10 Tips to Follow When Creating a Nonprofit Budget

Above all, a budget for non-profit organizations must remain flexible enough to adapt to changing circumstances while maintaining The Key Benefits of Accounting Services for Nonprofit Organizations fiscal responsibility. But, there’s a place in the nonprofit universe for a surplus in the budgets too. 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. It’s also very important to the success of your programs that your revenue and expenses estimates are realistic.

Basics of Nonprofit Budgeting: A Beginners Guide

• The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done.
• Still, creating a solid nonprofit budget is an essential foundation for being a financially healthy organization and having the basis you need to go about advancing your mission.
• The toolkit emphasizes practical application and includes templates for different organizational sizes and complexity levels.
• The Relay Visa Credit Card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc and may be used everywhere Visa cards are accepted.
• The built-in formulas minimize errors and ensure consistency, further strengthening your application’s credibility.
• This will require prioritizing program delivery goals and setting organizational financial goals.

Capital fundraising via capital campaigns can help you secure the funds for these projects. Be warned – this kind of hands-on budgeting can require careful handling. Your nonprofit’s operating budget, though, could improve greatly with a diverse range of perspectives.

Estate Planning

Additionally, remember that any budget that covers a specific aspect of your nonprofit’s spending and fundraising should align with your operating budget. No nonprofit executive director is an island, and this is especially true when it comes to making a budget. Delegate as much of the process as you can to your development employees, program directors, and finance committee members. Having your program directors carefully create budgets for each of their programs will knock out a big portion of the data you need to produce an overall nonprofit budget.

Nonprofit Operating Budget Template

If you’re ready to dive into creating budgets for your nonprofit, there are various templates available online to help you get started. Every organization’s budget will look slightly different, so make sure you can customize your chosen template to fit your needs and goals. However, this doesn’t mean that your nonprofit’s overhead spending can go unchecked or should be prioritized over program expenditures. Instead, treat this as a guideline to reduce overhead spending (within reason) before taking funding away from your programs if you need to cut costs. Note that some revenue sources bridge multiple categories and can be organized in different ways.

This curated collection includes templates https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ from reputable sources such as BoardSource, Candid, the National Council of Nonprofits, QuickBooks, TechSoup, and the Nonprofit Finance Fund. We’ll explore their strengths and limitations, helping you choose the perfect template for your organization’s unique needs. Effective communication is also essential for securing funding and building strong relationships with stakeholders. Consider strengthening your team’s communication abilities with targeted business writing skills training from Natural Write.

• At least once a month, you should compare your forecast to your budget to ensure you’re on track to fulfill your mission.
• Zero-based budgeting, on the other hand, starts from scratch each year, with all expenses being justified anew.
• You see, your annual operating budget is the numbers version of your annual plan.
• The Candid templates provide a practical and readily available resource for nonprofits seeking to strengthen their financial management and improve their grantseeking success.
• For more skill development, coaching and tools, check out StriveTogether’s upcoming courses.
• This gives you a greater understanding of the different business aspects of a nonprofit and provides a framework for considering how to most effectively distribute your funds.

Why and How to Keep Your Personal and Business Expenses Separate: 9 Tips

Consider segregating staff expenses as it usually comprises anywhere from 60% to 90% of an organization’s budget. An inclusive budgeting process can certainly be challenging and messy and with a great deal of debate. However, this approach to budgeting presents a great opportunity to bring in and unite various perspectives.