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It's possible to modify a personal budget spreadsheet to apply to a business, but if you are using our Income Statement Template, you'll want to use the business budget spreadsheet so that you can create a budget that is parallel to your income statement. For those who are just starting a business, or thinking of starting a business, you might be interested in the free Business Start Up Costs template.
This spreadsheet contains two sample business budgets designed for companies providing services or selling products. Service Providers: The Services worksheet is a simple business budget that separates income and business expenses into categories that closely match those used in an income statement. Retailers, Manufacturers, Publishers: The Goods worksheet includes the categories in the Services worksheet, but also has a Cost of Goods Sold section for recording inventory and purchases and calculating Gross Profit. This worksheet is a variant of the above business budget, with sales and business expenses broken down by month. This version allows you to perform a detailed analysis of your business expenses and cost of goods sold (COGS) if you are selling multiple products.
If you add or move categories around, make sure to double-check the calculations, especially the SUM() formulas that calculate the totals and subtotals, to make sure that the right cells are summed. The costs associated with producing and purchasing goods are variable costs that increase or decrease with the volume of production and sales, such as wages for direct labor required to produce the goods, packaging, inventory purchases, shipping, and commissions. A separate section under business expenses calculates the Net Income Before Taxes by subtracting the Total Expenses from Total Income. One of the reasons for budgeting is of course to help you determine whether you will be able to afford upgrades, new construction, asset purchases, etc.
Disclaimer: This spreadsheet and the information on this page is for illustrative and educational purposes only.
Download a free Financing Not Fundraising e-book when you sign up for email updates from Social Velocity. Nell: There is often a chicken or the egg scenario in the nonprofit sector where nonprofit leaders are hesitant to tell funders their real struggles and needs for fear of appearing unworthy of investment, and philanthropists are hesitant to stick their noses in the business of the nonprofits they fund, so organizational capacity needs are not openly discussed or addressed. But we also have a separate Organizational Effectiveness (OE) program, staffed by its own program officers and with its own budget, to help grantee partners strengthen their fundamentals so they can focus on achieving their missions. Here’s the most important part of our approach: We work very hard to be responsive to the needs of our partners. Folks can read more about the Organizational Effectiveness program on our website, or on our wiki page, where we share resources, evaluations of the program, and other information. Kathy: I think you’re right — the lack of investment in leadership development and talent management in the nonprofit sector is a significant issue.
Some of that brain drain happens for financial reasons: people are staggering under the weight of educational debt, or they’re lured away by more lucrative career prospects in the private sector. Kathy: I’m a fan of so many leaders and organizations who have spoken out on this issue, including Packard Foundation grantee partners like Guidestar, California Association of Nonprofits, and Grantmakers for Effective Organizations.
Nell: Philanthropy is a very personal and values-driven thing, but at the same time we need to funnel more philanthropic money towards the most effective solutions. Kathy: I think combining values and a focus on results is not just desirable — it’s essential. At the same time, resources are limited — money, people, time — and we have to be sure they’re being well-spent. I’ve been working with several clients lately to create a strategic plan, and I love the moment when the real value of the strategic plan and the process of creating one becomes blatantly obvious.
It’s the point at which board, staff, funders start to see the possibility that the plan holds for the nonprofit and the social change they seek. But that only happens when you create a really smart, thoughtful strategy — a good strategic plan, instead of a poor one.
Smart nonprofit strategy can completely transform an organization, in at least 5 fundamental ways.
The difference between a nonprofit just scraping by and a nonprofit with a sustainable future is strategy. If you create your strategic plan correctly it becomes a tool for analyzing and making decisions about future opportunities.
When done right, a strategic plan can drive the operations of the organization and the activities of the board and staff.
