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