Get documents about "Budget Planning for Event Management
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Budget Planning for Event Management document sample
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96d2231b-e9d2-4372-a5d9-6e42e5a19fa3.xls
Contingency planning will help you make informed budget and management decisions. This resource will help you think
through possible reductions in income and expenses, and then consider the impact on your programs and organziation.
USING THIS BUDGET SCENARIO PLANNING WORKSHEET
The worksheet was developed using income and expense line items frequently used by nonprofit organizations.
It will require modification to match your organization's financial situation.
GENERAL GUIDELINES
Before using the worksheet, decide what types of scenarios will be helpful for budget planning. One approach is to
develop scenarios that gradually change assumptions. For example, a 10% reduction in grants for Scenario 1, then
a 20% reduction in Scenario 2. Another approach is to try different kinds of changes, such as reducing grants and
individual contributions in Scenario 1 and Government funds in Scenario 2. The same is true for the Expense worksheet.
Expense changes can be cumulative or you can try different expense budgets. Any approach that is helpful will work.
Consider the goals for the scenario plans. Do you want expense reductions to match income reductions, or will you seek
to reduce expenses more to allow for unknowns, or reduce expenses less and operate with an intentional deficit?
STEP 1 - INCOME SCENARIOS (GREEN TAB COLOR)
There are three worksheets included in the workbook for income scenarios. These worksheets have commonly
used categories of income listed but should be modified to match the organization. List the most important income
types in as much detail as is helpful. Input the amounts from the original budget.
The yellow highlighted cells will fill based on information you enter and fomulas in the worksheets. You can
change the formulas, but we recommend that you save a blank worksheet before you make changes to formulas.
Note that you MUST enter the total income budget number at the bottom of column C.
STEP 2 - EXPENSE SCENARIOS (RED TAB COLOR)
The expense worksheet provides three columns for different scenarios. The expense categories and types listed
are commonly used line items but should be modified to match the organization. Use as much detail as will be
helpful.
The yellow highlighted cells will fill based on information you enter and fomulas in the worksheets. You can
change the formulas, but we recommend that you save a blank worksheet before you make changes to formulas.
Note that you MUST enter the total expense budget number at the bottom of column C.
STEP 3 - SUMMARY OF SCENARIOS (ORANGE TAB COLOR)
The top half of the summary worksheet (Budget Impact) will automatically fill using data from the income and
expense scenario worksheets. This section will help you verify that the income and expense assumptions
balance out for each scenario.
The bottom half (Programmatic and Organizational Impact) provides space for a brief narrative. This summary
enhances the value of these worksheets for reporting and discussion.
This worksheet has been made available as a convenience for nonprofit managers. Nonprofits Assistance Fund makes
no assurances or guarantees of the accuracy of the formulas or the information. Please review all input and calculations
carefully before relying on this worksheet for financial management.
Developed by Nonprofits Assistance Fund, Minneapolis MN www.nonprofitsassistancefund.org
Scenario Planning Income Worksheet Scenario 1 1/10/2011
Source of income Estimated Potential budet
Income Type Budget Scenario Budget Comments and strategies
(by category or specific) likelihood % reduction
Annual fund 30,000 80% 24,000 Review campaign plan in July
Board giving 15,000 85% 12,750 Board chair takes lead
Individual
-
contributions
-
-
Subtotal $ 45,000 $ 36,750 $ 8,250
Grant from Foundation A 50,000 100% 50,000 Committed
Grant from foundation B 30,000 75% 22,500 8 year funder, had conversation
Unidentified foundations 50,000 25% 12,500
General
-
operating grants
-
-
-
Subtotal $ 130,000 $ 85,000 $ 45,000
Grant from Foundation C 75,000 100% 75,000 Multi-year commitment
Grant from Foundation D 50,000 80% 40,000 Announced cutbacks
Unidentified foundations 100,000 25% 25,000
