Capterra’s Nonprofit Grant Budget Template is designed to aid nonprofits in planning and managing their grant funding effectively. This template allows for precise allocation and tracking of grant funds, ensuring that each dollar is accounted for and spent according to grantor guidelines. It is especially useful for organizations looking to streamline their grant reporting process and enhance transparency with funders. Whether you are just starting out or are looking to improve your existing budgeting process, nonprofit budget templates are the perfect tool for you and your organization.

Nonprofit Budget Templates

• In this sense it is the primary source for making informed decisions, assessing funding needs, and communicating financial expectations to your board and stakeholders.
• The key is identifying your revenue streams and making realistic estimates for each.
• So, whether you’re training service monkeys or supporting the exceptionally tall, you need an operating budget that reflects your organization’s unique needs.
• Among your annual projected expenses, include fixed expenses like rent and loan repayments as well as variable expenses like marketing and fundraising costs.
• Understanding and managing both fixed and variable costs helps you make smarter spending decisions and maintain financial flexibility.
• It’s easy to be overly optimistic when planning a nonprofit budget, especially when launching new programs or initiatives.

Donations, fundraising, grants—each revenue stream has its perks and quirks! Getting an idea of what these streams bring in will help you see how useful each of them are to your organization long-term. Running a nonprofit is a lot like learning to juggle—exciting as the skill is, it’s harder than it looks! If you’re looking for a way to keep all those balls in the air, nothing is more valuable than a foolproof nonprofit budget.

Allocate Expenses by Function

There are two primary ways that a nonprofit organization can choose to budget its finances – historical budgeting and zero-based budgeting. You can use cost-benefit analysis to determine if the event would be more valuable than some other methods of fundraising. Many nonprofits also use a budgeting technique called cost-benefit analysis. This is an easy way for nonprofits to figure out what will work best for them based on the value it provides and whether or not the costs are worth it. Your budget will be unique to your organization, but we’ll give you a broad idea of what to include under each section. Lastly, it’s rare that nonprofits have unlimited funds, so they need to be realistic and thoughtful about setting restrictions on what they can spend money on.

Create a budget that allocates the organization’s resources in a way that supports its financial goals and objectives

Since you’ve already identified many of your organization’s expenses, start by outlining and categorizing those costs. This budget template is designed to help nonprofits quickly and accurately estimate operating expenses while creating a plan to reach their goals in the new year. Every nonprofit is unique, so feel free to adjust the categories and templates to fit your needs. This guide is designed to help nonprofits of all sizes master the art of budgeting. We’ll provide a step-by-step process to create an effective budget, offer examples for various budget types, and address common challenges with actionable solutions.

The Nonprofit Administration Dilemma: How Much Should You Spend on Fundraising?

For example, some nonprofits list corporate accounting services for nonprofit organizations grants with their other grant funding, while others consider them a type of corporate philanthropy. There are also a number of accounting software programs that can help you create and manage your nonprofit budget. These programs often have templates that you can use, which can make the process of creating a budget much easier.

• What you might not think of right away are your organization’s financial management resources, although they’re just as critical for furthering your mission as any of the other tools we’ve mentioned.
• The budget is then presented to the nonprofit board of directors for comment, feedback, and, eventually, approval.
• Gather historical financial data, project future revenue sources, and estimate program costs.
• You can also use industry benchmarks and specific examples to demonstrate responsible resource management.

Even if you have the perfect idea for a new project, you will still lose out on funding if your grant budget isn’t feasible and in line with the funder’s priorities. Successfully implementing a budget for non-profit organizations requires systematic effort. Compare this against your predictable expenses like payroll, rent, and https://greatercollinwood.org/main-benefits-of-accounting-services-for-nonprofit-organizations/ utilities, as well as variable costs tied to program delivery and special events. By starting fresh each year, you ensure your budget remains a dynamic tool for achieving your mission. Articles on Blue Avocado do not provide legal representation or legal advice and should not be used as a substitute for advice or legal counsel. The opinions and views expressed in this article are solely those of the authors.