Budget planning is an integral part of program planning. “Think of the budget as the bones of the program,” said Barbara Floersch, chief of training and curriculum of The Grantsmanship Center in Los Angeles, Calif.
“Without the bones, the program can’t go anywhere. Never wait until the whole program is planned before figuring out what it will cost,” according to Floersch. To put the essential budget pieces in place, she offers the following three tips.
First, answer the following eight questions for every program activity, from direct client services to program support such as payroll administration. Answering these questions will help you hammer out line-item totals and related administrative support needs:
• Who will do the work?
• How long will it take?
• What’s an adequate pay rate?
• What supplies and equipment will be required?
• What logistical support will be required?
• Where will activities take place?
• Will anyone have to travel? What will the reimbursement rate be?
• Will the activity require supervision or oversight?
“Be thorough and price things out so that line items aren’t based on guesses,” said Floersch.
Approaching the task this way will expose budget problems early so that you’ll have time to solve them or to make critical no-go decisions if financial complications you encounter will take more time to work out. To read the full article visit TheNonProfitTimes.
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