Template · Finance
First-year budget
A starter budget for a new charity's first year, laid out line by line, with a spreadsheet version you can download and edit.
The Word file opens in Microsoft Word, Google Docs, Pages and LibreOffice. Reviewed October 14, 2026.
A budget is your plan for money: what you expect to bring in, what you expect to spend, and when. A first-year budget doesn't need to be perfect. It needs to be honest, so your board can see whether the plan is possible and so you notice early if it isn't.
You need one before your first board meeting where you approve spending, and funders will ask for it. The board should approve it, and the treasurer should compare real spending with it at every board meeting.
The template below lists the costs most new charities face. Some are fixed government fees. The IRS user fee to apply for 501(c)(3) status is $600 for Form 1023 or $275 for Form 1023-EZ, paid through Pay.gov when you file (IRS, checked October 14, 2026; the IRS says these amounts can change). Form 1023-EZ is the shorter form, and only small organizations can use it. Among other tests in the IRS eligibility worksheet, you must not expect annual gross receipts over $50,000 in any of the next 3 years, and your total assets must not be over $250,000. State filing fees vary by state, so look up yours on your secretary of state's website.
Everything else depends on your plans. Leave a line at zero if it doesn't apply to you.
A spreadsheet version (first-year-budget.csv) is available to download from this page. It opens in Excel, Google Sheets or Numbers.
How to adapt it
- Fill in the monthly or annual amount for each line, whichever is easier, and work out the other (monthly times 12).
- Get real quotes for insurance and software. Don't guess.
- Count donated goods and services separately from cash, so the budget shows the real cost of your work.
- Keep a contingency line (money set aside for surprises). Five to ten percent of spending is a common rule of thumb, but choose what your board is comfortable with.
- Make sure the income side is realistic. Money that is promised but not yet received should be marked as such.
Preview
[ORGANIZATION NAME]: first-year budget
Fiscal year: [START DATE] to [END DATE]
Prepared by [NAME] on [DATE]. Approved by the board on [DATE].
Income
- Founders and board gifts: $[AMOUNT]
- Individual donations: $[AMOUNT]
- Grants (list each one and whether it is confirmed): $[AMOUNT]
- Events (income before costs): $[AMOUNT]
- Other income: $[AMOUNT]
- Total income: $[TOTAL]
Start-up and legal costs
- State incorporation filing fee: $[AMOUNT, FROM YOUR STATE'S WEBSITE]
- IRS user fee, Form 1023 ($600) or Form 1023-EZ ($275): $[AMOUNT]
- State charity registration fees: $[AMOUNT]
- Registered agent service, if you use one: $[AMOUNT]
- Legal or accounting help: $[AMOUNT]
Insurance
- General liability insurance: $[AMOUNT]
- Directors and officers insurance: $[AMOUNT]
- Other insurance (for example volunteer accident cover): $[AMOUNT]
Banking and money handling
- Bank fees: $[AMOUNT]
- Online payment processing fees: $[AMOUNT]
Technology and communications
- Software (accounting, email, donor records): $[AMOUNT]
- Website (domain name and hosting): $[AMOUNT]
- Phone and internet: $[AMOUNT]
Printing and materials
- Printing and postage: $[AMOUNT]
- Office supplies: $[AMOUNT]
Programs
- Program supplies: $[AMOUNT]
- Space or venue hire for programs: $[AMOUNT]
- Transportation for programs: $[AMOUNT]
Volunteers
- Volunteer expense reimbursements: $[AMOUNT]
- Volunteer training and background checks: $[AMOUNT]
- Volunteer thank-yous: $[AMOUNT]
Fundraising
- Fundraising event costs: $[AMOUNT]
- Fundraising materials: $[AMOUNT]
Contingency
- Money set aside for surprises: $[AMOUNT]
Totals
- Total spending: $[TOTAL]
- Income minus spending: $[AMOUNT]
- Cash in the bank at the start of the year: $[AMOUNT]
- Expected cash at the end of the year: $[AMOUNT]
Donated goods and services (not cash)
- [DESCRIPTION, FOR EXAMPLE DONATED OFFICE SPACE]: estimated value $[AMOUNT]
- [DESCRIPTION]: estimated value $[AMOUNT]
Notes and assumptions
- [FOR EXAMPLE: THE GRANT FROM FOUNDATION NAME IS NOT YET CONFIRMED. IF IT DOES NOT COME, WE WILL DELAY THE SECOND PROGRAM SITE.]
General information. Not legal, tax or financial advice. Rules change and every situation is different, so check the official sources and talk to a qualified professional before you act. More about this.
Sources
Checked on October 14, 2026. Rules and fees change, so follow the links for the current version.