Nonprofit Budget Analysis

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Budgeting is the ability to track income against expenses in order to facilitate a sensible decision making processes to preference spending appropriately and responsibly (McLaughlin, 2016). Budgeting of funds should be a written plan or spreadsheet to physically manage spending to reach preestablished goals, prepare for emergencies and prevent overspending. Strategic planning allows for flexibility to forecaste and adjust the budget as one’s economic situation changes. Facilitated management of the budget allows for the proper handling, directive and control of the finances to ensure one remains on track. Project communication of the budget allows vision and mission to evolve into fruition inviting ideas and strategies to attract potential …show more content…

Having a written framework helps to create an informed expenditure plan that is realistic, accurate, and controlled, which has a positive organizational impact (Mclaughlin, 2016). Having a written plan empowers nonprofits to review, enforce and control spending to attract endowments, philanthropic givers, donors and other funding sources. Through strategic planning nonprofits showcase their compliance to the current legal, ethical, financial and accounting best practices. Proper analysis of the plan considers political, economic, technological, social, and environmental challenges to make informed projections, anticipate changes for targeted spending and restructuring or streamlining of a nonprofits products, services and programs consistent with its mission. The effectiveness of such a plan requires regemented reviews to maximize organizational effectiveness, clarify goals, describe action steps and identify necessary resources to increase or leverage revenues to accomplish the …show more content…

Per Thorson (2017), a strategic communication plan is essential for sharing the vision, mission, strengths, and organizational challenges. Organizational visibility, budgetary impact, volunteer skills assessments, and evaluative analysis of similar organizations effectiveness. Strategic communication ensures donor privacy of proprietary information; open, inclusive and authentic communication with the social sector; ensure that communication is data driven and researched based for the appropriate audience; employ technological strategies to consistently engage and target potential donors. Strategic communication demands that a nonprofit’s story is consistently shared throughout the organization. Lastly, strategic communicators are recognized influential leaders within the nonprofit community because of their integrity, trustworthiness, ethics etc. and ability to build relationships, nurture various audiences and improve lives succinct with the organizational

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