A Revenue Aligned Budget is the Safe Way to Go [SUBSCRIBERS-ONLY]

I feel the time is right to stretch our budget planning and begin to envision operations from the perspective of a balanced budget aligned to a conservative estimate of revenue and funding for the next 12 months. I am now advocating for using a “revenue aligned budget” strategy that is realistic in nature, obtainable, with low risk and a high degree for success.

This past year has been an unpredictable time for most nonprofit organizations. Early in 2020 the impact on operations and funding was lightning quick, forcing nonprofits to swiftly adjust to remote working, lower capacity, funding disruptions, and program delays, reformatting, and sometimes outright cancellations. For these reasons, I advocated early in the year to switch to rolling 3-month budget re-forecasts to be nimble enough to deal with constant change while protecting financial health and continuity.