Create templates to develop estimates for areas where revenue or expenses are consistent and repetitive, such as travel or revenue proposals. Assign an average value for flights ($600), hotel stays per night ($250), per diem rates for food ($50), transportation ($50) and more to make it easier to calculate trip costs. Your nonprofit’s budget will be different, depending on the size, income and expenses of your organization. To create this budget, you start with the previous year’s budget and build on it, adjusting figures and adding or removing line items as necessary.

Budgeting for Nonprofit Organizations

Proper planning and preparation for revenue, funding stream, and expenses are central to the foundation of your organization. If your organization receives income from https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ multiple sources, each source should be listed. The budget is the foundation upon which the mission can be built—hence, no budget, no mission.

Outputs vs. Outcomes: Measuring Your Impact Effectively

• These numbers will often be estimates based on your goals or what you earned and spent last year.
• They also simplify monitoring financial progress and adjusting strategies as needed, proving indispensable for both new and established organizations.
• Let’s look at some of the best practices for managing your organization’s budget effectively.
• This knowledge can be particularly helpful when working with TechSoup’s resources.
• Step back and assess your fundraising strategies and how potential changes could affect your expected contributions.
• Most financial experts recommend nonprofits maintain cash reserves equal to 3-6 months of operating expenses.

StriveTogether offers online training to help community leaders strengthen their work. Timing could be affected by events, annual appeal revenue drives or large gifts. Note months that may have more revenue coming in or more expenses going out. Use this calendar to plan to pay certain expenses when you have the cash, or reserve enough cash to cover those expenses later. Start with your known fixed costs like rent, utilities, salaries and insurance. Create a list of “nice to haves” you can add into your budget if you have projected funds left over after your necessary expenses are covered.

Capital Budget

Use this budget for nonprofit project template to determine where you have room to grow and accounting services for nonprofit organizations where you might need to cut back. Discover how to get the most out of your nonprofit’s business plan by reading Free Nonprofit Business Plan Templates. Discover seven powerful collaboration tools that transform chaotic nonprofit teamwork into streamlined fundraising success—helping you raise more while stressing less. Givebutter’s top-rated tools are free because of donor tips, which helps it maintain the lowest pricing in the industry.

Using Excel, you can create tables that display the organization’s finances over time. The first step in creating a nonprofit budget is to determine the organization’s financial goals and objectives. 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. Finding the right sample nonprofit budget template can feel overwhelming.

Creating a budget for non-profit organizations requires balancing mission impact with financial sustainability. The most successful nonprofits treat budgeting as an ongoing strategic process rather than a yearly task. A good budget for non-profit organizations balances program delivery with operational sustainability. Rather than focusing on specific dollar amounts, aim to maintain program spending at 65-75% of your budget, with adequate allocation for administrative costs (15-20%) and fundraising (10-15%).