Let’s be real—budgeting isn’t exactly the most thrilling part of nonprofit work. But if your budget is off, it can throw your entire year out of alignment faster than you can say “restricted funding.”
I’ve seen so many smart, mission-driven organizations struggle with financial planning simply because no one gave them a guidebook. So let’s change that.
Here are a few of the top budgeting mistakes I see nonprofits make—and more importantly, how to avoid them:
🔍 Guessing instead of planning
If your budget starts with “what we did last year plus 5%,” we need to talk. Start with your actual goals and build your numbers around the mission—not the other way around.
📉 Underestimating real costs
Trying to look “lean” by slashing overhead can do more harm than good. Your team, your systems, and your infrastructure matter. Budget for what it actually takes to do the work well.
📊 Putting off reforecasting
Your budget isn’t a set-it-and-forget-it document. Check in regularly (quarterly is great!) so you’re not blindsided when something shifts—because let’s be honest, something always shifts.
💸 Relying too heavily on one income stream
If one grant or gala makes up 60% of your budget, it’s time to diversify. Monthly donors, corporate partners, earned revenue—mix it up to build stability.
🙈 Not sharing the story behind the numbers
Your board and donors don’t just want spreadsheets. They want to understand how the budget connects to your impact. Translate those numbers into real-life results.
Bottom line: A strong budget gives you more than peace of mind—it gives you power. If your budget needs a tune-up, or if you want someone to walk through it with you, I’d love to help.
Here’s to budgeting with purpose, clarity, and maybe even a little less stress.
