Please update your browser

We have detected that you are using an outdated browser that will prevent you from using
certain features. An update is required to improve your browsing experience.

Use the links below to upgrade your existing browser

Hello, visitor.

Register Now

  • Dr. Rajnish Gourh clearly stated the problem with having unstructured budget, which I agree to.
    In addition, it is very important to sub categorize the budgets like Personnel, Capital, Program, & Overhead expenses.
    In a consolidated budget, we usually tend to miss the shared costs, which usually is a critical problem even in our organization. With a proper structured budget in place, the organization gets to sail in the right path without last minute time & cost overruns, or cross fund/cross utilize other program budgets.

  • Helps the organisation to be transparent about running costs and will help the organisation to budget effectively for programs.

  • Budget planning is vital to organizational survival in the sense that it'll help you to monitor, track and redeploy resources accordingly without causing any hinderance for the organization to achieve it's goals.

    1. budgets helps to direct organizations.
    2. budgets helps organizations to compare results from different projects.
    3. budgets helps organizations to control cost.
    4. budgets also helps organizations to avoid fraud.
    5. budgets helps organizations to embark on capital expenditures.
    6. budgets helps organizations to manage their finances (financial stability)
    7. budgets help organization to have strong financial footing for long term investments.
  • A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. It is important for every organization and it is helpful.

  • From my understanding, a budget serves numerous purposes. It provides a financial structure that guides you during the decision-making process. Budgeting also gives you complete control of your finances. A well-planned budget can help you achieve your dreams and eliminate the stress that comes with handling issues related to finance.

  • The good thing about creating a budget is that it helps you to allocate your resources evenly. Budgeting also helps you to prioritize. It enables you to understand whether you have the financial power to handle any project you are embarking upon from start to finish.

  • Having a budget can prevent the organization from owning too much debt and eliminate lack at the same time. And even if you’re currently in debt, you will still benefit from drafting your budget plan. It will help you to become debt-free.

  • A budget process helps align my programming costs with the expectations of our donors

  • It is very essential to properly define and organise your budgeting process in order for you not to underestimate or overestimate your targets. You also need to extensively engage all stakeholders during and before the budgeting begins. Especially when you are running a number of programs. Every program or activity needs to be adequately catered for to prevent a situation where you are unable to spend because you have not adequately budgeted for it.

  • Having a project budget is very important. I like the way Dr Rajnish organised the budget. I once worked for a local NGO which had alot of donors some small and some large. We realigned our budgets so that our salaries could be properly aligned. We produced one spreadsheet which showed common budget lines (expenses) by donor. It eased our reporting work and improved compliance with donors and what he said is heart of good finance management. Actually, it is not fun in NGOs to have donor queries.

  • Having a Standardised budget system will help the organisation anticipate the future projections and organise the budget in accordance with that. It is important to have a standard/customised org level budget planning for for a longterm benefits of the org. Having a clear budget projects will help organisation, expand or improve the quality and quantities of the programs the organisation is running.

  • A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

  • I think it is important to have a standardized system for creating budgets, because all of the ingredients or components that make up the budget would be easy to sort through them; observe the openings and rectify unnecessary overlapping that negatively affect the budget. The entity would be able to glean better outcome from the project when the budget is properly organized and implementing the operating budget easily without realizing much difficulties.

  • Avoir un système standardisĂ© crĂ©e plus d'organisation pour le budget et permet aussi de rĂ©duire les dĂ©penses de l'organisation. De plus, le fait d'avoir toutes les composantes du budget dans un seul système, vous permet Ă©galement de voir les composantes du projet, oĂą elles se chevauchent et oĂą les lacunes sont possibles dans votre programmation.
    L'organisation obtiendrait une vue de projet plus rationalisée à partir du budget et une cohésive pour voir où les fuites budgetaires sont possibles.

