The Ultimate Guide to Nonprofit Budgeting + Free Template
As I hope you now see, a lot goes into determining a nonprofit operating budget. While drafting yours, remain mission-focused, involve your stakeholders, and use Keela’s operating budget template. The best way to determine nonprofit income for a budget is to review the organization’s financial statements from the previous year. This will give you an idea of how much money the organization brings in from donations, grants, and other sources of revenue. A capital budget is a long-term financial plan that covers major investments and projects needed to strengthen your organization over time to sustain its growth.
Software designed for nonprofits and churches with fund accounting, donor management, giving tracking, reporting, and more. WildApricot is an affordable cloud-based software for small associations, non-profits, state and local chapter organizations. Manage membership, donations, accept payments, host your website, and run events.
Nonprofit Grant Proposal Budget Template
Managing a budget for a nonprofit organization is much like planning a household budget, except that there are generally more sources of income and more categories of expenses. In both cases, a sound budget is important for financial sustainability and provides a guide for financial health and sustainability. Although you’ll finalize a new operating budget at the start of each fiscal year, budgeting shouldn’t be a one-and-done event. At least once a month, meet with your team to compare your budget predictions to the actual numbers in your financial records.
Alternatively, if the goal is to increase donor support, then a greater proportion of funds should be allocated to fundraising expenses. For example, if the organization’s major sources of income are how to calculate operating budget nonprofit donations and grants, then the budget may need to include funds for fundraising activities and grant writing. The capital budget may include projects which will have ongoing effects on operations.
Annual Nonprofit Operating Budget Template
By allocating funds to specific programs and initiatives, you can track and manage expenses more effectively and ensure that resources are distributed appropriately. Including insurance in a nonprofit operating budget helps protect your organization from unexpected financial risks. This can include covering liability for employees or volunteers, property insurance for buildings and equipment, and insurance for events or activities that your nonprofit hosts.