True Program Costs: Program Budget and Allocation Template and Resource

This guide and accompanying spreadsheet template from Propel Nonprofits breaks down the process of understanding true program costs—whether through budgeting or financial reports—into several stages.

“While the long-term goal for nonprofits is not to return profits to shareholders, we all know that nonprofits are business entities that need to maintain financial health and stability in order to achieve their mission. Understanding the true, full cost of delivering various programs and services in the community is a critical piece of the management puzzle.”

Overview of the Process

  1. Define your programs
  2. Establish format and structure for accounting
  3. Identify direct and indirect costs
  4. Select allocation approach and methods
  5. Allocate staff salaries, benefits, and taxes
  6. Assign direct expenses
  7. Allocate direct costs by an appropriate method
  8. Identify program specific and general income categories
  9. Allocate indirect (administrative) costs
  10. Allocate fundraising costs
  11. Bring it all together for review

Visit the guide.

On October 8, 2025, Join Us for a National Town Hall on the Financial State of the Nonprofit Sector

Nonprofit GPS is a new, action-based community designed to help nonprofits navigate today’s disrupted revenue landscape. Built in consultation with organizations nationwide, it focuses on the real financial challenges nonprofits face — business model risks, capital management, budgeting, governance, and more. Together, we’ll share practical strategies and highlight bright spots of practice that strengthen missions, even in the most disruptive times.

At this event you will hear: an analysis of the current economic landscape for nonprofits and the implications for practice; what array of critical new resources will be offered by Nonprofit GPS over the next three months and beyond; and how to become involved as a practice leader in this community.

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