Funding Spotlight

Putting together a Budget

What is a budget?

A budget is an estimate of how much money a group will need to spend and raise for it to do its work or run a project.

Why do you need a budget?

  • To understand what resources you have and what you need to run a project or service
  • To keep check on what money is coming in and going out
  • To show funders and supporters that you are organised and planning ahead
  • It’s a requirement to get funding

Creating a budget is vital as it helps you to plan your project. Budgets can be updated for each new project, but you need to ensure you have a budget for each project you run so you have a clear understanding of your finances.

How to prepare a budget

Step 1 – Work out your income (the money that is coming into your group) and your expenditure (the money you will need to spend). These are the basic headings on your budget sheet.

Expenditure

List everything that you will need to spend out on to make your project a reality. This could include on-going costs (or revenue) like utilities, staff and rent, or one off payments (or capital) like stationery, computers etc.

Income

List everything you have coming in. This includes membership fees, donations, grants, fundraising income etc. Also work out how much you have in the bank already.

Step 2 – Compare your income and expenditure. If your income is higher than your expenditure, you will make a surplus; if your expenditure is higher than your income, you are running at a loss so you may need to think about ways to make up your shortfall.

Presenting your budget to Funders

Budgets need to be clear and easy to read. Make sure the figures add up and explain any reasons where things may be unclear. E.g. if you are only asking for part funding, make it clear where you will get the rest of the money from and what you want the funder to pay for.

Making budgets accurate and getting a few quotes for items will help to make it realistic.

You also need to regularly check your budget, to see if you are sticking to your plan. It also helps you to identify if you need any further resources.

Further Budgeting Resources

Mid and North Beds CVS

Acorn House ▪ 351 Midsummer Boulevard ▪ Central Milton Keynes▪ MK9 3HP

01908 661623 ▪ ▪

REGISTERED CHARITY NO: 1092047 ▪ COMPANY LIMITED BY GUARANTEE NO: 4279401