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Fundraising Begins With Budgeting

Many smaller nonprofits rely on fundraising for their operations. What many small nonprofits neglect to do is accurately forecast their income and expenses in the form of a realistic budget.  Every budget should include the following:

  1. Income – all sources of income projected for the upcoming year from all types of fundraising- major gifts, grants, events, and other sources.
  2. Expenses – every possible expense that could occur, not just program expenses, but others like insurance, accounting, legal, etc.
  3. Cash flow projection – this means how the cash on hand will be spent on a month-by-month basis – how much cash you need and when it will be needed.

Armed with this information, the nonprofit board and leadership can decide upon a schedule of fundraising for the year ahead. As a group you can be strategic and avoid the “let’s fly by the seat of our pants” mentality plagued by so many smaller nonprofits who end up failing. Here is a great link that talks about nonprofit budgeting from the National Council of Nonprofits.