What is a Nonprofit Program Budget?

A nonprofit program budget is the money allocated for all the programs of a nonprofit organization. A nonprofit do not have a regular profit for it is not like a normal business that has products or services to sell. It only gets its revenues through fundraising or sponsorship. Through this, nonprofit gets a budget that it can spend for all its programs or projects. A nonprofit has many programs that requires a good budgeting. Its projects need capital and it has expenses from staff to equipment. Because of this, the persons in the organizations need to settle the financial needs of the organization. They have to ensure that the budget will be allocated well so that every project will be mobilized. Entrusted with the funds that are meant for social benefits, they have to make sure that the projects will be accomplished. They have to execute strategies in building the nonprofit budget, from how they can get revenues up to how they can spend the budget. They can get the budget through grant proposals sent to funders, having the mission for every good project that they have. If they will be lucky, the proposals can be approved and they can have grants that they can set aside as the nonprofit program budget. But the organization needs to be systematic in handling the budget. It needs professionalism for handling it, the same way how the budget has been gathered.

Tips on Nonprofit Program Budget

You may be wondering how to create a nonprofit budget. Nonprofit organization budget process may seem to be hard for you. You can use tips so that you can handle the nonprofit program budget better. Here are some tips that you can consider:

Make budgeting per month. It will be easy for you if you will keep the budget on a monthly basis. It is such a short time where you can handle all the projects each month better. You just have to list all the projects for the month and see how much of the budget will it need. Monthly is a good span of time. You can have a minimal amount of projects that you can examine carefully, and set aside a budget for it. It will be easy for you to calculate the expenses that need budgeting. The budget will be a lot visible rather than if you will make an annual budget.Budget with a template. Consider using a template when you are budgeting. Use a nonprofit organization budget worksheet or a nonprofit organization budget sheet. Budget templates can make your nonprofit program budget more visible. It will be easier for you to see all the money that will go to every expenses. You can also have something to follow. Putting the budget to each expenses will not be hard for you. It will also be a great start for you to do the budgeting.Do not put too many line items. You have to make line items minimal. Or else the budget will become complicated. Do not be too specific. It can decrease flexibility on giving funds for the whole year.Make a total budget for the whole year. It will be easy for you to assess the things about the budget if you will make a total of all the budget for the year. In the worksheet, calculate all the expenses that the organization have for the whole year. With this, you can have a financial analysis that your organization can use for the future. Summing the budget will make the organization realize how much they are spending. It can give an assessment whether they have enough budget for all the projects or whether it is lacking. It will also know where all the revenues went. Assessing annually is a good way on how it can analyze things in a broader perspective.Consider inflation in budgeting. In accounting, you must remember that your country can experience inflation at times. Because of this, you have to take care of the budget better. Know some strategies that you can apply when your organization can experience the effect of inflation. Inflation is one factor that you have to consider in budgeting. It is unavoidable so you have to make solutions for it. You have to adjust the budget according to it.Give importance to personnel costs. In budgeting, one of the major expenses is the salary of the staff. You must know that this is important. Without your staff, all your projects will not be possible. Give extra care for their salary. Calculate the budget adding benefits and taxes. Allocate an additional 3-5% bonus that you can give to your staff. Make allocations on the budget for personnel costs. Sometimes, you may even have to add more people on your team so you must allot some budget for it. Make sure that you can pay your people well. The organization serves for social benefits. It must not be good not only to other people but also to its workers.Account for unexpected things. You must do an accounting for unexpected things that can happen with all your projects. Some equipment may become broken or there can be unexpected expenses that the organization needs to pay. You must allot some budget for these things. You may not know what will happen tomorrow. An equipment that is perfectly working may become broken in the other day. To be sure that your organization will not be out of budget or to avoid inconsistencies on the budget, you must consider the unexpected expenses that your organization can encounter. If you will allocate some budget for these, you will have no problem if ever these will happen.Put the most important expenses first. On the top of the budget, you must put the most necessary expenses first. Be sure that you put first the expenses for rent, salary, and utilities. These are the things that first matter so you have to make sure that the organization will have sure payment for these. Remember that putting the more important things first will save you from unnecessary problems that you can experience if you will not put them first. So, first things first. Have regards to what is more important.Involve your staff in budgeting. You can include your staff in the organizational budget. You can involve them in making a budget plan. Their ideas can help you in accounting and it can increase staff accountability. Planning together will be good for the organization because you can create one team in unity. You can also be sure that you will create a good budget. Two heads are better than one. It will always prove to be useful so get the opinion of your team in making decisions on budget.Be realistic about the funds. In budgeting, you must really ponder things about the revenue. Be sure that as you budget, you will make it realistic. What if the funds do not come? What will your organization do? So, you must allocate budget base on future posibilities. Be wise in making the budget. You must know that your organization relies on fundraising so the budget can be lower or higher. The accounting that you will do must be adaptable to changes. This way, the organization will not lose budget or will not struggle on getting a budget for expenses if the budget is properly allocated and has considered possibilities.Put a note section. In the budget spreadsheet, put some space where you can put notes. Changes in expenses must be recorded so put a space where you can put your comments. Expenses are sometimes unpredicatable. It may go lower or higher. Whatever is the case, you must state what has happened. This can provide an accurate budget where there can be no discrepancies. Budget is something about money. You need to be honest with this thing. You can do so by putting notes about the true expenses that the organization has.

