This best-selling nuts-and-bolts workbook, now in its second edition, has become the gold standard for nonprofit managers and boards who must work through the budget cycle. The book offers practical tools and guidance for completing each step of the budgeting process. Designed to be comprehensive and easy to use, The Budget-Building Book for Nonprofits provides everything budgeters and nonfinancial managers need to prepare, approve, and implement their own budgets. Includes new chapters on Zero-Based and Capital Budgeting as well as a CD with spreadsheets, worksheets and a new budget-building software, the CMS Nonprofit Budget Builder, designed to help you implement the concepts in the book. The software includes an expandable standard chart of accounts (COA) and will aid in building, organizing, tracking and planning budgets.
Autorentext
THE AUTHORS
MURRAY DROPKIN is president of CMS Systems, Inc., a consulting firm that specializes in improving the financial operations of nonprofit and for-profit organizations. He is the coauthor of Bookkeeping for Nonprofits and The Cash Flow Management Book for Nonprofits.
JIM HALPIN has written articles for technical publications and has developed accounting software and other applications for clients in a wide variety of industries. He is the coauthor of Bookkeeping for Nonprofits and the coauthor, with Dropkin, of the newsletter Nonprofit Report.
BILL LA TOUCHE used his writing, planning, training and organizing skills to help a wide range of individuals, groups, and organizations get what they want from complex business, governmental, and nonprofit entities.
Klappentext
The Budget-Building Book for Nonprofits
This best-selling nuts-and-bolts workbook, now in its second edition, has become a must-have resource for nonprofit managers and boards who are required to work through the budget cycle. The book offers practical tools for completing each step of the budgeting process. Designed to be comprehensive and easy to use, the second edition of The Budget-Building Book for Nonprofits provides everything budgeters and nonfinancial managers need to prepare, approve, and implement their own budgets.
The Budget-Building Book for Nonprofits addresses the importance of budgets and budgeting, discusses basic types of nonprofit budgets, and outlines budget implementation, tracking, and reporting. In addition to updating the broad range of material, this second edition contains new information on such timely topics as zero-based budgeting and capital budgeting. New to this edition is a website containing the CMS Nonprofit Budget Builder Software as well as electronic versions of the worksheets and exhibits to guide you through all stages of building a solid budget.
Praise for the First Edition
This is a book every nonprofit needs. Peter F. Drucker
Provides clarity, strategy, and utility to the financial and asset management of social-sector organizations. Frances Hesselbein
This book is clear, insightful, and required reading for all who are responsible for the success of not-for-profits. If you work for or run a not-for-profit agency, you should read this book. Peter Block, author, Flawless Consulting and The Empowered Manager
The Budget-Building Book for Nonprofits is a definitive and practical guide to the art of budgeting. It is well-written and reliable, as well as easily understandable.
Ronald J. Werthman, vice president, finance/treasurer and CFO, Johns Hopkins Health System, The Johns Hopkins Hospital
Praise for the Second Edition
This book is the gold standard for providing executive managers with information essential to making the best decisions for their organizations, and will give the confidence in their fiscal systems needed in the competitive world of nonprofit management.
Don Sykes, former director, the Office of Community Services for the Clinton Administration, and president, Community Development Solutions
Written in clear language easily understood by the layman, this book contains guidance on both proper procedures and the real-world challenges of getting the organization to adopt them. The worksheets and sample forms alone are worth the price.
Elizabeth Rosen, retired chief financial and systems officer, The Morgan Library and Museum
Inhalt
Preface xix
Acknowledgments to the First Edition xxiii
Acknowledgments to the Second Edition xxv
The Authors xxvii
Introduction: How to Use This Book xxix
Part One Understanding Budgeting Basics 1
1 Why Budgets and Budgeting Are Important to Nonprofits 3
A The Importance of Budgets and Budgeting 4
B The Basic Characteristics of Budgeting 5
2 Understanding Basic Types of Nonprofit Budgets: Overview 6
A Organization-Wide Operating Budgets 6
B Operating Budgets for Individual Programs, Units, or Activities 7
C Capital Budgets 8
D Cash Flow Budgets (Cash Flow Forecasts) 8
E Opportunity Budgets 9
F Zero-Based Budgets 10
3 Key Board and Staff Roles and Responsibilities in Nonprofit Budgeting 12
A The Board's Role 12
B Executive Director's, President's, or CEO's Role 14
C Chief Financial Officer's Role 14
D Program, Unit, or Activity Manager's Role 15
E Department Manager's Role 16
F Other Possible Participants 16
4 Establishing Budget Guidelines, Priorities, and Goals 17
A Establishing Guidelines 17
B Identifying Priorities 18
C Setting Organization-Wide Goals 18
D Setting Individual Program and Unit Goals 20
5 How Different Sources and Types of Income Can Affect Budgeting 21
A Unrestricted Funds 21
B Contract or Grant Agreement Funds 21
C Restricted Contributions 22
D Income from Trade or Business Activities 22
E Asset-Generated Income 23
F Cash and Noncash Contributions, Including Pledges 23
G Funds Requiring a Cash or In-Kind Match 23
6 Strategies for Developing Organization-Wide Operating Budgets 25
A Strategy 1: Set Annual Organization Outcome Goals from the Top Down 26
B Strategy 2: Set Annual Income and Expense Targets from the Top Down 28
C Strategy 3: Request Draft Budgets That Show Priorities from Program or Unit Heads 28
D Strategy 4: Use Zero-Based Budgeting 30
1 Possible Problems with ZBB 31
2 Benefits of ZBB 31
Part Two Step-By-Step Budgeting Guidelines 33
7 Start with the Budget-Building Checklist 35
8 Designing Your Budgeting Policies and Procedures 38
A Basic Budgeting Policies and Procedures 38
B Basic Income Projection Policies and Procedures 38
C Basic Expense Projection Policies and Procedures 39
D Basic Cash Flow Projection Policies and Procedures 40
E Policies Establishing the Fiscal Year 40
F Other Needed Policies and Procedures 40
G Checklist for Information to Include in Written Policies 41
H Final Review and Integration 42
9 Creating Your Budgeting Calendar 43
A Five Steps for Developing the Budgeting Calendar 43
B Instructions for Creating an Annual Budgeting Calendar 45
10 Orienting Program and Department Managers and Staff to Budgeting 48
A Budget Team Meeting 48
B Practical Considerations When Planning Budget Team Meetings 49
11 Contents of the Annual Budget Preparation Package 51
12 Developing Organization-Wide Operating Budgets 55
A Five Steps to Prepare for the Annual Budgeting Process 55
B Five Steps to Create …