Budgeting With Confidence
Budgeting is a core part of your business strategy. It connects your goals to your day-to-day operations and can help you build accountability, prioritize effectively, and grow in a sustainable way.
Whether you’re running a nonprofit, association, or member-based organization, a well-thought-out budget is your roadmap. Here’s why it matters and how to make it work for you.
Strategy and Planning : What Belongs in Your Budget?
At its core, your budget should include:
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Income (money in)
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Expenses (money out)
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Timing (when each happens)
And don’t forget: cash flow matters. You need to time income and expenses so you don’t run out of cash throughout the year.
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Income
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Focus on the big buckets: membership, events, training, publications, etc.
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Expenses
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Stay out of the weeds, focus on: Administrative, management/payroll, programs, events, marketing, financials, etc.
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Spend the most where it matters such as on the tools and experiences that support your biggest service blocks (think venues, hospitality, marketing campaigns, training programs). You can always dig deeper with analytical tools later. But your main budget should stay big picture.
Common Budgeting Mistakes
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Too much detail in the wrong place – save the deep dives for when they’re needed
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Copy-pasting last year’s budget – planning is crucial
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Budgeting for a loss – Non-profits can and should run on a surplus. It keeps your organization sustainable
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Borrowing from tomorrow to pay for today – If additional revenue is needed, look into sponsorships, expanded services, or other sources of income.
Tips for Better Performance
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Engage existing members – they are already invested
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Prioritize revenue-driving expenses – advertisement, commissions, training programs, etc.
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Cut low-impact costs – avoid one-time use expenses like decorations or unnecessary food
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Invest in growth – hire consultants, upgrade your software, invest in research, etc.
Benchmarking Resources:
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ASAE Research Foundations Operating Ration Report
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IRS Form 990s
Budgeting isn’t just math; it’s leadership. It’s how you align your people, your plan, and your dollars. Done right, your budget will guide decision-making, strengthen your operations, and set your organization up for sustainable growth.