At the end of the day you operate your nonprofit in order to address a social issue, to see some sort of change to a social problem. If you want to learn more about what a strategic planning process looks like, check out my Strategic Planning page. A board chairman convinced the rest of his board to turn away a donor who wanted to give the nonprofit a significant amount of money to fund organizational capacity (strategic planning, coaching, fundraising training) because he felt the nonprofit already knew how to do the work internally for free. An executive director who was really struggling with wrangling her board and developing a strong financial model bravely asked a close foundation donor for advice and support. A board charged their nonprofit’s Development Director with increasing revenue in a single year by 30%. More often than not it is nonprofit donors who hold back efforts to build stronger, more sustainable nonprofits by not providing enough capacity capital.
It takes courage for a nonprofit leader to admit that she doesn’t know how to do something and needs help. Nonprofit leaders have been given the Herculean task of: developing and managing effective programs, managing a diverse and underpaid staff, crafting a bold strategic direction, creating a sustainable financial model, wrangling a group of board members with often competing interests, and recruiting and appeasing a disparate donor base.
So instead of continuing to bear that enormous burden, take a step back and admit that you simply don’t know how to do it all.
But board members could break this pattern by helping their nonprofit uncover, plan for and fund the staffing, technology, expertise and systems required to make the organization more effective at creating change. Board members can be an instrumental driver of stronger, healthier, more effective nonprofit organizations.  But in order to get there, board members have to understand and embrace their leadership role in making organization building a reality.
If you want a roadmap for making your board more effective, download our How to Build a Groundbreaking Board webinar. There was a really interesting interview last week in the Nonprofit Quarterly with Bill Ryan, author of Governance as Leadership, who recently led a study on coaching in the nonprofit sector.
An executive director can be coached to grow an organization, to build a stronger board, to revamp their financial model.
The concept of coaching is fascinating to me because, as Ryan points out, in corporate America coaching is much more commonplace than in the nonprofit world.
The reality is that coaching for a nonprofit executive director can be absolutely transformative.
Such is the case with ACE: A Community for Education, a nonprofit early childhood tutoring program.
I believe coaching can be hugely transformative for nonprofit organizations, helping their leaders build the skills they need to grow their solutions far and wide. I believe very strongly that in order to fix a broken nonprofit sector we must change how things are done. At Social Velocity, the nonprofits I provide consulting to have all reached some sort of inflection point.
But it’s not enough to want change, or for just a couple of people within a nonprofit organization to want it. The convergence of the public, private and nonprofit sectors, an economic restructuring, and increasing competition for dollars, among other things, have combined to make change in the nonprofit sector a necessity.
To find out more about how I help nonprofits navigate change, check out my consulting services. There is a revolutionary concept that could dramatically transform the nonprofit sector, if only every nonprofit leader knew about it: capacity capital. I have worked with a number of small to medium sized nonprofits to create a pitch for capital to strengthen revenue functions, grow programs and otherwise build organizations. I worked with Elaine and her board to create a long-term strategic vision, a plan to get there, and a funding pitch for capital to build the organization. It’s incredibly powerful to think about the implications of this concept for the entire nonprofit sector. Last Thursday I was a guest on Michael Chatman’s The Giving Show, a weekly radio show about philanthropy.


Download a free FinancingNot Fundraising e-book when you sign up for emailupdates from Social Velocity. This spreadsheet is designed to make it easy to define and categorize all the costs associated with a detailed project.
This sheet allows you to specify material and labor rates and quantities for each task - automatically calculating the dollar amount.
This version is based on our general business budget template, and includes a section for recording income sources.
When adding new budget categories, make sure to verify the formulas for the Subtotals and Totals. This template is for defining a budget by listing expenses (and income) on a monthly basis, and you can easily delete or insert more columns for projects of different lengths. Make sure you have an accurate understanding of your resources and the costs associated with those resources. Use your budget to track your performance and to communicate with other departments before, during and after your project. Get full access to our entire library and download up to 50 templates per month for one low price.
Access the entire library and download up to 50 templates per month for one low price. We will use your email address to send you periodic updates, actions you can take, and events you can attend. In order to consistently improve our online activities, we use cookies,track email open rates and periodically analyze our web traffic. Madison Nonprofit Day does not endorse, nor is it responsible for the content of any third-party web sites we may list on Madison Nonprofit Day.
