Budget like a boss - March 2022
March, 2022
When we’re calling the auditor, and crossing our fingers that we come out ok at the end of our fiscal year, it`s time to look at strategies. It’s also the time when many leaders in the sector draft their annual budget for the upcoming year.
What is your creative process? Do you lock yourself in your office for two days, and stock up on snacks and strong coffee? Do you email your Treasurer to see if they can produce a first draft? Do you bring it up in a staff meeting and ask each of your Managers or Coordinators to help in creating the budgets for their programs?
There is no one size fits all approach to budgeting in the non-profit sector, but there are some practices that can help make things easier.
Teamwork is dream work.
Strike a budget committee, with at least one staff and one board member. Create a first draft together and then take it to the Board for feedback.
Multiple scenarios. Create your “baseline” budget, and your dream budget. Allow for more risk-taking in the dream budget and have an open conversation with your Board about this scenario. Sometimes Directors err too much on the side of caution and don’t allow for any growth.
Take into account inflation. In the context of the pandemic, costs of everything are rising. Make sure to take this into account for your expenses, including building in a decent cost of living increase for your staff.
Strike a fundraising committee. Note that you can involve people from outside of the Board to participate. There’s a direct correlation between orgs who have fundraising teams in place and those that bring in new revenue streams. Develop a fundraising action plan and set a goal.
If you ran a surplus last year, consider earmarking some of it for operations this coming year. Sometimes Boards get into the habit of squirreling money away - for no good reason. It’s one thing to have 3-6 months operating funds in reserve in case of an emergency, it’s another to be stock-piling cash as a non-profit. Spend it down - especially in the current pandemic context where the needs are high.
Need support with financial management and fundraising? Our team is here for you! We offer customized training and action planning to help you boost your impacts.