  • Avoir un système standardisĂ© crĂ©e plus d'organisation pour le budget et permet de rĂ©duire les dĂ©penses. De plus, le fait d'avoir toutes les composantes du budget dans un seul système, vous permet Ă©galement de voir les composantes du projet, oĂą elles se chevauchent et oĂą les lacunes sont possibles dans votre programmation.
    L'organisation obtiendrait une vue de projet plus rationalisée à partir du budget et une cohésive pour voir où les fuites budgetaires sont possibles.

  • For a non-profit, financial planning is crucial. A well-defined process for budgeting will put things in perspective as to which programs are to be prioritized, which projects within the programs need to be completed first. As per the need, the resources can be allocated in phases, shared expenses and overheads should be calculated with enough margins to overcome a crisis situation. It is important to have a standardized system of budgeting as it saves time and is easy to implement. Teams may change, but standardized systems give stability. The organization will benefit from good financial planning, if there are standardized systems for creating budgets

  • The purpose of budgeting is to provide a financial framework for the decision making process i.e. is the proposed course action something we have planned for or not.
    In managing a business responsibly, expenditure must be tightly controlled. When the budget for advertising has been fully expended, the decision on "can we spend money on advertising" is likely to be "no".

  • It is important to have a standardized system for creating budgets in order to most accurately take into account all of your project costs to be able to explain these costs to your donors. The more accurate your budget, the easier it is to communicate project needs to your donors.

  • having a standardized system for creating budget will help you understand more the functioning for your organization, this make ask questions about some aspect of your organization, for instance think of how you could save money in some area or spend more.
    our organization gain in confidence

  • The budget provides guidance as to which activities to implement in a particular time frame.

  • It is good to have a standardized budget system because when new people join the organization they can easily adapt and become useful for the organization.

    Also comparability of all the work of the people involved.

    Also, having a overal protocol on how to do things decreases insecurity and confusion of people doing the tasks

  • When we have a standardised system that records all our expenses, it will be beneficial because the project knows all its costs (direct & indirect), and plans directly how to merge control these. For programming and operations, the financial records through budgeting will help Marie Stopes Sierra Leone plan effectively on an annual basis all activities and their costs. This informs donors of our capacity to pull resources together and merge our costs accordingly. Thus, streamlining our expenses according to "cost centres" will help us monitor the way we are spending as opposed to what is available. And as such, we will deliver on our donor commitments all what we have promised, with money being less of a burden to us.

  • Hi, i am BallĂ© Emmanuel

  • let do it together

  • why it will be valuable to have a standardized system for creating budgets is because it brings in a strategic direction and a clear road map while creating the budget.
    what my organization might gain are much. which includes a clearer picture of what is stable or not, record system got easier, and then we will be able to create processes for each documents.
    The benefits includes loss reduction.it helps to keep future prove budget ,it saves cost, etc.
    conclusively, A recorded process becomes a clear map for future prove and a strategic guidance for a subsequent project.

  • Why would it be valuable to have a standartized system for creating budgets?
    -It`s much more easier to have one standartized system for all departments and programs- to create it, to accumulate information from different sources, to compare and analyze.

    My organization already have standartized budget for 2 programs included. Benefits- clear to understanding, analyze differences and ways to correct these deviations in the future.

  • A standardize budget for all programmed activities shared all cash resources into a manageable chunks. Also, allocations as as required, monitoring and controlling as time goes by.

  • Having a standardized budget practice allows organization to view the overall expense and income and compare with program wise spending and income so that pinpointing would be easier and will also help any future budgeting activity since it is not done in an isolation.

  • Budgeting is very important part financing as it puts all financial plans into perspective, it guide spending also gives an overview of financing in an organization,.
    My organization will gain a lot from proper budgeting, because it will help inform our donation drive, help report out financial plans and expectations to our donors, which in turn build trust in the donors.

