Page 18 - Finances for Non-Finance People

BUDGET CYCLE

• Budget Planning: Nonprofits begin the budget process by setting financial goals and

creating a plan for achieving them. This may involve reviewing financial reports from
previous years, assessing the current financial situation, and identifying any changes

that may affect the organization's financial resources.

• Budget Development: Nonprofits then develop a detailed budget based on their
financial goals and plans. This involves estimating revenues and expenses for the

upcoming period, which is typically a year. The budget should be realistic, taking
into account any potential risks or uncertainties.

• Budget Approval: The budget is then reviewed and approved by the organization's

board of directors or other governing body. This ensures that the budget is in line
with the organization's overall strategy and mission.