Budget Examples – Hearts & Hope Foundation
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Budget Examples

Hearts & Hope Foundation

Budget Year
2025
Purpose
Educational Examples
Status
Board Approved
📋
Annual Operating Budget

What is an Operating Budget?

The operating budget covers day-to-day activities for one year. It includes all expected revenue and planned expenses for running programs and the organization. This budget helps determine if planned activities are financially feasible and identifies potential cash flow issues. It’s the foundation for all other budgets.

Revenue Sources 2024 Actual 2025 Budget Variance
REVENUE
Individual Donations $1,558,130 $1,650,000 $91,870
Foundation Grants $748,792 $800,000 $51,208
Corporate Sponsorships $187,340 $200,000 $12,660
Government Grants $135,450 $150,000 $14,550
Program Service Revenue $113,070 $125,000 $11,930
Investment Income $90,750 $85,000 ($5,750)
Special Events (Net) $14,400 $20,000 $5,600
TOTAL REVENUE $2,847,932 $3,030,000 $182,068
Expense Categories 2024 Actual 2025 Budget Variance
PROGRAM EXPENSES
Community Outreach Programs $1,245,680 $1,350,000 $104,320
Education & Training $567,890 $620,000 $52,110
Emergency Assistance $334,120 $380,000 $45,880
Total Program Expenses $2,147,690 $2,350,000 $202,310
SUPPORTING SERVICES
Management & General $325,445 $365,000 $39,555
Fundraising $218,310 $245,000 $26,690
Total Supporting Services $543,755 $610,000 $66,245
TOTAL EXPENSES $2,691,445 $2,960,000 $268,555
NET SURPLUS/(DEFICIT) $156,487 $70,000 ($86,487)
Key Budget Assumptions:
  • Individual donations projected to grow 6% based on donor retention improvements
  • Two new foundation grants totaling $200,000 expected in 2025
  • Program expansion will increase participants by 15% across all programs
  • Administrative staff salary increases of 3% effective July 1, 2025
  • Investment income conservative due to market uncertainty
🏢
Capital Budget (2025-2027)

What is a Capital Budget?

Capital budgets focus on major purchases like buildings, vehicles, or equipment that will be used for several years. These items require special planning because they involve large amounts of money and affect the organization long-term. Capital budgets often span multiple years and may require separate fundraising campaigns.

Capital Item 2025 2026 2027 Total Cost
FACILITY IMPROVEMENTS
Building Roof Replacement $85,000 $0 $0 $85,000
HVAC System Upgrade $45,000 $0 $0 $45,000
Accessibility Improvements $25,000 $15,000 $0 $40,000
EQUIPMENT & TECHNOLOGY
Program Van Replacement $0 $65,000 $0 $65,000
Computer Equipment Upgrade $15,000 $12,000 $18,000 $45,000
Training Equipment $8,000 $5,000 $7,000 $20,000
PROGRAM EXPANSION
New Program Site Setup $0 $0 $125,000 $125,000
TOTAL CAPITAL EXPENSES $178,000 $97,000 $150,000 $425,000
Capital Budget Funding Sources:
  • Building improvements funded through dedicated capital campaign ($170,000 goal)
  • Vehicle replacement through combination of reserves and vehicle loan
  • Technology upgrades funded from operating budget over three years
  • Program expansion contingent on securing $125,000 expansion grant
  • All purchases subject to board approval and availability of funds
🎯
Project Budget: Youth Leadership Initiative

What is a Project Budget?

Project budgets cover specific programs or initiatives with defined start and end dates. They show all costs associated with a specific activity, helping determine true program costs and set appropriate funding targets. This example shows a new youth leadership program we’re launching with grant funding.

