Preview

Budget Planning Process Paper

Powerful Essays
Open Document
Open Document
2083 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Budget Planning Process Paper
Abstract

The objectives of the research project were to analyze non-profit organization budgets and finances. This project focuses on the importance of developing a budget plan. A Budget is a financial plan that requires necessary resources to achieve the program goals. The first step in this process will review the logic in developing a budget plan for a nonprofit organization. Next, I will define budgets and finances as a model of a preparation for developing a budget plan. The second step deals with the benefits of planning a budget. The third step exam the financial resources needed for the budget plan. Finally, to provide a checklist that can be used in the preparation process for developing a budget.

Introduction

In this research paper I will discuss non-profit organization budget and finances. Explain the importance of developing
…show more content…
The chart illustrated the benefits to planning a budget. Next, reviewing the information from the above chart provided example of benefits of planning a budget. This is your road map that guides your financial resource that helps you reach your objective.
III. Designing a Budget Plan checklist for Non-Profit Organization
In his study of nonprofit organizations, their goals are mission based. p.57. How do we start and where do we start? Should the mission come first or the program. In this process of designing a budget for the nonprofit organizations, we have to develop a plan. This can help us reach our dreams and goals for our project. (Blazek, 2008)

In our planning process for designing a budget plan, we examined our priorities, refine its mission, and organize our resources needed for this plan. In our planning process, we have developed our team to analyze the financial measures and our nonprofit goals. At this stage, we are reviewing budgets planning issues that prevent us from achieving our objectives and

You May Also Find These Documents Helpful

  • Better Essays

    Budgeting is important especially for the small or medium size organisation which could not afford to waste any money on any investments that are not worth the price. Furthermore, a structured budget must be able to provide information of where the cash will be spent on and how the organisation gathered the sufficient amount of capital for future investment. It is important to keep track on the organisation’s cash flow as it provides important information on how much money available within the organisation. Insufficient cash flow within the organisation may lead to financial distress or worst, bankruptcy. However, too much cash flow within the company is not good either as the money should be used to invest into profitable projects rather than keeping within the company. Budgeting helps the organisation to prepare sufficient amount of cash flow within the company to help dealing with day-to-day expenses, at the same time, fully utilised the excess capital in profitable…

    • 1142 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    CMGT Project Budget Paper

    • 660 Words
    • 4 Pages

    The budget development is the initiation of the project that will measure all the tasks with cost and time. The process will be evaluated with decisions of the participants. The milestones reflected in the document will be also revised by the specialist of the cause and utilized for further interruptions.…

    • 660 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    References: Blackbaud. October 2011. Financial Management of Not-For-Profit Organizations. Retrieved on June 23, 2011 located at https://www.blackbaud.com/files/resources/downloads/WhitePaper_FinancialManagementForNPO.pdf…

    • 927 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In the health care industry there are different types program sector organizations, which has its own uniqueness. The different sectors of health care are divided amongst the for-profit, non-profit, and government organizations because they all have a common goal but the financial aspect is the same when it comes to providing care to patients. Within the three types of organization types, the financial need is collected and reported differently due to the organization common goal, financial environment and community outlook. In my research, to give a clearer picture I have chosen an organization that represents each health care sectors environment and they are: Health…

    • 957 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Hcs 571

    • 1318 Words
    • 6 Pages

    A budget is an instrument used to help managers ensure that the resources used effectively and proficiently toward the goals of an organization. A budget projection can be made on a yearly base depending on previous year or existing one. They can further be broken down quarterly or monthly depending on it use. Generating a budget is complex undertaking, and for a budget to be effective the organization ought to follow it strictly. However, no matter how closely a business follows their guidelines there will always be some form of variances. The organization should expect a few variances and be able to work these discrepancies in any budget constraints.…

    • 1318 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Hsm Final

    • 265 Words
    • 2 Pages

    The final project for HSM 260 is a compilation of various financial aspects of a nonprofit organization.…

    • 265 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Tax and Quick Books

    • 803 Words
    • 4 Pages

    This assessment is about the requirements to undertake budgeting and forecasting the finances of an organization. After reviewing the case study I have prepared a budget statement.…

