Think about what goals you have for programming, but also any other goals related to building your infrastructure, and any communications or marketing goals. The simplest way to do that is to package your activities as programs. There are several types of grant budgets you might use in a grant proposal.

Gather the Data

• Whether you’re just starting out or looking to refine your financial strategy, understanding how to allocate resources effectively is essential for ensuring your nonprofit thrives.
• The term “capital budget” might make you think of capital campaigns—the largest fundraising initiatives nonprofits typically run.
• Once all expenses have been accounted for, you can then begin to allocate funds to each category.
• Nonprofits often face scrutiny over how much of their budget goes toward administrative expenses versus program-related activities.
• This is also a crucial step of the process because you’ll be setting your nonprofit’s priorities and goals by determining which get funded and which don’t.
• There are lots of budgeting templates available online or you could create one of your own.
• Direct program costs include staff salaries and benefits, materials and supplies, dedicated facilities, transportation, marketing, participant materials, and essential equipment.

While you’ll create your nonprofit’s operating budget from scratch once a year, budgeting shouldn’t be a one-and-done event. Instead, your budget should guide your organization’s spending, fundraising, and reporting throughout the year, so check in with it frequently. For the purposes of this article, we’ll focus primarily on operating budgets because of their central role in nonprofit finance. However, you can adapt some of our tips to create other types of budgets.

Revenues and Support

To protect your budgets, add BILL Spend & Expense to your nonprofit tech stack. This category may include cell phones, internet, electricity, water, and other utilities for daily operations. https://nyweekly.com/business/accounting-services-for-nonprofits-benefits-and-how-to-choose-the-right-provider/ If your nonprofit needs TV streaming, cable, or satellite service, include that here too.

Nonprofit Cash Flow Projection Template

When determining revenue, nonprofit professionals should forecast the resources their organization is likely to acquire. In the for-profit world, revenue is typically classified as resources earned from the sale of goods and services. What’s more, when creating your budget, you will find gaps in your operations where you could potentially save money or invest more. During this process, you will also benefit accounting services for nonprofit organizations your organization by deciding what operations best advance your organization’s mission. Be sure to include these expenses if the organization needs to rent or maintain a physical location for its operations.

Understanding the true, full cost of delivering various programs and services in the community is a critical piece of the management puzzle. This could include donations, grants, fundraising events, and any other revenue streams. Be realistic in your projections and consider historical data to estimate future incomes. A program budget focuses on the specific financial requirements of a particular initiative or project.