Budget season is right around the corner and you are probably starting to think about next year's programs, staffing needs, expenses, and fundraising goals.
But before you build your budget, here is question:
How confident are you in the numbers you're using?
Because even the most carefully constructed budget has a problem if it's built on inaccurate financial data.
For example:
Are your books up to date?
Have all expenses been recorded?
Are grants categorized correctly?
Do your financial reports reflect what's actually happening today?
If the answer to any of those questions is uncertain, your budget may be too.
Think about it this way:
Your budget is a forecast of the future. Your financial records are the starting point. If the starting point is wrong, every projection that follows becomes less reliable.
That matters because your budget influences some of the biggest decisions you'll make next year:
How much you need to raise
Whether you can hire
Whether you can expand programs
Whether you have enough cash to cover seasonal fluctuations
And here's what I see happen frequently: Organizations spend time debating next year's fundraising goal without first confirming whether their current financial data tells an accurate story.
It's hard to know how much revenue you'll need if you're not fully confident in your current expenses. That's why accurate financial records aren't just an accounting issue.
They're a planning issue.
They're a fundraising issue.
They're a leadership issue.
Before you finalize next year's budget, take a moment to ask yourself:
Do I trust the numbers I'm using to make decisions?
If the answer is "not completely," that's where I'd start.
Over the next few months, I'll be sharing more about the connection between fundraising, financial reporting, budgeting, and cash flow planning because they all work together.
So if you are behind on your books; or need help with ongoing, accurate financials - maybe you lost a volunteer accountant/bookkeeper; or need guidance with budgeting and cashflow projections, I'm offering a limited number of complimentary 20-minute planning calls. This is a no-cost, no obligation, conversation to get clear on where you are and what next steps are right for you.
If you'd like to schedule a call, you can do so here:
Cheers to your impact
Carol
PS: With the fundraising season kick-off in the next few weeks, now is the time to make sure your newsletter is doing more than sharing updates. The resources below can help you turn your newsletter into a tool for engaging donors and raising more money.
1) Never wonder what to say in your newsletter or on social media again. Get the Nonprofit Email Newsletter Content Vault with
200+ Story prompts covering ALL areas including fundraising, impact, volunteering, education, crises response etc.
A simple story collection form to gather stories from stakeholders so you’ll never start with a blank screen again.
There are also subject lines and clear calls to action that drive-up open rates.
CLICK HERE to access it.
2) If you want to turn your newsletter into a fundraising engine while writing less, then you need the Automated Email Sequences. Welcome your supporters, nurture them, turn them into donors and keep them engaged year round. The templates are Done-For-You. Just plug-and-play, set them up once and let them run in the background while you focus on your mission. CLICK HERE to access it.