Page 15 - Finances for Non-Finance People

TYPES OF BUDGETS

• Operating Budget: An operating budget is the most common type of budget for

nonprofits. It outlines the expected revenue and expenses for the organization's

ongoing operations, such as salaries, rent, utilities, and supplies. This budget is

typically developed on an annual basis and provides a roadmap for the

organization's financial resources.

• Program Budget: A program budget focuses on the financial resources needed to

run specific programs or services. It helps nonprofit organizations understand the

true cost of their programs and identify ways to allocate resources more efficiently.

This budget can be useful in determining which programs are most cost-effective

and which may need additional resources to achieve their objectives.