A hospital's operating budget is estimated regularly. And according to a 2018 Navigant study, 38% of hospital executives reported that reducing operating expenses can be achieved by prioritizing the…continue reading
3+ Sample Nonprofit Program Budget
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:
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:
- Does the team approve of all the objectives?
- Do the financial goals aligned with one another?
- Is the budget lacking, has excess, or just enough for the expenses?
- Can you have a plan that can increase the revenue?
- Are these objectives realistic? What are the points that you have to consider?
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!