Budget Category Year 1 Year 2 Total Project
PERSONNEL (65% of total)
Program Director (0.5 FTE) $32,500 $33,800 $66,300
Youth Coordinators (2 @ 0.25 FTE each) $22,000 $22,900 $44,900
Benefits & Payroll Taxes $13,600 $14,200 $27,800
Total Personnel $68,100 $70,900 $139,000
DIRECT PROGRAM COSTS
Training Materials & Curriculum $8,500 $3,200 $11,700
Youth Participant Stipends $12,000 $15,000 $27,000
Leadership Retreat $6,000 $6,500 $12,500
Community Service Projects $4,500 $5,000 $9,500
Transportation $3,000 $3,500 $6,500
ADMINISTRATIVE COSTS
Office Space Allocation $4,800 $5,000 $9,800
Evaluation & Assessment $2,500 $3,000 $5,500
Financial Management (5%) $5,500 $5,600 $11,100
TOTAL PROJECT BUDGET $114,900 $117,700 $232,600
60
Youth Participants
Over 2 Years
$3,877
Cost Per
Participant
24
Months
Project Duration
$9,692
Average Monthly
Project Cost
Project Funding & Assumptions:
  • Funded by $200,000 community foundation grant plus $32,600 organizational match
  • Serves 30 youth participants each year (ages 16-24)
  • Includes 6-month leadership development curriculum
  • Incorporates mentorship, community service, and job readiness training
  • Subject to grant reporting requirements and outcome measurements
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Cash Flow Budget (First Quarter 2025)

What is a Cash Flow Budget?

Cash flow budgets predict when money will come in and go out throughout the year. Even if your annual budget balances perfectly, you might face months when expenses exceed revenue. This budget helps identify those periods and plan accordingly, ensuring you have enough cash to meet obligations.

Cash Flow Item January February March Q1 Total
CASH RECEIPTS
Individual Donations $95,000 $110,000 $125,000 $330,000
Foundation Grants $75,000 $0 $150,000 $225,000
Corporate Sponsorships $0 $25,000 $0 $25,000
Government Grants $0 $0 $37,500 $37,500
Program Fees $8,500 $9,200 $12,800 $30,500
Investment Income $7,000 $7,000 $7,000 $21,000
Total Cash Receipts $185,500 $151,200 $332,300 $669,000
CASH DISBURSEMENTS
Payroll & Benefits $145,000 $145,000 $145,000 $435,000
Program Supplies $25,000 $28,000 $35,000 $88,000
Rent & Utilities $18,500 $18,500 $18,500 $55,500
Professional Services $8,000 $6,500 $12,000 $26,500
Insurance $12,000 $0 $0 $12,000
Debt Service $1,850 $1,850 $1,850 $5,550
Other Operating $15,000 $12,000 $18,000 $45,000
Total Cash Disbursements $225,350 $211,850 $230,350 $667,550
Net Cash Flow ($39,850) ($60,650) $101,950 $1,450
Beginning Cash Balance $456,780 $416,930 $356,280 $456,780
Ending Cash Balance $416,930 $356,280 $458,230 $458,230
Cash Flow Notes & Assumptions:
  • January & February show negative cash flow due to timing of major grant receipts
  • Annual insurance payment made in January
  • Spring gala revenue expected in March ($25,000 net)
  • Minimum cash balance target is $300,000 for operations
  • Line of credit available if cash falls below minimum target
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Program-Based Budget Summary

What is Program-Based Budgeting?

Program-based budgeting organizes your budget around specific programs and services rather than just listing income and expenses by type. This approach helps you understand the true cost of each program and make better decisions about resource allocation. It shows both direct costs and allocated indirect costs for each program.

Cost Category Community Outreach Education & Training Emergency Assistance Total Programs
DIRECT PROGRAM COSTS
Program Staff Salaries $485,000 $220,000 $125,000 $830,000
Program Supplies $125,000 $85,000 $180,000 $390,000
Program Equipment $45,000 $35,000 $15,000 $95,000
Program Travel $15,000 $8,000 $5,000 $28,000
Total Direct Costs $670,000 $348,000 $325,000 $1,343,000
ALLOCATED INDIRECT COSTS
Administration (15% allocation) $100,500 $52,200 $48,750 $201,450
Facilities (by square footage) $48,000 $28,800 $14,400 $91,200
Technology (by user count) $25,500 $15,300 $8,500 $49,300
Insurance & Legal $18,000 $12,000 $6,000 $36,000
Total Indirect Costs $192,000 $108,300 $77,650 $377,950
TOTAL PROGRAM COSTS $862,000 $456,300 $402,650 $1,720,950
$2,150
Cost Per Client
Community Outreach
$760
Cost Per Student
Education & Training
$345
Cost Per Emergency
Assistance Case
78.5%
Direct Costs as
% of Total
Program Budget Methodology:
  • Direct costs tracked separately for each program through accounting system
  • Indirect costs allocated based on staff time, space usage, and beneficiary counts
  • Administration allocated at 15% rate across all programs
  • Facilities costs allocated by square footage: 60% Outreach, 36% Education, 18% Emergency
  • Technology costs allocated by number of staff users in each program
📋
Annual Operating Budget

What is an Operating Budget?

