Nonprofit Kit For Dummies, 6th Edition

Chapter 12

Money Matters: Preparing Budgets and Financial Reports

IN THIS CHAPTER

Drawing up a budget for an organization

Constructing additional budgets for specific projects and programs

Using your budget to make decisions

Forecasting revenue and expenses

Understanding financial statements

Adopting good financial practices

Nonprofit organizations are expected to spend wisely and honor the trust placed in them by their donors and other stakeholders. As a result, they need to be especially skilled at budgeting and operating an organization within its means.

Creating budgets is a critical part of program planning, grant-writing, evaluation, and organizational sustainability. Maintaining a financially stable organization is one of management’s most important tasks. To achieve that stability, a nonprofit needs to keep clear records and base its decisions on accurate financial information. ...