Program grants -
-
-
-
Subtotal $ 225,000 $ 140,000 $ 85,000
Dept of Corrections 50,000 100% 50,000 Contract in place for 3 years
Dept Human Services 80,000 100% 80,000 With no state cut
County Human Services 35,000 0% - May be eliminated
Government
Federal HHS - 150,000 Not in original budget (submit for $200,000)
funding
-
-
-
Subtotal $ 165,000 $ 280,000 $ (115,000)
Contract with Agency A 25,000 100% 25,000 Fully funded for 2 years
Program fees for east side site 75,000 70% 52,500 Sliding scale increase
Program service Summer program 15,000 25% 3,750 More scholarship applications
fees -
-
-
Subtotal $ 115,000 $ 81,250 $ 33,750
Special event 25,000 60% 15,000 Expect fewer table sponsors
Interest income 8,000 0% -
Sublet rent & concessions 12,000 65% 7,800 Need new tenant
Other types -
-
-
-
Subtotal $ 45,000 $ 22,800 $ 22,200
Total Income $ 725,000 $ 645,800 $79,200
Scenario reduction in total income 10.9%
Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations www.nonprofitsassistancefund.org
Scenario Planning Income Worksheet Scenario 2 1/10/2011
Source of income Estimated Potential budget
Income Type Budget Scenario Budget Comments and strategies
(by category or specific) likelihood % reduction
Annual fund 30,000 80% 24,000 Review campaign plan in July
Board giving 15,000 100% 15,000 Confident based on discussions
Individual
-
contributions
-
-
Subtotal $ 45,000 $ 39,000 $ 6,000
Grant from Foundation A 50,000 100% 50,000 Committed
Grant from foundation B 30,000 100% 30,000 8 year funder, had conversation
Unidentified foundations 50,000 40% 20,000 Increased applications, good conversations
General
-
operating grants
-
-
-
Subtotal $ 130,000 $ 100,000 $ 30,000
Grant from Foundation C 75,000 100% 75,000 Multi-year commitment
Grant from Foundation D 50,000 80% 40,000 Announced cutbacks
Unidentified foundations 100,000 65% 65,000 Have had 2 site visits
Program grants -
-
-
-
Subtotal $ 225,000 $ 180,000 $ 45,000
Dept of Corrections 50,000 100% 50,000 Contract in place for 3 years
Dept Human Services 80,000 0% - Contingency - possible cuts
County Human Services 35,000 0% - May be eliminated
Government
Federal HHS - 75,000 Not in original budget (requested $200,000)
funding
-
-
-
Subtotal $ 165,000 $ 125,000 $ 40,000
Contract with Agency A 25,000 100% 25,000 Fully funded for 2 years
Program fees for east side site 75,000 77% 57,750 Sliding scale increase
Program service
Summer program 15,000 77% 11,550 More scholarship applications
fees
-
-
Subtotal $ 115,000 $ 94,300 $ 20,700
Special event 25,000 70% 17,500 Expect fewer table sponsors
Interest income 8,000 0% -
Sublet rent & concessions 12,000 80% 9,600 Need new tenant
Other types -
-
-
-
Subtotal $ 45,000 $ 27,100 $ 17,900
Total Income $ 725,000 $565,400 $159,600
Scenario reduction in total income 22.0%
Scenario Planning Income Worksheet Scenario 3 1/10/2011
Source of income Estimated Potential budet
Income Type Budget Scenario Budget Comments and strategies
(by category or specific) likelihood % reduction
Annual fund 30,000 70% 21,000 Review campaign plan in July
Board giving 15,000 85% 12,750 Board chair takes lead
Individual
contributions
-
Subtotal $ 45,000 $ 33,750 $ 11,250
Grant from Foundation A 50,000 100% 50,000 Committed
Grant from foundation B 30,000 75% 22,500 8 year funder, had conversation
Unidentified foundations 50,000 15% 7,500 Endowments are dropping
General
operating grants
-
-
-
Subtotal $ 130,000 $ 80,000 $ 50,000
Grant from Foundation C 75,000 100% 75,000 Multi-year commitment
Grant from Foundation D 50,000 70% 35,000 Announced cutbacks
Unidentified foundations 100,000 15% 15,000 More fdtns are focused on basic needs
Program grants
-
-
-
Subtotal $ 225,000 $ 125,000 $ 100,000
Dept of Corrections 50,000 100% 50,000 Contract in place for 3 years
Dept Human Services 80,000 50% 40,000 Depends on state budget
County Human Services 35,000 0% - May be eliminated
Government
Federal HHS - 75,000 Not in original budget (requested $200,000)
funding
-
-
-
Subtotal $ 165,000 $ 165,000 $ -
Contract with Agency A 25,000 100% 25,000 Fully funded for 2 years
Client fees at east site 75,000 60% 45,000 Sliding scale increase
Program service
Summer program 15,000 0% - May eliminate program
fees
-
-
Subtotal $ 115,000 $ 70,000 $ 45,000
Special event 25,000 60% 15,000 Expect fewer table sponsors
Interest income 8,000 0% -
Sublet rent & concessions 12,000 65% 7,800 Need new tenant
Other types -
-
-
-
