How to Make a Nonprofit Budget
- 1). Create a spreadsheet for your budget that includes a column along the left-hand side for line item descriptions, and then create one more column for each period that will be covered in your budget. For example, if you're creating a monthly budget, you'll need 12 columns for figures; if you're creating a quarterly budget, you'll need only four. You may alternately use paper and a calculator to make your budget, but using a spreadsheet will eliminate mathematical errors and simplify the process of making changes afterward.
- 2). List each source of income for your nonprofit in the left-hand column under the heading, "Income." Some typical income sources include donations, grants, membership fees, individual fund-raisers and program fees. In the following columns, list the amount of income you expect your nonprofit to receive from each source. Base your estimates on past income records if an income history is available; otherwise, make realistically cautious estimates of the income you expect to receive from each source.
- 3). Skip a row in your spreadsheet, then create a heading entitled "Expenses" in your left-hand column. List underneath it all of the expenses your nonprofit has related to its general operations. Expenses listed here might include rent, equipment leases, utilities, staff salaries and benefits, postage, fund-raising costs, Internet access and office supplies.
- 4). Skip another row in your spreadsheet and label the next heading "Programs." Underneath the Programs heading, list all of the expenses related to the each program your organization carries out. For example, an after-school tutoring program might include expenses such as computers, school supplies, payments to tutors, awards or prizes and tutoring materials. Be sure to list the expenses for every program that your nonprofit will carry out.
- 5). Skip another row in the spreadsheet and create a line for "Total Income." In the columns next to the Total Income label, total the amounts of income you expect your nonprofit to receive from all sources of income into an estimated total income for each time period.
- 6). Create a "Total Expenses" label under the Total Income row, and total all of the expense figures listed in each column. Include both the expenses listed under "Expenses" and those listed under "Programs."
- 7). Skip a row in your spreadsheet and label the last row "Net Income." Next to this label under each column, subtract the Total Expenses listed from the Total Income you've estimated. A positive result indicates that you plan to receive more money than you plan to spend. A negative result indicates that you plan to spend more than you receive.
Source...