Small Non-profit Budgeting Coursework Example | Topics and Well Written Essays - 1000 words

Small Non-profit Budgeting - Coursework Example The goals and priorities are outlined in the strategic plan. The organization then determines the amount of money that will be needed fulfill the set goals and priorities, and this data is replicated in the annual operating budget. A budget that is well planned focuses mainly on the primary goals as it provides financial adaptability that is a key ingredient for maximizing sustainability. This paper explores the ways of creating a budget for a small non-profit organization and the expenditures that the money is needed for. Budgeting is a process. You have to use the facts that you know to be true, make sensible assumptions concerning the future and project ahead on what will be coming in the form of revenues and what will be rolling out of the organization in the form of expenses. These financial estimates are just projections. They are well defined using historical data and the events that may take place in the future. For instance, salary expenses of $100,000 for three workers in a given organization will be different from the one that will be set following year considering the fact that more additional staff will be hired. When the budgeting process is carried out, similar items are taken whereby their expenses are estimated over a given period of time. For example, an organization may need to know the exact expenditure on the office supplies in a given time. The budget will outline the summary of the total amount of costs that will be spent on office supplies. Prepare the final budget.