Subtotal $ 45,000 $ 22,800 $ 22,200
Total Income $ 725,000 $ 496,550 $228,450
Scenario reduction in total income 31.5%
Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations www.nonprofitsassistancefund.org
Scenario Planning Expense Worksheet Scenarios 1/10/2011
Expense item (list only line Reduction - Reduction - Reduction -
Expense type Original Budget Comments and potential impact
items subject to reduction) level 1 level 2 level 3
Senior team salaries 190,000 9,000 9,000 9,000 Senior team agreed
Program lead salaries 72,000 0 4,000 8,250 Possible backlash to consider
Health program staff 72,000 10,000 16,000 25,000 Will reduce capacity & clients
Development assistant 26,000 0 5,000 10,000 Cut hours, risk to grant efforts
Salaries &
Site program staff 38,000 0 10,000 30,000 Eliminate site staff and cut program hours
wages
May result in no viable summer program
Subtotal of reductions 19,000 44,000 82,250
FICA & Medicare 1,400 3,550 6,200
Health insurance 63,000 0 5,000 10,000 change employee share or plan
Benefits and Staff training 3,000 1,500 2,000 2,000 reduce or eliminate seminars/conferences
other Recognition and staff events 3,000 2,500 3,000 3,000 staff suggestion
Subtotal of reductions 5,400 $ 13,550 $ 21,200
Rent 42,000 0 0 9,000 try to terminate east side lease (partial yr)
Janitorial 16,000 0 8,000 8,000 divide among staff (will be unpopular)
Occupancy Landscape & snow removal 7,000 4,000 4,000 4,000 cut landscape, reduce snow contract
Subtotal of reductions 4,000 $ 12,000 $ 21,000
Supplies 18,000 3,000 5,000 8,000
Meals and annual meeting 22,000 5,000 10,000 15,000 Annual meeting helps raise $
Printing 16,000 8,000 8,000 8,000 Reduce or cut newsletter/annual report
Consumables
Subtotal of reductions 16,000 $ 23,000 $ 31,000
Contracted client assistance 20,000 10,000 20,000 20,000 Assign back to program leads (stressed)
Program development 20,000 10,000 20,000 20,000 Risk - will stop progress on new model
Program Evaluation 22,000 0 10,000 10,000 Can't eliminate program evaluation
contracts &
services
Subtotal of reductions 20,000 $ 50,000 $ 50,000
Accounting services 14,000 0 0 3,000 Complete 990 in-house
Legal 3,000 2,800 2,800 3,000 Rely only on pro bono
Strategic planning 12,000 12,000 12,000 12,000 delay consulting
Professional
Marketing & PR 7,500 0 2,250 5,000 impact on fundraising
fees
Subtotal of reductions $ 14,800 $ 17,050 $ 23,000
Total of reductions $ 79,200 $ 159,600 $ 228,450
Grand Total Expenses $ 725,000
Scenario reduction in total expenses 10.9% 22.0% 31.5%
Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations www.nonprofitsassistancefund.org
Scenario Planning Summary 1/10/2011
Income Scenario 1 Income Scenario 2 Income Scenario 3
If income is reduced by -10.9% -22.0% -31.5%
The budget gap would be (79,200) (159,600) (228,450)
Expense reductions Level 1
BUDGET IMPACT
Reduces expenses by (79,200) (79,200) (79,200)
Would result in budget gap of 0 (80,400) (149,250)
Expense reductions Level 2
Reduces expenses by (159,600) (159,600)
Would result in budget gap of 0 (68,850)
Expense reductions Level 3
Reduces expenses by (228,450)
Would result in budget gap of 0
Scenario 1 Scenario 2 Scenario 3
Proposed Expense Reductions (79,200) (159,600) (228,450)
PROGRAMMATIC AND ORGANIZATIONAL IMPACT
Larger reduction in
Some disruption at the Eliminate summer
youth clients (20%) and
site program, small program, stop program
half of summer program,
reduction in youth development, 40%
most case management
Programmatic impact narrative clients, case reduction in youth
assigned to program
management assigned clients and close east
leads will cause delays.
back to program leads side office (will need to
Stop new program
may cause delays deal with transportation)
development
Risk of too much added
Both senior team and
to program leads and
Program leads will have program leads may be
senior team, staff
more work added, slow over-stressed,
response to increase
down program development assigned
health care contribution,
Organizational impact narrative development project, back to ED could slow
defer both program
delay strategic planning down fundraising
development project and
for at least a year, activities, all new
strategic planning for at
newsletter on-line only projects
least a year, defer new
eliminated/deferred
ROI evaluation project
www.nonprofitsassistancefund.org
Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations
