Nonprofit activities are obviously paved with the best intentions but many organizations do not realize the impact of budgeting in implementing plans as well as strategies for the upcoming year. Nonprofits often struggle and find out too late that a mapped-out budget is essential for organizational sustainability and proper monitoring of revenue. Learning how to make a nonprofit annual budget can make a big difference in the success of a fundraising year.
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6 Steps to Make a Non-Profit Annual Budget
Step 1: Minimize Line Items
Avoid making your line items too specific and make sure you don’t have too many things listed. Otherwise, your budget will be too complex to interpret and understand for the rest of your members. Having too many line items also makes the budget appear lengthier than necessary and it reduces the flexibility you have for allocating costs for the year.
Step 2: Budget By Month
Follow a format that gives you a chance to budget your non-profit activities on a monthly basis which is good for a fiscal year rather than doing an overall annual tracking, thus allowing you to monitor monthly progress or milestones accurately and check any realignment that may have been neglected. Then you can plan to raise revenue if necessary.
Step 3: Focus On Short-Term Goals First
You will only be able to account for monthly or quarterly fundraising events and regular activities if you focus your budgeting on a short time period. In the process, you’ll have a better opportunity of outlining one-time costs and the rest of your short-term goals then accomplish them one by one.
Step 4: Prioritize Fixed Costs
It’s not impossible nor is it difficult to consider your fixed costs. Incurring fixed costs allows you to reduce your overall costs so it’s not really wasteful. Get the figures for your fixed costs regardless of the number of financial responsibilities you have such as allocation for rent, worker salaries, insurance, and materials. From there, develop the variable costs.
Step 5: Include Timing and Inconsistencies
There’s a thing called timing and fundraising is no exception. There are seasons when revenue and expenses will be in and out when you consider events, funder’s willingness for donations, revenue drives, grants, and large gifts. Study and analyze the time of the year where you will have more revenue coming so you can budget better for expenses.
Step 6: Add A Contingency Line Item
Insert a contingency line item because you never know when you’ll be needing it in the fiscal year. Let’s face it. Surprises happen, and you should have a budget that will make you ready to face financial surprises. For budget proposals, some funders may not agree to a contingency line but this is very helpful in managing risks.
7+ Non-Profit Annual Budget Templates
The importance of budgeting to allocate funds better and be wiser in making decisions for your nonprofit expenses cannot be overstated. The templates we have attached in this article can help you become more efficient in creating your non-profit annual budget.
1. Non-Profit Budget Template
Budgeting is extremely important for non-profit organizations. Make use of this non-profit budget template to accomplish the goals you hope to achieve this year for your organization. Download the file which runs in Google Docs, MS Word, Pages, Google Sheets, MS Excel, Numbers, and PDF.
2. Non-Profit Annual Budget Template
Looking for a tool that you can use to allocate your non-profit organization’s funds better? You don’t have to look far because you’ll be able to download this non-profit annual budget template which allows you to modify the content easily. The file is also available to print in multiple formats!
3. Sample Nonprofit Organization Budget
It’s not easy to set an annual budget, especially for non-profit organizations. Your budget should be in line and built around your fundraising goals. Get this sample non-profit budget to have a better chance at achieving those goals. What are you waiting for? Hurry and download this template now!
4. Sample Non-Profit Budget
Do you want to produce a well-prepared annual budget for your organization and its stakeholders? Then you’ll find this non-profit budget sample to be very helpful since you can also edit and customize it according to your activities and non-profit needs. All you have to do is click on the download button, then print the document in your preferred format!
5. Nonprofit Budget Sample
Submit a well-prepared annual non-profit budget for the upcoming fiscal year and go over your previous one. Download this professionally-designed sample non-profit budget to guide you in finalizing yours before you decide to submit what you have already started. Print with the best quality!
6. Nonprofit Budgeting Template
Hesitant to start creating a budget for your fundraising or non-profit organization? Completing your annual budget doesn’t have to be complicated although it demands to be organized. Take advantage of this high-quality non-profit budget template to make sure you don’t miss out on any of your annual budget’s key components.
7. Nonprofit Budget Worksheet Template
You don’ have to pore over a stack of paperwork just to put together the right annual budget for non-profit. You can just download this non-profit budget template and start editing its contents to suit the needs of your organizations after you print a copy of the file from any compatible device.
8. Charity Budget Sample
Preparing an annual budget helps non-profit leaders and members set operating budgets they can realistically work with. By downloading this charity budget template, you’ll have a proper guide in formatting your own annual budget well. All you need to do is hit the download button, customize the template and you’re all set!