![]() ![]() Think about donations from individuals or corporations, or grants, or program revenue generated by charging people to attend your programs. So, now you can focus on what type of income will you have or need to generate. Once you have that estimated, you know how much income your organization will need to meet its budgeted expenses. Think administrative costs, fundraising costs (if any), and program direct costs. Any of the line items in the sample might be an expense that the organization will incur each year and, if so, how much would you need to spend in those line items. When you are unsure of where your funding will come from or how much, we recommend starting with expenses so you can get a sense of how much revenue you will need to generate. The spreadsheet is a great template for setting up your chart of accounts, to then think about if any of these line items as may be applicable to your organization. We have created a spreadsheet to help you project your financial needs for the organization for its first three years of operations. These should reflect both the estimated revenue streams and the costs you anticipate you will need to operate the organization. In general, the Form 1023 or 1024 IRS application(s) lay out the intended plans and goals of the organization and, being the IRS, they are interested in the financials. If you have someone in the elevator asking how much you need to operate your organization, or what will you spend your money on – this is how you find the answer to respond to them. Think of this as creating your elevator speech. Budgets can be intimidating, especially if you have never done one or don’t know how much money you will have available to meet expenses.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |