How to Make a Budget for a Social Program
Due to the nature of social programs, their funding sources and their intended recipients, it’s imperative to maintain a strict budget, controlling necessary expenses and eliminating unnecessary ones. Government social programs, funded by taxpayer dollars, are budgeted by federal, state and local employees. Private groups also develop social programs, and as such, they need a well-planned budget that provides the greatest benefit to the people receiving assistance.
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Instructions
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Start with a good bookkeeping system. As a social program, you probably already have non-profit status. If not, look into obtaining your 501C3 accreditation by visiting with an attorney. You’ll need an experienced treasurer to handle the funds and disperse the payments, as well as draw up the budget financial projections.
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Obtain a good accounting software program designed especially for non-profit groups. Successful budgeting is a result of accurate finance tracking. These programs, known as “fundware,” provide automatic tracking and categorizing of expenses, and sources of incoming money (see Resources).
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Begin each fiscal term with an analysis of the funds raised and the social need of your programs. Most human service groups meet at least once a month. Smaller ones may meet quarterly, but the first step in budgeting is to compare the social need with what is available.
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Set an annual budget by appointing committees to study each area of social need and determining a reasonable amount of money to alleviate the problem.
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Cut paid employees' positions when finances are tight, and utilize skilled volunteers. This budgeting tactic works well when the employees in question serve in assisting roles to administrators. The general rule is to recruit 10 volunteers per week to replace one full-time employee. In supporting roles, one person can volunteer a half-day each week and fill the position.
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Recruit local businesspersons' assistance in meeting financial budget goals. You won’t be bankrolling money if you’re a non-profit. You’ll be spending the funds in your account, not saving them. Occasionally, this creates a funding vacuum, and this is where the business community can help. Approach businesses early, when the first sign of a budget shortage occurs.
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Minimize miscellaneous expenses. The goal of a social program is to benefit the people who need help the most, not to use your funds for buying lunch for yourself and other members. If you do offer a meal allowance, expect the members to use the funds frugally, and put a strict dollar limit on reimbursed expenses.
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Consider putting extra money into a separate social program or charity. The reason for this is two-fold. First, you can benefit another segment of need, but more importantly, should you temporarily increase the funds beyond the earmarked amount, you create a vacuum of need that you will then be obligated to fill. Only increase your social program budget by an amount you are sure you can maintain.
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Require regular reporting from your treasurer or bookkeeper on the expenses and incoming funds.
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Resources
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