  • Very useful tool

  • It is valuable to create a standardized budgeting system because;
    -It brings clarity especially to the stakeholders that have an oversight or are implicated in the process in one or another.
    -It eases accountability because budget heads are well defined and can be easily assessed.
    -It builds a positive impression with donors and top management.
    -It can help avoid omissions that can eventually lead to major losses.
    -It reduces ambiguity in the process of budgeting.

  • This is very true, having a well defined and standardized budget helps in having clarity. It helps you understand the program expense thereby reducing necessary cost. It further helps to attract funding from donors who want clarity. Lastly it promotes prudent management of resources.

  • Effective budgeting system requires proper identification, classification and inclusion of relevant expenses. This will ensure proper tracking of expenses and easier allocation of costs to different cost centres within an organization. A sound budgeting system aid effective communication in an organization as well as performance evaluation.

  • This is very true, having a well defined and standardized budget helps in having clarity. It helps you understand the program expense thereby reducing necessary cost. It further helps to attract funding from donors who want clarity. Lastly it promotes prudent management of resources.

  • I think it would really help to make mid and long term decisions. It would also reduce time when preparing new proposals and will help gain better insights on how and where we're spending funds, and if we're doing so efficiently. Also, I think it is important for us to communicate to funders the real costs of any given program, because we often leave costs outside to fit into the available funding opportunities, that we then cover from other sources, and funders dont really dimension what operating projects really cost.

  • The purpose of creating budget in any organization is to have a clear road map on financial management and prudence. Establishing a standardize budgeting process will minimize ineligible expenditures in an o organization.

  • Having a standardize system of creating budgets would help the stakeholders to a project know what is needed to deliver the project on time and within scope. It brings a level of organization that sustains the project through it life cycle.

  • A budget is a plan for future income and spending, including any necessary savings to meet financial goals. A budget should ideally be documented (on paper, in a computer spreadsheet, etc.) with explicit categories of income and spending as well as monetary amounts. Budgeting provides "guardrails" (i.e., specified boundaries) for spending, helps achieve financial objectives (if savings is included as a fixed "cost"), and provides piece of mind.

    One of the purpose of Budgeting is knowing you have a decent budget to fall back on each month will give you the confidence and peace of mind that you have control over your money. It's preferable to the 'spend and hope' strategy, in which you don't pay attention to your bank balance and hope there's money left in your account when it's time to pay.

  • Budget is one of the main things to be very specific about while writing a project. With a detailed budget everyone knows what economic reward they'll be getting for their work, also shows transparency on managing funds and gives everyone a plan to follow. I don't know about the system of organizational budgeting of my organization because I'm usually more focused in answering volunteers and community members. This makes me think that our staff can benefit if we all have a general understanding of how our budgeting works.

  • A budget allows a business to plan out expenses, reach business goals and anticipate operational changes.

  • Having a standardized system for creating budgets allows an organization to have a guide that will serve as their basis when they create their budget. This allows them to know what to include and exclude in the budgeting, giving them a clearer picture of what they are budgeting for. This also prevents the overlooking of important budget components.

  • Having a standardized system for creating budgets is valuable the system will put every expense into its place and into perspective such that it will be easy to account for every expense made be it a program expense, shared expense or overhead expense. apart from that, a standardized system will manifest any discrepancies with the projects and whether or not expense management principals are being followed.

    Overall, the organization will benefit by having a clear estimate of the budget needed for the entire project which makes it easy for the project manager for example to even ask for more funds without having difficulties to clarify to the donors why the mentioned amount must be given. Apart from that, a standardized system will create transparency with regards to how expenses are used.

    Other benefits i have noticed include the ability to track and record every expense and this will translate into saving money which could have been lost due to having a poor road map.

  • Purposes of Budget are as follows;
    To organize costs
    To know the amount of money available and how to spend; income and expenses
    For clarity and easy allocation
    Even for complex legal requirements, Proper Budgeting makes you see and view the earlier shortcomings and way forward to have a transparent system.

