Download: Do Nonprofits Need a Balanced Budget?

In the world of nonprofits, the “bottom line” is not always the “bottom line.” While there is an expectation that nonprofits should have balanced budgets, the truth is, nonprofit organizations will rarely have a balanced budget, which is okay. The more important issue at hand is understanding the thought process and purpose behind budgets with surpluses or deficits.

It’s important for any nonprofit financial manager to consider a budget as a “guide,” while recognizing circumstances can change with unforeseen issues (such as COVID-19). Even more, it’s critical to incorporate any changes to better understand budget differences.

If your nonprofit is thinking about budgeting with a surplus or considering the benefits of budgeting with a deficit, we’d encourage you to give the resource below a view! 

For additional help, contact NFP Partners today.