A business budget helps you decide whether you can grow your business, give yourself a raise, purchase additional inventory and assets, and whether you may be able to avoid bankruptcy.
A startup cost analysis is an important part of a good business plan and can help you get things off the ground before you begin using a more detailed business budget.
The categories are fairly comprehensive, but it is also easy to add, remove, and modify the categories.
This is helpful for budgeting quarterly expenses and other business expenses that occur at specific times of the year. Columns are also included for calculating the Percentage of Total Sales for each product and the various expenses. Conditional formatting is used to highlight the Difference red if income is less than the budget amount or if business expenses are more than the budget. If you want to perform a more detailed analysis for multiple products, you can insert additional rows and separate the sales and costs according to product, or you can use the bonus spreadsheet that is designed for performing a detailed analysis for multiple products.
This helps you make a simple estimate of the income taxes, assuming all the Expenses are tax deductible.
However, this budget spreadsheet is mainly for comparing your operating income and expenses to make sure that in your normal business activities you are earning more than you are spending.
Kathy leads a cross-cutting program to help grantees around the world improve their strategy, leadership, and impact. She has been with the Foundation since 2001, and previously held positions in the Organizational Effectiveness and Children, Families, and Communities programs. How does the Packard Foundation uncover the organizational needs of your grantees and what would you advise other funders to do in order to have more open and transformative discussions with their grantees? Once a non-profit gets a grant from any Packard Foundation program, they’re also eligible to apply for an OE grant.
It starts with a letter of inquiry where our grantee partners have to answer just a handful of questions: What are the objectives of your project and what do you expect to accomplish? We never say, “We think you need a strategic plan, and that’s the only thing we’re going to fund.” We listen to the grantee’s assessment of their strengths and challenges, and serve in a coaching role to help them develop the OE project that best meets their needs. As a sector, we can even tackle some of the thornier issues around compensation and educational debt. In the OE program last year, 21 of the 86 grants we awarded focused on leadership development, including projects that invested in interventions like executive coaching, board development, succession planning, and executive transition at key grantee organizations. But there is still much work to do before that idea becomes mainstream in the philanthropic sector. They’ve done a great job of making a research-based case that arbitrary, low overhead rates don’t capture the true cost of delivering non-profit programs and services. Many funders have a “rule” about acceptable overhead; 15 percent, 10 percent, even 5 percent. Do you think it’s possible to get more philanthropists to give based on results rather than interests and values, or can we somehow better combine the two drives?
Ideally, we want to make sure those resources are being better-spent than they could be on other endeavors. Our mission—to improve the lives of children, families, and communities, and to restore and protect our planet—derives directly from the values and beliefs of our founders. If done well, the work done during the strategic planning process really energizes board and staff.
If you want to attract larger, longer-term funding, particularly from major donors, you simply must have a future strategy in place. Most nonprofits are regularly fielding new opportunities (new funding streams, new programs to develop, new alliances to forge), but without an overall strategy it’s difficult to know which opportunities to pursue.
At the board level, you can regularly track progress on the goals and objectives of the strategic plan through a dashboard (like the one at top of this post).
But the only way you will truly create that change is if you have a strategy that puts all of your limited resources (money, staff, board, volunteers) to their highest, best, most focused use. In an increasingly competitive, resource-strapped world great strategy is less a luxury and increasingly a necessity. When the foundation offered to fund some leadership coaching, the executive director rejected the offer for fear her board would think she didn’t know how to do her job.
