Non Profit Budget Template Samples and Way to Create It
In every successful organization, you will see well-organized budget management. It does not only apply to the corporate which main concern is to generate profit. Not-for-profit organizations should also attempt to create sound budget management to ensure that their institutions would be running smoothly. There are plenty of non profit budget template examples that you can obtain from various sources. The templates will provide you the gist on creating good budget management for your nonprofit institutions.
Components of Good Template for Budgeting
There are some standard components that you will find in any budgeting documents. They are there to make the process of reading the document easier.
- List of income sources
- List of expense sources
- List of the estimated budget for every activity planned by the organization
- The actual expense for every activity
- Space for total incomes and expenditures
How to Create a Budget Management for Non-Profit Organization?
- Identifying Incomes
The first thing that you need to do when creating a budget document for the non-for-profit organization is identifying incomes that go into the organization. You should identify where it comes from as a part of your responsibility and the amount received. After that, you can calculate the entire income that your organization receives within a certain period. Thus, your nonprofit budget template should accommodate this.
- Totaling the Expenses
After the income, the next step is totaling all the expenses. Before you make a total calculation, you should also identify the purpose of each expense as well as the amount that you pay for them. It is to create a transparent budgeting process within the organization.
- Calculating Debts
There is another aspect that you should calculate in the budget document for your organization. It is debt. In the flow of money, you will see that debt is also considered an expense in your organization. Your task is to identify every single debt that your organization has and the amount for each of them. You can create a total amount by calculating them in the end. Some template examples include this component.
- Making Comparison between Incomes and Expenses
The next step is making a comparison between incomes and expenses. It is done by seeing the totals of income and expense. Several nonprofit budget template samples are created to have the incomes and expenses side by side so they can be compared easily. You can see which total is higher to decide if surplus or deficit occurs in your organization. You can even calculate how much the surplus or the deficit is.
- Updating Regularly
It is important to update the budget regularly so you can get the latest data. You can do it quarterly, half-yearly, or even annually. The more often you do it, the easier it becomes for you since you do not need to deal with a large amount of raw data.
A sample of the nonprofit budget templates that will be discussed here is created for annual reports, yet the document makes monthly details of budgeting. On the left side, you will see the list of expenditures. You can also see the budget allocated for each expenditure on the right columns. After that, you can see how each month the allocated budget is used.