Budgeting plays a significant role in maintaining accurate and timely financial reporting, which allows nonprofits to be financially healthy. Additionally, you’ll indicate whether these funds will come from program, management and general, or fundraising activities. Once you’ve created your nonprofit budget, you’ll be on track to secure financial stability and sustainability for your organization.

Are there different types of nonprofit budgets?

According to the National Council of Nonprofits, about 8% of 501(c)(3) organizations manage budgets of over $1 million per year. However, most nonprofits are community-based and work with smaller budgets of less than $500,000 annually. Although any changes in operations can either cause problems or provide solutions, without the proper financial management a financial budget provides your always in limbo.

Additional Types of Nonprofit Budgets

• If it isn’t your first time creating a budget for your nonprofit, looking back at past budgets can help you get a sense of what you can expect this year in terms of revenue and expenses.
• Create a list of “nice to haves” you can add into your budget if you have projected funds left over after your necessary expenses are covered.
• Operating budgets are easier to develop because you can estimate the amounts based on the day-to-day costs in your organizational budget from the prior year.
• To get a true picture of the cost to operate your nonprofit, include in-kind donations (materials, services, etc.) and volunteer labor in your budget.
• By following this step-by-step guide, your nonprofit can build a sustainable financial future while helping those in need.
• Knowing which type of budget you adopt will help you ask yourself the right questions and gather the right information for creating the most accurate budget.

In FY23, WWF increased spending on conservation programs by 16% compared to FY22. In order for nonprofits to accounting services for nonprofit organizations determine how much money they require to operate, they need an accurate way to account for all income and costs. Discover how to get the most out of your nonprofit’s business plan by reading Free Nonprofit Business Plan Templates.

Review and Adjust the Draft Budget

• Program staff  know best what’s been missing, what’s been underutilized, and what things really cost to run their programs.
• By using these templates, nonprofits can make informed decisions, plan for future growth, and demonstrate financial responsibility to stakeholders and donors.
• It’s no secret that budgeting guels your nonprofit’s ability to make an impact.
• Budgeting is the process of planning, organizing, and controlling financial resources and how they are allocated to achieve organizational goals.

Assign an average value for flights ($600), hotel stays per night ($250), per diem rates for food ($50), transportation ($50) and more to make it easier to calculate trip costs. Start with your known fixed costs like rent, utilities, salaries and insurance. Create a list of “nice to haves” you can add into your budget if you have projected funds left over after your necessary expenses are covered. Creating a nonprofit budget can feel like a daunting task, but with a clear plan that evolves along with your organization, it can be one of your most powerful tools for impact.

It’s easy to get excited and put some pie-in-the-sky revenue numbers in your budget but listen – it’s important to the success of your programs that your revenue and expense estimates are realistic. Learn the essentials of developing a nonprofit budget—tips, best practices, and free resources to help you build a strong, credible budget or refine your current one. Once the initial nonprofit budget is prepared, it should be reviewed and approved by the organization’s Board of Directors.

• See how the online fundraising market is changing, what nonprofits are doing, and how you can adapt your strategies for sustainability and growth.
• Identify and log sources of revenue and common or recurring expenses.
• As you follow this process, always remember to align your budget with your organization’s general goals and plans for future growth.
• In line with regulatory requirements, Currencycloud safeguards your funds.
• Think of it as a roadmap that helps your team manage financial resources effectively, ensuring you have the funds to support your programs and initiatives.