Program-based financial information will be most useful for planning, management, and communications if it is comprehensive, accurate, and used consistently. NFF’s resources have been implemented by a variety of organizations across the nonprofit sector. Large human services organizations have used NFF templates to manage complex budgets and ensure consistent financial reporting across multiple programs. Nonprofits engaged in merger discussions have leveraged NFF tools to assess the financial implications of combining operations and develop integrated budgets. Organizations seeking major scale expansion have adopted NFF’s scenario planning resources to model the financial impact of growth and secure necessary funding.

Free Nonprofit Budget Template

This is not a fast activity, so commit to taking the time to do it and do it right. Since your nonprofit is new, you don’t have historical numbers to look at and base your projections on. That means you have a lot of estimating to do for your nonprofit’s first budget. Mark off a couple of blocks of time on your calendar to research things like supplies, materials, and equipment online or call local vendors to find out what things cost.

• A well-structured nonprofit budget aligns expected financial resources with your organization’s mission and goals, ensuring financial sustainability while maximizing project impact.
• If creating a budget seems like a challenging task for you, you may download a nonprofit budget proposal template and nonprofit budget template in Google Sheets.
• Your profit is the total revenue–donations and other sources–minus the total costs to run the organization.
• In case your expenses are more than your income, then know where do you need to reduce spending money.
• Some of these costs might be small, but it’s important to keep track of them.
• Then get estimates from at least 3 vendors so you can see what the going price is.

Download your free nonprofit budget template

Investing in cash management software is also a great way to gain better visibility and ensure financial stability. Since different funding sources often come with specific restrictions, your budget should carefully allocate resources to cover each need effectively. By involving staff from various departments in the budgeting process, you get a more accurate and realistic picture of your financial needs.

Sample Nonprofit Budget Templates to Simplify Finances

A budget describes your project in numbers just as a proposal describes it in words. Often funders will look at the budget component of your proposal before they read anything else. A nonprofit operating budget reflects the organization’s planned financial activities, showing how much it will spend on operations. Executive directors should plan and make sure the budget plan is centered around the primary goals and objectives of your organization. Like any small business, your nonprofit needs enough cash flow to cover all its operating expenses—paying staff salaries, keeping the lights on, and covering upfront costs for fundraising events.

Remember a budget describes your project in numbers just as your proposal describes it in words. To create an effective budget, make sure you know your project thoroughly. Many funders will look at the budget component of your proposal before they read anything else. To learn more about taking control of your nonprofit’s finances, watch our free video, Seven Lessons Learned from Nonprofit Leaders.

FREE Project Budget Samples to Download

• Organizations with multiple funding sources find the restricted fund tracking invaluable for managing complex grants.
• Below, we explore the major challenges of a nonprofit budget proposal and provide real-world examples of how organizations have successfully addressed them.
• Sometimes, it’s more beneficial to keep an eye on your revenue and expenses with a top-down approach to pinpoint major areas of concern.
• Make sure your budget clearly outlines the key components needed to sustain operations, so all stakeholders understand how financial resources are being managed.
• It may also be budgeted for outreach efforts, site visits, or other programs that require travel.
• It’s best if you get 3 estimates for each line item on your budget so you know your estimate isn’t too low or too high.

Their program director and activities staff salaries and program budget are tracked in program expenses. It’s important to differentiate between the program and other expenses because many donors like to understand the difference between administrative and program costs. It shows donors and partners how many The Key Benefits of Accounting Services for Nonprofit Organizations dollars are spent on the nonprofit’s mission versus executing the mission.

You don’t need a fancy nonprofit budget template builder — Microsoft Excel or Google Sheets is absolutely perfect. Alongside your nonprofit business plan, you’ll be able to supply potential grant funders with a confident budget that confirms you’re a worthy investment. Plotting out your revenue and expenses for the fiscal year shows that you’re serious about how you operate. You might also be asked to create a separate program budget, which you can do easily by adapting your template. Most sample budget in Word format provide the budget outline for these one time projects done by nonprofit organizations. These budgets can be used again and again, for a vast range of projects.

• Sample budget planning will permit you to figure out if you have enough money for your savings and expenses.
• After completing the full program-based budget or financial analysis it’s worthwhile to take a fresh look for both accuracy and a gut check.
• This template allows for precise allocation and tracking of grant funds, ensuring that each dollar is accounted for and spent according to grantor guidelines.
• Enter fundraising, grant, and other income figures to compare your nonprofit’s current budget to your year-to-date actual revenue.
• Once adopted, nonprofit operating budgets become an essential financial management tool to plan and monitor operations and organizational activities through the year.
• You’ll find a bunch of them on the internet but they are just that — templates.

• This comprehensive document validates every line item in the proposed budget, explaining how funds will be used and demonstrating cost-effectiveness.
• When an expense is clearly and exclusively incurred for a specific program area or cost center, we simply assign the expense to that program area or cost center.
• While program revenue often accounts for the majority of nonprofit income, sales are also really common.
• Here are some common categories found in an annual budget for a nonprofit organization.

The work you do is amazing, but to make an impact you need people to hear about https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ it. Think about all the methods you use and account for their costs here. Your marketing and advertising expenses might include social media advertising, artwork costs, influencer campaigns, and radio advertising. While we can do so much online these days, sometimes you’ll still need to get in front of people — in person. For some nonprofits this will mostly cover local mileage claims and transport to events, but for others you might be recording international flights and hotel bookings.