Guidelines for the Preparation of Budgets in Not-for-Profit Organizations
22 Pages Posted: 29 Aug 2010
Date Written: August 28, 2010
In the absence of clear and acceptable measures for outcomes, the budget is probably the most important managerial tool for nonprofits. Nevertheless many nonprofits operate without a budget at all, or with a limited version of a budget that is used solely for fundraising with no managerial role. The purpose of this paper is to present guidelines for the preparation of budgets that can serve all the aspects of the organization's activity. More specifically the budget should provide the organization's management with tools for decision making, risk management, measuring efficiency and the ability to present a cleat picture of the organization's activities to internal and external stakeholders. The adoption of these guidelines may benefit both nonprofits and their donors. Nonprofits will be able to improve the way they manage their programs while donors will be able to get a clearer picture of the organization and to simplify their procedures for grant applications.
Keywords: Nonprofits, Management, Budget, Strategic, Planning
JEL Classification: D61, L30, M21, M40
Suggested Citation: Suggested Citation