Successful Budget Strategies Marcia M. Wallander Director Advancement | Adagio Health 412-514-9614 | marciamwallander@gmail.com Carnegie Library of Pittsburgh April 18, 2019

Goal of Session Provide you with the tools and concepts necessary to create and implement a successful budget for your organization with a focus on your development program. Successful Budgeting for Non-Profits April 18, 2019

Budget as a Strategy Educate your leaders Engage your leaders and board Involve your staff Educate your leaders, board and staff Keep you on track Redirect efforts if over or under performing Successful Budgeting for Non-Profits April 18, 2019

Step 1: Budget Status How many of you: Create your own budget? Work with an inherited budget? Have never created a budget? Only budget expenses? Work with a budget to meet a goal? Do not have a budget? Successful Budgeting for Non-Profits April 18, 2019

Budget Woes How many of you have heard: “Let’s add up all our expenses and use that to set your fundraising goal.” Successful Budgeting for Non-Profits April 18, 2019

Step 2: Budget Process Who should be involved in the Budget Process? CEO/Executive Director Board of Directors Senior Staff Finance staff Development staff—not just the chief development officer Program staff – should at least understand the general budget All Staff in small organizations Successful Budgeting for Non-Profits April 18, 2019

Step 2: Budget Process When you should begin the Budget Process? 3 months prior to beginning of Fiscal Year. Prior to the board meeting if it needs to be approved. If you don’t have a budget: Immediately! Successful Budgeting for Non-Profits April 18, 2019

Step 2: Budget Process How long does it take to create a Budget? It depends Do you have a starting point? Are you implementing new programs that need to be researched? Are you including other members to work on various parts of the budget? Successful Budgeting for Non-Profits April 18, 2019

Development Budget History Types of Revenue What was raised last year (previous 3-5years?) Do we need to meet budget? What has changed since last year? What was the most ever raised? Types of Revenue How did revenue come in? Successful Budgeting for Nonprofits April 18, 2019

Anatomy of a Budget REVIEW Expenses Staffing Program Facility Fundraising Marketing Operations Events (*separate) Staff development Successful Budgeting for Non-Profits April 18, 2019

Anatomy of a Budget REVIEW Revenue Program Fundraising Investments Events* Successful Budgeting for Non-Profits April 18, 2019

Anatomy of a Budget Cash Flow Estimated Expenses Per Month Estimated Revenue Per Month NEVER DIVIDE REVENUE & EXPENSES EQUALLY!! Successful Budgeting for Non-Profits April 18, 2019

Development Budget Solicited Not Solicited Direct Mail/Online Residual Special Event Individual Solicitation Sponsorship Not Solicited Envelope in Annual Report/Newsletter Honor/Memorial Matching Gifts United Way Donor Listing Successful Budgeting for Nonprofits April 18, 2019

Summarized Budget for Expenses and Revenue Development Budget Summarized Budget for Expenses and Revenue Successful Budgeting for Nonprofits April 18, 2019

Summarized Budget for Expenses and Revenue Development Budget Summarized Budget for Expenses and Revenue Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Development Budget Successful Budgeting for Nonprofits April 18, 2019

Step 3: Cash Flow Successful Budgeting for Nonprofits April 18, 2019

Step 3: Event Budgets Successful Budgeting for Nonprofits April 18, 2019

Direct Mail Budget Revenue by segment Successful Budgeting for Nonprofits April 18, 2019

Direct Mail Revenue Projection Successful Budgeting for Nonprofits April 18, 2019

Annual Fund Comparison   FY11 FY12 Variance Amount # Donors Donors Phonathon Spring Phonathon $ 42,034 530 $ 45,261 518 $ 3,227 -12 Fall Phonathon $ 69,601 790 $ 30,308 438 $ (39,293) -352 $ - Direct Mail Direct Mail Phone $ 2,270 17 $ 2,270 DM - Reunion $ 425 4 $ (425) -4 Unrestricted $ 369,565 995 $ 216,097 544 $ (153,468) -451 Not defined $ 26,583 283 Year End Appeal Donor $ 2,035 19 $ (2,035) -19 Non-Donor $ 4,611 54 $ (4,611) -54 DM - Fall $ 5,020 37 $ 5,020 DM - Spring $ 21,529 151 Annual Operation $ 5,028 22 $ 39,024 361 $ 33,996 339 DM - End (June) $ 4,300 13 $ 4,300 Campus School $ 5,000 1 $ (5,000) -1 Other Annual Report $ 5,035 40 $ 5,035 Faculty Staff $ 9,642 329 $ 8,142 427 $ (1,500) 98 Endowment Capital Projects $ 2,500 $ 5,481 2 End of Year - June $ 9,135 87 $ 9,135 Matching Gifts $ 4,456 14 $ (4,456) -14 Total $ 514,897 2759 $ 418,185 2918 Annual Fund Comparison Sorting and comparing programs Successful Budgeting for Nonprofits April 18, 2019

Nonprofit Budget Resources https://www.councilofnonprofits. org/tools-resources/budgeting- nonprofits https://www.wallacefoundation.o rg/knowledge-center/resources- for-financial- management/pages/program- based-budget-template.aspx https://www.irs.gov/forms- pubs/about-form-990 https://www.philanthropy.com/ Nonprofit Budget Resources Go to the source! Successful Budgeting for Nonprofits April 18, 2019