The document discusses how to create budgets for grant writing, including defining a budget, the benefits of budgets, budget planning issues, types of budgets, budget elements, general budget components, evaluating financial health, and creating a strategic budget plan to identify funding gaps and sources. It provides guidance on the key components to include in an organizational or project budget.
The future nonprofit CFO is a mission-infused, proactive leader who drives operations with a nimble financial savvy. Finance and mission are inseparable. It’s important to understand that they’re connected across all of an organization’s sectors, within all of its partner goals, and through all tools that it uses. The aim of a mission-infused finance department is a sustainable nonprofit that invests in a strategy to meet the demands of a continually evolving world. Join nonprofit financial expert Russell Pomeranz as he discusses ways that CFOs can drive operations to align money and mission in a way that helps organizations meet their full potential.
Ever ask: “How does our retirement plan compare to others?” Learn what Russell Investments believes all excellent DC plans share and actions you can take to help position your plan for excellence.
Money Matters - Tips for a Healthy NonProfit OrganizationStern Cohen LLP
Industry experts from Stern Cohen Accountants address key financial issues for your not-for-profit organization or charity. Learn best practices for the effective financial management of your NPO. This presentation covers: tips for a healthy balance sheet, understanding key metrics in your financial statements, managing cash flow, budgeting and forecasting.
The future nonprofit CFO is a mission-infused, proactive leader who drives operations with a nimble financial savvy. Finance and mission are inseparable. It’s important to understand that they’re connected across all of an organization’s sectors, within all of its partner goals, and through all tools that it uses. The aim of a mission-infused finance department is a sustainable nonprofit that invests in a strategy to meet the demands of a continually evolving world. Join nonprofit financial expert Russell Pomeranz as he discusses ways that CFOs can drive operations to align money and mission in a way that helps organizations meet their full potential.
Ever ask: “How does our retirement plan compare to others?” Learn what Russell Investments believes all excellent DC plans share and actions you can take to help position your plan for excellence.
Money Matters - Tips for a Healthy NonProfit OrganizationStern Cohen LLP
Industry experts from Stern Cohen Accountants address key financial issues for your not-for-profit organization or charity. Learn best practices for the effective financial management of your NPO. This presentation covers: tips for a healthy balance sheet, understanding key metrics in your financial statements, managing cash flow, budgeting and forecasting.
Defined contribution (DC) plan sponsors face increasingly complex issues. Russell Investments has developed a priority list of eight ideas and actions to help plan sponsors guide their participants toward better decision-making as they save for retirement.
• A rationale that includes a detailed explanation of, and justification for your real world application of the content; this is the inquiry/research project you are proposing and why.
• How the application of the content addresses a global issue you have identified which is relevant to the math content
• Your math area of choice (this should be an area you feel less prepared to teach)
• Research into the identified content area to strengthen your knowledge
Michele R. Berard, MBA, CFRE lecture for 5/4/11 class - Nonprofits & Philanthropy at Rhode Island College. Contains fundamentals of fundraising, ethics, and establishing your professional brand.
2017-01-25 A Framework for Strengthening Your Nonprofit’s Investment Reserve ...Raffa Learning Community
Nonprofit Executives and their Boards know they must periodically review reserve or investment policies. They don’t always know, however, what’s involved. Through his work on the Study on Nonprofit Investing (SONI), Dennis Gogarty of Raffa Wealth Management has developed an easy-to-follow investment policy framework which will assist nonprofits in developing or strengthening their organization’s policy and procedures.
Institutionalizing DC Plans | A Starting Point for Addressing Fiduciary Issues The 401k Study Group ®
This article provides a basic framework for plan sponsors and fiduciaries interested in exploring perspectives on institutionalizing their DC plans. For those who would like further details, page 10 of this paper lists additional DCIIA resources on select topics.
Defined contribution (DC) plan sponsors face increasingly complex issues. Russell Investments has developed a priority list of eight ideas and actions to help plan sponsors guide their participants toward better decision-making as they save for retirement.
• A rationale that includes a detailed explanation of, and justification for your real world application of the content; this is the inquiry/research project you are proposing and why.
• How the application of the content addresses a global issue you have identified which is relevant to the math content
• Your math area of choice (this should be an area you feel less prepared to teach)
• Research into the identified content area to strengthen your knowledge
Michele R. Berard, MBA, CFRE lecture for 5/4/11 class - Nonprofits & Philanthropy at Rhode Island College. Contains fundamentals of fundraising, ethics, and establishing your professional brand.
2017-01-25 A Framework for Strengthening Your Nonprofit’s Investment Reserve ...Raffa Learning Community
Nonprofit Executives and their Boards know they must periodically review reserve or investment policies. They don’t always know, however, what’s involved. Through his work on the Study on Nonprofit Investing (SONI), Dennis Gogarty of Raffa Wealth Management has developed an easy-to-follow investment policy framework which will assist nonprofits in developing or strengthening their organization’s policy and procedures.
