WVDO ADVANCED SKILLS WORKSHOP

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WVDO ADVANCED SKILLS WORKSHOP
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• BUDGETING
• FORECASTING
• CASH FLOW

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• GOALS
• TOOLS FOR SUCCESS
• EFFECTIVE RESOURCE MANAGEMENT

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• BUDGETING

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OVERVIEW

• STRATEGIC PLANNING
• LONG-RANGE PROJECTION
• ANNUAL OPERATING BUDGET

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• allows systematic rather than chaotic
  reaction to change.

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BENEFITS

• FORMALIZES MANAGERS RESPONSIBILITIES
• MEASURES PERFORMANCE
• FACILITATES COMMUNICATION TEAMWORK

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• BUDGETING PROCESS
• TYPE
• Top Down
• Bottom Up
• Participative
• METHODS
• Percent Increase
• Historical Trends
• Zero Based

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• EXPENSE

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• EXPENSES
• SALARIES/WAGES PAYROLL RELATED
• OTHER OPERATING EXPENSES

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• REVENUE

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• ACTUAL vs. BUDGET
• (VARIANCE ANALYSIS)

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• FORECASTING

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• CASH FLOW

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• DEVELOPMENT AND ACCOUNTING
• THE GOOD, THE BAD, AND THE UGLY

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• BEST PRACTICES
• Multi-year strategic plan
• Multi-year financial projections
• Annual budget with realistic projections
• Annual cash flow report
• Regular cash flow monitoring
• Liquid reserve fund
• Diversified funding base
• Multi-year funding commitments
• Effective systems/databases
• Professional Annual Review/Audit

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• WHAT TO DO WHEN CASH
• IS TIGHT!
• Reduce expenses
• Increase revenues
• Conduct special appeals
• Develop new revenue sources
• Request pledge payments early
• Tap reserves
• Secure loan

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• PITFALLS TO AVOID
• Creating an unrealistic budget
• Chasing after inappropriate funds
• Dipping into endowment
• Drastically reducing expenses
• Perpetually operating in crisis mode

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• PITFALL CONSEQUENCES
• Go out of business
• Develop poor reputation
• Difficulty attracting and maintaining constituents

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• QUESTIONS ANSWERS (?)

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