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Budget-Building Book for Nonprofits A Step-by-Step Guide for Managers and Boards

ISBN-10: 0787996033
ISBN-13: 9780787996031
Edition: 2nd 2007 (Revised)
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Description: A new edition of the bestselling nonprofit financial guide This new edition provides step-by-step guidance for nonprofit organizations seeking to build effective budgets. It addresses the importance of budgets and budgeting and walks the reader  More...

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Book details

List price: $44.95
Edition: 2nd
Copyright year: 2007
Publisher: John Wiley & Sons, Incorporated
Publication date: 11/2/2007
Binding: Paperback
Pages: 240
Size: 8.50" wide x 10.75" long x 0.75" tall
Weight: 1.782
Language: English

A new edition of the bestselling nonprofit financial guide This new edition provides step-by-step guidance for nonprofit organizations seeking to build effective budgets. It addresses the importance of budgets and budgeting and walks the reader through basic types of nonprofit budgets, implementation, tracking, and reporting. It includes worksheets, sample budgets, lists, and other tools. This edition also includes new chapters on zero-based budgeting and capital budgeting, as well as a CD with electronic versions of budgeting tools and software to make budget-building easier. Murray Dropkin (New Brunswick, NJ) is President of CMS Systems, a consulting firm that specializes in improving the operational and financial operations of both nonprofit and for-profit organizations. Jim Halpin (Edison, NJ) has spent the last 30 years developing accounting software and other applications for a wide variety of industries.

Preface
Acknowledgments to the First Edition
Acknowledgments to the Second Edition
The Authors
Introduction: How to Use This Book
UNDERSTANDING BUDGETING BASICS
Why Budgets and Budgeting Are Important to Nonprofits
The Importance of Budgets and Budgeting
The Basic Characteristics of Budgeting
Understanding Basic Types of Nonprofit Budgets: Overview
Organization-Wide Operating Budgets
Operating Budgets for Individual Programs, Units, or Activities
Capital Budgets
Cash Flow Budgets (Cash Flow Forecasts)
Opportunity Budgets
Zero-Based Budgets
Key Board and Staff Roles and Responsibilities in Nonprofit Budgeting
The Board's Role
The Executive Director's, President's, or CEO's Role
The Chief Financial Officer's Role
Program, Unit, or Activity Manager's Role
Department Manager's Role
Other Possible Participants
Establishing Budget Guidelines, Priorities, and Goals
Establishing Guidelines
Identifying Priorities
Setting Organization-Wide Goals
Setting Individual Program and Unit Goals
How Different Sources and Types of Income Can Affect Budgeting
Unrestricted Funds
Contract or Grant Agreement Funds
Restricted Contributions
Income from Trade or Business Activities
Asset-Generated Income
Cash and Noncash Contributions, Including Pledges
Funds Requiring a Cash or In-Kind Match
Strategies for Developing Organization-Wide Operating Budgets
Strategy 1: Set Annual Organization Outcome Goals from the Top Down
Strategy 2: Set Annual Income and Expense Targets from the Top Down
Strategy 3: Request Draft Budgets That Show Priorities from Program or Unit Heads
Strategy 4: Use Zero-Based Budgeting
Possible Problems with ZBB
Benefits of ZBB
STEP-BY-STEP BUDGETING GUIDELINES
Start with the Budget-Building Checklist
Designing Your Budgeting Policies and Procedures
Basic Budgeting Policies and Procedures
Basic Income Projection Policies and Procedures
Basic Expense Projection Policies and Procedures
Basic Cash Flow Projection Policies and Procedures
Policies Establishing the Fiscal Year
Other Needed Policies and Procedures
Checklist for Information to Include in Written Policies
Final Review and Integration
Creating Your Budgeting Calendar
Five Steps for Developing the Budgeting Calendar
Instructions for Creating an Annual Budgeting Calendar
Orienting Program and Department Managers and Staff to Budgeting
Budget Team Meeting
Practical Considerations When Planning Budget Team Meetings
Contents of the Annual Budget Preparation Package
Developing Organization-Wide Operating Budgets
Five Steps to Prepare for the Annual Budgeting Process
Five Steps to Create Annual Budgets
Developing Operating Budgets for Individual Programs, Units, or Activities
Planning for Program or Unit Budget Development
Basic Steps in Creating a Program or Unit Budget
Setting Two Kinds of Program or Unit Goals
Preparing a Program or Unit Workplan
Identifying the People and Things Needed to Implement a Workplan
Identifying Personnel Costs
Identifying 'Other Than Personnel' Cost Categories
Identifying Specific Line-Item Costs
Providing Budget Justification or Cost Documentation
Matching and In-Kind Contributions

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