A nonprofit operating budget is usually limited and strictly controlled. Nonprofit organizations need to account for every cent they use. To do this, they require a precise method of recording all the money they get. The organizations need to prove where the money is spent. They need to create budgets for the next project or year. 

Nonprofit budget templates are designed to help nonprofit organizations create and manage budgets. It contains all the details that the organizations need to include in their budget plans. They use different types of temples based on their immediate need. They may use an operating budget template, a nonprofit grant budget template, and many more.

Nonprofit Budget Templates

What is a nonprofit budget sheet?

A nonprofit operating budget ensures the organization runs without hitches. It offers detailed information about the projected expenditure of the organization. The nonprofit budget template shows the expected money the organization expects to receive. 

It is mainly created before the entity starts a new budget year. During this time, they create an annual nonprofit budget, detailing how it expects to spend money. It offers broken-down information on all operating costs.

Nonprofit Budget Examples

Types of nonprofit budget templates

There are different categories of nonprofits. Each may have multiple goals or visions for their existence. As a result, they use different varieties of nonprofit budget templates. Each nonprofit budget is designed to meet unique operational requirements. They have different attributes depending on the organization concerned. The main types of nonprofit budget templates common in most nonprofits include the following. 

  • Nonprofit grant budget template
    A nonprofit grant budget template is created when organizations are soliciting grants. The organizations use it to present detailed program expenses to grand organizations. These types of budget templates offer a comprehensive and transparent breakdown of the proposed budget. The components of a nonprofit grant budget template may feature the following.
    The amount the organization is requesting to be granted.
    A thorough breakdown of what the grant is expected to be spent on. Part of the nonprofit budget could be paying its support staff.
    The amount of money its workers will be paid specifically concerning the grant goals.
    Costs forecasted to be incurred during the implementation and research phases. The nonprofit budget for the grant may include post-implementation costs.
    It may include program expenses related to travel and purchase of technology.
    The program expenses in the nonprofit budget can also include evaluation costs.
    The grant proposal budget template should contain accurate information. It should be clear and detailed. The grant proposal budget template should be aligned with the guidelines provided by the grant issuing entity. Every expenditure in the nonprofit budget should be justified.
  • Annual nonprofit operating budget template
    An annual nonprofit budget template is a type of nonprofit budget that presents the organization’s yearly budget. It offers a detailed budget plan based on the annual financial operational needs of the organization. The different types of elements included in a nonprofit operating budget differ from one organization to the next.
    One of the important components of a nonprofit finance fund is the source of their income. Some of the program expenses could come from fees, grants, or donations. The nonprofit finance fund should also have broken down expenditure details. They may cover administration and fundraiser expenses. Costs for salaries should also be featured in the nonprofit budget.
  • Program expenses template
    The program expenses template offers a platform for tracking expenditures. Each program run by the organization presents different financial components. The program expenses template helps nonprofits allocate resources correctly. It enhances transparency and makes evaluation and reporting easier.
    The nonprofit budget template must describe the project at hand. It should offer details of the nonprofit budget such as costs for equipment and personnel. It should include stationary costs, mitigation expenditures, and other costs. A nonprofit budget example may include:
    A nonprofit operating budget for civic education before an election period.
    Nonprofit budget for research consultation and reporting. There are different levels of research a nonprofit could engage in.
    An annual nonprofit budget for meeting administration expenses. These are costs related to the daily running of the business. It may include utilities, rent, suppliers, and workers.
    A nonprofit finance fund for running a feeding program for needy families.

Nonprofit Budget Samples

What is the basic nonprofit budget? 

A basic non profit budget sample consists of two primary parts. It features the revenue section and the costs. The revenue/income section of the nonprofit organizations loses the funding sources. Nonprofits rely on grants, contributions, and sources such as membership fees to sustain the nonprofit operating budget. 

The costs/expenditures section of the nonprofit finance fund template features how the monetary resources will be used. The monies could be used to cater for operating costs and administration. Another part of the budget could be spent to meet program expenses. 

A basic nonprofit operating budget serves as a foundation for enhanced management of the organization’s finances. It provides a simple picture of the organization’s financial health. The nonprofit operating budget helps the organization make decisions for allocating money. The foundational budget templates comprise the following elements. 

  • Income section
    Nonprofits cannot run without income. Budget supporters of nonprofit organizations come from organizations and individuals. The budget templates must offer proof of where the income is coming from. Financiers of nonprofit organizations can be any of the following.
    Donations are received from different sources such as individuals and organizations.
    Fees are paid for new and existing members.
    Grants received from entities such as governments and foundations.
    Monies raised during fundraising drives.
  • Nonprofit finance fund expenditure section
    The nonprofit budget expenditure section offers details on the different expense elements. Organizations spend money on a variety of items depending on their work scope. They may have different details such as.
    Budget templates for monies spent on paying personnel. They could have budget templates for money spent to raise funds. They have an operating budget template for monies spent to run programs. Other templates may include administration expenditure and mitigation funds for unforeseen circumstances.
    Generally, a simple nonprofit budget example acts as a blueprint for the organization. It directs it to move smoothly towards its objectives. The simple nonprofit operating budget matches the monetary assets of a nonprofit with its goals. It provides a platform for establishing a transparent and accountable financial stewardship of the organization. The nonprofit operating budget paves the way for growth and long-term influence.

