A well-constructed and monitored budget enables you to foresee potential financial deficits, adjust plans, activities and spending accordingly, as well as spend funds more cost-effectively. Budgets are used as a tool for planning and monitoring. More importantly, budgeting should be an ongoing process.
Types of budgets include:
- Operating budgets identify expected expenses and revenue for the current fiscal year.
- Cash flow budgets track how much money will be spent and received on a monthly basis.
- Opportunity budgets analyze possibilities to expand and take advantage of new prospects.
- Capital budgets evaluate the cost of long-term investments and projects.
- Goal-based budgets are one part of a comprehensive sustainability planning process.
- The average statewide afterschool network’s budget is about $350,000 per year, while the median network’s budget is about $250,000 per year.
- Networks that have incorporated as 501(c)(3) non-profits typically have larger budgets than other networks.
- Many networks keep their budgets in more than one format in order to translate their financial information effectively for different audiences.
Strategies to Support Network Budgeting
- Identify stakeholders.
- Craft your budgeting policies and procedures.
- Set a budget calendar.
- Achieve consensus on results and strategies.
- Project revenues and estimate expenses.
- Analyze cash flow needs.
Approve and implement the budget.