How to create your new nonprofits first budget

To help you to do that, I have developed an easy-to-use nonprofit operating budget template. You’ll find a bunch of them on the internet but they are just that — templates. What I’m going to offer you is a basic template and also some advice on how to best use it to tell the story behind the numbers. Because as I said above, the numbers tell a story — but you need to learn how to tell it. Including contracted services in the budget lets you plan and allocate funds for these essential services.

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• When creating your nonprofit operating budget, use the past as a benchmark for your expectations and goals in the coming year.
• When budgeting, nonprofits sometimes make the mistake of forgetting to account for in-kind donations or volunteer hours.
• Here are some other reasons why you need an annual budget for your nonprofit organization.
• At this stage, it’s also important to assign roles to those involved in budget management.
• Everyone in your nonprofit will have different expertise, so check in on what they might know that you don’t.
• Budgeting is the process of establishing a spending plan for your money.

This category may include cell phones, internet, electricity, water, and other utilities for daily operations. If your nonprofit needs TV streaming, cable, or satellite service, include that here too. This category includes things like educational materials, workshops, and conferences. For ASF, the tee soccer program has restricted funding from a donor with a special interest in soccer, but the basketball program is supported by unrestricted funds, which are more limited. For example, maybe your main donor only sends you one big check a year in January.

Download this budget template to kick off your nonprofit budgeting the right way!

Make necessary adjustments to ensure the budget is both realistic and aligned with organizational priorities. A thoughtful budget is not restricted to being an operational tool, it’s a statement of accountability, a roadmap for growth, and a catalyst for change. Smartsheet provides a better way to unify collaboration and automate workflows so you can spend more time on the work that matters. Without a budget, you can find yourself in deep water, fast, with more money going out than coming in.

Benefits of an Ironclad Budget for Nonprofits

• It details the costs your organization will incur and the revenue you expect to receive over a set period of time.
• Because nonprofit revenue streams can be unpredictable, and it’s easy to prioritize program funding over internal needs.
• They also simplify monitoring financial progress and adjusting strategies as needed, proving indispensable for both new and established organizations.
• ? This nonprofit budget will help you understand what your organization needs to run smoothly and allocate resources effectively.
• Enter fundraising, grant, and other income figures to compare your nonprofit’s current budget to your year-to-date actual revenue.

This is especially important for nonprofits that rely heavily on grants or fundraising events, which often lead to large, irregular payments instead of a steady revenue stream. Use detailed historical data and consult with your nonprofit https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ program managers to develop accurate estimates of expenses and stay on top of underestimating costs. It’s easy to be overly optimistic when planning a nonprofit budget, especially when launching new programs or initiatives. Most nonprofit budgets have columns indicating the period covered, budgeted amounts, actual spending, and the percentage difference from the previous period or year. The ultimate guide to selecting the best accounting and financial management software for your nonprofit. In this guide, you’ll walk through the essentials of budgeting for nonprofits, covering different budgeting methods, best practices, and key components.

Budgeting for Nonprofits

A budget combined with a fundraising plan can help you make sure there’s always money to pay for the things you need to operate your programs. There’s a lot of advice you’ll hear through the grape vine regrading grant budgets. To help pick out the signal from the noise, we interviewed several seasoned grant professionals. For example, one of the helpful grant budget examples comes from the Substance Abuse and Mental Health Services Administration (SAMHSA).

• QuickBooks Online is a small business accounting software and app that allows you to manage your business anywhere, anytime.
• Driver-based budgeting helps your nonprofit align its financial planning with operational activities, making adjusting to changes and improving decision-making easier.
• Program-specific budgets detail the income and expenses related to a specific initiative, such as a youth mentoring program, a community food bank, or an educational campaign.
• These numbers help guide your business choices—a sample nonprofit budget will show you what to include.

We have so many different types of nonprofit budget templates here; you can choose anyone you like. When you’re just getting started, it’s critical that one of your first steps is to create your nonprofit’s first budget to help you manage both your organization and your finances as it grows. A grant budget is a detailed financial plan that outlines the estimated expenses of your proposed project or program for which you’re seeking funding.

❤️ To successfully deliver these programs—without running out of resources—effective nonprofit budgeting is key. It is an important financial tool to manage the expenses and revenue of an organization. Nonprofit organizations receive donations and volunteer service to achieve the desired goals.

Startup Operating Budget

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. You’ll also find downloadable templates to streamline the process and empower your team to hit the ground running. With the right tools and strategies, your nonprofit can confidently build a financial foundation for 2025 that ensures stability and amplifies your mission. Nonprofit activities are paved with good intentions, but many organizations are unaware of the importance of budgeting when implementing plans and strategies for the coming year. Nonprofits frequently struggle and discover too late that a well-planned budget is critical to the organization’s long-term viability and revenue tracking.