Building a Superior Budget
Nonprofit Forum Agenda for October 31, 2018
11:30 to 12:30-Financial Management Topic
Building a Superior Budget
How should your evaluate your budget and planning process? Please bring your questions so we can have candid conversation regarding budgeting.
We will cover the critical aspects of budgeting including:
A strong budget is an essential element for any nonprofit organization to achieve financial leadership. Superior budgets, though, have written plans about the core activities to include strategic, organizational, and program goals and how they will be financed.
Most financial leaders focus too much time on budget variance analysis and not enough time to anticipating or planning for the future. By anticipating or planning, organizations can focus on what’s upcoming regardless of its budget cycle or fiscal year end. A budget can be complemented with rolling forecasts to better anticipate upcoming financial results.
Budgets also need to include cash flow projections, which maybe outside of the finance departments capacity or capabilities. Financial leaders must have a direct role in developing useful cash flow projections and assumptions with frequent, detailed analysis.
Any cash flow shortage needs to be further evaluated to determine if it is just a timing difference or an actual cash deficit. Shortfalls created by deficits need to be solved by budget adjustments or strategic choices to absorb a shortfall. An organization can determine timing or actual deficits by reviewing the budget to see if it had planned for or not.
Financial sustainability can only be achieved with a well-prepared and continuously monitored budget. Conversely, a poorly developed budget can diminish mission focused activities opportunities and threaten long-term success.
This webinar will help Executive Directors, Finance Directors, and finance staff to develop and use a financial policies and procedures manual. Savvy nonprofit leaders know that effective budgets and projections can be the difference between good and great performance.
How should you evaluate your budgeting process? We will share our expertise and candid advice to better prepare you for this important role to your organization.
3 Key Things you will learn include:
- Financial sustainability can be achieved with well prepared and monitored budget
- Budgets should include cash flow projections
- Best practices for a superior budgeting process
Immediately following the presentation on building a superior budget, we will host a discussion on budget refresher.
Those attending the forum will receive handouts.
12:30 to 12:50-MIP User Group-Budget refresher for MIP and Microix
12:50 to 1:00-FTM Updates and Closing