Nonprofit Budget 2025: Steps, Planning, Examples & Template

The idea behind the Nonprofit Grant Proposal Budget Template is to solidify your nonprofit’s standing regarding its eligibility for funding. Additionally, this spreadsheet not only allows you to report on your nonprofit’s progress either on an annual or quarterly basis. If you are seeing red, maybe it’s https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ time to look at cutting back on some of those expenses. If your predicted revenue exceeds your expenses, think about where you can use those extra dollars to make a bigger impact. Maybe you’ve run a one-off live class or earned income from a partnership project with a major brand.

Non Profit Budget Template

Any accounting software can be used to maintain program-based financials, but they each have their own structure and accounting services for nonprofit organizations terminology. One benefit of structuring accounting this way is that you can control your chart of accounts – the list of income and expense categories. These two cost centers are important components of understanding true costs and are created in parallel with the programs. By organizing your budget and allocations this way, you’re also setting up the accounting system to track and report the three functional expense categories required on audits and the IRS Form 990. A nonprofit budget template is essential for nonprofit organizations to manage their financial resources effectively. A well-planned budget is the first step toward planning the future of a nonprofit organization, as it enables the organization to accomplish its objectives with limited resources.

Startup Operating Budget

• Variable costs are those that vary based on need or market prices.
• This includes program expenses, staff salaries, an operating budget and other expenditures.
• FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC.
• To clear up any confusion surrounding these resources, we’ll begin by answering some common questions about nonprofit budgets.
• But first, if you’re serious about making a plan, here are some guidelines to follow.
• Additionally, remember that any budget that covers a specific aspect of your nonprofit’s spending and fundraising should align with your operating budget.
• Determine your fixed costs, regardless of the number of financial responsibilities you have, such as rent, employee salaries, insurance, and materials.

As a startup nonprofit, you’re already aware that you have initial expenses before you have your real operational expenses. These startup expenses might include the costs involved in crowdfunding, or what you’re hoping the crowdfunding will cover. Other startup costs might include initial costs for branding and logo, equipment, and first staff member salaries. They charge a small fee for their programs, and the remainder is covered by their generous donors and partners. In communicating with your board members, nonprofit leaders, and supporters about how donations are being used, transparency is key.

Sample budget for nonprofit organizations

Setting and updating a budget helps you stay in control of your finances. You’re no longer running around like a headless chicken, not knowing whether you’re in the green or in the red. Here are some other reasons why you need an annual budget for your nonprofit organization.

• This nonprofit startup operating budget template features sections for total one-time startup expenses, monthly expenses, and total funds required to operate.
• Explore a range of nonprofit budget templates available for download to enhance your financial planning and ensure your organization’s sustainability.
• When estimating fundraising income, don’t forget to look at multi-year trends in your organization’s fundraising.
• Most likely, your organization’s executive director will lead the budgeting process, but a nonprofit accountant can also provide support.

• 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.
• As you walk through your event list, add the amounts you’ll need to make each one happen.
• It is common practice to review the budget regularly and compare it to actual cash flow and expenses to see if things are going as planned throughout the year.
• Ready to get started on your nonprofit organizational budget template?

If you are running a general fundraising campaign and don’t specify direct funding, those donations are unrestricted and you can use them at your discretion. This distinction, and maintaining an even balance of both types of funds, is critical for organizational health. If you only have restricted funds, you won’t have enough money to support your overhead costs. For ASF, they know they have one donor that contributes a large amount in February, and another high-level donor in July.