I am reminded of a fascinating interview I heard on NPR earlier this fall with Leah Hager Cohen who recently wrote the book, In Praise of Admitting Ignorance. Once you have the courage to admit (to your board, to your donors, to your staff) that you don’t know how to do everything, you just might finally get the help you so desperately need. Instead, start asking what the real costs of the work are and how much you truly need to raise to accomplish your ambitious organizational goals. Once you start talking about real costs, you need to marshal the rest of the board to support organization building. Coaching is a form of management consulting where a leader is given one-on-one strategic guidance. If a CEO needs management counsel, they are encouraged to find a coach, whereas coaching for nonprofit leaders is often deemed a luxury. It can make the difference between a program that is just getting by and a program that becomes financially sustainable and grows dramatically, with an engaged, committed board behind it. I have coached ACE Executive Director, Mary Ellen Isaacs for over a year since we completed an ambitious strategic planning process. If you’d like to learn more about how I coach nonprofit leaders, check out the Coaching page of the website.
They have realized, for whatever reason, that they can no longer continue on the way that they always have. There must be someone in a leadership position in a nonprofit who is a cheerleader for change. Once a key champion starts pushing for change they must rally enough board and staff members behind the idea.
A nonprofit could have an entire board and staff ready and willing to change, but without at least a few funders who also believe in that change and are willing to invest in a process for making it a reality (a new financial plan, a growth plan, a board recruitment process) they won’t get very far. Those nonprofits that realize that business as usual just won’t cut it anymore and begin the work of changing their organizations to meet these new challenges are the ones that will survive and thrive. Capacity capital is the money nonprofits so desperately need to strengthen and grow their organizations. If you want to move your organization out of the starvation cycle, you have to learn how to raise capacity capital. As a small, but beloved arts organization they had a great product, but they couldn’t get beyond the vicious cycle of never having enough money, never being able to expand their presence and impact. You can read the on-going case study about this work to raise philanthropic equity at a small nonprofit here. If a nonprofit that provides a solution to a social problem was no longer impeded by a lack of capital, it could be revolutionary. The best and the brightest ideas could travel all over the country, indeed, all over the world.


I was delighted to talk with Michael and his listeners about how nonprofits need to rethink the ways they bring money in the door. Use Vertex42's project budget template along with a well-defined project plan to help put together a solid budget - one that will allow you to accurately predict your costs and to manage those costs during your project.
Use it for home remodeling, contract work, small community service projects, and even large IT project budgets. The categories are laid out in the traditional WBS (work breakdown structure) format, making this template a useful addition to our popular Gantt chart template, which can be used to define a detailed project schedule. This spreadsheet can be useful for smaller projects such as home remodeling or other small construction projects, where it may not be as critical to use a detailed work breakdown structure (WBS). As your project progresses, enter the actual expenditures for each task to see how well you are staying on budget. If you want to plan, track and graph spending over time, you might want to use the EVM template. This information helps us improve the quality of the site and enhance our online outreach efforts. Sites that are linked to our site may have different policies; please review the privacy policy notices on those sites for details.
A careful study of these costs can help you determine pricing for your products, which products are more profitable, etc. If you have any taxable expenses make sure to subtract those values from the Net Income Before Taxes before estimating your income tax budget. You would typically look at your Net Income to determine whether you will be able to expand your business, make large asset purchases, etc. Her team makes grants on a broad range of organizational development issues, from business planning to social media strategy to network effectiveness. Prior to joining the Foundation, she worked in a non-profit, on Capitol Hill, and in state and local government in California. First, we encourage each of our program officers to learn about the organizational strengths and challenges of their grantees, and to weave capacity building into grantmaking strategies. We support a wide range of projects to promote individual and team leadership, organizational planning and development, and the development of healthy networks. How will this project support your organization in meeting its goals, and over the long term, enhancing its effectiveness? But I believe that we lose too many of them before they rise to senior-level leadership positions.
I think that there are a couple of common-sense things that funders and nonprofit leaders can do to keep this debate at the forefront of people’s minds. The way we go about that work is deeply rooted in five core values, which also come from our founding family — integrity, respect for all people, belief in individual leadership, commitment to effectiveness, and the capacity to think big.
