Deciding whether and how to support these services is a central strategic decision for nonprofits. Knowing the real costs of each program The Key Benefits of Accounting Services for Nonprofit Organizations allows us to make informed decisions and choices that will lead to mission and financial success. A nonprofit budget is a financial plan that details how a nonprofit organization will raise and spend money. The goal of creating a nonprofit budget is to ensure that the organization has enough money to cover its expenses and reach its financial goals.
Additional Resources
You can download slides below and here’s a transcript of this recording. Getting the right tools to help with research, reporting, and financial tracking will give your mission programs the support they need to grow healthily and stay resilient. Choosing the right nonprofit accounting software will streamline how your organization understands itself. Investing in cash management software is also a great way to gain better visibility and ensure financial stability. Review your spending regularly to ensure it aligns with your strategic goals and keeps your nonprofit financially healthy.
Build Strong Financial Reserves for Your Nonprofit Organization
Make sure that the expense amount doesn’t exceed the total current funds. Understanding nonprofit budgeting is only one part of the equation; accurate accounting practices are equally essential. For more on start-up and small business budget templates, see Free Startup Budget Templates and Free Small Business Budget Templates. List program expenses (staff salary, insurance, supplies, fundraising fees, etc.) to see your total nonprofit program expenses vs. your actual revenue. The approved budget then serves as a guide for financial activity in the months ahead.
- Do the formulas, amounts, and financial results match what you expected, or do they surprise you?
- Nonprofits are organizations, associations, cooperatives, or any group of individuals who voluntarily gather to perform either educational, religious, or public services.
- The following section will go over three of the most commonly used types of budgets.
- If there are any changes you need to make now and then, then do not forget to do so.
- Staff salaries are often the largest expense for any organization, whether a nonprofit or a small business.
Download Free NonProfit Budget Template (Excel, PDF)
Award-winning online accounting software designed for small business owners and accountants. No matter what happens with your nonprofit, you never stop needing a budget! Set up your budget so it’s as simple as filling in the blanks come next year. Do what you can to structure your budgets similarly over the years—this will make it easier to compare them side by side as you track your growth.
Set Clear Financial Goals
Program expenses are the costs that are directly related to running your programs. For ASF, that includes anything related to running the extracurricular programs, including staff and supplies (i.e. soccer balls). Their program expenses also include program advertising and staff training and travel costs. This non-profit board structure chart comes in PowerPoint and PDF formats. It’s a perfect slide to use to provide a visual of your nonprofit’s Board of Directors. You can easily copy it into an annual report presentation and update it as your board changes.
