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Budget Process And Agenda Should Work Together

February 20, 2012 | Comments: 0 | Views: 157

Those involved in not- for- profit organizations have probably witnessed that, although you organization probably goes to the effort of developing, preparing and approving a budget, it often appears to be ignored or placed aside during the course of the year. In my over three decades of involvement with non profit organizations, as a volunteer, a staff member, consultant, trainer and adviser, I have come to realize that very few organizations treat the budget process with the reverence and relevance that they should. When a budget is developed properly, it becomes the framework and map for the organization to operate during the year. Part of the budget process must be placing priorities, from a monetary standpoint, in alliance and compliance with organization priorities, etc.

1. Budgets are not, and must not be treated as a waste of time that are prepared solely because the organization's bylaws require it. When handled properly, there is not one more essential committee or action than properly preparing a true and relevant budget. I have observed far too many organizations that just prepare a budget by pulling numbers out of the air, and "guestimating" the numbers. Although, obviously, a budget is an estimate because exact numbers are not known in advance, it must be prepared in line with the organization's goals and vision, and what they plan to do that year. This is the true meaning of the budget and the agenda being synergistic, and although it requires far more work to do it right, a properly prepared budget is worth the effort. Budgets should look at both fixed and variable expenses, as well as income. Although some expenses are mandated by preexisting contracts or agreements, many are not. All areas that are not unchangeable should be examined, addressed fully and reconsidered. Are these expenses being handled as well as possible? Are their alternatives, either methods, vendors or approaches? What programs that have been used or done previously are relevant, and which may not be? What are the goals of the organization, are what are the realistic alternatives to get their? While it is not the function of a Budget Committee to create policy, it should suggest alternatives to the leadership prior to presenting the budget, and come up with the best way for the organization to proceed to meet the agenda goals of the leaders, as well as the mission of the group.

2. Once a budget is approved, when done properly, it grants permission for leadership to proceed within parameters, to meet their objectives. This makes it far easier for leadership to create a realistic and workable agenda, and eliminates proposing intra- term expenses that throw the overall balance between want to and can do, out of whack.

I urge all organizations to train their fiscal leaders professionally, so that they can conceive of alternatives, while perceiving of methods and methodology to reach important, yet realistic goals. Most organizations today need to recommit to focusing on productivity and achievement, because their quest for support is competitive, and the organization with the best planning and effectiveness (thus often the best leadership) maintains interest of supporters, donors and potential members to a far greater extent.

Richard Brody, with over 30 years consultative sales, marketing, training, managerial, and operations experience, has trained sales and marketing people in numerous industries, given hundreds of seminars, appeared as a company spokesperson on over 200 radio and television programs, and regularly blogs on real estate, politics, economics, management, leadership, negotiations, conferences and conventions, etc. He has negotiated, arranged and/ or organized hundreds of conferences and conventions. He's a Senior Consultant with RGB Consultation Services, an Ecobroker, a Licensed Buyers Agent (LBA) and Licensed Salesperson in NYS, in real estate. Richard has owned businesses, been a Chief Operating Officer, a Chief Executive Officer, and a Director of Development, as well as a consultant. He has a Consulting Website, and his company PLAN2LEAD, LLC's site ( ), and can be followed on Twitter @rgbrody. For great information on topics, including leadership, events, negotiations, attitude, etc., visit PLAN2LEAD's Facebook page and LIKE, at

Source: EzineArticles
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Article Tags:

Budget Process


Non Profit Organizations


Properly Prepared Budget


Effective Leadership



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