True Program Costs: Program Budget and Allocation Template and Resource

This can be challenging because, unlike for-profit businesses, nonprofits rely on a wide variety of funding sources. Most likely, your organization’s executive director will lead the budgeting process, but a nonprofit accountant can also provide support. Track your nonprofit’s project-specific budget with this basic template. List income sources and figures in monthly columns to determine month-by-month total income. Enter project expenses in the same month-by-month columns to compare total expenses to total revenue. Use this basic sample annual nonprofit budget template with sample text to guide you through the process of balancing your nonprofit’s budget.

The Ultimate Guide to Nonprofit Budgeting (+ Free Template)

By starting fresh each year, you ensure your budget remains a dynamic tool for achieving your mission. Let’s explore some key reasons why budgeting plays such a crucial role in nonprofit success. Lastly, write a brief narrative https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ executive summary about the event budget that you have planned.

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This foresight allows you to plan proactively rather than reacting to cash crunches. Compare this against your predictable expenses like payroll, rent, and utilities, as well as variable costs tied to program delivery and special events. Including these costs in your calculations provides a more accurate picture of program sustainability.

• Discover how to get the most out of your nonprofit’s business plan by reading Free Nonprofit Business Plan Templates.
• This foresight allows you to plan proactively rather than reacting to cash crunches.
• To ensure that all expenses are accounted for, it is helpful to create a budget template that can be used on an annual or monthly basis.
• These visible expenses and non-monetary contributions, including volunteer hours, form the foundation of your program budget, but they’re only part of the equation.
• A detailed budget not only showcases how funds will be spent but also highlights the impact of those expenditures on the community.
• It should include some typical sources of revenue and expenses, which saves you time on listing everything out.

Write a brief narrative for each expense and cost

It outlines expected income and planned expenses for a specific period, typically a fiscal year, ensuring that resources are allocated efficiently and transparently. For nonprofits, budgeting plays a pivotal role in aligning limited resources with their mission-driven 5 Main Benefits of Accounting Services for Nonprofit Organizations objectives. In this step you apply the allocation methods described above to the various direct costs that are shared between programs, which may include administration and fundraising cost centers.

Your nonprofit budget is meant to be a flexible document that changes as your circumstances do. After all, sometimes you have a boost in revenue, or get hit with a pesky unexpected expense. But, there’s a place in the nonprofit universe for a surplus in the budgets too. They can mean the difference between surviving a rough patch and being forced to close down.

• Also, creating an effective program-based budget requires clear definitions, consistent cost allocation methods, and regular impact assessment.
• Let’s explore some key reasons why budgeting plays such a crucial role in nonprofit success.
• AAFCPAs recommends a 3-5% surplus operating budget each year, and four to six months of expenses in your operating reserves.
• This means that the money behind the balance you see in your account is held at a reputable bank, and most importantly, is protected for you in the event of Currencycloud’s, or our, insolvency.
• Including personnel costs in your nonprofit budget template helps you plan ahead and keep finances under control.