Budgeting is not only applicable to profit organizations but also for non-profit ones. The use of a budget worksheet aids the stakeholders of the non-profit organization, like the management and the board of directors in the creation of the future non-profit. At the same time, it assesses the current financial condition of the organization.
Creating a budget
for the non-profit organization is an essential tool as to the implementation of the financial activities which keeps the company stable and running. A staff’s responsibility to procure a budget defines the need for a non-profit budget template as provided on this website.
Annual Non Profit Budget
Non Profit Operating Budget
Small Non Profit Budget
Budget for Non Profit Project
How to Create a Non-Profit Operating Budget
There are several sources of funds a non-profit organization gets, such as those from grants and donations. Proper of usage of these funds constitute the requirement of an operating budget for the organization. Here are the steps in creating a non profit operating budget as seen on the format of the operating budget samples on this website:
- Establish realizable projections. Budget projections for both the income and the expenses must be achievable. Past financial performances and budgets may be helpful in the creation of the current one.
- Prioritize direct fixed costs. Recurring costs, such as inventory purchases, must be covered before indirect ones, such as office supplies, salaries of employees, and rent. The total amount should not exceed the total accumulated income of the non-profit organization.
- Set aside for one time projects. Most sample budget templates in Word format provide the budget outline for these one time projects done by non profit organizations.
- Gain approval of the board of directors. The operating budget must be agreed upon by the board similar to how a grant budget, as shown on the grant budget samples, is approved before given to the potential grantors.
Budget for Non Profit Sample
Free Non Profit Budget Worksheet Template
Non-Profit Budgeting Guidelines
Budgeting for non-profit organizations should be good and effective in order for the organization to achieve their mission and vision. The budget templates in PDF format provide the necessary outline as requirement for the non profit budgeting guidelines stated as follows:
- Secure a written budget. Organizational budgets should be in written form for less difficulty in the management of funds. Communication about these budgets must be done using the written budget allowing every stakeholder to know about the plans of the non-profit organization for the period.
- Have an annual budget. Budgets are usually created annually with basis on the past years financial performance and budgets. A budget proposal template has a section where the annual budget of an organization is presented showing the performance of an organization.
- State definite responsibilities of the people involved. There are employees assigned to the procurement of a budget for the board of directors’ discussion and approval.
- Make budget worksheets. The use of budget worksheets will aid in tracking the income and the expenses of the organization along with setting aside of contingency funds for unexpected and uncontrollable circumstances.
Non-profit organizations have different operational activities with profit companies. Thus, it is essential to take note of the incoming and outgoing of the organization’s acquired funds to achieve the objectives as set by the organization.