What's the secret to creating a fundraising budget that lasts?

1 Know your income sources

One of the first steps to creating a fundraising budget that lasts is to identify and diversify your income sources. These may include individual donations, grants, corporate sponsorships, events, merchandise sales, memberships, and more. You should also analyze the reliability, frequency, and potential of each source, and estimate how much you expect to raise from each one. A good rule of thumb is to have at least three different income streams, and to avoid relying too much on one source.

3 Track your expenses and income

Once you have your budget in place, you need to track your expenses and income regularly and accurately. This will help you monitor your progress, identify any gaps or discrepancies, and adjust your budget accordingly. You should also compare your actual results with your projections, and analyze the reasons for any variances. For example, if you raised more or less than expected from a certain source, you should find out why and what you can do to improve or sustain it.

4 Review and revise your budget

Finally, you should review and revise your budget periodically and as needed. Your budget is not a static document, but a dynamic tool that should adapt to your changing circumstances, opportunities, and challenges. You should also involve your staff, board, and stakeholders in the budgeting process, and communicate your results and plans clearly and transparently. A good budget review should include feedback, evaluation, and learning, as well as adjustments and corrections.

5 Use budgeting software or tools

Using budgeting software or tools is a great way to make your budgeting process easier and more efficient. These options range from simple spreadsheets to specialized nonprofit software. Automating calculations and formulas, integrating with other systems and platforms, generating charts and graphs, creating custom reports and dashboards, and sharing and collaborating with others are all features and benefits of using budgeting software or tools.

6 Seek professional advice or assistance

Gaining professional advice or assistance is another great way to improve your budgeting skills and practices. You can find plenty of resources and opportunities online or offline, such as webinars, workshops, courses, blogs, podcasts, books, consultants, coaches, mentors, networks, associations, and groups of nonprofit professionals. All of these can provide guidance, support, or feedback for your nonprofit budgeting needs.