One of
the many ways to tell your organization's story is to use the budget to tell
how much you really will be doing, and how you really will do it. The full
extent of that story can only be told by showing not just the items you will
pay for in cash, but the value of in-kind gifts as well.
Note the
following sample line items:
Line item
|
In-kind value
|
Cash
|
Total
Budget
|
NOTES
|
Goods
for Mama's Pantry |
$25,000 |
0
|
$25,000 |
All goods for Mama's Pantry program
are donated by local retailers
|
Printing |
$5,000 |
$5,000 |
$10,000 |
XYZ Printer provides a 50%
discount!
|
Secretary |
$
8,000 |
$35,000 |
$
43,000 |
½ time volunteer clerical
assistance, valued at $8/hour, plus FT secy (cash) |
Total |
$38,000 |
$40,000 |
$78,000 |
|
These 3
columns show the real value of the work you do, as well as the many partners
who make that work possible.
They show what you will be receiving
in-kind through donations of goods and service.
They show what you will be receiving
through deep discounts by folks who support your mission.
They show the enormous support provided
by your volunteers.
They show the extent to which your work
is engaging all the resources your community has to offer.
THAT is
the real story of your organization's work.
You can
then not only say, "We provide $1million of service to the community, on a cash
budget of $500,000," but you can back that up with real
numbers!
A great
example of this is Food Banks, who learned a long time ago that the value of
what they receive in donated goods far outstrips their cash donations. Food
Banks know that their real story is all of what they receive,
combined.
Summary Once you are showing the in-kind
portion of your budget, then you can branch out to ensure the budget shows what
you're proud of. Do you have a new program? Have you incorporated your
Community Impact Plan into the budget? Note those things, and make them show!
Or if you have donors or funders who want to know about admin / program ratios,
consider making that the format of your budget. There are all sorts of ways to
prepare the budget to provide a more accurate story of the organization's
plans.
And
then, when you are done adjusting the budget, it will be time to move on to the
other financial statements your organization produces. A great place to start
is your 990 - the form you file with the IRS. There are a number of places on
the 990 that actually ask organizations to tell their story. And while the
budget talks about your plans for the future, the 990 talks about what you
actually did accomplish. Use that opportunity to crow!
From
there? The Profit and Loss statement. The balance sheet. You may want to look
into the burgeoning field of Social Accounting.
The more
we consider the possibilities these reports have for showing our real story
- not just the story of our financial effectiveness, but the more
important story of our mission effectiveness and how we are engaging the
community in that work - the more we will see what incredible tools we already
have for adding to the dialogue as we engage our communities in our missions
and our work.
* For
more about budgets and other financial matters, see "The Dirty Little Secret
of NonProfit Boards"
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