  • Having a standardize system is better and ensure to manage the projects of your organization and can reduce the risk in project budgeting.

  • Purposes of Budget are as follows;
    To organize costs
    To know the amount of money available and how to spend; income and expenses
    For clarity and easy allocation
    Even for complex legal requirements, Proper Budgeting makes you see and view the earlier shortcomings and way forward to have a transparent system.

  • creating a budget is an important pillar of the overall success and security of ant organization.this is because it allows tho organization to oversee and better understand whether the organisation has enough revenue to pay its expenses.making a budget can make you make more informed financial decisions.

  • If you have a standardized system of budgeting, there will be more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming. The organization would gain a more streamlined project view from the budget and a cohesive budget to see where possible budget "leaks" are.

  • An organized system can be important for our organization because when a lot of investors or projects come to us we can properly plan for the future of the projects and the investors have all they need to plan forward with us. These are just two of many ways that standardized systems and an organized budget can benefit our organization.

  • One should have a sense of financial management principles to helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term

  • from my own point of view,I think that budgeting is an b budgeting is an important tool in building organization,we should also note that when we don't budget we definitely do not have the capacity to overcome an impromptu cost

  • As my understanding unstandardized budgeting help my organization of obtaining funds from different donors. it means that they foundation of the budget system has clear transparency and accountability of every nature of expense that we have. either its program cost / share cost and other support cost. in meantime it helps my organization to cover more area or beneficiary with accurate planning and forecasting as well follow up of real expenses in the field.
    In my organization, logistic Manager and program manager wants to regularly follow up my budget. as both mentioned positions are in charge of program and logistic expenses, and they are responsible for closely follow up of the expense and have better planning for future

  • Budgeting helps in knowing your expenditures and also helps in controlling of cash out flow of the organisation

  • the benefits of budgeting, to get the right financial decisions associated with the business or organization, predict the future expenses and cash flows

  • i think the person who needs to use the budget is the project mangers because he should know the activities that will occur and translate them to the expenditures that will spend and unified them

  • in my opinion, depends on the type or activity of the project

  • Having a standardized budget system is crucial to an organization to avoid missing funding as mentioned above by Dr. Rajnish which will in turn ensure optimum output; be it providing the best services for social organizations or profits for the for profit companies. It will avoid unforeseen financial constraints that comes with unstandardized budgeting ensuring the organization runs smoothly for the whole financial period in question. It also help the firm make informed future budget estimation and planning decisions since the correct figures are reflected in the current and past budgets.

  • Q1: it is very important to have a well-defined budget to exactly know where the finances are coming from and where does it goes? it helps us to prioritize the expenses needs to be incurred and minimize or avoid the unnecessary expenses.

    Q2: My organization could gain a surplus and the amount may be spent on the more important projects. the finances will not be wasted.

    Q3: I do create a simple budget every month and it has really helped me to know exactly what are my income sources for that particular month and where does my money goes.

  • By having standardized budgeting system will allow the organization to have clean plan about what is coming and where it will be coming in one place. by planning well my organization can save time and cost to run the organization and also we can reduce errors to achieve the goal smoothly. after creating standardized system i have noticed that employees morale are increasing because they can predict thier activity in systematic why reducing burden of not knowing what to excpect and also donors understandably started to trust our process and reports

  • To have a good budget, one must be very clear and have full understanding of all expenses, whether direct or indirect.

  • An operating budget is a detailed projection of what a company expects its revenue and expenses will be over a period of time. Companies usually formulate an operating budget near the end of the year to show expected activity during the following year.

    *Operating budget components
    Sales.
    Production.
    Direct materials.
    Direct labor.
    Overhead.
    General and administrative expenses.

  • The importance of budgeting lies in the ability to prevent unnecessary costs and to allocate the correct amount of the budget to each corresponding need and activity

  • budgeting is also important because it accounts for the growth of an organization and the staff of that organization. if everything is out in the open and planned for, then things like layoffs or overhiring can be avoided.

