Budgeting: A 10-Step Checklist

The budget lists all of those sources and provides an indication of the amounts the board can expect to come in from each source. Funds raised may come from ticket sales, membership fees, proceeds of auctions, galas, sales of goods or services, or other fundraising activities. This will help ensure that your estimates are accurate and that you’re on track to reach your financial goals.

Create Your Nonprofit Budget: 9 Simple Steps + Free Template

Below, we explore the major challenges of a nonprofit budget proposal and provide real-world examples of how organizations have successfully addressed them. A nonprofit budget is a financial document that provides an overview of how the organization plans to spend its money. It’s crucial that the budget be centered around the primary goals and objectives of the organization.

Capital budget

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. Every organization’s budget will look slightly different, so make sure you can customize your chosen template to fit your needs and goals. Your nonprofit’s budget should be organized to align with other key financial resources, including your internal records, financial statements, and tax returns.

• The benefit is that you now have better information for discussions about priorities and how resources are used.
• After completing the full program-based budget or financial analysis it’s worthwhile to take a fresh look for both accuracy and a gut check.
• The responsibilites of a nonprofit board include a fiduciary duty to oversee and approve the budget.
• A nonprofit strategic plan outlines your organization’s goals and activities for the year, while the budget ensures you have the resources to achieve them.

Fundraising and Marketing Costs

Some of the best options include Google Sheets, Excel, and budgeting software programs like Xero or QuickBooks. Once the budget has been created, it is important to monitor actual expenses and income on a regular basis. This will allow you to make adjustments as needed to ensure that the organization remains on track to meet its financial goals. There are a few things https://namesbluff.com/everything-you-should-know-about-accounting-services-for-nonprofit-organizations/ to consider when budgeting for expenses in a nonprofit. The first is to make sure that all of the expenses are covered by the income of the organization.

• Your capital budget includes projects that have an ongoing impact on your operations.
• 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.
• If the most you’ve raised is $50,000, don’t put $500,000 down for revenue unless you know EXACTLY where it’s coming from.
• It’s meant to help you manage your cash flow so that you can run smoothly while achieving the goals you have set out for your organization.
• When you’re just getting started, it’s critical that one of your first steps is to create your nonprofit’s first budget to help you manage both your organization and your finances as it grows.
• Enter fundraising, grant, and other income figures to compare your nonprofit’s current budget to your year-to-date actual revenue.
• If that’s too complicated, then it’s fine to start with one overall budget that includes all of your programs.

Manage risks

This category includes things like educational materials, workshops, and conferences. Join 31,500+ purpose-driven leaders to get insight and resources to help you grow your impact and your income. To help you get started, I’ve put together a list of frequently asked questions about budgeting.

Transform funder connections with our 10 expert-crafted cold email templates. Engage, build bonds, showcase impact, and elevate conversations effortlessly. Finally, your budget needs to establish a clear connection between the numbers and your goals.

Nonprofit Budget 2025: Steps, Planning, Examples & Template

Administrative oversight, financial management, IT support, insurance, facility maintenance, volunteer coordination, and grant compliance all contribute accounting services for nonprofit organizations to program success. Every successful budget for non-profit organizations balances mission impact with financial stability. Understanding and managing both fixed and variable costs helps you make smarter spending decisions and maintain financial flexibility. Board management software is a valuable tool in assisting nonprofits in budget planning.