Nonprofit Budgeting: How to Get Started + Template

For more skill development, coaching and tools, check out StriveTogether’s upcoming courses. As you go along, don’t be afraid to make changes and adjustments to your budget to better fit the year’s actual numbers. By making continuous adjustments, you can keep your nonprofit on track to successfully complete another year. But it’s essential that you be realistic, especially when it comes to estimating the upcoming year’s revenue. To earn their place in the budget for another year, costs typically need to be tied to real results. Nonprofits are recommended to have general liability (premise), commercial automobile (non-owned/hired), and directors and officers (D&O) liability coverages.

• In determining the income budget, the committee will need to project income based on the current fundraising and revenue activities.
• If you have a special project in mind, create a separate budget for it.
• Large human services organizations have used NFF templates to manage complex budgets and ensure consistent financial reporting across multiple programs.
• To keep your nonprofit on track, we’ll walk you through each line item you might need to include in your nonprofit budget template and show you how to create one tailored to your needs.
• Involve staff and board members in the budgeting process to create a comprehensive strategy that relies on a variety of perspectives.
• Above all, a budget for non-profit organizations must remain flexible enough to adapt to changing circumstances while maintaining fiscal responsibility.

Creating Your Own Nonprofit Budget

This detailed guide helps you allocate resources efficiently, presenting a holistic view of operating costs and expenses. The annual nonprofit budget illustrates the financial objectives to be achieved over a year. They also simplify monitoring financial progress and adjusting strategies as needed, proving indispensable for both new and established organizations.

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• Minimizing line items allows you to be flexible in allocating funds throughout the year.
• Setting costs with them early on will make budgeting easier and help you avoid guesswork.
• For example, if your year-end campaign consistently brings in 40% of annual donations, factor this timing into your financial planning.
• Partner with Jitasa to create accurate, actionable budgets for your nonprofit.
• Successful nonprofits prioritize competitive compensation to attract and retain talented staff while maintaining transparent communication with donors about staffing costs.
• The templates facilitate informed discussions about resource allocation and financial performance, contributing to a more robust governance structure.

Many nonprofit leaders assume they can’t afford the type of back-office that’s required for effective nonprofit budgeting and comparing budgets vs. actuals. A capital budget is a long-term financial plan that covers major investments and projects needed to strengthen your organization over time to sustain its growth. A capital budget typically includes things like building new facilities or acquiring new equipment needed to meet the demands of increased demand for services provided by the nonprofit organization.

• This foresight allows you to plan proactively rather than reacting to cash crunches.
• Our team of experts offers free consultations and resources to help your organization create a successful marketing plan.
• This sample budget for nonprofits is a template for an organizational budget for a fiscal year.
• A budget for non-profit organizations must balance multiple priorities while maintaining clarity and usability.
• You can add or remove categories, adjust budget amounts, and update actual expenses as you receive financial statements or make payments.
• These templates serve as a valuable tool for nonprofits seeking to present clear, accurate, and compelling financial projections.

How to build your dream fundraising team (without the burnout)

• In order for nonprofits to determine how much money they require to operate, they need an accurate way to account for all income and costs.
• The more buy-in you get from your team, the better the process will unfold.
• It’s particularly useful for tracking annual income sources, expenses, and for preparing financial reports that support strategic planning and decision-making processes.
• This is where the budget becomes an effective management and operations tool for your organization.
• Include key stakeholders, such as board members, staff, and volunteers, in the budgeting process.
• According to the National Council of Nonprofits, about 8% of 501(c)(3) organizations manage budgets of over $1 million per year.
• Explore OpenGrants today at OpenGrants and discover how it can empower your nonprofit’s financial future.

You can use cost-benefit analysis to determine if the event would be more valuable than https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ some other methods of fundraising. 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. 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. Develop, analyze and apply your organization’s budgets with expert help from the nonprofit financial professionals at Jitasa. With these features in mind, let’s dive deeper into the two sides of your nonprofit’s operating budget.

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In our collection, you can find perfectly designed non-profit budgeting form templates that help you track your income and expenses efficiently. For a non-profit organization, donations and grants are may the only way to meet the expenses that they face in helping others. You can find a tremendous collection of donation receipt templates that you can use to let the donor know that the donation he/she has made has been received successfully. A clear budgeting process also helps to improve other areas of your organization, including your nonprofit accounting system and your management of nonprofit audits. When you take the time to organize a clear accounting services for nonprofit organizations and consistent financial plan that aligns with your timely goals, there are clear benefits.