What should a nonprofit operating budget look like?

The operating budget template of a non-profit helps it create a clear budget. It gives a quick overview of the financial situation of the organization. The budget covers several items such as:

  • Programs
  • Administrations
  • Personnel
  • Fundraising
  • Education
  • Memberships

When they offer a simple and transparent budget, the organization stirs confidence in supporters. It makes it easier to observe the nonprofit guidelines for operations. A non profit budget sample should look something like this. It may have as many columns and rows as required based on the details needed. Primarily, it is divided into income or money in section and money out. 

  • The revenue/income
    Revenue flowing into a nonprofit can come from multiple sources and different parts of the world. It can come from contributions freely given by people and corporations. Nonprofits solicit donations every year. They organize fundraising events to raise money for specific programs. All these monies are accounted for and recorded in the operating budget template.
    A non profit budget sample may also include money generated from programs. Some nonprofits may offer certain services to help them generate income. In the programs, they charge a fee to people who seek to get the services. The operating budget template should clearly indicate such sources.
    Another nonprofit budget example is money generated from investments. The organization might have invested in the stock or money markets. They might have investments in real estate or farming. It may earn dividends and receive different capital gains from the investments. They must be included in the operating budget template.
    The organization may have other miscellaneous sources of income. They could be receiving revenue from members as fees. There could be grants given by governments on non-cash contributions received from the public. The grant proposal budget template or expense budget should capture every minor detail.
  • Costs/expenditure in a nonprofit budget template
    The nonprofit budget example needs to have another section that features expenditure. The types of expenses nonprofits incur may differ in many ways. However, it is necessary to keep a clean record of the money spent. The two main types of expenditure cover personnel and the running of programs.
    Personnel expenses cover salaries and all benefits. Program expenses cover all areas of materials and technology. The nonprofit may incur exposure due to fundraising events. Administrative tasks may take another considerable cost. There could be costs covering licenses and professional fees.
    For instance, the non-profit might want to hire an accounting firm, legal experts, or consultants. The organization set aside a contingency fund and it should be accounted for. Besides the money, there should be a detailed narrative. It is a text that explains each category of income or expenditure.
    When creating budget templates for nonprofits, openness and simplicity are necessary. Allow room for adjustments if needs change. Communicate any changes to the relevant stakeholders on time. The budget templates should present orderliness. Let it portray a good image of the nonprofit.

Nonprofit Operating Budget

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Why is a nonprofit budget template important?

Budget templates for nonprofits serve as the foundation of their strategic financial plans. Every nonprofit needs to have one and understand how to use it. They may download a pre-designed budget template online or create one from scratch. Its importance cuts across many different areas of an organization. 

  • Creating plans for fundraising
    Fundraising initiatives require careful planning. The organizations must set reasonable targets. They need to consider their budgetary needs before creating the targets. They need to convince the people involved that the money is needed for a good course.
    The budget template offers direction for their resource allocation. It communicates to the targeted organizations the clear purpose of the fundraising. The template offers a guarantee for a focused and efficient fundraising strategy.
  • Developing a strategic plan
    Nonprofits need a guide when dealing with the budgetary aspects of their strategic plans. The templates enable them to compare their scope/objectives with the available resources. Through the budget templates, they make well-informed decisions. They ensure every cent received and spent goes towards the fulfillment of their mission.
  • Seamless communication across the board
    Nonprofits need to establish a simple yet seamless communication with its stakeholders. The template makes it easier for stakeholders to understand the organization’s budgetary strategy. It provides a visual presentation of the financial environment of the organization. It communicates transparency by helping all stakeholders work together. By working in a unified way, they develop trust with one another.
  • Equitable distribution of resources
    Nonprofits need to consider every department in the organization. They need to allocate available resources effectively. The structure for distribution is found in the budget allocation template. It ensures every program or initiative run by the organization runs efficiently. It ensures all financial resources are distributed fairly.
  • Applying for funding
    Throughout the year, nonprofits process and share different types of grant applications. They apply for funding for different project types. Many funding entities often ask for detailed financial data. It is part of the requirement when sending a funding application.
    With a well-organized funding template, sending applications becomes easy. A detailed funding template shows the organization is committed to transparency. It gives potential funding authorities confidence. They feel that the money donated or granted will be spent the right way.
    Basically, the funding template is not just a financial statement. It is a strong pointer to the direction an organization is headed. It proves how healthy the finances of the nonprofits are. The budget helps an organization excel in the right direction.
    It braces itself for expansion for sustained goals. The nonprofit sector keeps changing due to the time of technology the world is experiencing. Every shareholder in the sector realizes the value of the funding template once it is shared.
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Tagged:BudgetFinanceMoneyNonprofit
TemplateLab August 30th, 2024