top of page

3 Tips for Creating Compelling Organizational Budgets

Writer's picture: Bria  ArlineBria Arline

Updated: Sep 23, 2024

Many funders require you to submit an organizational budget with your application. 


While this document may seem like an unnecessary extra step, it is actually an important element in helping convince funders that you are a strong candidate for funding. 


Following, we discuss three tips for creating a clean, compelling organizational budget to help build your case for funding. 


1. Give the Highlights


When the funder is evaluating the health of your organization, the last thing you want to do is to distract them with too many details.


Instead of providing every line item in your chart of accounts, sort your expenses into broad categories related to the indicators of a financially healthy organization.


You may consider:


  • Salaries: Funders often want to see what your ratio of salary expenses is to your overall expenses.


  • Programming: Funders want to see how much you are spending for programming as a ratio to the rest of your budget. 


  • Fundraising: Funders will want to see fundraising expenses as a ratio of your total contributions. 


  • General Administration: Funders will also evaluate how much you spend on administration and overhead as a percentage of your overall budget.


2. Show You Have Planned Ahead


Funders want to see that your leadership has planned for the future. 


Your organizational budget should show that you have a plan for the inevitable. For instance, you may consider highlighting the budget for replacing or maintaining facilities and equipment.



3. Highlight Cash Reserves


One of the most important items a funder will consider is whether you have enough cash to cover the unexpected or maintain your program without their continued funding.


It is wise to show you have planned for a surplus. And if you have a planned deficit, make sure you explain why, your plan to cover expenses and how you will increase cashflows in the future. 


Conclusion


With a few best practices, your organizational budget can be one of the best arguments for why your organization can be funded. 


Want more insights into getting grant-ready or other topics to help you fuel your mission? Then follow us on LinkedIn, Facebook and Instagram.


Need a skilled team to help you secure funding? Reach out to us today for a free consultation.

20 views
bottom of page