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Board Development Budgeting for Not-forProfit Organizations What is a budget An operating budget is a financial plan of action prepared for a specific period of time.. Board Development Program Voluntary Sector Services Branch Alberta Culture and Community Spirit Phone: 780-427-2001 Fax: 780-427-4155 E-mail: bdp gov.ab.ca www.albertabdp.ca Sponsored by Budgeting is putting together a realistic financial plan for the organization.. Responsibility For budgeting preparation For budget approval For budget monitoring For key expenditures decisions (purchase of capital items, hiring of new staff, and wage increases) 4 Senior Staff Treasurer The Board Budget monitoring On a monthly basis you should be comparing the budgeted amounts for each category with actual figures.. Or do you have to seek out some answers before you can determine why it happened Is there something in the next budgeting cycle that could be done differently to provide more accurate figures Has the board approved an expenditure that was not budgeted for For example, it may look odd that, in the first month of the budget, a large amount was paid for insurance.. 6 Board Development: XYZ Not-for-Profit Organization Budget to Actuals For the Three Month Period March 31, 2999 Approved (Jan-Dec) Annual Budget Current Month (March) Actual Budgeting for Not-for-Profit Organizations YTD (Jan- Mar) Actual Revenue: Fees Grants Other revenue Total revenue 5,500.00 450,000.00 8,000.00 463,500.00 375.00 150,000.00 998.45 151,373.45 4,405.00 225,000.00 2,296.54 231,701.54 426,000.00 3,500.00 6,500.00 13,200.00 6,000.00 4,800.00 3,500.00 463,500.00 35,229.11 225.00 626.13 1,100.00 489.12 195.45 233.26 38,098.07 105,222.13 985.00 1,256.24 3,300.00 1,589.24 4,212.85 795.25 117,360.71 113,275.38 114,340.83 Expenses: Salaries and wages Membership dues Board/committees Rent Utilities Miscellaneous Volunteers Total expenses Surplus/Deficit - For more information, see Financial Responsibilities of Notfor-Profit Boards, a s
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