Many nonprofit managers dread the budget-creating process because of the time commitment involved in putting together a sound plan. But the business budgeting process doesn't have to be something that takes a ton of time nor does it have to be the bane of a business leader's existence. Below are a number of tips nonprofit managers can use while budgeting to keep them in good spirits during the process.

Don't try to do too much
Intricate and detailed budgets are great for developing the most accurate long-term projections, but nonprofit managers should be careful not to go overboard unnecessarily. The core components of a nonprofit budget include: overhead, savings, donations and other investments in the organization. Additional items may help provide more clarity for future opportunities, but they aren't absolutely necessary for each nonprofit. After understanding how much money is needed for fixed costs every month, nonprofit managers will have a better sense for how much money they will be able to save and spend on other areas to improve the nonprofit.

Don't try to be perfect
Nonprofit managers can budget for a week straight without sleep, evaluating all of the data possible, and they still won't be able to draft up a perfect budget. Remember that budgets are simply a target number, and are not set in stone. Unexpected costs will come up every month, which will require nonprofit managers to adjust. In the same token, donations and investments may come in a flurry during certain months, giving the nonprofit more working capital. Setting aside funds to address possible unexpected business occurrences may help keep a nonprofit manager sane throughout the budgeting process.

Don't worry about smaller purchases
Nonprofit managers that stress over the purchase of new office equipment or software will drive themselves crazy. While these investments will take away from working capital, they are also necessary investments that will benefit the organization in the future. By conducting cash flow forecasting, nonprofit managers should have a good idea of what their funds will be looking like for the next six months to a year, and it will allow them to more adequately plan for making these types of purchases. Peace of mind can go a long way. Larger purchases such as new office space, computers and smartphones should be the items that nonprofit managers research closely.

Don't lose grip on reality
Throughout the budgeting process, nonprofit managers need to be sure that they don't set too high or low expectations for their organization. These expectations should be reflected in the budget. For example, nonprofit managers shouldn't expect to get thousands of more dollars in investments and donations than normal on a whim, while at the same time, they shouldn't expect to receive much less than they did in the previous year. Being realistic will help during the nonprofit planning process, giving managers a better idea of how much money the organization will have in the upcoming months.

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