  • The organization should have plan and estimation for each activity and developed a budget section.

  • A budget helps to create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

  • actual comparison is extremely important for small businesses because it allows them to alter their future financial forecasts based upon the numbers collected in the monthly reports. Small business owners can see where the budget can be improved, as well as parts of the budget that were very accurate.

  • It would be useful to have a standardized system for creating a budget because it would save the organization time in writing project proposals, it would also allow for a better view of expenditures, better tracking and anticipation of errors and/or fraud.

  • With a proper budget in place, a business can anticipate expenses, plan for major increases in costs and even make changes to the company depending on operational needs

  • In addition to what was mentioned, a budget standarized system can also help with accountability and transparancy. I recently talked to a gentlement with many years of experience in managing non-profits and he shared that non-profits fail because of conflicts of interest. When finances are organized and updated it is easy to show where all the funds come from and where they go.

  • Absolutely right

  • Also, one of the benefit of a standardized budget is that there is trusted transparency. An organization where the budget is not transparent to its team, especially the finance team is probably cooking fraud.

  • It is valuable to have standardized systems to create budgets because it ensures resource availability and it helps prioritize projects. Budgeting forces one to determine and explain each line item`s value to the organization as a whole, which can be useful for prioritizing tasks and larger initiatives.

  • Improved timeliness of reviewing budgets: The standard budget format ensures that expenditures are always grouped in the same budget categories; this budget category standardization should reduce the time necessary for the UW to review and process proposed budgets

  • Creating a standardized system for creating the budget helps build sustainability for the organization and processes that anyone coming in should be able to follow. As our org is preparing for funding I believe having a solid process for how we create budgets will help as we're building a financial team. This is great way for us to hold each other accountable and ensure that we are meeting targeted goals through the budget.

  • This helps the Organisation to have enough resources and be able to deliver on its mandate. Witout budget no activities can be implemented

  • Having a standardized system creates more organization for the budget. In addition, having all components of the budget within one system also allows you to see the project components, where they overlap and where possible gaps are within your programming. The organization would gain a more streamlined project view from the budget and a cohesive budget to see where possible budget "leaks" are.

  •   what is mentioned above is totally correct, in addition, I would like to add that, making a good cost allocation can help you recognize the costliest line which administration can work on, to come up with creative solution which is minimize the cost of that kin, Moreover, budgeting is one of the impactful monitoring tools for all activities in the organization.
  • Even if the organisation had standard budget system it need to make arrangements for any unexpected issues.

  • a proper budget is needed for the financial strength of the organisation which is matter of credibility and sustainability of the organisation

  • Having a standardized system for creating budgets can be valuable for below reasons
    Consistency: A standardized system ensures that all budgets are created in a consistent manner, using the same methods and assumptions.
    Accuracy: A standardized system can help ensure that budgets are accurate and realistic.
    Efficiency: A standardized system can save time and effort by streamlining the budgeting process.
    Communication: A standardized system can facilitate communication between different departments or teams, as everyone is working from the same playbook.

  • Budgeting helps my organization manage the limited funds at its disposal. It also enables the organization not to duplicate and allocate funding to areas that are in dire needs of funds.

  • A systematic cash flow will measure of the number of times a company can pay off current debts with cash generated within the same period.

  • To have a standardized system for creating budgets is very valuable, because:

    1. Ensure that the budgeting process is precise, open, understandable, and comprehensive.
    2. Make sure there is enough funding available for the planned activities and that the project's objectives are met.
    3. Ensure the organization's financial stability
  • Having a standardized budgeting system helps give clarity to an organization set goal, it also helps prioritize projects and can open financial opportunity to a firm as they are able to source for fund after budgeting.

  • allocating all the expenses related to the project helps in planning .

