The budget forecast is an essential document and a necessary tool for anticipating an association’s costs and revenues, as well as raising financing. Forecasts are used to measure the association’s long-term success if the budget is fully respected. A budget forecast helps to answer the objective of the project and other questions concerning the association’s activities.
Here are a few tips to help you draw up your association’s budget forecast.
Summary
1. What is the purpose of a budget forecast for an association
The purpose of a budget forecast for an association is to plan and control the association’s revenue and expenses over a given period, usually one year. This enables the association to determine the financial objectives it wishes to achieve, monitor its progress and take the necessary steps to adapt to any fluctuations in revenue and expenses.
A budget forecast for an association can help achieve several objectives:
- Planning short- and long-term investment and expenses, such as the purchase of equipment or the realisation of projects.
- Forecast revenues for the coming period, including potential sources of financing.
- Identification of variable and fixed costs for each association project or activity, in order to better manage resources and maximise efficiency.
An association budget forecast is an essential tool for planning and managing the organisation’s finances efficiently and responsibly. It helps to achieve the association’s financial objectives and to make clear resource management decisions.
2. What information should be included in a budget forecast for an association?
A provisional budget must contain detailed information on projected revenues and expenses for the coming period, as well as on the investments and projects the association plans to carry out. The following information is generally included in an association’s budget forecast:
- Anticipated revenues
What funds does the association expect to receive during the given period? These revenues can include donations, subventions, membership fees, income from the sale of products or services, and so on. It’s important to make a reliable estimate of these revenues, based on trends in previous years and anticipated events.
- Anticipated expenses
These are the costs the association expects to incur during the period covered by the budget. These expenses may include overheads, salaries and benefits for employees, office supplies, travel expenses and so on. It’s important to be as precise as possible when estimating these expenses.
- Planned investments and projects
This category covers projects that the association plans to carry out during the period, such as events, awareness campaigns and research projects. For each project, it is important to estimate costs in detail, including manpower costs, supplies and travel expenses.
- Financial objectives
What are the association’s objectives? This includes the total amount of revenue or savings over expenses. It’s important to set realistic, measurable objectives so that progress can be evaluated.
It is important that an association budget forecast provides detailed information on revenues, expenses and financial objectives for the coming period, to enable effective planning and management of the organisation’s finances.
In general, a balanced budget should be planned. In other words, total revenue and total expenses should correspond.
3. Model of a forecast budget
To help you further, here’s a model budget forecast for your association.
Download the template in spreadsheet format
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