Institutionalizing DC Plans | A Starting Point for Addressing Fiduciary Issues The 401k Study Group ®
This article provides a basic framework for plan sponsors and fiduciaries interested in exploring perspectives on institutionalizing their DC plans. For those who would like further details, page 10 of this paper lists additional DCIIA resources on select topics.
Budget is the heart of administrative management. It served as a powerful tool of co-ordination and negatively an effective device of eliminating duplicating and wastage. Budgeting, though primarily recognized as a device for controlling, becomes a major part of the planning process in any organization
S&A Knowledge Series - Budget & budgetary controlsDhruv Seth
In continuation of our knowledge series please find attached an update on "Budgets and Budgetary Controls".
In light of the current humanitarian and possible economic turmoil, it becomes imperative for us to have an effective budget and controls for the same. This would ensure we stick to our expenses envisaged at the start of the year and exercise great control over our costs.
1. Budgeting For Grant Writers
Grant Writers Network of Greater Houston
John F.X. Prior, LCSW, ACSW
Harris County Protective Services
for Children and Adults
Houston, Texas
March 11, 2009
2. Definition
A numerical expression of an
organization’s dreams that serves as a
guide or measure of acceptable
financial performance.
3. Benefits of a Budget
Establishes goals to be achieved
Identifies work to be done
Projects resources that will be needed
to get work done
Establishes timetables and deadlines
Assigns individuals responsible for
work
4. Overview of Budgets
Well-prepared, clear and accurate
budgets allow nonprofits to:
Adjust plans, activities, and spending
Achieve cost effective spending
Receive CLEAN audits
Avoid incurring questioned or disallowed
costs or cost overruns
5. Overview of Budgets
Brings together input from Board, clients,
management, prospective donors, and general
public
Anticipate operational expenses and identify
revenue sources
Provide financial & operational guidance to
implement policies and use resources
Are tools for controlling spending, avoiding deficits,
and assessing the financial situation.
Integrates administrative, staff, and operating
activities
Serves as basis for performance reviews
Ongoing process
6. Roles of Staff to Create a Budget
Agency Accountant, Treasurer, or
Chief Financial Officer
IF NOT:
Someone knowledgeable about the
project & organization
Person who regularly handles finances
Collaborative Effort
7. Budget Planning Issues
Balancing
Timing
Evolution
Accountability
Zero Basis vs. Incremental
Forecasting
8. Types of Budget
Income & Expenses
Revenues by Type
Individual project, department, or program
Service delivery costs
Capital Additions
Investment income
Cash Flow
Fund raising events
Income generating activities
Personnel projections
9. Advantages
Enhances likelihood that organization will be
financial successful
Tool that translate abstract goals into determinable
information; stipulates performance goals
Budgeting process leads organization to look at
itself, set priorities, and to narrow its choices
Facilitates coordination and cooperation between
various programs and financial department
Periodic budget comparison to actual performance
can identify problems and allow time for a response
to changing conditions
Measures financial performance in relation to
expectations.
10. Disadvantages
Presence of controls may stifle creativity
Tendency to emphasize cost control
Budget based on historical data only can fail
to keep up with changing circumstances
Budgets completed by only nonfinancial
personnel can result in a plan without
adequate staff input
Not easy to implement and may require
enthusiasm among management staff to be
accepted as useful
11. Budget Elements
Personnel
Fringe Benefits
Travel
Equipment
Supplies
Contractual
Indirect Charges
Program Income
12. General Budget Components
INCOME
Donations & Memberships
Service Delivery Fees
Grants and Contracts
Investment Income
14. Budget Narrative
Budget = Includes detailed
calculations with estimation methods,
quantities, unit costs, and other similar
qualitative detail.
Budget Narrative = Discusses
necessity, reasonableness, and
allocation of costs.
15. Indirect Charges
Costs not readily identified with a
particular aspect of organizational
operation (i.e.: administration,
fundraising, etc.)
16. Budgeting Do’s
Budget for the life of the grant
Allowable costs
Indirect Cost Rate Agreement
Cost of living increases
Address matching requirements
Seek non-Federal support
Focus on sustainability
17. Evaluating Financial Health
Organizational Budgets
Positive Indicators Red Flags
The Executive Director understands The executive director cannot explain
the financial aspects of the organization. the financial aspects of the organization.
The expenses and income outlined in The board is not involved in the budget
the budget are reasonable. development process.
The organization appears to have In reviewing anticipated income
appropriate income streams and a (committed, identified, unknown), the
realistic budget that adequately covers unknown is too big.
core operating costs. Budgeted income exactly equals
A comparison of the budget to actuals budgeted expense — this is a “plugged”
year-to-date shows that the organization budget; nature is never this precise.
is close to meeting its budget.
There is someone in the organization
who knows its financial performance
and can explain any patterns.
18. Evaluating Financial Health
Project Budgets
Positive Indicators Red Flags
The project budget is aligned with the The project budget is unrealistic
organizational budget. and/or not consistent with the
The overall project budget seems proposal narrative.
appropriate for what is described in the In reviewing anticipated income
proposal narrative.
There appear to be appropriate income
(committed, identified, unknown),
streams and a realistic budget that
the unknown is too big.
adequately covers program costs.
19. Evaluating Financial Health
Funding Mix
Positive Indicators Red Flags
The organization has diversified The E.D. and board member(s)
contributed income, as well as earned cannot articulate their funding mix.
income (if appropriate).
The organization is overly
The fundraising goals (for the
dependent on one source of
organization or the project) and overall
budget are realistic based on the funding.
economy and past experience. The organization has had a
difficult time meeting the public
support test and maintaining its
public charity status.
20. Evaluating Financial Health
Financial Position & Trends
Positive Indicators Red Flags
The organization has a history of breaking The organization does not have enough
even or operating in surplus. cash on hand to meet demands.
The financial manager and executive The organization has a growing
director can describe the organization’s accumulated deficit, and is projecting
current financial state. another deficit this year.
The organization has a long-term vision of The balance sheet shows negative net
where it wants to be financially. assets.
The organization has debt other than long-
term debt for asset acquisition, and has no
debt reduction plan.
There are unusual items in the
organization’s financials (loans from board
members, unpaid salaries) that are not
clearly accounted for.
The auditor has issued a “qualified
opinion.”
21. Evaluating Financial Health
Fund Development
Positive Indicators Red Flags
There is a plan for raising money, The organization cannot articulate a
developed with the involvement of plan for fundraising.
board members. The board is not involved in
The board of directors is aware of
fundraising.
The board members responsible for
or involved in the organization’s
fundraising and development oversight
fundraising goals and activities. don’t have the skills or interest.
The budget projects a perfect
breakeven, and the fundraising budget
number is exactly the amount needed.
Is it justified or just a “plugged” number.
22. Evaluating Financial Health
Financial Systems & Health
Positive Indicators Red Flags
Regular Audits for Organizations of There are no financial reports or
$250,000 or more statements generated.
Board has financial expertise and The organization has financial
Board conducts regular financial statements, but they are not reviewed
reviews by the board, or they are out of date
Board receives financial reports at (more than two months old).
least quarterly The organization “borrows” from
Management & Program staff other programs or restricted funds.
understand how to read financial The organization’s mid-year financial
statements statements indicate it is way off
Financial reports are used to inform budget.
programmatic and other decisions Auditor’s letters to management
indicate weakness in internal controls.
23. Identify Funding Sources and
Financing Strategies
Do you know how much you need?
Is the initiative pursuing a variety of
financing options?
Do you have a plan in place to pursue
options?
24. Creating a Strategic Budget Plan
Clarify What You are Budgeting For?
Number of clients you want to serve
Number of sites you want to operate
Target population you want to serve
Range of activities you want to provide,
and
Level of quality of services you want to
provide.
25. Creating a Strategic Budget Plan
Estimate Fiscal Needs
Activities & strategies you want to sustain
Over what time period do you want to
sustain them?
Ramp Up Assumptions:
Scale of operations
Start-up Costs and Timing
Ongoing Operating Costs
Infrastructure Costs
26. Creating a Strategic Budget Plan
What funding sources currently support your
initiative? Amounts? Type?
What non-cash resources provide support to
your initiative?
Are these resources restricted to specific
program elements or functions?
Over what timeframe will these resources be
available to you?
27. Creating a Strategic Budget Plan
Assess Funding Gaps
Identify Major Strategies or Activities
Identify Total Costs
Identify Available Resources
Identify Gaps in Funding.
28. Creating a Strategic Budget Plan
Identify Funding Sources and
Financing Strategies
Clarify your NEED and WHEN
Review current funding mix
Public Funding
Time-limited grants of 1 to 3 years
Longer term funding commitments of more
than 3 years
Any current funding sources that may be at-
risk of reduction or termination
29. Creating a Strategic Budget Plan
Identify Funding Sources and Financing
Strategies (continued)
How much revenue can be generated?
What is the administrative burden?
Does funding stream help diversify your funding
mix?
When can you expect to realize the revenue?
How can the funding be used (allowable costs)?
Does accepting funding provide opportunities to
create new partnerships, or will it limit your
abilities?