A collection of best practices, good ideas, and simple, practical tips for nonprofit budgeting from Third Sector New England (TSNE):
- Match your budget line items to your organization’s chart of accounts.
- Estimate a pooled fringe benefit rate for staff.
- Check before you budget to determine the proper classification for part-time personnel.
- Don’t forget to include indirect costs in your program budgets.
- Be conservative/realistic about your projected revenue.
- Involve staff at all levels in the budgeting process.
- Keep notes to document the assumptions you’ve made in developing your budget or the source of an estimate.
- Add in a little cushion if at all possible to take into account the unknown.