Your organization will operate more efficiently if you establish a carefully considered budget that all members of your organization understand.
Here are some steps to help you prepare a financial plan:
• Read previous budgets as a whole group.
• Brainstorm ideas for activities your group would like to sponsor.
• Set priorities re: specific activities which are most important to your group.
• Investigate the potential cost of each program and estimate all expenditures.
• Determine your organization’s available funds: cash on hand, funds in the bank, dues, fundraisers, donations, potential revenue from programs.
• Define needed expenses: advertising, office costs, transportation, rentals, performers’ fees, etc.
• Determine which activities are financially possible.
• Monitor expenditures relative to the budget. Explicitly discuss and approve deviations from the budget.
• A budget is a guideline. It can be changed to reflect changes in plans. However, it must stay balanced in income and expenditures.