. If that has not been your practice we urge you to gather some accurate information by completing a timekeeping report or adding time reporting to payroll or database records. We know from experience that allocating time based on general estimates or gut feeling is often inaccurate.

Top-down budgeting

They also develop new programs regularly as their communities’ needs change. Oftentimes, programs are created quickly and delivered by existing staff with existing resources. In this environment, it’s easy to ignore the need for a program budget. Not only will it help you determine if you can actually afford the program, it will also help you make a stronger case for funding in grant applications. For nonprofits, effective budgeting is the foundation of financial health. A well-crafted budget not only keeps an organization on track but also demonstrates to donors and funders that funds are being used responsibly.

Budgeting is the process of planning, organizing, and controlling financial resources and how they are allocated to achieve organizational goals. It’s important to budget because it helps the organization manage its funds in a more effective way. Now that you’ve identified and categorized all your expenses, it’s time to determine the cost of each item.

Fundraising and Marketing Costs

• Ultimately, remember that your budget should categorize revenue by different funding sources and your expenses by program vs. overhead costs.
• Although considering natural expenses is helpful during the planning process, your final budget should use functional expense categorization to match your financial reports.
• Whether you are just starting out or are looking to improve your existing budgeting process, nonprofit budget templates are the perfect tool for you and your organization.
• Are you looking to expand a program, hire additional staff, or purchase new technology?
• How to create your superstar team and assign the right Givebutter roles to unlock your team’s full potential—without risking donor data or burnout.
• For most nonprofits, some programs may be financially self-sustaining or even generate a surplus.
• A program budget focuses on the financial needs of a specific program or project.

The approved budget then serves as a guide for financial activity in the months ahead. Budgets should not be written in stone, because the financial position of the nonprofit may change during the year. Overall, good budget planning requires knowledgeable board directors, a solid https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ planning process and the tools to complete the job successfully. If you don’t know what your goals are, your budget plan will fail to reflect them, and you might end up overspending on programs that don’t further the core purpose of your mission. In this section, we’ll look at a few key steps you’ll need to create an effective nonprofit budget sample. By integrating financial monitoring with program evaluation, nonprofits can create a comprehensive understanding of how well they are utilizing their resources to achieve their mission.

Budgeting for nonprofit organizations: Tips and best practices

Rushing the budgeting process could cause errors, which could result in future issues – especially troubling for nonprofits who need to report their finances and budgeting to grantors. We strive to provide nonprofit leaders with useful resources, tips, and tools that you can use at your organization. We’d love to hear your feedback about this content and anything else you would like to see more of from NFF. Make adjustments as necessary to ensure that the budget aligns with your organization’s goals, priorities, and financial realities.

You may also want to add up the total costs within each category to get a sense of how costs are distributed. You can gather the costs for all your supplies, equipment, and “other” expenses by checking out prices at your local office store website, or by requesting quotes for larger items. You can also determine all your travel expenses online by checking out the average cost for airline tickets, federal mileage reimbursement rate, and allowable lodging and per diem rates by city. Getting the right tools to help with research, reporting, and financial tracking will give your mission programs the support they need to grow healthily and stay resilient. Make sure your budget clearly outlines the key components needed to sustain operations, so all stakeholders understand how financial resources are being managed.