Why budgets are so complicated for NGOs?

Developing budget is always a complicated task for NGOs especially when they need to develop a proposal and satisfy every entry given by the donor agency in the budget format. Sometimes it is easier to write a proposal than developing a budget to request funding.

Budgets will continue to become more complicated. However, if you keep your financial system clear, the task of developing it also becomes simple.

A typical budget developed by an international NGO for the European Commission


Budgets have become complicated because the increased need for transparency and accountability. Let us not forget that donor agencies are also required to submit their expenditure for proper audits and they have to maintain proper books.

Another important factor to be observed here is that as budget formats become more and more difficult, the expenditure on administration has also been tightened. Donor agencies are less interested in supporting overhead costs of an organization. Besides, the less you propose for your office infrastructural needs the better chances you have for getting the requested grants from the donor agency.