What are the key components of a non-profit program budget and how to align it with your campaign goals?

1 Program Description

The first component of your budget is a clear and concise description of your program. This should summarize the main purpose, objectives, strategies, and beneficiaries of your campaign. It should also explain how your program aligns with your organization's mission, vision, and values. A well-written program description helps you justify your budget requests, demonstrate your relevance, and attract potential donors and partners.

2 Income and Expenses

The second component of your budget is a detailed breakdown of your income and expenses. Your income should include all the sources of revenue that support your program, such as grants, donations, fees, sponsorships, or in-kind contributions. Your expenses should include all the costs that are directly related to your program, such as salaries, supplies, travel, rent, or utilities. You should also include any indirect costs that are shared by other programs or departments, such as administration, fundraising, or overhead. You should categorize your income and expenses by line items, such as personnel, equipment, or training, and indicate the amount, frequency, and duration of each item.

3 Budget Narrative

The third component of your budget is a budget narrative that explains the assumptions, calculations, and rationales behind your income and expenses. The budget narrative should provide additional information that is not evident from the numbers alone, such as the basis for estimating costs, the justification for requesting funds, or the conditions for receiving income. The budget narrative should also highlight any special considerations, challenges, or opportunities that affect your budget, such as matching requirements, restricted funds, or leveraged resources.

4 Budget Summary

The fourth component of your budget is a budget summary that shows the total income and expenses of your program, as well as the net balance or deficit. The budget summary should also compare your budget with your previous or projected budgets, and indicate any significant changes or trends. The budget summary should provide a clear and comprehensive picture of your program's financial health and sustainability.

5 Budget Monitoring and Evaluation

The fifth component of your budget is a budget monitoring and evaluation plan that outlines how you will track, analyze, and report your income and expenses throughout your program cycle. The budget monitoring and evaluation plan should specify the methods, tools, and indicators that you will use to measure your progress, performance, and impact. It should also define the roles, responsibilities, and timelines for collecting, verifying, and sharing financial data and information. The budget monitoring and evaluation plan should help you assess your efficiency, effectiveness, and accountability.

6 Budget Alignment

The sixth component of your budget is a budget alignment that demonstrates how your budget supports your campaign goals and activities. The budget alignment should show how your income and expenses are linked to your program objectives, strategies, outcomes, and indicators. It should also show how your budget reflects your priorities, values, and principles. The budget alignment should help you communicate your impact, value, and vision.