Budgetary Cycle of a Non-Profit Organization
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This paper explores the budgetary cycles of Volunteers of America Chesapeake, a non-profit organization, in relation to who does what and when this budget is requested, proposed, approved, executed and evaluated. The paper examines the meaning of budgeting, the major characteristics of budgeting and the importance of the budgeting process for non profit organizations. The paper explains how the management of VOA Chesapeake is charged with the responsibility of reporting their day to day financial needs and demonstrating their efficient stewardship of donated resources.
From the Paper:"A critical look into the budgetary cycles of VOA Chesapeake reveals that a budget to a non profit organization may be viewed as the organization's operating plan for a fiscal period, most probably one year. It expresses, in monetary terms, the staff's and board's decisions about how the organization will accomplish its stated purpose (NAF Financial Foundations, 2006). The board and staff decide on what programs to be undertaken for the upcoming fiscal year. The staff then allots resources to ensure that those programs are delivered. The budget charts a bearing for allocating and maximizing the use of resources. Ideally, it also recognizes the likelihood for occurrence of any financial problems in the coming year. In addition, the budget also provides indicators for measuring staff performance and provides staff members with goals to achieve and steps to follow in achieving them. This provides sufficient reasons as to why NAF Financial Foundations, (2006) defines a budget as "a plan that identifies the financial resources required to achieve a pragmatic objective"."
"The budgeting process, as postulated in the case of VOA Chesapeake can be described as a complex one. It is worth noting that a budget requires time and effort in its development and implementation. Regardless of previous experience in the budgeting process, every step contributes more to the quality of the final document."
Sample of Sources Used:
- Blackbaud. (n.d). Financial Management of Not-for-Profit Organizations: Whitepaper. Retrieved From: http://www.blackbaud.com/files/resources/downloads/WhitePaper_FinancialManagementForNPO.pdf
- Clifton Gunderstone LLP. (2008). Best Practices for Budgeting and Cash Forecasting, Count on Insight, pp.2-3
- Knowledge Tree. (2010). Case Study: Volunteers of America Chesapeake. Retrieved from: https://www.knowledgetree.com/files/KnowledgeTree_Case_Study_Volunteers_of_America_Chesapeake.pdf
- NAF Financial Foundations. (2006). The Nonprofit Budgeting Process. Retrieved from: http://www.nonprofitsassistancefund.org/files/MNAF/ArticlesPublications/BudgetingProcess.pdf
Cite this Analytical Essay:
Budgetary Cycle of a Non-Profit Organization (2013, May 12) Retrieved July 11, 2020, from https://www.academon.com/analytical-essay/budgetary-cycle-of-a-non-profit-organization-153266/
"Budgetary Cycle of a Non-Profit Organization" 12 May 2013. Web. 11 July. 2020. <https://www.academon.com/analytical-essay/budgetary-cycle-of-a-non-profit-organization-153266/>