You can evaluate your nonprofit’s financial status by analyzing the current year-end forecast, current budget variances and balance sheet strength. Identify opportunities and trends which can influence activities. It is important to be specific on goals, values and priorities reflected in your budget.
Pay attention to financial trends for your programs over a period of time. Determine if each program is supporting direct costs and contributing to overhead.
Pinpoint the purpose of your budget and use this to create a structure to achieve this goal.