This activity needs to be completed once per year.
To access, click Budget from the Menu and then Budget Set Up.
Only the Yellow cells need data.
The spreadsheet works on a cumulative percentage basis. For example, looking at row 17 (the Example Donations), the total amount I expect to raise from Donations is £5,000 for the whole year. If I expect to collect
- 40% of this in quarter 1,
- 20% in quarter 2,
- nothing in quarter 3, and 40% in quarter 4.
But, as the spreadsheet working on a cumulative basis, for
- Q1, this is the 40% I expect to collect.
- For Q2, I have to add the 20% I expect to collect to the 40% that’s already been budgeted for, thus 60% (Q1 40% + Q2 20%).
- For Q3, I’m not expecting any new donations during this quarter, so I roll forward the 60% (Q1 40% + Q2 20% + Q3 0%).
- The spreadsheet automatically completes Q4, by showing 100% (Q1 40% + Q2 20% + Q3 0% + Q4 40%).
All you need to do now is estimate how much you will receive or spend on each of the rows, followed by breaking this down on a cumulative basis.
For the propose of this guide, I’ve estimated the following:
- Donations, £10,000: Q1: 50% and Q3 50%
- Grants, £2,000: Q3 100%
- Salaries / Wages £5,000: Q1 50%, Q2 25%, Q3 10% and Q4 15%
- Rent, £500: Q1 25%, Q2, 25%, Q3 25% and Q4 25%
- Travel and conferences £1,500: Q1 25%, Q2, 25%, Q3 25% and Q4 25%
- Technology and software £1,000: Q4 100%
- Other – operations £2,000: Q2 50% and Q3 50%
- Audit / independent examination: £200: Q2 100%
This now produces a budget for your charity:
If you go to print this worksheet, only the above image will print, allowing the management and trustees of the charity to have an accurate picture of the cash position for the next four quarters.