Budget Preparation for Startup Nonprofit

Budget constitutes the final part of the project report submitted to funding agencies for consideration.

Budget making is difficult when starting a non profit organization, because there is no base on which costs can be estimated.

This budget includes the following necessary components -

1) Estimated expenses & capital expenditure for the proposed project

2) Proposed means of financing the expenses estimated above.

3) Schedule of Expenses

A sample budget for a non profit organization would look like:

Category Year 1 Year 2 Year 3
Schedule
Source of Inflows
Proposed Funding from (funding agency name) 450,000 850,000 1,100,000
Funds raising in schools 100,000 140,000 160000
Funds from Subcription fees 3,000 7,000 25,000
Interest Income 500 700 200
Total Income 553,500 997,000 1,285,200
Expenses
Salaries to YR coordinator 320,000 480,000
Salary to YRC suppport staff 80,000 150,000 200,000
Honorarium to external facilitaroes & english teacher 40,000 40,000 40,000
Security deposit for YRC 18,000 36,000 36,000
YRC furnitute & fixture
Rent for YRC 60,000 80,000 88000
Utilities for YRC 24,000 26,000 48000
Printing & Stationery 2,000 1,300 2300
Telephone 3,000 2,300 2500
Library expenses 24,000 26,000 36,000
Newspaper & Journals 12,000 15,000 18000
YRC film screening & equipments 15,000 17,000 24000
Magazines & Subscriptions 1,200 1,400 3000
Brochures & banners 200 300 400
Repairs & Maintenance 1,250 1,000 250
Internal training expenses 3,000 3,300 3400
3 days residential camp 344 378 565
Publication of newsletter 4,500 4,950 5000
Awareness campaign 45,000 49,500 54450
Interclub meet 12,000 13,200 14520
Field visit expenses 8,000 8,000 8800
Scholarships /Fellowship 80,000 80,000 88000
Annual Youth Festival 70,000 70,000 77000
Vocational training expenses at YRC2 35,500 39,050 42955
11,700 10,000 11000
Total Expenses 550,694 994,678 1,284,140
Net Income $2,806 $2,322 $1,060

Each major estimation in the budget is to be backed by a schedule that explains the rationale behind the estimation. When estimating the income, it is equally important that you do not solely rely on the funding agency for financing 100% of expenses.

The bottom line – be as exhaustive as possible when presenting the budget – as a new start up really does not have a lot to show in its body of work.

nonprofits for dummies
This publication is brought to you by Daystar Council - a publishing house of quality nonprofit publications.
If you are planning to explore the development sector or want to start a nonprofit organization, we recommend:
"Step by Step Nonprofit for Newbies" - A complete nonprofit reference handbook.
Find our more

About the Author:


Lori is an independent nonprofit coach and consultant in San Francisco, Bay Area. Lori specializes in people training in areas of public administration and execution of community outreach programs for organization.

Share This Post

Recent Articles

2 Responses to “Budget Preparation for Startup Nonprofit”

  1. Susan Hill says:

    A great resource that walks you step-by-step through creating a budget including strategic planning. It got us off to exactly the right start we needed when learning how to start a nonprofit organization.

  2. Deborah says:

    How to write a business plan for a private school. How do I write a propose budget with out funds.

Leave a Reply

© 2014 NPO Central. All rights reserved. Site Admin · Entries RSS