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Using surplus budgeting to advance and sustain your mission Logo aicpa

  Maria L. Murphy, CPA |   Free |   AICPA |   01 Feb 2017 |   Journal of Accountancy

After the most recent recession, not-for-profit Ducks Unlimited employed a disciplined budgeting approach to improve the organization's financial health and place its mission on sound footing. Learn how this tactic can work at your organization.

Topics covered:
  • Management accounting: Technical: Business planning: Planning, forecasting & budgeting, Intermediate
  • Not-for-profit: Technical: Governance, Intermediate

2 Comments/Reflections

Dengmei Xia

Dengmei Xia Dec 2017

This article tell me how to implement surplus budgeting in not-for-profit organizations. To implement surplus budgeting can take these steps: analyze your organization and know your financial situation. Take an inventory of your unrestricted net assets. Educate program, fundraising, and administrative groups about the balance sheet, components of unrestricted net assets, and unrestricted revenues and cash flows.Align every part of the organization, every volunteer, and every staff member around the financial goals, and develop consensus on the budget surplus goal amount. Reduce functional silos so that everyone understands the goals and appreciates that sustainability is needed to achieve the organization's mission. Develop a strategic plan, a business plan, and operating budgets to support the plans. Keep an eye on reserves and have a strategy to "right the ship" at any point.
Tendai Nyakurimwa

Tendai Nyakurimwa Feb 2017

Its an informative article on how to improve budgetary perfomance in not-for-profit organisations.