The Budget of a non-profit organization is different from the budget of an organization with a profit motive. The non –profit organization has to keep in mind a lot of things, like purpose, future plans, volunteers, to mention a few. So needless to say, the budget has a very important role for the organization. Also, a non-profit organizational budget’s role gets extended to where people can check the organization’s transparency and accountability through its budget.
How to create a Non-Profit Budget?
Following are the simple steps to be kept in mind while creating a Non-Profit Organisation’s budget:
Step 1: Use fewer line items
Keep the budget simple with few line items that give a basic and general overall picture of the budget activities. This will reduce complexities and will give the reader a fair estimate on the complete picture at a glance.
Step 2: Mention totals on a monthly basis
It is better to mention totals on a monthly basis to give a more accurate picture to the reader. The monthly totals tell the true picture as in some months they may be low for a particular head and quite high for another month, thus telling the reader the variation in the activities of a Non-Profit.
Step 3: Account for inflation
It is the worst enemy of a non-profit. So take it into consideration and provision for it when preparing a budget. This will make sure that your projections don’t go for a toss and you have a fairly correct estimation of things to come.
Step 4: Mention the fixed and necessary costs first.
Fixed costs will have to be incurred no matter how the flow of income, so mention these must-spend items for everyone’s knowledge. This should present the true ides to the readers about the troubles faced by the Non-Profit in lean periods when they have practically no incoming funds.
Step 5: Keep time inconsistencies in light
Income in a non-profit comes in batches when they undertake specific activities such as fundraisers etc. At other times, incoming funds are patchy, and this must reflect in the overall picture to let everyone know of the challenges faced. Below we are providing How to Create Nonprofit Budget [5+ Best Examples] for your benefit.
The above template is an example of a standard non-profit budget sheet. This template allows the administrators to plan out their functions and set targets. This is also because everything depends on how much grants non-profit collects must be more than how much it can afford to spend. So it has clear income and expense segments with the listed variables for the budgeted column and the year-to-date column.
The above is an example of a Non-profit development budget template and allows the most important questions to be answered. The people must see ‘how to manage what?’ and ‘from where to manage it?’, the specific types of steps involved, and other such details. The above template also provides the scope to compare the budget annual figures with the year-to-date figures, and also includes the current month figures for deep analysis.
Grants form the main fund providers of a non-profit organization. It needs to be taken care that the grants and its effective use do not stop. The above template is an example of a Grants budget template that specifies how to form a budget on the basis of grants, how to make effective use of the grants, and so on. New non-profit organizations will find help from this template.
The above template example is of a university that has provided a sample budget made out of actual proposals. A detailed chart is provided in the template keeping in mind the various sources through which revenue is coming in and the sources through which the revenue is going out. So an efficient working budget plan can be made by large organizations using this as an example.
The above template gives you an example of a non-profit organizational budget. There are particular slots to accommodate the various program expenses. It can demonstrate how the programs are managed through a budget plan. Be it a social work program or a marketing plan or any kind of promotional activity, it will result in the incurrence of expenditure so the non-profit organizations can follow this example and create an adequate budget plan.
The above template in an example of a non-profit budget variance calculator, allowing the difference between the income and expenditure to be calculated. The given template explains how a fund that is restricted in nature has to be handled and calculated. It gives detailed guidelines of how to make reports, set priorities for the creation of the main budget including cash flow and all the other elements. Hence, there are a lot of things to keep in mind while incorporating these into a budget. Detailed instructions like the ones provided here would be helpful in case of making one.
A non-profit event plan rests totally on the allocated money and expense budget. The organizing team has to create a budget, one that includes all the expenditure information. The above Template example is an example of a detailed organizational event budget plan that includes everything in terms of expenses and granted amounts, auction, entertainment, etc. It takes into account all the factors that lead to the execution of an organization in a planned and proper way. A very well planned out and comprehensive budget for any non-profit organization.