One of the most complicated feats for a nonprofit organization is determining a budget. With the organization’s money depending on donations, you want to ensure your funds are being properly allocated.
Make sure you have enough for overhead
This should be a no-brainer. Overhead includes your organization’s administrative expenses, such as salaries for employees, as well as office and fundraising expenses. These should be first on your budget to-do list. Many nonprofits wonder about an acceptable amount to spend on overhead. After all, people are donating their money to the cause your organization or station supports. According to The Nonprofit Times, the acceptable amount of a nonprofit’s money spent on overhead is approximately 23 percent.
“It’s important to know what the organization’s goals are.”
Determine the year’s goals
When determining a budget, it’s important to take into account what the year’s goals and commitments are. If your station is celebrating its 10-year anniversary and you’ll be hosting a fundraising party in celebration of it, you’ll want to budget a bit more on fundraising than you did last year. Meanwhile, if you overspent last year, you’ll likely want to keep your budget more conservative this year.
Utilize volunteers wisely
While you don’t pay volunteers for their work, they may still cost you money. Most of the time, organizations supply volunteers with uniforms or food while they’re working an event. Other organizations will reimburse them for travel expenses if they’re going to another city for something related to the station. Keep in mind how utilizing volunteers may affect your bottom line and strategize accordingly.