Organizational budget

What it is

An organizational budget (also called an operating budget) plans all of the organization's income and expenses for the fiscal year. A project budget covers only the program you're asking a funder to support. Most applications ask for one or both.

Why funders ask for it

It shows the size of your organization, where your money comes from, and how much of your budget the grant would be. The National Council of Nonprofits calls approval of the annual budget "one of the fundamental building blocks of sound financial management."

How to get it

1. Use the budget your board adopted for the current fiscal year. The National Council of Nonprofits notes that staff usually prepare it and the full board typically adopts it at a board meeting.
2. If the budget was changed during the year, use the latest approved version.
3. Save it as a PDF, with the fiscal year in the title, and add it to the client's Documents.

How long it takes and what it costs

If your board has adopted a budget, it takes minutes. If not, plan for the next board meeting.

Common mistakes

• Sending last year's budget.
• Sending a project budget when the funder asked for the organization's budget, or the other way round.
• Totals that don't match the numbers in the application.