And when they start talking with people outside the organization (funders, volunteers, stakeholders) about the plan, those outsiders become energized too. People and organizations that make large gifts to a nonprofit are in effect investing in the future of that organization. At the staff level, you can monitor the activities and deliverables of the plan through an operational plan.
A great strategic planning process forces you to do the analysis, conduct the research, make the hard decisions, and track your progress so that at the end of the day you actually are making a difference.
She describes the freedom that comes from admitting when you simply don’t know how to do something. If you are lucky enough to have funders, board members or others outside the organization that want to help, admit (to yourself, to your board, to your donors) that you need that help. And board members often are as bad as donors at forcing nonprofits to ignore the very real costs of the work they do and their very real need for organization building dollars. Think strategically about who you could convince to join you in strengthening the capacity of the organization.
They are now working to triple the number of students they serve and diversify and grow their financial model. Individual nonprofit organizations must also change how they operate in order to survive in this dramatically changing environment. They have decided they must revamp their financial model, restructure their board, dramatically grow their services, or chart a new strategic direction in order to stay relevant and achieve their missions. There has to be some urgency and a described end goal in order to rally others to the cause for change. There must be enough people who also want to see significant change in the organization in order to force it out of inertia. You need to identify a few funders who love what your nonprofit does and can be made to understand the need for change now. Without an outsider who understands the change that needs to happen and how to lead the organization there, a nonprofit can easily fall back into their normal ways of doing things. They had a solid board, and a great vision for the future, but lacked philanthropic equity to build the organization to achieve that vision. Charlotte Chamber Music is now actively raising capacity capital, and it’s very exciting. All it takes is the right kind of money, invested in the right place at the right time, and the solution can take off. Unless you are doing a multi-year, multi-million dollar project, you probably don't need to invest in expensive or more complex project budgeting software.
The difference between the budget and the actual expenditures will be calculated for each task along with the total variance for the project. That’s a big part of the work of the Organizational Effectiveness team here at the Packard Foundation.
What special challenges or changes have caused your organization or network to focus on management and organizational issues at this time?
But submit a budget for the full cost of the project, including your personnel, facilities, and other costs of doing business.
To really tap into people’s potential you must inspire them to larger heights and help them understand their role in reaching those heights.
One of my clients uses growth criteria we developed during their strategic planning process to determine when and where to add new sites. An effective strategic plan doesn’t sit on the shelf, but rather is a living, breathing guide to the daily work and decisions of the organization. If you can be that vocal member who articulates the need for organization building, how it will result in greater results over time, and how the board must be the champion of and seed investor in organization building, you can create a stronger, healthier nonprofit.
Then make the case for why a Development Director, or a strategic plan, or an evaluation study, or new technology will grow the results your nonprofit is achieving. Nonprofit leaders, unlike their for-profit counterparts, often lack a management background having made their way to the top through program expertise. It may be that a major funding source is going away, or board members are resigning, or client need is dramatically increasing.
If a nonprofit is really committed to making a serious change, then they need to invest in a competent guide to get them there. We love that you've trusted us enough to want more information about Madison Nonprofit Day and are working to insure that you have more granular control over what types of information you receive from us.
Rusty Stahl at the Talent Philanthropy Project, a Packard Foundation grantee partner, points out that between 1992 and 2011 foundations spent, on average, about 1% of grant dollars on nonprofit talent development. We care not only about what grant funds accomplish, but also about how we do that grantmaking, engage with grantees and improve over time. You can read about some of what we’ve accomplished over the years on our new digital timeline. If board members start making a compelling case to their friends and colleagues about the importance of capacity building dollars, the sector could be transformed. If the champion for change is a sidelined board member, an executive director on their way out, or a disgruntled staff member, the effort for change will go nowhere. The champion for change must make a case to the rest of the organization about why change must happen, and why now.
I’m not sure why there’s been a lack of investment in leadership development in the nonprofit sector over time — especially when virtually everyone seems to agree that effective leadership is one of the keys to lasting social change. At least it will spark a good conversation with your funder about the gap, and about your real costs.



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