When deciding how to handle unspent budget, the first step is to find out whether unused budget rolls over to the new year, or disappears at year’s end. If unused budget disappears, then using funds for organizational improvements is a better option than losing resources.
To decide how to spend the leftover budget, consider the organization’s immediate and long term vision and needs, and survey your staff to gather data on what facets matter most to workers. Weigh the potential return on investment for each option, and choose the route that is most likely to achieve desired results.