Since the launch of “Giving Tuesday”, nonprofits have another compelling reason to engage in year-end fundraising. Started in 2012 by New York’s 922nd Street Y organization, and supported by the UN Foundation, the “Giving Tuesday” movement has become a nationwide and global phenomenon. In just a few short years, the event has drawn huge interest and participation from individuals, for profit business, nonprofit organizations, schools and other community groups. In 2016, $168M was raised from over 98 countries (source).

As stated by the organizers on their website, “It’s a simple idea. Just find a way for your family, community, your company or your organization to come together to give something more. Then tell everyone you can about how you are giving. Be part of a national celebration of our great tradition of generosity.”

To learn more about “Giving Tuesday” and how you or your organization can participate, go to www.givingtuesday.org. You will also find out about the exciting celebrations and events planned for “Giving Tuesday 2017” which takes place this year on November 28th.

Nonprofit organizations may find the celebration of “Giving Tuesday” an opportune time to kick off their year-end fundraising or awareness campaign, launch a matching gift challenge, start a volunteer campaign in their community or simply share their organization’s story.

At the same time, you or your organization will be participating in an important global movement to bring attention to the charitable sector and the important work they do.

Originally published 2016 – Updated 11/13/17

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Budgeting is one of the fundamentals that can often be overlooked by business owners, or non-profit CEOs, whose focus is pushing forward the next goal on the horizon. But when you neglect your budgeting, you’re setting a highly unstable foundation stone on which to build the rest of your business plan.

Why is budgeting so important to the health of your organization? And how can a more proactive approach to budget management improve your chances of achieving and maintaining your long-term business goals?

Why do I need a budget?

A good budget is the foundation of any business plan – you can’t finance your new product, your new office or the long-term expansion of your non-profit until you’ve worked out clearly and concisely what the costs are and what available cash you have to deliver on these objectives.

This means there’s a real imperative to think through each element of your project or strategic plan and to budget for these costs based on sound, realistic numbers.

It’s best to over-estimate, rather than under-estimate, but the costs you plug into your budget need to be an actual reflection of the overall spending that’s needed, and the funds that you can realistically access to meet this spending.

This is why building a budget that’s detailed, realistic and coherent can take some time. The process of gathering the necessary information can be lengthy, and the amount of time taken means that budgeting is often avoided as long as income is exceeding expenses.

Running your finances on a wing and prayer is never an advisable methodology, and that’s why a revenue plan and a good budget are so invaluable.

Comparing your budget to actuals

If you’re going to move beyond the ‘there’s still money in the bank’ mentality, your organization will need a sound revenue plan to guide its financial management.

By getting your planned revenues, expected overhead and other costs down into a more tangible format, you improve the vision and control you have over your financial destiny. And when you have clear budget targets to aim for, that can also become a motivating factor – both for you as the business owner, or non-profit CEO, and your wider management team and staff.

Your budget really begins to deliver once you begin to track and measure how well you’ve met your agreed targets. With a good accounting system in place, you can review your actuals (your historical transactions) throughout the year to measure them against your budgeted figures.

Comparing your budget to your actuals will show where there are any variances. These are gaps between the income/costs you’ve planned for and the actual income/costs that the business has experienced – in short, they’re the red flags that show you whether you’re meeting your budget, or missing those targets. And that’s essential information to be aware of when you’re in charge of the organization’s  future and financial sustainability.

When there are challenging variances coming through in your reporting, you can start getting proactive about improving revenues, or reducing costs: both of which can help to bring you back on track with your plan.

You can also use your variances and budget reporting to inform next year’s budget and ensure that the same pitfalls are avoided in the next financial year.

Get proactive about your budgeting

Your budget is something that should never be overlooked. With good budgeting, you not only set a clear structure for your expected revenues and spending, you also provide the information and data to analyze your performance and take the actions needed to keep you on track.

At Checkbox, we can help you to develop a sound, workable budget for your business or non-profit. And we’ll provide the necessary oversight to make sure you’re on track, realizing your potential and meeting your long-term goals.

Get in touch with us to arrange a budgeting session for your organization.

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