
Use a free template to get you started and once you’ve added any unique requirements to it, this can be reused for subsequent budgeting sessions. It also helps to use a standard format for budgets as you can compare them and track growth and changes over the years. It demonstrates your ability to responsibly manage financial resources and provides a roadmap for activities in the upcoming year.
Examples of Operational Costs
A good nonprofit budget provides a framework for financial accountability. 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. If you want to give a charity in the secure hands that convey it to the needy people, nonprofit organizations play an important role in the betterment of the needy people. Some people donate money or other things to serve other people, but some provide community service for their community. In our collection, you can find perfectly designed non-profit budgeting form templates that help you track your income and expenses efficiently.

Grant proposal budget
- It leads to more effective financial management and decision-making processes.
- Once the initial budget is drafted, review it with stakeholders to identify potential gaps or misallocations.
- Including insurance in a nonprofit operating budget helps protect your organization from unexpected financial risks.
- It’s important to focus on annual goals, but make sure you also look beyond what you want to achieve this year, and include line items in your budget for long-term goals.
- To learn more about annual business budget templates, that can be used across different organizations, see Free Annual Business Budget Templates.
It helps track the revenue and expenses, limiting the chances of stopping activities or programs due to money shortages. https://namesbluff.com/everything-you-should-know-about-accounting-services-for-nonprofit-organizations/ It also gives the organization to operate for the long term, and gives the organization financial control, knowing the cash flow of the nonprofit. The primary purpose of a nonprofit operating budget is to provide a breakdown of the annual projected revenues and expenses for your organization.
Zero-based budgeting

List program expenses (staff salary, insurance, supplies, fundraising fees, etc.) to see your total nonprofit program expenses vs. your actual revenue. Discover the ultimate guide to 2025 fundraising gala themes for nonprofits. Learn how themed events boost donor engagement, increase giving, and create unforgettable experiences using immersive design, technology, and mission-driven storytelling.
Choose a template that works for your organization and its specific needs (we’ve included a few templates in the next section). Funders want to understand that your nonprofit is functional and financially healthy. That’s why assets and liabilities should be broken down and listed in any nonprofit organizational budget.


Your board of directors will see your budget at some point, but it’s important to know how involved they’ll be! A board can either be very hands-on or hands-off, depending on how you want to use them as a resource. Consider who’s available to give you the most useful insight—is there an experienced head of finance supporting you, or a treasurer? Checking in with multiple departments will help you better understand the big picture.
- Unlock the secrets to transforming your business from a job into a profitable, cash-generating machine.
- Be realistic about what you can successfully operate the first year, especially if you will need to raise the money for the program(s) (fundraising can be a bit slow at first).
- You must make deadlines for funds or revenues that your organization is receiving.
- A budget describes your project in numbers just as a proposal describes it in words.
- Your nonprofit organization may have arranged to accumulate a lot of debt for it to keep working.
- It is most useful for nonprofits that want to avoid unnecessary expenditures or when they need to adapt to significant changes in their operating environment.
- It demonstrates your ability to responsibly manage financial resources and provides a roadmap for activities in the upcoming year.
Use this operating budget template to ensure that your nonprofit has accounted for every single cost and expense. By doing so, you can keep an eye on your big-picture forecast with the assurance that every detail of your accounting is in order. With this comprehensive annual nonprofit operating budget template, you’ll get quarter-by-quarter and yearly insights into income and expenses. To calculate year-end budget totals, contrast income (e.g., sales, contributions, fundraising, etc.) with expenses (e.g., office equipment, transportation, utilities, etc.). A nonprofit budget is a planning document used to predict expenses and allocate resources for your organization. It details the costs your organization will incur and the revenue you expect to receive over a set period of time.

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Direct Relief is a great example of how contingency funds can help tackle unforeseen emergencies. It uses its Top Benefits of Accounting Services for Nonprofit Organizations You Should Know reserve fund to manage unexpected costs during disaster relief efforts. In 2023, it allocated 46% of its program budget ($58.2M) for emergency disaster response.
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A template saves time by providing a structured format where you input data. These usually include a comprehensive set of income and expense categories. Cash flow projection refers to the monthly movement of funds coming in and going out of your nonprofit organization. Tracking this number tells you how much you have with you at any given point. Within each category, list specific costs such as rent, staff salaries, supplies, and transportation.