Hey there QB Community! I'm hoping to pick the hive-brain here. I'm budgeting for a nonprofit client and developing some budget policies for their board. If you're familiar with nonprofit budgeting, a couple policy questions:
1) When a board approved budget requires adjustment (where several line items change), what threshold do you recommend/see Board of Directors require approval of the newly adjusted budget? A dollar value? A percentage of revenue or expenses?
2) Same question as above, but for expenditures above budgeted amounts for particular line items.
It's so smart to create some standard guidelines for requiring board re-approval of significant changes to the budget. I'm on the BOD of a small nonprofit and at the moment such votes are taken pretty much on-the-fly during our Treasurer's report. I'll float this idea at our next meeting!
As far as determining threshold, I wonder if @mcwagner might have some insight?
Thanks, @EmilyCowan! That's what I've typically experienced when sitting on small non-profits' BODs. They are in a growth phase, so we're examining many of the "on-the-fly" stuff and determining if it needs to be made more official or not. I look forward to hearing what your BOD thinks. :)