The operating budget covers day-to-day activities for one year. It includes all expected revenue and planned expenses for running programs and the organization. This budget helps determine if planned activities are financially feasible and identifies potential cash flow issues. It’s the foundation for all other budgets.

Revenue Sources 2024 Actual 2025 Budget Variance
REVENUE
Individual Donations $1,558,130 $1,650,000 $91,870
Foundation Grants $748,792 $800,000 $51,208
Corporate Sponsorships $187,340 $200,000 $12,660
Government Grants $135,450 $150,000 $14,550
Program Service Revenue $113,070 $125,000 $11,930
Investment Income $90,750 $85,000 ($5,750)
Special Events (Net) $14,400 $20,000 $5,600
TOTAL REVENUE $2,847,932 $3,030,000 $182,068
Expense Categories 2024 Actual 2025 Budget Variance
PROGRAM EXPENSES
Community Outreach Programs $1,245,680 $1,350,000 $104,320
Education & Training $567,890 $620,000 $52,110
Emergency Assistance $334,120 $380,000 $45,880
Total Program Expenses $2,147,690 $2,350,000 $202,310
SUPPORTING SERVICES
Management & General $325,445 $365,000 $39,555
Fundraising $218,310 $245,000 $26,690
Total Supporting Services $543,755 $610,000 $66,245
TOTAL EXPENSES $2,691,445 $2,960,000 $268,555
NET SURPLUS/(DEFICIT) $156,487 $70,000 ($86,487)
Key Budget Assumptions:
  • Individual donations projected to grow 6% based on donor retention improvements
  • Two new foundation grants totaling $200,000 expected in 2025
  • Program expansion will increase participants by 15% across all programs
  • Administrative staff salary increases of 3% effective July 1, 2025
  • Investment income conservative due to market uncertainty
🏢
Capital Budget (2025-2027)

What is a Capital Budget?

Capital budgets focus on major purchases like buildings, vehicles, or equipment that will be used for several years. These items require special planning because they involve large amounts of money and affect the organization long-term. Capital budgets often span multiple years and may require separate fundraising campaigns.

Capital Item 2025 2026 2027 Total Cost
FACILITY IMPROVEMENTS
Building Roof Replacement $85,000 $0 $0 $85,000
HVAC System Upgrade $45,000 $0 $0 $45,000
Accessibility Improvements $25,000 $15,000 $0 $40,000
EQUIPMENT & TECHNOLOGY
Program Van Replacement $0 $65,000 $0 $65,000
Computer Equipment Upgrade $15,000 $12,000 $18,000 $45,000
Training Equipment $8,000 $5,000 $7,000 $20,000
PROGRAM EXPANSION
New Program Site Setup $0 $0 $125,000 $125,000
TOTAL CAPITAL EXPENSES $178,000 $97,000 $150,000 $425,000
Capital Budget Funding Sources:
  • Building improvements funded through dedicated capital campaign ($170,000 goal)
  • Vehicle replacement through combination of reserves and vehicle loan
  • Technology upgrades funded from operating budget over three years
  • Program expansion contingent on securing $125,000 expansion grant
  • All purchases subject to board approval and availability of funds
🎯
Project Budget: Youth Leadership Initiative

What is a Project Budget?

Project budgets cover specific programs or initiatives with defined start and end dates. They show all costs associated with a specific activity, helping determine true program costs and set appropriate funding targets. This example shows a new youth leadership program we’re launching with grant funding.

Budget Category Year 1 Year 2 Total Project
PERSONNEL (65% of total)
Program Director (0.5 FTE) $32,500 $33,800 $66,300
Youth Coordinators (2 @ 0.25 FTE each) $22,000 $22,900 $44,900
Benefits & Payroll Taxes $13,600 $14,200 $27,800
Total Personnel $68,100 $70,900 $139,000
DIRECT PROGRAM COSTS
Training Materials & Curriculum $8,500 $3,200 $11,700
Youth Participant Stipends $12,000 $15,000 $27,000
Leadership Retreat $6,000 $6,500 $12,500
Community Service Projects $4,500 $5,000 $9,500
Transportation $3,000 $3,500 $6,500
ADMINISTRATIVE COSTS
Office Space Allocation $4,800 $5,000 $9,800
Evaluation & Assessment $2,500 $3,000 $5,500
Financial Management (5%) $5,500 $5,600 $11,100
TOTAL PROJECT BUDGET $114,900 $117,700 $232,600
60
Youth Participants
Over 2 Years
$3,877
Cost Per
Participant
24
Months
Project Duration
$9,692
Average Monthly
Project Cost
Project Funding & Assumptions:
  • Funded by $200,000 community foundation grant plus $32,600 organizational match
  • Serves 30 youth participants each year (ages 16-24)
  • Includes 6-month leadership development curriculum
  • Incorporates mentorship, community service, and job readiness training
  • Subject to grant reporting requirements and outcome measurements
💰
Cash Flow Budget (First Quarter 2025)