  • Having a standardized system of budgeting offers numerous benefits that is transparency, efficinecy, and goal clarity within a program. By implementing such a systems, organizations can ensure that financial resources are allocated and utilized in a consistent, systematic and accountable manner. Additionally, a standardized budgeting systesm enables clear goal setting.

  • A systematic understanding and total integration of various component of the project expense into a single document is very essential that will the overall insight of the project burn rate and expense forecast for certain duration and possible identification of loopholes will likely be identified

  • Standardization of budget creates Uniformity and help cut off unnecessary spending which in turn provides financial clearity to an organization.

  • Well, budgeting help organization to be aware of any hidden cost and allocate funds for them as well it gives a clear picture of how your outcomes would be and helps donors fund your organization.

  • A standardized system makes it easier to track programs expenses and costs. It is also easy to approximate how much financial resources are required if the same programs are to be replicated in near future.
    Furthermore, financial reporting becomes easy

  • A standardized system makes it easier to track programs expenses and costs. It is also easy to approximate how much financial resources are required if the same programs are to be replicated in near future.
    Furthermore, financial reporting becomes easy

  • A standardized system for creating budgets offers various advantages beyond those mentioned earlier. It ensures consistency, saves time, enhances transparency and accountability, aligns budgets with strategic goals, allows for scenario planning, improves decision-making, and fosters better communication. Organizations can also observe benefits like improved financial planning accuracy, reduced cycle times, increased collaboration, better cost visibility, and adaptability to changes.

  • By developing an overarching budget plan, it is easier to organise overarching expenditure control with the ability to manage and allocate funding across the individual projects. This also drives the limitation of project scope as budgets keep projects on target.

  • Organized and coordinated budgeting in an organization provides the opportunity for proper resource allocation, put them under a financial guide that serves as checks and balances against waste, financial indiscipline and replicated expenses. It blocks finance leakages and loss, and gives perspective and direction to spending, while keeping expenses within cost effective range.

  • Having standardized system for creating budgets makes it possible for an organization to know and plan for the exact needs of a specific program of the organization and therefore makes it is to communicate such with stakeholders such as funders and shareholders. If we have this in our organization, we will be able to budget for specific expenditures or cut some expenditures depending on available resources or be able to know the exact amount of funds we may need for funding.

  • Why would it be valuable to have a standardized system for creating budgets?
    Answer: It helps the organization know/determine what it can achieve and also determine the financial assistance it needs.

    what might your organization gain?
    Answer: It helps the organization not loose money in similar/shared costs

    If you have already created a system for organizational budgeting, what benefits have you noticed?
    Answer: As an organization, we are able to determine our financial needs.

  • A budget is a plan on spending. it also serves as a means to communicate to team members from a financial point of view how much is available for what activities that are suppose to happen in each financial year.

  • A well-defined process allows everyone affected by the budget -- those involved in the various programs as well as in administration -- to see more clearly what resources are available and how they're allocated. It promotes transparency and cooperation, and also frees up energy to focus on program work that could otherwise get mired in a complex and hard-to-understand budgeting process.

  • Some possible remarks by having a standardized system for creating budgets is valuable because it:

    1. Makes budgeting consistent and efficient.
    2. Helps plan accurately and make informed decisions.
    3. Increases transparency, accountability, and trust.
    4. Facilitates clear communication with stakeholders.
    5. Allows flexibility while maintaining structure.
    6. Enhances collaboration across teams.
    7. Supports scalability and growth.
    8. Improves financial management and resource allocation.
  • A standardized system ensures consistency in budgeting practices across different departments, organizations, or entities. It establishes a common framework and guidelines that everyone can follow, promoting uniformity in budgeting processes.
    Transparency: A standardized budgeting system enhances transparency by providing clear guidelines and rules for budget preparation.
    Efficiency: A standardized system streamlines the budgeting process by providing a structured framework and predefined templates.

Reply to Topic

Looks like your connection to PhilanthropyU was lost, please wait while we try to reconnect.