What is an annual budget?
An annual budget is an estimate of what your likely 'income' and 'expenditure' will be for the upcoming year.
Organisations do this at the beginning of the year to ensure that there are enough funds for activities throughout the year and that resources are allocated appropriately.
The annual budget process also presents your organisation with an important opportunity to consider and agree on priorities as you allocate your resources.
Why is a budget so important?
It will help you...
- Make sure your income will at least match, or better, exceed your expenditure
- Manage your finances and give your organisation a degree of calculated flexibility with room to manoeuvre and deal with unexpected changes
- Monitor your progress and plan for the future funders will require reassurance that you will be able to run your organisation effectively and have carefully thought about spending their money to meet your organisation's charitable aims
Download the Annual Budget Example template
