Budgets should be managed over set timescales that are realistic and, ideally, fit in with your funding arrangements

If you are a new group, preparing a budget should be one of the first things you do. You should prepare a budget for your first 12 months of operation, so as to help you develop a funding strategy. Existing groups should start budget planning for the next financial year about halfway through their current financial year.

It’s important not to underestimate the time needed to get accurate figures – it could take up to three months to get the figures together and agreed by the group. Costings for major projects, like building development, can take longer to pull together and require specialist input.

Budgets play a key role in fundraising, especially when running several projects or services: they enable you to identify specific funding needs in the organisation and also to breakdown the costs of individual projects for funders. This is important as many funders will support a specific activity or service rather than provide a generic contribution to your organisation’s costs.