In this article we will explore how to prepare a volunteer program budget effectively and efficiently.
Your goal is to create a volunteer program budget that is comprehensive, detailed, and accurate.
In this article you will see how the 8 preparation steps tell you what you need. You will also see:
Careful budgeting and budget monitoring delivers greater success in growing and developing your volunteer program.
Your budget is the foundation on which so many other parts of your program stand. Your annual and your individual program budgets:
A volunteer program may be small and short-lived, or it may be a major and long-lasting project. The greater the complexity and cost, the greater the need to plan, fund, and monitor every expense incurred, and to show how grants, funds, and volunteer hours have been used.
Volunteers must have the tools and resources to fulfil their roles and achieve program goals. Creating and using a budget helps you deliver volunteer program benefits.
Budgets for volunteer programs are not just a set of numbers listed next to topics that accountants, potential donors, and bank managers look at. Budgets are powerful tools for so many people, the organization, and for volunteers who are part of the programs.
Budgets provide a structure and a basis for the decisions and actions volunteers and program managers take. Those decisions include approving an idea, funding a volunteer program, making best use of resources needed to complete the program, and monitoring progress.
A comprehensive program budget also makes sure the little things volunteers need are there for when they need them.
Tied to all of those, is that budgets make it easier for the program manager to prioritize what gets done, how it gets done, and when it gets done. Effective planning and allocating replace off-the-cuff decision-making and do-your-best actions. To help with these, you will see budgeting tips for volunteer organizations.
As well as their practical, down-to-earth value, budgets also have a broader benefit. Budgets help:
When board members and donors know how much money is needed to run the volunteer program, because your budget is detailed and accurate, they are more likely to approve it.
Efficient use of funds and good results encourage existing donors to contribute again and for new donors to climb on board.
All 8 steps are important and these budgeting tips for your volunteer organization will enable you to create and then manage your budget knowing you have touched all the bases.
Some of these tips are more strategic and some are more step-by-step practical.
When you know the general categories, it is easier to break them down into relevant line items. Use these tips as your sample volunteer program budget. For example:
Depending on the size of your volunteer organization and the state where you are based, you will need to budget for cetain specifics. These may include:
There are fixed and variable overheads.
Fixed overheads include such items as:
Variable overheads include, for example:
If this is your first budget exercise, it pays to check out previous, similar budget spreadsheets to know what you should include.
This may include:
This is always important. You may find our management software will help you save time and get more volunteers.
Budgets are planning, decision-making, and monitoring tools, so realistic estimates matter. Over-estimating in one area in case you come up short somewhere else is not safe. And it is not fair to volunteers or donors.
Collecting all the data and stats you need, both to prepare your budget and to monitor resource usage may seem daunting. Data collection can become automatic if your non-profit makes the best use of this volunteer management software.
Including team members in planning and resource allocation gets them involved and inspires them to do their best.
Volunteers who have specific experience can make the budget more accurate. They may also know of other funding sources.
Many volunteers work for, or have retired from, major corporations who fund volunteer programs. There are many ways to leverage corporate philanthropy.
If you need sign-off by the board, involve them and include their suggestions and advice.
Use their line-item terms in the budget, so donors see how their contributions will be used.
Include written explanations to support budget sections and some line-items. Include the source of funds, the amounts, and when you expect to get them or have already received.
There are many sources you can go to for grants. Your budget notes should include which you will contact, how much you will apply for, and your estimate of success. You will see a list of suggestions later in this article.
Include in your explanations:
Previous volunteer programs often have similar budget categories. Use them as starting points and line-item generators. Vary your expected budget needs up or down. Past performance can be a good guide. Where you do not have real numbers to work with, make a separate note and adjust it when you do get clarity.
Your program will involve hours contributed, money, equipment, and materials donated, and premises to be occupied.
That gives you two choices:
By involving board members and volunteers in your preparation, they are more likely to want to help find the messing numbers.
You should also agree with donors whether they want certain amounts used in a specific way. If they do, then those amounts must be budgeted accordingly, and considered restricted donations.
Divide cost areas into appropriate program expenses such as:
Budgets are tools to monitor progress and performance. Every month compare the budget line items with actual income and expenses. If there are differences, work out why, so the next program will be budgeted and managed even more efficiently.
It also enables short-term modifications to either spend less or seek new contributions, so the final goals are achieved without having to rob Peter to pay Paul. One advantage of involving volunteers, board members and partners in the initial budget preparation is they are more likely to understand when there is a problem and more likely to help solve it.
As mentioned earlier, you can see an in-depth article on growing and developing your volunteer program. But here is a list of nonprofit program funding for you to check out. We covered Google Ad Grants in the Program Marketing section. Remember, up to $10,000 a month may be available.
And always remember
When you plan for these sorts of contributions, you have a new line-item for your revenue section.
There are many other sources of funds. Check out specific federal and state options, as well as potential donors with interest in your area of operation and who are geographically close to where you operate and who are part of the community you will be serving.
Successful volunteer programs deliver results and support your overall mission. Use these ideas and resources to create detailed, comprehensive and accurate budgets. This background plus the 11 steps of research and preparation will form your sample budget for your volunteer program. The stages will become the bedrock for creating a sample budget for all volunteer programs as you move forward. Then to use the budget to monitor progress.