Every organization has expenses. How these expenses are met depends on the type of organization it is. A for profit business under normal situations works to receive a profit which can be used to fun future expenses. A non-profit organization may also produce goods or provide services in order to make enough money to provide a method of covering the expenses of the organization and the programs that it supports.

This is not the case for every non-profit organization. Many organizations don’t sell anything. Instead, they rely on donations and fundraising programs to pay their expenses. However, how do they know they will get enough money from donations and fundraising programs to cover their budget? Well, first they must have a plan of action for their fundraising. They have to have a goal and a strategy for working toward that goal.

Some choose to have everything funded by a few select types of fundraising events. Others choose to have each program funded by a separate fundraising event. Whether your organization is one of these types or somewhere in the middle, without a plan of action, meeting the needed goal amount is little more than a stab in the dark. You might get lucky and have enough; but then again, you may miss by a country mile.

With a plan, you have at least a ball park figure of what your expenses are and an idea of what it will probably take to receive that amount. This plan generally will be more involved than sitting down and saying, well we spent this amount last year, so we need to get at least that amount for the upcoming year. For one thing, prices change.

Another major consideration is whether your organization will be involved in any new or extra programs than it has been in previous years. If an extra program or new benefits will be added, these costs can make a big difference in your planning. You have to incorporate all the necessary expenses of the new plan into your budget.

These are only a few of the items, which can make a huge difference in your budget from one year to the next. It is not necessary to go into them in detail for this discussion but they will be covered in a future special report. It is important for you to be aware of any changes that you will need to make from last years figures in order to allow for the growth of the organization or the inflated cost of the expenses from the prior year.

Once you have determined an approximate expense amount for the year, then you know how much money you need to raise. This figure will need to be used when evaluating the different types of fundraising which the organization will consider. If you need hundred thousands of dollars, it is not likely to be made from one small yard sale held each year. Likewise, if your yearly budget is merely a few thousand a year, then you probably do not need to apply for any of the huge grants that may be available. The amount of funds needed is necessary to know which road of fundraising to take.