A key part of running a nonprofit is ensuring you have enough funds to sustain accounting services for nonprofit organizations your mission throughout the fiscal year. In recent years, charitable giving from individuals has skyrocketed to a remarkable $500B per year. But even with these staggering numbers, many nonprofits—particularly small- to mid-sized organizations—are still underfunded. Make sure you set aside enough time to gather information and discuss various elements of the budget. Moreover, the non-profit organizations which reported to the Internal Revenue Service had a combined revenue of $2.53 trillion in 2015.
Nonprofit Organization Budget Template
Although considering natural expenses is helpful during the planning process, your final budget should use functional expense categorization to match your financial reports. If your nonprofit has the financial flexibility to budget for a revenue surplus, do so! When your predicted income exceeds your projected expenses, you’ll be more prepared to course correct if you incur unexpected costs or some revenue sources fall short of your goals.
Non-Profit Annual Budget Template
For this reason we wait until after all the direct allocations are completed before we turn to allocating the indirect costs. The two most common methods for allocating indirect costs to programs are percentage of total direct costs and percentage of FTE. A key component of financial sustainability is the commitment of board and staff to financial management that includes timely review of financial reports and advance planning. One way that board and staff plan for income and expenses in the future is by creating a budget. Approval of the annual budget is one of the fundamental building blocks of sound financial management.
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For a wider selection of budget tracker templates, check out more options here. This free balance sheet template for non-profit organizations comes in an Excel format to make it easy for you to calculate income and expenses. This template is organized into the typical balance sheet categories and makes it easy to organize your nonprofit’s numbers. Think of it as a roadmap that helps your team manage financial resources effectively, ensuring you have the funds to support your programs and initiatives. Including insurance in a nonprofit operating budget helps protect your organization from unexpected financial risks.
Follow this nonprofit budget format to stay on track
A nonprofit https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ budget is more than just a collection of numbers; it’s a strategic blueprint that reflects an organization’s priorities, goals, and mission at a foundational level. It outlines expected income and planned expenses for a specific period, typically a fiscal year, ensuring that resources are allocated efficiently and transparently. For nonprofits, budgeting plays a pivotal role in aligning limited resources with their mission-driven objectives.
Non Profit Startup Budget Template
- Download it by clicking on the green Download button below the thumbnail of the template.
- 💰 This nonprofit budget will help you understand what your organization needs to run smoothly and allocate resources effectively.
- This template provides an accurate picture of your nonprofit’s budgeted operating costs and all-around fiscal health.
- Relay is an online business banking and money management platform that offers no-fee business checking and savings accounts.
- Nonprofit operating budgets typically include expected revenue as well as various expense categories that reflect the organization’s day-to-day activities and operational needs.
- If that has not been your practice we urge you to gather some accurate information by completing a timekeeping report or adding time reporting to payroll or database records.
It’s often a goal for nonprofit organizations to begin projects and programs that will benefit their main cause. However, to make these projects successful, an allocated basic budget is needed. To smartly manage the budget for a specific sample program, the above template will be of great help. From how to get the funds needed to how to spend the money wisely, the above formal template can guide you through with the well-written suggestive content.
We’ve created each free non-profit template and downloadable resource to support the great work that charities, nonprofits, and NGOs do. Choosing the right nonprofit accounting software will streamline how your organization understands itself. Investing in cash management software is also a great way to gain better visibility and ensure financial stability. Review your spending regularly to ensure it aligns with your strategic goals and keeps your nonprofit financially healthy. To help you avoid these pitfalls, here are some essential budgeting best practices to keep your nonprofit financially stable and mission-focused. By involving staff from various departments in the budgeting process, you get a more accurate and realistic picture of your financial needs.
Printable Nonprofit Budget Example
Budget projections for both the income and the expenses must be achievable. Past financial performances and budgets may be helpful in the creation of the current one. There are many free budget general templates available online for you, so you don’t have to make a budget for your nonprofit organization from scratch. Most sample budget in Word format provide the budget outline for these one time projects done by nonprofit organizations.
