Quality in Action - July 2011

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Build a Better Mentoring Program Budget featuring Michael Anderson, Non Profits Assistance Fund; July 6, 2011; part of monthly Quality in Action webinar series hosted by the Mentoring Partnership of Minnesota.

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  • Poll: Your budgeting obstacles (check all that apply)High level of uncertainty in income budgetDo not have significant organizational historyUnclear prioritiesToo little board engagement in the processToo little staff engagement in the processStaff or managers ignore the budget
  • Poll: How many board meetings are involved in your budget process?1 meeting2 meetings3 meetings4 meetingsConcurrent poll: When does your fiscal year end?March 31June 30September 30December 31Other
  • Poll: Who creates and manages the budget document at your organization?Board TreasurerExecutive DirectorFinance StaffOther
  • Poll: Compared to this example, how does your approach to budgeting income compare?More conservative/less riskAbout the sameLess conservative/more risk
  • Poll: How do you monitor your budget during your fiscal year?Staff leadership reviews actual compared to budget monthlyFinance committee and/or board reviews actual compared to budget monthlyPlan for budget revisions quarterly or semi-annuallyCheck bank account to monitor cash balances(Other options?)
  • Quality in Action - July 2011

    1. 1. Build a Better Mentoring Program Budget July 6, 2011 Quality in Action Salaries & Benefits Background Checks Professional Development Liability Insurance Activities & Training Facilities & Supplies
    2. 2. Webinar Logistics Asking Questions & Sharing Comments During the Webinar  “Raise your hand” & MPM Organizers will unmute you  Or, type questions (and comments) in the question/answer section and submit; we will respond directly to you or possibly share your question with all attendees  When unmuted, please monitor your background noiseApril Riordan Director of Training and Community Partnerships Recordings of past webinars are available on our YouTube Channel.
    3. 3. Elements of Effective Practice  Recommendations  Manage program finances  Design a resource development plan that allows for diversified funding  Seek in-kind gifts  Hold special events  Solicit individual donors  Seek corporate donations  Apply for government funding  Seek foundation grants
    4. 4. Quality Mentoring Assessment Path  Develop a program budget that includes funds for mentoring program staff compensation, staff professional development, program expenses and activities and all other operations costs.  Establish a system for managing program finances and cash flow.  Research and understand the program’s requirements for auditing.  Determine and periodically review the amount of funding needed to sustain the mentoring program.  Establish a resource development plan that includes diverse sources of potential funding.  Develop mutually beneficial partnerships and collaborations with other organizations.  Understand and follow ethical, professional and legal standards related to fundraising.
    5. 5. Our Panelist Michael Anderson Training Program Manager and Loan Officer
    6. 6. Build a Better Mentoring Program Budget Developed by Nonprofits Assistance Fund
    7. 7. 7 / 40 Who We Are Nonprofits Assistance Fund’s mission is to build financially healthy nonprofits that foster community vitality. Our financial experts help nonprofits strengthen their capacity to address unexpected events, finance new opportunities, and realize strategic goals. We fulfill our mission by helping you thrive. Find out more at www.nonprofitsassistancefund.org.
    8. 8. 8 / 40 Goals for Today’s Webinar 1. Understand the purpose of budgeting 2. Discuss the role of budgets in planning 3. Review budgeting roles and responsibilities 4. Review the steps in annual budgeting
    9. 9. 9 / 40 A Budget Is… A plan An idea of future likelihood A wish list The numbers that reflect program and management priorities A set of assumptions about the year The allocation of resources among alternative choices A best guess working draft for the future
    10. 10. 10 / 40 10 Steps of Budgeting Determine timeline Agree on goals Understand current financial status Agree on budget approach Develop draft expense budget Develop draft income budget Review draft budget Approve budget Document budget decisions Implement budget
    11. 11. 11 / 40 Step 1: Determine Timeline Set target date for board approval Allow time for each step and for review and discussion Approve before beginning of fiscal year
    12. 12. 12 / 40 Step 1: Determine Timeline Determine timeline Agree on goals Understand current financial status Agree on budget approach Develop draft expense budget Develop draft income budget Review draft budget Approve budget Document budget decisions Implement budget Board and/or committee roles
    13. 13. 13 / 40 Step 2: Agree on Goals Prioritize program delivery goals Set organizational financial goals Clarify annual goals from strategic plan
