Planning Annual Budget

Elements of an annual budget• Projected expenses

• Projected income

• Interaction of expenses/income

• Reflective adjustments

Determining your needs:

•What would most help your program? •How many staff positions are needed? •How much will staff be paid?•Where will staff salaries come from?

Projected expenses:Six steps to estimate firm’s expenses:

• Develop ways of estimating expenses• List yearly expense totals for absolute necessities• List estimated expenses for things needed to conduct the

activities of the organization• List estimated expenses for miscellaneous costs• List estimated expenses for items you aren't sure you can

afford, but would like to obtain if possible• Add up all of your expense items

Add up all expenses(Advertising expenses, Automobile expenses, Computer, printer, and software, Consultant fees , Depreciation and amortization, Education expenses for maintaining or improving required skills Email, Internet access, and web hosting services Fax machine , State and local business taxes Preparation of business tax return Telephone expense , Travel expenses )

Projected IncomeFollow these steps to estimate firm’s income:

• List all actual figures or estimates of amounts you can expect from your known funding  sources

• Estimate the amount you'll raise in the next fiscal year from fundraising• Estimate the amount you'll take in for fees or services you provide• Estimate the amount you will receive from yearly membership dues or fees• Estimate the amount you will receive from items you may sell, such as pins, T-

shirts, books, blood pressure cuffs, etc.• Estimate the income from any spaces you sublet or rent to others• Estimate the income you will receive from any investments, endowment income,

annuities, or interest income (e.g., from a certificate of deposit, or from a Money Market or checking account)

• List and estimate the amounts from any other sources that are expected to bring in some income

• Add up all the income items you have listed to determine your total projected income for the fiscal year

Add up all listed below(Known income, Fundraising estimates, Commercial estimates, Membership dues, Sublet/rent income, Investment income, Misc. sources)

Analyzing/adjusting the budgetThe five steps of analyzing and adjusting your budget have been followed:

• Laying out your figures in a useful format• Comparing total expenses to your total income• Knowing what to do if your budget is balanced• Knowing what to do if you have a surplus• Knowing what to do if you have a deficit

Work with your budget by:

•Reviewing on a regular basis.•Revising on a regular basis.

Presentation done by Dixita•Sources: Internet