Budgeting for NonProfits

MFessler · ‎October 02, 2018

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!!

:)

EmilyCowan · ‎October 03, 2018

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?

MFessler · ‎October 03, 2018

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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