Producing a budget is the responsibility of your organisation’s management committee. They may delegate the nuts and blots of the task to the Treasurer or a member of staff, but the committee must agree the final budget. The more time and thought put into drafting a budget, the more accurate it is likely to be.

No one person should be responsible for preparing the budget as producing a draft budget will allow your organisation the opportunity to consider its plans and proposed activities for the next year in detail. Actively involving a range of people in the budgeting process encourages ownership, ensures greater accuracy of information and can mean that it is of more value to people within your organisation.

Once the draft budget has been produced, reviewed and reviewed, your management committee should approve the budget for the financial year.

The need for good budgeting cannot be overstated. The UK voluntary sector is responsible for managing £26.3 billion annually, according to NCVO’s Almanac and half the sector (56%) has an annual income of less than £10,000. No matter what size your organisation’s income is preparing a budget from accurate costings is vital.