Nonprofit Budgeting
Channel: My Grant Management
Date: 16/04/2022

The financial health of a nonprofit organization is ultimately the responsibility of the board of directors.

Staff is initially responsible for developing the annual budget, although board members (generally those on the "finance committee" and/or "executive committee") frequently examine the proposed budget, and the complete board usually accepts the budget at a full board meeting.

The approved budget then serves as a roadmap for future financial decisions.

Budgets should not be "set in stone" because the nonprofit's financial situation may vary during the year.

A budget is a tool that can assist a nonprofit in both planning for the future and assessing its existing financial situation.

It is normal practice to evaluate the budget on a regular basis and compare it to actual cash flow and expenses to see if things are going as planned throughout the year.

It's possible that the budget will need to be adjusted throughout the year.
The nonprofit's budget is likely to be referred to several times during the year by employees and board members who serve in various capacities within the organization.

Parties involved in financial dealings with charities, such as banks, or donors/grantmakers considering a contribution to the charity may seek budgets.

If and when you discuss the organization's budget with others, make it clear that the budget is reviewed and amended as needed during the year, and that it is not set in stone.

When people ask for the nonprofit's "budget," it's sometimes enough to share a copy of the most current IRS Form 990, which displays a nonprofit's operational expenses and revenue over the course of a fiscal year.

Visit our blog: https://mygrantmanagement.com/blog/
Grant Management Non Profit Fund Accounting on Amazon:  https://tinyurl.com/ycxpvfz3

Thanks to Aaron Miller for sharing this video  https://tinyurl.com/bdmmzzak