5 steps to creating a successful nonprofit budget template

Budgeting is essential to your success as a nonprofit. With the right sample nonprofit budget template, you can easily visualize your expenses, making it simpler to hire staff, purchase necessary tools and technology, and ultimately move closer to achieving your mission—all without exceeding your annual budget. 

But if you’ve never created a budget or thoroughly reviewed your finances, it can feel overwhelming. To keep your nonprofit on track, we’ll walk you through each line item you might need to include in your nonprofit budget template and show you how to create one tailored to your needs.

Why building a nonprofit budget is so crucial

In recent years, charitable giving from individuals has skyrocketed to a remarkable $500B per year.  But even with these staggering numbers, many nonprofits—particularly small- to mid-sized organizations—are still underfunded.

In fact, Forbes reports that the top 100 nonprofit organizations in the United States receive around 11% of all charitable giving. Grassroots nonprofits, by stark contrast,  often scrape by to fit within their annual nonprofit budget plan. 

Risks of not budgeting 😦

Research shows that 30% of nonprofits fail to survive for 10 years, whether due to a lack of a business plan, poor strategic planning, ineffective leadership, or simply being unable to raise the necessary funds.

One key reason many nonprofits struggle when it comes to accounting and finances is their failure to treat their organization as a business. While nonprofits and small businesses differ in many ways, managing your nonprofit’s finances similarly to how you’d run a business is essential for success. 

Download your free nonprofit budget template

A well-planned budgeting process is key to your nonprofit’s success. As you build your fundraising plan, be sure to include sections for personnel, administrative costs, rent and utilities, program costs, marketing and fundraising, and anything else relevant to nonprofit management.

As you start developing your nonprofit budget, download this budget for nonprofit organizations sample to ensure you include all the essential sections and don't overlook any crucial details.

Freebie alert!

Download the nonprofit budget plan template to share with your team ->

Follow this nonprofit budget format to stay on track

Like any small business, your nonprofit needs enough cash flow to cover all its operating expenses—paying staff salaries, keeping the lights on, and covering upfront costs for fundraising events.

To ensure you have enough funds in your nonprofit operating budget, you’ll need to create a comprehensive list of your expenses. Below are several nonprofit budget categories you’ll want to include:

1. Personnel expenses 👯

Staff salaries are often the largest expense for any organization, whether a nonprofit or a small business. In fact, some estimates suggest that your payroll will account for 18-52% of your total budget.

However, employee salaries aren’t the only item nonprofit leaders should plan for. Your total staff expenses encompass:

• Benefits 🎁 This includes employee benefits such as health insurance, 401(k) matching, parental leave, and other perks.
• Taxes 💸 While nonprofits are exempt from state or federal income taxes, they do pay employee taxes for their staff.
• Volunteer appreciation 💛 Volunteers can significantly cut down on payroll costs, but effective volunteer management is key. Consider offering snacks and refreshments at events, providing swag bags, or hosting a volunteer appreciation event at the end of the year.

2. Facilities expenses 🏢

Nonprofit organizations need physical space to conduct their work, including office space and employee parking. Even if you operate within a virtual working environment, you’ll likely have facilities expenses, such as work laptops or technology reimbursement for your team.

When putting together a nonprofit operating budget example, make sure to include line items for the following:

• Rent 🏫This includes your property rent (or mortgage), parking fees for employees, property taxes (if applicable), and fees for any coworking spaces.
• Utilities🚰 Your utilities typically include gas, electricity, water, and internet. If you run a virtual working environment, you might consider reimbursing employees for a portion of their Wi-Fi bill.
• Maintenance ⚒️ Maintenance costs ensure your team is equipped to do their jobs in a safe, clean working environment. This might include a monthly cleaning fee, repair costs, or even a new microwave for your employee lounge.

Dive Deeper

Learn the do’s and don’ts of nonprofit finance →

3. Administrative costs 🖌

Administrative costs encompass a wide range of expenses for your organization. These costs could include office supplies, technology and software subscriptions, or postage. When thinking about budget allocation for administrative costs, consider the following:

• Office supplies 🖇️ This category includes physical items desks, chairs, pens, paper, and printers. For virtual teams, you might want to reimburse home office purchases for your employees.
• Printing 🖨️ You may need to print materials for nonprofit programs and fundraising campaigns, such as flyers, signage, or even swag kits for top supporters.
• Technology ⚡ Your tools and technology costs could come from every department, including your project management software, donor management tools (like Givebutter’s built-in CRM), Microsoft Office (for access to Microsoft Word and Excel), accounting software, or other tools for financial management.

Givebutter has been a game-changer for us! As a small, rural nonprofit radio station, we run on a shoestring budget. Givebutter’s pricing gives us a way to increase our fundraising revenue without eating too much into this revenue.  — Givebutter review, Emily G.

4. Program expenses 🎒

Program expenses include any costs incurred in service of your mission. Whether you’re providing housing, healthcare, or meals for your community, these expenses are crucial to achieving your nonprofit’s goals. 

