This document discusses how to measure and build organizational budgets. It explains that budgets should measure money coming in (revenue) and going out (expenses), as well as money available (assets). When building a budget, it is important to include tabs for summaries, programs, and additional information, as well as columns for months, years, and versions. Formulas and common calculations are provided. The document also discusses levers that budgets can impact, such as fundraising, efficiency, programs, and future opportunities. It stresses determining return on investment and considering affordability before making budget decisions.

1. Money That Matters
Sarah Olivieri
Nonprofit Business Strategist
MPS Humanistic Multicultural Education
sarah@pivotground.com

2. The only thing worse than
being blind is having sight
but no vision.
-Helen Keller

3. How do you feel...
about budgets?

6. Measuring the MONEY
Measuring the PLAN
VS

7. Profit & Loss Report:
How money goes in and out
Balance Sheets:
How much money
you have available
Tools: Measure the money

8. Vocab: measure the money
money
IN
revenue
income
money
OUT
expenses
costs of goods
money
AVAILABLE
cash
assets
credit

9. A list

10. Measuring the Plan
How good are we at making pie?
Mission Pie Money Pie

11. ratio or factor
how much it costs to
make a slice of pie OR
how many slices of pie
can we make for each $
Vocab: measure the plan
margin # or %
How much of
the pie is left
(gross, net, profit)

12. measure the plan

13. Let’s build a budget
Tabs:
summary tab
program tabs
additional information
tabs

14. Let’s build a budget
Columns:
months
years
versions
Rows:
dollars
comparisons
other metrics

15. Formulas:
=SUM( )
=another cell
=184*.2
Let’s build a budget
Cheat Sheet:
20%=0.20
3%=0.03
52 weeks in a year
Employment costs =
18-28% of salary

16. Budgetting
Plan your leavers
Estimate your
required overhead

17. Levers: What can money buy?
1. More money coming in
good marketing, fundraising
strategy, investments
usually the more you spend, the
more you get

18. Levers: What can money buy?
2. Less money going out
increase team efficiency, improve
organizational structures,
often has diminishing returns after a
point. Always run the numbers!

19. Levers: What can money buy?
3. ❤ Impact on your mission
open a new service location, hire
people you serve, hire more people
to serve, give out cash, etc

20. Levers: What can money buy?
4. ❤ An opportunity in the future
invest in R&D for innovations, gain
access to a new network, think
about investing in liquid assets or
cash reserves

21. Required overhead
What money are you required to spend
that has little return?
Payroll taxes and expenses
Permits and licenses
Insurance

22. Optimize your budget
Is it worth it?
1. Determine estimated Return on Investment (ROI)
how much you get minus how much you spent
2. Determine the cost of not taking action
(ROS: return on scarcity)
how much you are loosing by not taking action

23. Optimize your budget
Then ask: "Can we afford it"
If YES, then invest!
If NO, tell your fundraising team!

24. Now What?

25. Get Help!
pivotground.com/apply
pivotground.com/budget-template
sarah@pivotground.com
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