About Budgeting

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.

Key Information

• 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.