Budget examples for nonprofits vary widely from organization to organization. However, a sample budget for nonprofit programming might look like these:

• Educational organizations 📚 If your organization provides academic support for students, expenses may include books, technology fees, or school supplies.
• Arts programs 🎨 If you’re involved in the arts and sciences, you might incur costs related to museum or theater admissions, student productions, or art supplies. 
• Environmental sustainability 🌱 If your organization hopes to protect the planet, expenses may include research and development, public awareness campaigns, or supplies for clean-up crews.

More to explore

Master the fundamentals of nonprofit accounting with this beginner’s guide →

5. Marketing and fundraising expenses 🎉

A key part of running a nonprofit is ensuring you have enough funds to sustain your mission throughout the fiscal year. 

But as the saying goes, “You need to spend money to make money.” 

This is where fundraising and marketing expenses come in. Marketing and fundraising encompasses all tools, supplies, and technology used to drive donations (i.e., the main revenue source for your organization). 

Here are some common line item examples that nonprofit organization budgets often include: 

• Grant proposal writing 📝 You may need to hire a copywriter to draft compelling grant proposals to help your organization secure some much-needed funding. Depending on their experience, grant writers typically charge $25-$200 per hour.  
• Marketing expenses 💌 These might include your marketing automation software (or simply use Givebutter’s free nonprofit marketing platform), graphic design tools like Adobe Creative Cloud, social media scheduling software, or hiring a marketing agency to run campaigns. According to research, nonprofits who choose to advertise spend around $1K per month. 
• Travel 🛩️ In some cases, you might need to fly executive directors, board members, or other stakeholders to a different region for a campaign.
• Advertising 📣 If you have a little extra room in your budget, you might want to invest in Google, Instagram, or Facebook Ads—or advertisements in your local newspaper—to boost visibility and engagement. 

💪 Pro tip: Google offers grants toward Google Ads for nonprofits.

Nonprofit budget categories

When creating a nonprofit organization budget template, consider common budgeting categories your expenses may fall under. This gives you a greater understanding of the different business aspects of a nonprofit and provides a framework for considering how to most effectively distribute your funds. 

• Operating budget 🚚 This covers expenses such as rent, utilities, nonprofit accounting software, and any other regular expenses that keep your nonprofit functioning. 
• Events budget 🎈Fundraising events are a popular way for nonprofits to build community and raise funds. Your events budget should encompass costs including venues, catering, and event marketing. 
• Personnel budget 🧑‍🤝‍🧑 Depending on the size of your nonprofit, you may allocate more or less funding to personnel. This includes anyone who works for your nonprofit, or any volunteer costs. 
• Buildings and maintenance budget 🏘️ If your nonprofit has significant building overheads, consider breaking this out separately to include vehicles and maintenance.
• Programs budget 😇 One of the most important categories in any budget template for an NGO, your program budget directly funds initiatives that advance your mission. This budget may fluctuate throughout the year as you begin new programs and fundraise. 

💪 Pro Tip: Consider creating a specific nonprofit program budget template. This can help you determine where to expand your programming and how to use your funding to grow your mission. 

Reduce your expenses with Givebutter

If you’re one of the many nonprofits operating on a tight budget, Givebutter has you covered. Givebutter is a free, modern, all-in-one fundraising platform built with donors in mind.

We love Givebutter’s free platform. As a small nonprofit with only a handful of donors, we could not afford an expensive donor subscription, especially since we only run a couple of campaigns a year. This was perfect for our needs. — Givebutter review, Small nonprofit employee 

Givebutter’s top-rated tools are free because of donor tips, which helps it maintain the lowest pricing in the industry. Plus, Givebutter’s comprehensive fundraising platform includes a built-in CRM, marketing and engagement tools, and world-class fundraising features—all designed to help you reach your goal.

Ready to see how Givebutter can help you stick to your budget and accomplish your mission? Sign up for your free Givebutter account to get started today.

You got this, changemaker! 🚀

FAQs: Top questions on nonprofit budget examples

How do I create a nonprofit budget? 

To create a simple nonprofit budget template, start by categorizing your expenses into common buckets, including personnel, program, and operational costs. 

Consider your necessary, fixed expenses first, such as rent. Then, break down last year’s expenses into monthly costs, and add around 5% to this year's budget to account for inflation. 

What is an average nonprofit budget example? 

Every nonprofit is different, meaning there are no average examples of budgets for nonprofits. However, research shows that 88% of nonprofits operate on less than $500K a year. 

Can I pay myself to run a nonprofit? 

Yes, you can pay yourself a salary as the leader of a nonprofit. Just be sure that your salary qualifies as “reasonable compensation” so you’re not in violation of any IRS regulations. 

What is an example of a nonprofit program budget template? 

A sample nonprofit program budget can be broken down into the following categories: 

• Personnel expenses
• Facilities expenses
• Administrative costs
• Cost of programming
• Marketing