Creating a Non-Profit Budget Template
Nonprofit organizations have to maintain and improve their operations if they want to flourish. They also have to strive constantly and continuously for sustainability as well. And for these to be achieved, proper budgeting is necessary. Here, we will show you the steps to create a nonprofit budget template.
Non Profit Budgeting
Creating a budget is essentially a planning process. After all, the budget shows how a nonprofit organization manages money. It shows what the nonprofit organization is expecting to accomplish with the money in a given period. When a nonprofit budget template is adopted, it becomes a management tool to monitor the organization’s activities.
Steps to Create a Non-Profit Budget Template
1. Take Time to Do It
Never rush in creating a budget. Do take your time and commit it to create the budget. You must do it right and get proper estimates, especially if your nonprofit organization is new.
2. Determine Program Activities for the Year
What kind of program activities does the organization want to do for the year? What facilities, staff, equipment, and supplies will be needed for that? Be realistic with this. Don’t bite off what you can’t chew.
3. Estimate the Expenses of the Program Activities
After the program activities are determined, the next thing to do is to estimate all of the expenses of them. This is the time to get estimates and quotes for whatever things needed for the programs.
4. Estimate the Revenue
All budget has two main parts: expenses and revenue. A nonprofit organization can have various sources of revenue. For example, program revenue, fee from service, fundraising, and so on.
5. Adjust and Get a 0 Balance
Finally, subtract the expenses from the revenue. If the revenue doesn’t cover the expenses, you need to either reduce the expenses, increase the revenue, or both.
Some Helpful Tips
- Here are some helpful tips that will help you to create a budget template:
- Write down both your assumptions and calculations regarding how you get the numbers from
- Do take your time and get real estimates and use real numbers
- Whether you are using a pen and paper or a program, do double-check the math for error
That is how you create a nonprofit budget template. Do take your time to create a budget template. Try to make it as clear and detailed as you possibly can. And remember, the closer the budget to the reality, the better informed you will be to adjust the budget.