Development of the budgets is usually driven by the chief executive. In the case of corporations, the board treasurer can take a strong role in developing and presenting the budget to the rest of the board. The board is responsible to authorize the yearly budgets. You should develop a program budget , that is, a budget for each major service you provide to clients. For example, a transportation program, a child-care program.
Many nonprofits have more than one program.
It's critical to plan and track financial costs for each program. As much as possible, nonprofits should strive to minimize overhead or administrative costs , that is, costs to support the resources that support the entire organization and all programs, rather than just one program. Examples of administrative costs are rent for a building, office supplies, labor costs for personnel who support the central office or more than one program, insurance, etc. It's wise to develop a program budget that allocates indirect costs to programs. There are several methods to do this.