    14. 14. 14 / 40 Step 2: Agree on Goals Mission Organizational Principles Strategic Plan Tactical or Business Plan Budget and Work Plan
    15. 15. 15 / 40 Step 2: Agree on Goals Program goals Goal Budget impact – Increase youth program to two new elementary schools – New staff – Travel costs – Youth stipends
    16. 16. 16 / 40 Step 2: Agree on Goals Organizational goals Goal Budget impact – Build cash reserve to two months of expenses – Must have surplus
    17. 17. 17 / 40 Step 3: Understand Current Financial Status Review current year income and expense compared to budget Forecast to the end of the year Analyze and understand any variances
    18. 18. 18 / 40 Step 3: Understand Current Financial Status
    19. 19. 19 / 40 Step 4: Agree on Budget Approach Assign roles and responsibilities Agree on authority to make decisions Agree on how much uncertainty can be included (how many unknowns)
    20. 20. 20 / 40 Step 4: Agree on Budget Approach Approaches • Bottom up budgeting – Gather input and combine • Top down budgeting – Establish overall budget and assign • Combination
    21. 21. 21 / 40 Step 5: Develop Draft Expense Budget Determine costs (expenses) to reach program goals Determine costs to reach organizational and strategic goals
    22. 22. 22 / 40 Step 5: Develop Draft Expense Budget What will stay the same as last year? What will be different? • Mandatory expenses • Fixed expenses • Variable expenses
    23. 23. 23 / 40 Step 5: Develop Draft Expense Budget Expense considerations • Cost increases due to inflation and price changes • Changes in variable expenses due to changes in programs • Changes in expenses needed to achieve specific goals, such as marketing or development • Contractual changes in expenses such as rent • Changes in expenses to build organizational infrastructure • Building in cushions or contingency amounts
    24. 24. Step 5: Develop Draft Expense Budget
    25. 25. 25 / 40 Step 6: Develop Draft Income Budget Project income based on current fundraising and revenue activities Project new income based on new activities
    26. 26. 26 / 40 Step 6: Develop Draft Income Budget Grants Contributions Special events Contracts Earned income
    27. 27. 27 / 40 Step 6: Develop Draft Income Budget Income considerations • Are there changes to current sources of funding? • Are there changes to formulas, amounts, or criterion? • Review the overall economy and your area of service
    28. 28. 28 / 40 Step 6: Develop Draft Income Budget
    29. 29. 29 / 40 Step 6: Develop Draft Income Budget
    30. 30. 30 / 40 Step 7: Review Draft Budget Verify that the draft meets program and organizational goals Review and discuss all assumptions Make adjustments, based on goals and capacity, to match income and expenses Review final draft for all goals and objectives
    31. 31. 31 / 40 Step 7: Review Draft Budget
    32. 32. 32 / 40 Step 8: Approve Budget Present to any committees as needed Present to the board for approval Committee and board review and approve assumptions as well as the numbers
    33. 33. 33 / 40 Step 9: Document Budget Decisions Create a consolidated budget spreadsheet and file Write down all assumptions
    34. 34. 34 / 40 Step 10: Implement Budget Assign budget accountabilities Incorporate into accounting system Monitor and respond to changes as needed
    35. 35. 35 / 40 Step 10: Implement Budget Evaluating the budget • Compare actual income and expenses to budget • Understand variances • Complete a midyear projection of probable financial results for the year • Changing the budget
    36. 36. 36 / 40 Step 10: Implement Budget
    37. 37. 37 / 40 10 Steps of Budgeting Determine timeline Agree on goals Understand current financial status Agree on budget approach Develop draft expense budget Develop draft income budget Review draft budget Approve budget Document budget decisions Implement budget
    38. 38. Resources  Nonprofits Assistance Fund
    39. 39. Other Resources  This presentation & others www.slideshare.net/traininginstitute  MPM Training www.mpmn.org/traininginstitute  Web sites & PDFs www.delicious.com/traininginstitute
    40. 40. Next Quality In Action Webinar Featured panelist: Sarah Kremer, Program Director, Friends for Youth, Inc. August 3- Coming Together Across Cultures: Intentional and Skillful Relationship Building The notion of cultural competency elicits deep emotions for most people and carries tremendous weight in a professional setting. Those who work with a diverse group of clients want to be more skillful in their relationships, but many workshops offer little beyond tips for generalized cultural populations (“making eye contact is disrespectful for this group”) or suggestions to create materials in more than just one language. While these steps are necessary in developing cultural competence, we need to go deeper into exploring personal cultural values and how to use them intentionally and skillfully in building adult- youth mentoring relationships.

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