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Meaningful Budget Work by the Board

02-03-2012

Overseeing the financial resources of a nonprofit is one of the most critical functions of a board.  Unfortunately, we see too many boards that don't have a clear understanding of either the income streams or the expenses of an organization. This both limits the board's ability to assess and plan for the future, and creates situations where they are making decisions without understanding the full impact those decisions have on the budget, such as adding a new program or staff member.

Below is an excellent article from Blue Avocado on the budgeting approval process.

For many nonprofits, the annual "approval of the budget" is the cornerstone of board financial oversight. However, this annual approval is frequently an empty ritual: one where board members peruse a budget that they are unsure is realistic or appropriate to the planned activities.

Read more on Blue Avocado...