Whether you’re running a nonprofit or a microbusiness, your success hinges on one essential tool: a clear, strategic budget.

Too often, budgets are treated like annual obligations—documents you fill out for funders or taxes and then forget. But when used well, a budget becomes your roadmap, helping you plan for growth, prepare for uncertainty, and align your resources with your mission or business goals.

July is a perfect time to revisit or create your budget. With half the year behind you and a few months before Q4 ramps up, now is the moment to build a budget that supports both profit and purpose—without the stress.

Let’s dive into practical tips, tools, and templates to help you build or refine your budget, whether you’re a nonprofit executive or a solo entrepreneur.

🎯 Step 1: Understand What a Budget Really Is

A budget isn’t just numbers on a spreadsheet. It’s a strategic plan in financial form. It reflects:

• What you value
• Where you’re going
• How you’ll use your resources to get there

For nonprofits, your budget shows funders and donors that you’re fiscally responsible and clear on your impact. For businesses, it ensures you’re pricing your services correctly, covering your costs, and generating sustainable income.

📌 Mindset Shift: Your budget is a living document. Review and update it monthly or quarterly—not just once a year.

📊 Step 2: Gather Your Financial Data

Before you start building a budget, you need to know where you stand. Gather key financial info from the past 6–12 months:

For nonprofits:

• Revenue sources (grants, donations, program fees)
• Operating expenses (personnel, supplies, admin)
• Program costs (events, service delivery, outreach)
• In-kind contributions (track and assign value)

For microbusinesses:

• Revenue by product or service line
• Cost of goods sold (COGS)
• Fixed vs variable expenses
• Owner draw or salary

📌 Tool to Use: Use Google Sheets, Wave Accounting (free), or QuickBooks to pull reports and track trends.

📁 Step 3: Categorize Your Expenses Properly

To budget effectively, you need to clearly understand where your money goes. Break your expenses into categories that are easy to track and analyze.

For Nonprofits:

• Personnel: salaries, contractors, benefits
• Program costs: direct service delivery, supplies, events
• Administrative: software, rent, insurance
• Fundraising: donor campaigns, events, CRM tools

For Businesses:

• Operations: software, website hosting, equipment
• Marketing: ads, design, branding
• Sales/Client Costs: transaction fees, delivery, onboarding
• Owner pay & taxes: be sure to plan for self-employment tax!

📌 Bonus Tip: Color-code your categories to quickly see where you’re overspending or under-investing.

🔮 Step 4: Forecast Future Income Realistically

Revenue projections are part science, part educated guess—but they’re critical to creating a useful budget.

Ask:

• What recurring revenue do we have locked in (retainers, grants, monthly donors)?
• What one-time income do we expect (events, new clients, special appeals)?
• What’s a conservative vs best-case projection?

📌 Tool to Use: Use a 3-scenario method:

1. Conservative (bare minimum)
2. Expected (based on current trends)
3. Stretch (includes ideal growth)

This helps you plan flexibly and avoid overextending during lean months.

📐 Step 5: Align Your Budget With Strategic Goals

Your budget should reflect your values and goals—not just your expenses. Ask yourself:

• Are we investing in growth (new programs, team members, marketing)?
• Do our expenses support our mission or value proposition?
• Are we holding enough in reserves or savings?

For nonprofits:

Include line items for things like capacity building, equity initiatives, or program evaluation—donors and funders notice when your budget matches your values.

For microbusinesses:

Budget for continuing education, automation tools, or outsourcing as ways to work smarter—not harder.

📌 Pro Tip: Don’t forget to budget for your own professional development and wellbeing.

💡 Step 6: Use a Budget Template (Don’t Start From Scratch)

There are dozens of free and low-cost budgeting templates out there that you can customize to your needs. Choose one that fits your comfort level—some people prefer spreadsheets, others prefer visual dashboards.

Templates to Try:

• Candid’s Nonprofit Budget Template (Excel)
• SCORE Simple Business Budget Template
• Airtable Budget Tracker
• Google Sheets Monthly Business Budget Template

📌 Bonus Tip: Pick a tool your whole team or board can access—especially if you want shared ownership of the numbers.

🔁 Step 7: Review Monthly, Adjust Quarterly

A static budget is a missed opportunity. Use your budget as a monthly check-in tool to stay on top of revenue goals and expense trends.

• Compare actuals vs. projected every 30 days
• Flag any categories that are trending over or under
• Adjust future months based on real-time needs

📌 Tool to Use: Build a simple dashboard using Google Sheets or a tool like Notion to track:

• % of revenue goal achieved
• YTD net income
• High and low expense categories

📌 For Boards & Teams: Present your budget updates visually during meetings to increase understanding and engagement.

🧠 Step 8: Involve the Right People

Budgets work best when they’re collaborative. Whether you’re a one-person operation or a small team, seek input from key stakeholders:

• For nonprofits: involve your treasurer, executive director, and program staff
• For microbusinesses: consult with your bookkeeper, coach, or accountability partner

📌 Bonus Tip: Use this time to educate your team or board on financial literacy. A more informed team makes better decisions.

Final Thoughts: Budgeting Is a Strategic Act

Budgeting isn’t just a financial exercise—it’s an act of leadership. It shows your commitment to running a thoughtful, intentional operation. When you align your numbers with your mission or business goals, you not only plan for sustainability—you plan for impact.

So whether you’re a nonprofit aiming to serve more people or a microbusiness working toward your first six-figure year, your budget is your tool for turning vision into reality.

Ready to Build a Budget That Works?

If you’re tired of winging it or feeling overwhelmed by the numbers, I can help. I work with nonprofits and small businesses to design realistic, values-aligned budgets that support both growth and sustainability.

Let’s schedule a strategy session to get you set up before Q4 hits.