Free Nonprofit Budget Templates

This can be a daunting task for a new nonprofit because you do not have history to review, but there are some tips that can help make it easier. If you are still unsure of how to develop a budget, you can consult with a financial advisor or accountant. They will be able to help you create a budget that meets your needs and ensures that your nonprofit is financially stable. If you are comfortable working with numbers and have a good understanding of your organization’s finances, you may find that zero-based budgeting is not as difficult as it initially seems. Propel Nonprofits video about cash flow to help you better understand the ebbs and flows of your organization’s cash.

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Transparency fosters trust and ensures everyone is working toward the same financial goals. For example, Doctors Without Borders allocates a significant portion of its budget (over 80%) to direct program expenses, ensuring most donations fund medical care in crisis zones. You might not be able to predict what your donors give, but you can control a lot when it comes to spending. 💸 If you’re feeling overwhelmed, try using your goals to prioritize 5 Main Benefits of Accounting Services for Nonprofit Organizations expenses—and remember, you can always increase spending if you’re able to raise more revenue later in the year. If you’re managing a multiple six- or seven-figure budget, asking a financial expert for help is always a good idea.

• That means diligently tracking and recording expenses and revenue, plus program numbers (like number of people helped, number of dogs adopted, etc.).
• Budgeting plays a significant role in maintaining accurate and timely financial reporting, which allows nonprofits to be financially healthy.
• Understanding and managing both fixed and variable costs helps you make smarter spending decisions and maintain financial flexibility.
• They should make any final adjustments based on the organization’s goals and its capacity to match income and expenses as closely as possible.
• Whether you’re new to budgeting or looking to refine your process, this template offers a solid foundation to build upon.

Budgeting: A 10-Step Checklist

• Make adjustments as necessary to ensure that the budget aligns with your organization’s goals, priorities, and financial realities.
• Your budget will also help you get funding because you can show donors that you know exactly what it costs to deliver services.
• It’s important to budget because it helps the organization manage its funds in a more effective way.
• Consider who’s available to give you the most useful insight—is there an experienced head of finance supporting you, or a treasurer?
• Once the organization’s major sources of income and expenses have been identified, the next step is to estimate the amount of income and expenses for the upcoming budget period.

The budget should include realistic revenue projections based on historical data and current fundraising capacity. Many nonprofits strategically select their fiscal year to align with their operational rhythm. You may be wondering exactly what line items to include in your nonprofit’s first budget.

Step 4: Define your nonprofit’s revenue stream

Creating an organizational budget takes time and lots of thought, but these strategies can contribute to a more successful process. Involve key leadership to contribute guidance and details from the start. If you have started a new nonprofit, you will still need to create a budget.

A budget for non-profit organizations must prioritize reserve building through intentional planning and disciplined execution. This balanced approach to cost management strengthens your organization’s resilience while ensuring resources remain available for mission-critical work. This alignment helps create more accurate forecasts and smoother cash flow management. Your budget will be unique to your organization, but we’ll give you a broad idea of what to include under each section. It’s important to be realistic in reviewing income sources and expenses.

What to know about seeking foundation grants right now

Inflation is on the rise, and nonprofits are not exempt from its effects. We’re diving into the harmful impact of inflation and sharing ways your nonprofit can weather the storm. 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. Ready to see how Givebutter can help you stick to your budget and accomplish your mission?

Many organizations include salary costs in grant proposals and build appropriate overhead into their program budgets. Successful nonprofits prioritize competitive compensation to attract and retain talented staff while maintaining transparent communication with donors about staffing costs. They also simplify monitoring financial progress and adjusting strategies as needed, proving indispensable for both new and established organizations.

• It demonstrates the organization’s financial health and responsible use of funds, which is essential for maintaining the trust of the board, donors, and other stakeholders.
• Your nonprofit’s first budget is a critical tool for both planning purposes and managing finances as the organization grows.
• One key to writing strong grant applications is being clear about how you’ll use the funding you’re requesting.
• Apart from budgeting, the module also supports forecasting, helping you to anticipate future financial trends and make informed decisions.
• This will help to ensure that the budget is aligned with the organization’s overall strategy and that resources are being allocated in a way that supports the achievement of these goals.
• It could also be a sign that significant changes in the operating environment have occurred and that the nonprofit budget should be revised.

In determining the income budget, the committee will need to project income based on the current fundraising and revenue activities. Most importantly, nonprofit budgets should be constructed around the organization’s programs and activities, which will help them stay focused on their goals. A nonprofit’s budget sets the bar for the organization’s financial performance. Budgeting plays a significant role in maintaining accurate and timely financial reporting, which allows nonprofits to be financially https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ healthy. Program expenses include any costs incurred in service of your mission.

Overview of the Process

Many nonprofit budget templates also come with built-in formulas and functions to automatically calculate percentages, variances, and totals. Before creating your operating budget, check in with your strategic plan. Since it defines your organization’s overarching priorities, you should organize your budget in a way that enables your nonprofit to achieve those goals. The expense budget requires an understanding of your nonprofit’s true needs and strategic direction.