A Five-Step Guide to

Budget Development
Hilda Polanco, Founder and CEO
John Summers,, Director

All material herein © 2015 Fiscal Management Associates, LLC. All rights reserved.
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1.
1 Assemble
A bl a budget
b d team
2. Create a budget calendar
3 Prepare for budget process
3.
4. Build the budget
g
5. Monitor the budget

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 Chi f
Chief
Executive
Officer (CEO)

Program and Human

Department Resources
Managers Chief Director

Financial
Officer (CFO)
with finance staff

Board
Development Treasurer,
Director Finance
Committee

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Download: Fiscal Management
g Activities Calendar

5
• Set financial goals
• Gather data and build budget template
• Forecast current year results
• Conduct team kickoff meeting

6
• Budget expenses
• Budget revenues and plan alternate scenarios
• Forecast cash flow
• Secure board approval

7
Download: Program-Based Budget Builder
8
Download: Revenue Scenario Worksheet

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Download: Cash Flow Projection Template
10
 CFO submits draft budget to the finance committee

Senior management and finance staff make revisions

Once approved by finance committee, submit to full board

Full board approves before the new fiscal year begins

Once the budget is approved, the CFO conducts an information session to orient
managers to the overall organizational picture and to their budget for the year.
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 Monthly
M thl Quarterly
Q t l
Program Managers Executive Director Board of Directors
• Budget-to-actual • Budget-to-actual revenue • Management narrative
revenue & expenses & expenses for
• Budget-to-actual revenue
for the program(s) • (a) each program & expenses for
they oversee • (b) organization-wide • (a) each program
• Balance sheet • (b) organization-wide
• Year-end forecast • Balance sheet
• Cash
C h flow
fl projection
j ti • Year-end
Y d forecast
f t
• Cash flow projection
• Dashboard

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The following resources available on StrongNonprofits.org can assist you
with particular elements of the budget process described in this
presentation:

– Fiscal Management Activities Calendar

– Program-Based Budget Builder

– Revenue Scenario Worksheet

– Cash Projection Template

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FMA is a management consulting firm established in 1999 to serve not-for-profit
organizations around the country.
– We provide customized financial management, accounting, software, organizational
development, human resources, and other consulting services.
– We work directly with organizations
g or through
g funder-supported management
g and
technical assistance programs.

FMA works to build a nonprofit sector where every organization practices

the sound and effective management necessary to carry out its mission.

For additional information please contact:

Hilda Polanco, CPA John Summers

Founder and CEO Director
hpolanco@fmaonline.net jsummers@fmaonline.net
212-931-9240 212-931-9133
440 Park Ave South, 3rd Floor 440 Park Ave South, 3rd Floor
New York, NY 10016 New York, NY 10016
www.fmaonline.net