What is a Cash Flow Budget?

Cash flow budgets predict when money will come in and go out throughout the year. Even if your annual budget balances perfectly, you might face months when expenses exceed revenue. This budget helps identify those periods and plan accordingly, ensuring you have enough cash to meet obligations.

Cash Flow Item January February March Q1 Total
CASH RECEIPTS
Individual Donations $95,000 $110,000 $125,000 $330,000
Foundation Grants $75,000 $0 $150,000 $225,000
Corporate Sponsorships $0 $25,000 $0 $25,000
Government Grants $0 $0 $37,500 $37,500
Program Fees $8,500 $9,200 $12,800 $30,500
Investment Income $7,000 $7,000 $7,000 $21,000
Total Cash Receipts $185,500 $151,200 $332,300 $669,000
CASH DISBURSEMENTS
Payroll & Benefits $145,000 $145,000 $145,000 $435,000
Program Supplies $25,000 $28,000 $35,000 $88,000
Rent & Utilities $18,500 $18,500 $18,500 $55,500
Professional Services $8,000 $6,500 $12,000 $26,500
Insurance $12,000 $0 $0 $12,000
Debt Service $1,850 $1,850 $1,850 $5,550
Other Operating $15,000 $12,000 $18,000 $45,000
Total Cash Disbursements $225,350 $211,850 $230,350 $667,550
Net Cash Flow ($39,850) ($60,650) $101,950 $1,450
Beginning Cash Balance $456,780 $416,930 $356,280 $456,780
Ending Cash Balance $416,930 $356,280 $458,230 $458,230
Cash Flow Notes & Assumptions:
  • January & February show negative cash flow due to timing of major grant receipts
  • Annual insurance payment made in January
  • Spring gala revenue expected in March ($25,000 net)
  • Minimum cash balance target is $300,000 for operations
  • Line of credit available if cash falls below minimum target
📈
Program-Based Budget Summary

What is Program-Based Budgeting?

Program-based budgeting organizes your budget around specific programs and services rather than just listing income and expenses by type. This approach helps you understand the true cost of each program and make better decisions about resource allocation. It shows both direct costs and allocated indirect costs for each program.

Cost Category Community Outreach Education & Training Emergency Assistance Total Programs
DIRECT PROGRAM COSTS
Program Staff Salaries $485,000 $220,000 $125,000 $830,000
Program Supplies $125,000 $85,000 $180,000 $390,000
Program Equipment $45,000 $35,000 $15,000 $95,000
Program Travel $15,000 $8,000 $5,000 $28,000
Total Direct Costs $670,000 $348,000 $325,000 $1,343,000
ALLOCATED INDIRECT COSTS
Administration (15% allocation) $100,500 $52,200 $48,750 $201,450
Facilities (by square footage) $48,000 $28,800 $14,400 $91,200
Technology (by user count) $25,500 $15,300 $8,500 $49,300
Insurance & Legal $18,000 $12,000 $6,000 $36,000
Total Indirect Costs $192,000 $108,300 $77,650 $377,950
TOTAL PROGRAM COSTS $862,000 $456,300 $402,650 $1,720,950
$2,150
Cost Per Client
Community Outreach
$760
Cost Per Student
Education & Training
$345
Cost Per Emergency
Assistance Case
78.5%
Direct Costs as
% of Total
Program Budget Methodology:
  • Direct costs tracked separately for each program through accounting system
  • Indirect costs allocated based on staff time, space usage, and beneficiary counts
  • Administration allocated at 15% rate across all programs
  • Facilities costs allocated by square footage: 60% Outreach, 36% Education, 18% Emergency
  • Technology costs allocated by number of staff users in each program

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