    • 803 Words
    • 4 Pages
    Better Essays
  • Best Essays

    The importance of a workable budget in any organization is the success for profit or non profit. Profits provide growth and expansion for the organization. Strategic planning presents choices and objectives in accounting practices. The importance of budgeting includes all elements averaging the amount of expenses and allocating the amount monthly; running budget comparison reports determining the expenses incurred. Incorporating technology creates a more efficient organization accounting errors are less prevalent.…

    • 1401 Words
    • 6 Pages
    Best Essays
  • Good Essays

    unit 6 assessment

    • 2371 Words
    • 9 Pages

    The budget can provide a plan to help the organisation achieve its objectives and make key decisions for the future. Budgets can be used to compare planned and actual performance.…

    • 2371 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    After reviewing the budget committee’s analysis, I believe that it made an inappropriate decision in denying the donations department’s request for additional funds. I will examine its decision through a cost-benefit analysis which shows that it may have overestimated the costs of maintenance, and overlooked the benefits of this important department. The budget committee overestimated the unit cost due to missing revenue, improper cost structure, and underestimated capacity. First, based on the cost schedule, the committee overlooked the revenue that the donations department made from its bi-annual book sales. Secondly, they did not separate the fixed cost and the variable cost of books while calculating the total cost. Finally, they overlooked the possible increase in the annual capacity of processed donations that would result from hiring additional employees. To correct these errors, I revised the cost schedules and the income statements for both before and after acquiring additional funds. I decided to use the contribution approach because I believe that it will be more relevant to separate the fixed cost and the variable cost, since they will change the unit cost in different ways following an expansion of the donations department. While calculating the total cost, I believe that it would be more relevant to deduct the biannual book sales’ revenue from the total cost, because the revenue can subsidize this…

    • 1348 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    The operating budget is a plan for the organization’s revenues and expenses that generally covers a period of one year (Finkler, Kovner, & Jones, 2007). In healthcare organization the nurse manager of each cost center involves in the preparation and control of the operating budgets (Finkler, Kovner, & Jones, 2007). The finance office of the organization provides support throughout the budget process development. The budgets for the costs centers are combined, and the executive management of the organization makes final decisions on a budget to be submitted to the board for approval. The nurse managers need a variety of information to begin the process of preparing operating budgets for their cost centers, such as the information generated by the organization’s environmental review and by its development of general goals, objectives, policies, organization wide assumptions, program priorities, and specific measurable objectives (Finkler, Kovner, & Jones, 2007). For example, the environmental review and the general goals, objectives, and policies allow the manager to understand what the organization wants to accomplish and what it believes it will be able to accomplish. For another instance, the organization-wide…

    • 1735 Words
    • 7 Pages
    Better Essays
  • Good Essays

    A major element of financial data activity rests in the act of budgeting. Budgeting is the process of allocating finite resources to the prioritized needs of an organization. In most cases, for a governmental entity, the budget represents the legal authority to spend money. Adoption of a budget implies that a set of decisions has been made that culminates matching resources with needs. As such, the budget is a product of the planning process.…

    • 818 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    I have chosen Non Profit organizations as a topic. I would like to explore the steps in building a successful Non Profit Organization. This topic interests me because I am interested in someday creating a non-profit organization that will benefit women all over the world and serve my community. A non-profit organization is a group organized for purposes other than generating profit. No part of the organization’s income is distributed to members or employees of the group. Non-profit organizations are founded to help people. Examples of these organizations are: churches, public schools, public clinics, volunteer services, and museums. When starting a non-profit organization one must designate it as a nonprofit when it is created and the status…

    • 301 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Prioritization of Issues

    • 789 Words
    • 4 Pages

    As conveyed in their 2006 Statement of Activities, revenues from contributions are decreasing heavily due to the constraints imposed by the government in the donation of bequests and devices. As barriers like this appears which would bring adverse effects on the revenues of the organization, it needs to rely on other sources of revenue to suffice its duties and commitments. With this, those entrusted with the support of the community are called upon to be good stewards in utilizing and allocating their scarce resource to activities that would foster the well-being of the community at large. By way of effectively and efficiently exhausting their reserves, non-profit organizations are able to sustain its existence…

    • 789 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Shapiro Isaac (2001), A Guide to Budget Work for NGOs, Centre for Budget and Policy Priorities, Washington, D.C. USA…

    • 11258 Words
    • 46 Pages
    Powerful Essays