Oct 29, 2014
When managing nonprofit budgets and yearly financial responsibilities, it can be easy to spend months putting together a proposal for the coming fiscal year. The budget balances on a very fine line and making it work is never easy. When it comes to managing a budget for fundraising, there are multiple factors to take into consideration. Because online fundraising tools, Internet marketing, social media and other promotional activities require investments to reap benefits, building a budget requires close attention.
Each nonprofit organization has a different audience, supports a specific cause and serves a unique community. This means that there is no one-size-fits-all with budget strategies, especially when it comes to fundraising financial plans. When organizing how much money needs to be reserved for online fundraising, determine the financial need of the organization and what types of goals it requires to accomplish part of the fundraising online. This is one example of the thought strategies necessary to naming the fiscal needs of a advancement program. The following are helpful tips to developing a sound budget for online fundraising:
Figure out future needs: Determining financial needs for online fundraising starts with a smart and clear vision of what the organization wants to accomplish over the course of the year. There are a lot of different emergencies that can come along and donation solutions that make the fundraising process easier to manage. Having the foresight to set aside funds for these needs will help immensely.
Track along the way: Don't assume that the budget is coming along nicely throughout the year. Keeping an eye on finances and ensuring there isn't more money being spent in particular areas will help the organization stay on track. Set benchmarks every month or quarterly to manage the finances and balance the books.
Name smaller budgets: Instead of having an overarching fundraising budget, break it down into smaller funds for social media, website development, email marketing and other necessary areas. This will give organizations a better idea of how and where to spend money for each particular online need.
Leave room for change: Flexibility is key with budget planning because there are always changes along the way. While it is never encouraged to go over budget and end up with less revenue than initially projected, emergencies do come about and extra money will need to be taken out to solve any challenges that arise.
Assess at the end of the year: The end of the year doesn't mean the end of budgetary responsibilities. If anything, it is the beginning of an entirely new process. As the fiscal year comes to a close, it's time to measure the past year's finances as well as determine areas of improvement. While things may not look exactly how they were meant to months before, but hopefully the nonprofit is much closer to understanding its needs and how to increase donations with internal resources.