Issue
Budgeting projects isn't always easy, but with the proper tools, a budget can be created that will aid in the overall success of the experience.
Action
According to Hands On Network, there are five basic steps to take when preparing a budget:
- Assess your needs.
Determine what funding you may need and/or what monies you have to spend for your project(s).
- Determine your resources.
From prior planning, you have already discovered what resources you can use to help you achieve your goals. These assets include individuals, associations, institutions, physical space, and/or any materials, supplies, or services that you need. Make sure to document all resources and their financial worth.
- Recognize what you have.
This includes money from grants, donations from individuals, and in-kind donations.
- Create categories.
For each project, separate costs by applicable category (e.g., supplies, foods/beverages, printed goods, communication costs, volunteer recognition items, and so forth.).
- Establish targets.
For the project, establish dollar amounts for income and expenses and try to adhere to these. Only spend beyond what you have already budgeted in case of an emergency.
To manage your expenses, analyze changes in the budget each week until the project. Try to identify the reason for each change, and figure out how to resolve it accordingly.
Also, try to identify the drivers for access to spending and control "runaway" or "last minute" spending the day of the project. If necessary, add or shift additional resources to projects (i.e., people, in-kind donations, etc.) and/or assign volunteers and/or staff that are more skilled to certain tasks to cut down on the time it takes to do something (which ultimately translates to money spent).
Context
Prior to your project, budget your monies accordingly. Start out by separating your project budget from any other budgets that may affect you (for example, departmental budgets or national service program budgets). Take the necessary steps to accurately prepare your budget and document all income and expenses that will affect the project.
Outcome
The qualities of an effective budget are:
- Realistic
- Consistent with organizational objectives
- Cost effective
- Flexible (amendable if conditions are not as expected)
- Aligned with goals of the Corporation (funder)
