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Non-Profit Budget Toolkit

This budget toolkit is especially helpful for small NPO's, chapters of larger organizations, etc. It will assist the volunteer with planning, creating deadlines, etc.

Uploaded by

Angela Palmier
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
769 views

Non-Profit Budget Toolkit

This budget toolkit is especially helpful for small NPO's, chapters of larger organizations, etc. It will assist the volunteer with planning, creating deadlines, etc.

Uploaded by

Angela Palmier
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Non-Prot Budgeting Process

KEYS TO A SUCCESSFUL BUDGETING PROCESS 1. Clearly identify programmatic objectives that are aligned with the mission and strategic plan. Determine the nancial resources needed and available to achieve program goals. Involve staff, volunteers, board members in the process to improve accuracy of information and commitment to the plan. Document! Dont rely on memory. Write down assumptions and formulas. This will be very important in managing the budget throughout the year. Customize your process. The steps each organization takes will be somewhat different.

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Angela Palmier 2013

Non-Prot Budgeting Process


Step 1:! PLANNING THE PROCESS Identify the budget process coordinator Which board member(s) will be involved? Which committee member(s) will be involved? Agree on key denitions, assumptions and document formats. Set the timelines and key deadlines Determine and schedule training or key meetings.

Step 2:!

COMMUNICATING ABOUT THE PROCESS Dene responsibilities, expectations and deadlines (MUST have job/role descriptions for each person involved. Explain and distribute forms and assumptions.

Step 3:!

PROGRAMMATIC GOAL SETTING Determine program goals and objectives; Project stafng (outsourcing) requirements/needs and benets based on program goals; Get board agreement on goals and assumptions. INFORMATION GATHERING Research and gather information about income and expenses based on program goals and assumptions; Construct budget details by program; Communicate regularly to avoid duplication of effort and share information and assumptions. COMPILATION AND REVISION Have ONE person compile all information, review it for consistency and redistribute to everyone involved; Leave plenty of time for review and revisions. COMMITTEE REVIEW The nance committee and other appropriate staff and board committees review the budget draft and key assumptions; Allow enough time between committee meetings and the nal approval deadline to address questions and recommendations and make revisions.

Step 4:!

Step 5:!

Step 6:!

Angela Palmier 2013

Non-Prot Budgeting Process


Step 7:! FINAL APPROVAL Distribute information to the board prior to the board meeting, including budget draft, program goals and other supporting information; Have program and development committees play a role in making a presentation to the board based on the opportunities, challenges and resources behind the budget numbers. Have the nance committee or treasurer present the budget proposal to the board. IMPLEMENTATION AND MANAGEMENT Communicate budget, program goals and timelines for the next year to supporting players (staff, consultants, volunteers, etc.); Review actual income and expense compared to the budget on the monthly basis; Update and revise the budget as there are changes during the year. Depending on the signicance of changes, the board may need to approve revisions.

Step 8:!

Angela Palmier 2013

Non-Prot Budgeting Process


Budget Preparation Schedule
(This proposed schedule is based on a FY beginning March 1-ending February 28 and illustrates the budgeting process for the NEXT scal year) July/August
Planning the Process Executive Director/Board President meets with Finance Committee, Accountant (etc.) to plan budgeting process and set timelines. Budget worksheet and template formats are updated.

September
Communicating about the Process Finance Committee meeting held to communicate process, responsibilities and deadlines to all participants. Report is made to the board about process, timelines and assumptions. Programmatic goals Setting Board and committees review strategic goals and identify priorities; Finance committee representative meets with other committees to brainstorm and plan for programmatic goals for next year. (NOT during strategic plan--PRIOR to ofcial strategic planning session.

September/October
Information Gathering Committees draft program budgets based on plans and assumption.

November
Compilation and Revision Designated coordinator (from nance committee) compiles information to prepare an initial organizational budget draft. Committee chairs review and revise initial draft. Committee Review Finance committee meets to review budget draft and assumptions and make recommendations.

November/December
Final Approval Board meeting held and budget proposal and programmatic and fundraising assumptions are presented for approval.

December/January
Implementation and Management Executive Director, Accountant, appropriate others meeting held to discuss budget, program goals and timelines for the new year.

Angela Palmier 2013

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