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Level 2

Budgeting for NonProfits

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.

 

Thanks in advance!!

:)

2 Comments
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Level 7

Re: Budgeting for NonProfits

Hey @MFessler!

 

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?

Level 2

Re: Budgeting for NonProfits

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.  :)

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