Nonprofit Management All-in-One For Dummies

Chapter 5

Balancing Cash Flow: Creating an Operating Budget

IN THIS CHAPTER

Understanding why you need a budget

Outlining your nonprofit’s goals

Projecting and comparing revenues and expenses

Sticking to your plan

Your organization needs to know where it’s going, whether you put it in writing or not. However, to spend money without thinking or planning indicates a lack of control and responsibility. A budget helps you manage your money and prioritize your spending, and also serves as a checkpoint to impulsive buying. It shows projected revenues and the amount set aside for planned expenses. To keep track of your money, you need a budget to keep cash flow in balance.

Basically, your budget is your organization’s financial plan. Without a detailed budget, your nonprofit’s risk of failure increases significantly. Not to worry, though. This chapter explains why your nonprofit needs a budget, what you need to do to create a budget, and how to create, track, manage, and evaluate your financial plan.

Understanding the Importance of Having a Budget in the Nonprofit World

For your nonprofit ...