Financial Management for Nonprofit Organizations, 3rd Edition

CHAPTER 8DEVELOPING OPERATING AND CASH BUDGETS

1. 8.1 INTRODUCTION
2. 8.2 OVERVIEW OF THE BUDGETING PROCESS
3. 8.3 ARE NONPROFIT ORGANIZATIONS DOING THEIR BUDGETING PROPERLY?
   1. (a) Operating Budgets in Practice
   2. (b) Cash Budgets in Practice
4. 8.4 DEVELOPING AND IMPROVING YOUR BUDGETING PROCESS
   1. (a) Preparation for Budgeting (Operations)
   2. (b) Step 1: Establish a Budget Policy
   3. (c) Budget Preparation Philosophy and Principles
   4. (d) Step 2: Gather Archival Data
   5. (e) Step 3: Assign or Begin Collection of Other Area Data Input or Projections
5. 8.5 SETTING THE BUDGETARY AMOUNTS
   1. (a) What Do I Need to Know About Forecasting?
   2. (b) Revenues
   3. (c) Expenses
   4. (d) Extended Example of Actual Budget Development
   5. (e) Budget Approval
   6. (f) Budget Variance Reports and Responses
   7. (g) Cautions
6. 8.6 BUDGET TECHNIQUE REFINEMENTS
   1. (a) Nonfinancial Targets
   2. (b) Flexible Budgeting
   3. (c) Program Budgeting
   4. (d) Zero-Based Budgeting
   5. (e) Rolling Budgets
   6. (f) Scenario Planning
7. 8.7 CASH BUDGET
   1. (a) Uses of the Cash Budget
   2. (b) Steps in Cash Budgeting
   3. (c) Forecasting Your Cash Position
8. 8.8 MANAGING OFF THE BUDGET
   1. (a) Budget Variance Analysis Revisited
   2. (b) Cash Position
   3. (c) Responses to Financial Difficulties
   4. (d) Internal Measures
   5. (e) External Measures
9. 8.9 CONCLUSION
10. APPENDIX 8A: CASE STUDY: THE CASH CRISIS AT THE CHILDREN’S TREATMENT CENTER
11. APPENDIX 8B: CASE STUDY: TRI-CITY ACADEMY

8.1 INTRODUCTION

A primary responsibility of nonprofit leadership is planning. At the core of proficient financial leadership and management is the ...