The Nonprofit Financial Commons has resources on budgeting and many other aspects of financial management.An Executive Director's Guide to Financial Leadership (Nonprofit Quarterly, authors Kate Barr and Jeanne Bell).The Art of Forecasting Contributed Revenue (Nonprofit Finance Fund).10-Step budgeting checklist (Propel Nonprofits).The National Council of Nonprofits is pleased to suggest two practical tools available for purchase, the Budget and Cash Flow Toolkits, developed with the needs of small nonprofits in mind by the financial experts at the New York Council of Nonprofits.Should your nonprofit have operating cash reserves?.Cost allocation primer video (Propel Nonprofits).
True program costs: Program budget and allocation template (Propel Nonprofits).Understand – and budget for – true program costs When is a Deficit OK? (Propel Nonprofits).In Should Your Budget Balance? No!, Kate Barr of Propel Nonprofits argues that break-even budgets are not only not required, but they are the biggest barrier to building reserves and ultimately a financially healthy organization.Mythbusterīoard members and staff who are new to the charitable nonprofit context may wonder, " Does a nonprofit’s budget have to break even?" "Can there be a profit?" It may be necessary to amend the budget during the year.īudgets may be requested by parties involved in financial transactions with the nonprofits, such as banks, or by donors/grantmakers considering a gift to the nonprofit. It is good practice to periodically review the budget as well as compare it to the actual cash flow and expenses, to determine whether they are playing out as expected during the course of the year. A budget is a guide that can help a nonprofit plan for the future as well as assess its current financial health.