Budget and Summary

1. Budget and Summary

2. What We’ve Covered So Far • Letter of Intent • Executive Summary • Introduction • Organization Description • Issue Description • Organization Preparedness • Project Plan • Methods/Strategy • Goals/Objectives

3. Project Budget • Translation of your organization’s narrative into numbers • Compliments and strengths your narrative • Shows transparency

4. Budget Cont’d • Decide whether you’re seeking project or program funding • Programs are long term • A Program budget will include larger information like annual salaries • Projects are short term, and are conducted simultaneously • A Project budget will demonstrate percentages of salaries • Typically, an annual budget accompanies the proposal as an attachment

5. The budget is an estimate divided into two sections • Expected Revenues • Where do you intend to secure funds from? • Separate line items for each • Estimated Expenses • What do you plant to spend on this project? • Separate line items for each • Similar items can be grouped • “Stationary” in place of erasers, pencils, paper, pens, etc.

6. The budget will vary with the complexity of the project • Typically one page for budgets around or under $15,000 • Remember that these are estimates • If not precise data is available estimate to the best guess • Budgets are fluid and flexible • Be sure to update budgets throughout the course of a project

7. Budgeting for New Projects/Programs • Contact colleagues at other organizations that have been running similar projects • Ask about their budgeting decisions • Ask about budgeting lessons • Do your own research into expenses • Try to find good deals that won’t go away (not clearance sales) • Getting low costs adds up, but you don’t want your budget to hinder on an equipment price that will be up 20% by the time you get the funds • Be conservative when budgeting for new projects/programs • Don’t underestimate project costs • Don’t overestimate revenues • This will send the right message to the grantmaker that the project is well thought-out

8. Budgeting for Continuing Projects/Programs • Refer to prior fiscal history • Review the previous year’s history • Search for 990s for your organization • Other factors in determining costs • Inflation • Changes in program/project operation from previous year • Use footnotes to create budget notes if needed • This is an exception to the no footnote rule

9. Types of expected revenues • Fee-for Service • Any fees paid by clients, dues, etc. • Unrelated business income • Non-mission related income from business ventures • Grants • Awarded grant money • Fundraising Events • Contributions • Donations from individuals or groups • Endowment Income • Interest income from endowment

10. Types of expected expenses • Salaries • Focus on what personnel are needed • Pay Rate (Salary/Hourly) • Hours expected to work • Time expected to be spent on particular project • Fringe Benefits • Employee costs • Health insurance • 401K • Taxes paid

11. Contract Personnel • Contractors hired for services • Rent • Cost of operating your space • Includes utilities! • Equipment • Computers • Vehicles • Other expenses • Conferences • Photocopying • Travel expenses

12. Other Allocation • There are ways to include operating costs into project budgets • Use percentage of worker time on a project line item • If at least 10% of time • Use percentage of rent space on a project line item • If at least 25% of use • Use a single percentage for all overhead costs • Keep within 5%-15% • In-Kind Contributions • Non-monetary contributions to the organization • An in-kind column can be used to show this • In-Kind Contributions demonstrate strong community support • Show thorough budget accounting • Cash Flow Analysis • Illustrates the ebb and flow of money in an out of the agency • Projects whether there will be cash on hand to pay for expenses • Should be done monthly

13. Group Work • What information do you currently have for the budget? • What do you need? • How will you get it? • Search 990s? • Emails/Phone Calls? • Estimates? • How will the budget be divided up? • General project housekeeping? • How are drafts developing? • When will groups be meeting? • What will everyone bring to Tuesday’s workshop time?

14. Proposal Summary/Executive Summary • Think of this as the summary on a jacket novel • Only one out of ten proposals are funded after submission, and foundation typically accept about 100 proposals • Not all are read cover to cover • The proposal insures your grant get noticed • Proposal Summaries encapsulate narrative in 1-3 paragraphs or 100-250 Words • Demonstrates that… • The proposal fits with the foundation’s mission • Meets the foundation’s guidelines • Engages the reader • Sells the narrative

15. Writing the Summary • Write this last • Use strong, dynamic, energetic words • Present or future tense • Use active voice • Be bold, concise, and brief

16. Titles and Headings • Think about how you’re titling the project you’ve proposed • It should be informative, but also have an advertising role • Section Headings • Don’t write Introduction, Organization Description, etc. • Think of these as enticing chapter names • What might you name these sections? • Organization description • Issue Statement • Project Plan

17. For Tuesday • Work on drafts • Be prepared for assembly in-class on Tuesday