This is where the budget becomes an effective management and operations tool for your organization. This allows for a better overview, more speedy addressing of any potential issues, more nimble management of the staff and volunteers, and a more informed everyday decision-making process. Budgeting for a surplus allows you to support future innovations and invest in your staff. The goal is to avoid the “nonprofit starvation cycle” of never having enough to invest resources in infrastructure, or having an overhead that is “too lean” to effectively run the organization.

• For example, for ASF, the price of renting field space for soccer practice could fluctuate throughout the year or based on need (seasonal need or programmatic changes).
• Ultimately, remember that your budget should categorize revenue by different funding sources and your expenses by program vs. overhead costs.
• No matter who’s in charge, nonprofit budgeting can be overwhelming.
• Work to develop lasting relationships with any vendors, suppliers and partners as this will save you time, energy, and even money!
• The SmartStreet Free Nonprofit Budget Templates offer a variety of tools tailored for different aspects of nonprofit financial planning.

Providing financial tools and fundraising

Today we’re taking you through why you need a budget and helping you create your own using our free nonprofit organization budget template in Google Sheets. Use this template to step into the financial stability and strategic planning that will enable your organization to make a lasting impact on the communities you partner with. Moreover, you can easily edit this budget template according to your preferences and convenience. For a more convenient integration of your changes, it is best to use Google Sheets.

Staff Payroll and Benefits

• Before you download your free nonprofit budget template, here are some last bits of advice.
• A nonprofit budget is a planning document used to predict expenses and allocate resources for your organization.
• Investing in some nonprofit budget software will make keeping up with your budget a breeze.
• This helps you better understand when you have revenue coming in and expenses going out, on a monthly and yearly basis.
• There are particular slots to accommodate the various program expenses.
• Nonprofit organizations need to budget enough for these expenses to ensure they can attract and retain qualified staff while remaining financially sustainable.
• The budget also plays a key role in forcing organizations to prioritize their activities so as to determine those that are most critical for fulfilling their mission.

To help you get started, we’ve created a basic nonprofit budget template to track your revenue and expenses. It will work as a framework regardless of your nonprofit’s area of focus. Operating budgets reflects the organization’s planned financial activities for the year ahead, showing how much revenue it expects from which sources and how much it will spend on operations. It’s a key tool in effectively and efficiently achieving the organization’s stated purpose, and should always align with an organization’s strategic plan. The operating budget must be centered around the primary goals and objectives of the organization.

💸 Leverage money management tools to stay on budget

Rushing the budgeting process could cause errors, which could result in future issues – especially troubling for nonprofits who need to report their finances and budgeting to grantors. The template https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ includes a revenue summary section that calculates your total grant income and a net section to help you quickly determine your program’s financial sustainability. Propel Nonprofits is an intermediary organization and federally certified community development financial institution (CDFI). Ultimately, remember that your budget should categorize revenue by different funding sources and your expenses by program vs. overhead costs. Here’s a very basic example—but remember that your organization’s budget might be more complicated than this (or maybe even simpler!).

• This guide and accompanying spreadsheet template break down the process of understanding true program costs, either through budgeting or financial reports, into several stages.
• Track expenses, allocate funds, and maintain financial control with our customizable template and formulas.
• Planning your budget for the myriad of activities, especially when you’re just getting started, can fall by the wayside.
• Make sure you include space for corporate donations on your budget, so you get a clear idea of how your income is split between individuals and corporations.
• Before you can develop an accurate budget, you’ll need to gain a clear understanding of the nonprofit’s financial situation.

They must submit their financial statements that include the salaries of directors, key employee sheets, etc. They must have transparency with their investors and shareholders; the budget details should be made public so that clients and investors can keep a check on their funds. Your nonprofit organization may have arranged to accumulate a lot of debt for it to keep working.

Free Nonprofit Budget Template

One of the most valuable results of understanding the true cost of programs is the ability to make wise choices about how to support mission critical work. For most nonprofits, some programs may be financially self-sustaining or even generate a surplus. Other activities may require periodic or ongoing subsidy from fundraising or other program areas. Deciding whether and how to support these services is a central strategic decision for nonprofits. Knowing the real costs of each program allows us to make informed decisions and choices that will lead to mission and financial success. This example shows the estimated expenses and revenues of a nonprofit organization that runs community programs.

It may also be budgeted for outreach efforts, site visits, or other programs that require travel. When including travel in your nonprofit operating accounting services for nonprofit organizations budget, think about plane tickets, lodgings, car rentals, Uber fees, and/or driving mileage. This category includes all the costs of hiring and retaining staff—including salaries, payroll taxes, health insurance, retirement contributions, and other benefits. Nonprofit organizations need to budget enough for these expenses to ensure they can attract and retain qualified staff while remaining financially sustainable. The stakeholder of a specific program makes some critical decisions based on its budget.