How to Create a Nonprofit Program Budget

Have you seen a program budget template or a sample nonprofit program budget? Do you need it because you need to create a program budget for nonprofit? Aside from the thing that you have to know what are the program expenses for nonprofit, you need an Excel spreadsheet where you can do the budgeting. But are you equipped to make a nonprofit program budget? Or you need some steps that you can follow? Well, you can consider the following steps in creating a nonprofit program budget:

Step 1: Make a calendar.

First, you must make a calendar. You can consider the Google calendar. You must make deadlines for funds or revenues that your organization is receiving. This is important because it is where you can get the budget. Start when the Board of Directors gives the funds. Usually, you have to wait 5-6 months.

Step 2: Fix your objectives.

Surely, the organization has financial goals. You have to confirm your objectives. You need this before you start. You can know the systematic approaches to the budget and you will know how you can allocate the budget to all the expenses. You can answer the following questions:

Step 3: Examine the information.

You have to analyze all the financial reports and financial projections of the organization. You have to come up with a financial analysis first. Provide the information that you need for the analysis. Examine it carefully. You can do a good budgeting if you will know the whatabouts of the financial analysis. You can make a better financial plan. It will guide you as you make a budget plan for the organization.

Step 4: Choose a budget template.

When you are done with the budget plan, you must search for budget templates that you can use as a roadmap. Find a suitable template on the internet. Consider the best template and use it as you make the budget. It can be an Excel spreadsheet or a budget worksheet that can help you in creating the nonprofit program budget.

Step 5: Allocate the budget.

Using the financial plan and the template, start allocating the budget. Calculate the total revenue of the organization. List all the expenses for every programs. Put the cash-in and cash-out. Apply the budget plan that you have come up with. Be sure that you will put the exact amount on each items so there will be no discrepancies. Make the budget realistic. Make allotment that you can put throughout the year. You can also use a monthly budget so that the spreadsheet will become more visible.

Step 6: Make gap analysis.

Negotiate for solutions if ever there will be a gap with the budget. Provide a gap analysis that your organization can use. You can meet up with the team so that you can talk for solutions for the problems that you can encounter.

Step 7: Consider organizational values.

You must also ensure that the budget keeps up to the values of the organization. Does it go along with the commitments of the organization? Does it provide equity? Can it support your strategic plans for your objectives? The organizational values matters a lot so even with the budget, you have to keep it up. Be sure that the workers will receive a right income and the expenses are aligned with the mission of the organization.

Step 8: Make a presentation for the budget. 

When everything is done, you can present the budget to the organization. Be transparent in presenting. Explain the risk on the budget and justify all the expenses. Then, be ready for the feedback that the Board of Members will give to you. Adjust the nonprofit program budget according to the feedback that you have received, if there is a need for it.


Where Does a Nonprofit Gets Its Budget?

Nonprofit organizations get their budget through sponsorship and fundraising that can give them a grant for their programs. They will submit a grant proposal and if the proposal will be approved, they will be given a grant. This is how they get their revenues that they use as a budget for all their expenses.

Budget is crucial for a nonprofit organization. It relies on it for the organization to work. Through fundraising, they can get the budget that they need. It has to give importance with this budget. Budget planning is something that they should do. Do you want to see a template on nonprofit program budget? This post can make that possible. It has 3+ SAMPLE Nonprofit Program Budget in PDF. You can download it and print it if you need it. What are you waiting for? Download now!