Lesson 2 – What is below-the-line budgeting?

Below-the-line budgeting is a tool nonprofit leaders can use to factor in the total cost of operating their organizations.

Leaders can use below-the-line budgeting to:

  • Segregate non-operating revenue and expenses for better communication and planning.
  • Address balance sheet needs
  • Communicate how surpluses would be used intentionally to invest back into the organization.