Collaborative Budgeting

Transcription

1 Collaborative Budgeting Finance & Sustainability Conference Brooklyn Center, MN February 25, 2014 Phil Hatlie, Loan Officer/Financial Specialist Stephanie Jacobs, Program Director Nonprofits Assistance Fund

2 Who We Are Nonprofits Assistance Fund invests capital and financial expertise in nonprofits. Our financial experts help nonprofits strengthen their capacity to address unexpected events, finance new opportunities, and realize strategic goals.

3 Who We Are Fundamentals of Budgeting workshop, May 20 th Build a Better Budget webinar, April 2 nd 10 Steps of Budgeting resource Balancing the Mission Checkbook blog Financial advice

4 What has been your MOST satisfying budget process?

5 What has been your LEAST satisfying budget process?

6 What was the difference between them?

7 Creating the Process Goals Organizational Program Strategic Costs Programs Common costs Compensation standards Draft Reality-based Compare to goals Compare to guidelines Budget Information Current year Guidelines Assumptions Income Development Contracts & earned income External trends

8 Budget Guidelines Standards for compensation budgets Contractual and fixed costs Goals for operating surplus Goals for reserves, or cash flow

9 Budget Guidelines Distribution of common costs Availability of cross subsidy

10 Budget Guidelines Risk capacity: acceptable level of uncertainty

11 Successful Budget Process The right people involved Trust and communications Understanding of the goals Good information

12 Successful Budget Process Understanding of constraints and non-negotiables Reality-based Sufficient time allowed for the full process

13 Collaborating Working together towards a common goal.

14 Successful Collaborative Budget Process The right people involved in the right roles Mutual trust and communications Shared understanding of the goals Good information that is commonly understood and trusted

15 Successful Budget Process Common understanding of constraints and nonnegotiables Reality-based with common assumptions Sufficient time allowed for each participant in the full process

16 Collaboration Essentials Common expectations Common language Common purpose Collaborative opportunity

17 Common Language

18 Common Language Information Financial reports Budget comparisons Supporting data Access to info Trust in the info Reliable and consistent

19 Common Language Terminology Definitions Financial terms Program terms Contract terms Cash vs. accrual Restricted funds

20 Common Expectations

21 Common Expectations Timeline Sufficient time Aware of other obligations Mutual deadlines Accountability

22 Common Expectations Assumptions Agreement Input and influence Financial Program Capacity

23 Common Expectations Roles Identification Agreement Mutual commitments Communications Recommend Agree Perform Input Decide *RAPID Decision Model is a registered trademark of Bain & Co.

24 Common Purpose

25 Common Purpose Goals Organizational Programmatic Financial Strategic Long-term

26 Common Purpose Purpose Reflects values Reflects strategies Reflects mission Reflects vision

27 Budget Sequence Process Steps Monitoring Budget

28 Mission Sequence Program Budget Finance Annual Plan Strategic Plan Mission Organizational Evaluation

29 Collaboration Essentials Information Terminology Timeline Assumptions Roles Goals Purpose How can you facilitate these?

30 What are the barriers?

31 Case: Helpful Services for All Fosters opportunity and hope for youth and families in partnership with residents and community Youth program, family program, healthy family program

32 Case: Helpful Services for All Recession, cutbacks, deficits Recovery Stability Implement new strategic plan

33 Case: Helpful Services for All Programmatic Development Contract and fee income Personnel Cash flow

34 Case: Helpful Services for All Strategic plan goals: Focus on impact and results Longer term relationships with families and youth in programs Coordinate services between programs more closely Reach disconnected community members Build a strong, responsive organization

35 Budget Collaborators Board of Directors Program Managers

36 Questions for Collaborators How much would you want to be involved in the budget process, and how? What information do you want to provide for the budget process? What information do you need from others? What are priorities and concerns specific to your position that will arise during budget discussions? In what way do you think your goals will align with the others on the budget team?

37 Beginning the Budget Include the right people Establish common language, expectations, and purpose Share decisions about guidelines and priorities Define and provide technical support for required formats, standards, and documentation

38 Collaborative Budget Environment How can you create a collaborative environment?

39 Collaborative Budget Completion Directive Collaborative

40 Discussion Questions Who leads the budget process and what are the roles? What connects the budget process to the strategic plan and goals? What are your unique budget goals and approaches? How were these developed?

41 Thank You! Phil Hatlie: Stephanie Jacobs: Nonprofits Assistance Fund: