Nonprofit Budget Paper

718 Words2 Pages

Introduction Budgets are a resource that a nonprofit can utilize to develop strategic plans and tactical operational management plans to achieve their mission. Budgets can be used as a communications mechanism with internal and external stakeholders. “In most settings, budget and budgeting are overly feared exercises [however] with the proper knowledge they can be used as the management aids they are intended to be” (McLaughlin, 2016, p.176). The National Council of Nonprofits points to a budget as “a guide that can help a nonprofit plan for the future as well as assess its current financial health” (Council of Nonprofits, n.d.). Multifunctional Tool A budget is a financial blueprint for the nonprofit organization’s strategic plan. “Charting …show more content…

It is critical to a nonprofit’s success that they leverage the budget as a multi-purpose tool. The budgeting process need not be contentious. Using zero-based budgeting with appreciative inquiry techniques can aid a nonprofit organization in developing an effective budget for planning, operational control and communication. References Bell, J., Schaffer, E. (2005). Financial Leadership for Nonprofit Executives. St. Paul, MN: CompassPoint-Fieldstone Alliance. Council of Nonprofits. (n.d.). Budgeting for Nonprofits. National Council of Nonprofits [US]. Retrieved from https://www.councilofnonprofits.org/tools-resources/budgeting-nonprofits Edgington, N. (2013, March). Does Your Nonprofit Really Need a Strategic Plan? Social Velocity. Retrieved from http://www.socialvelocity.net/2013/03/does-your-nonprofit-really-need-a-strategic-plan/ McLaughlin, T. A. (2016). Streetsmart Financial Basics for Nonprofit Managers, 4th edition. New York, NY: John Wiley & Sons, Inc. VACPA. (2011, September). Budgeting: A Guide for Small Nonprofit Organizations. Virginia Society of Certified Public Accountants. Retrieved from

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