5 Tips for Creating a Budget
Every nonprofit organization needs a budget. You are expected to spend cautiously and spend within your means. In a good budget, the income and expenses are equal to one another which is a balanced budget.
Follow these steps to create a budget.
1. SUM UP EXPENSES
First, you need to find out how much you are spending each month. You can review bank statements, receipts, etc. Be thorough because this will help you create a realistic budget for the organization.
2. TOTAL YOUR INCOME
Second, you need to determine how much income you have coming in each month. Your income can come from general donations, event registration, product sales and/or grants.
3. SET GOALS
Third, subtract your monthly expenses from your income. If your income is more than your expenses, great job! If your expenses are more than your income, you need to cut expenses. Also, consider ways you can increase your income.
4. RECORD YOUR SPENDING
To stay on track with your budget, record your expenses to ensure you’re on target for meeting your monthly goals.
5. BE REALISTIC
Stay on track with the goals you set, so your organization can have money for future events or unexpected expenses.
For questions or more information on building organizational budgets, feel free to reach out to me at email@example.com.