The Budget-Building Book for Nonprofits
A Step-by-Step Guide for Managers and Boards (w/CD)
Chapter One
Why Budgets and
Budgeting Are Important
to Nonprofits
MERRIAM-WEBSTER'S Collegiate Dictionary defines budget as
1. "A statement of the financial position of an administration for a definite
period of time based on estimates of expenses during the period and proposals
for financing them"
2. "A plan for the coordination of resources and expenses"
3. "The amount of money that is available for, required for, or assigned to a
particular purpose"
These are pretty long-winded definitions. In plain language, they mean:
An effective budget is a plan
For receiving and spending specific amounts of money
In specific cost categories
To get specific things done
Within a set period of time
With monitoring mechanisms built into the process.
There is an even shorter way of saying this:
A budget is a plan for getting and ... read full excerpt from The Budget-Building Book for Nonprofits: A Step-by-Step Guide for Managers and Boards ebook
