Takeaway 1: General operating support budget versus program/project budget. You could think of the GOS as the umbrella of all the funds the nonprofit will either make or need for the fiscal year (or grant period). The GOS must reflect the goals, objs, and mission of the nonprofit as a whole. The PP budget is separate from GOS and is more narrowly focused on one specific projects funding needs and expected profit (if applicable). If a nonprofit has several projects, each one likely has their own PP budget.
Takeaway 2: Reviewing the guidelines set by funders. Althought it may be repetitive to hear by now because of how often WG refers to guidelines, but following them can set a nonprofit in a better position than others. Not following them can lead to the entire application being thrown away. When it comes to creating the document, there’s multiple factors like budget tools, budget narrative, details of the budget, and the organization of it that all must be confirmed by the funders guidelines.
Takeaway 3: The numbers have to correlate with the story. On one level, doing so engages the funder more because the focus is streamlined in both documents. On the other level, it demonstrates to the funder that the sum being requested will be used properly and isn’t an inflated number. Lastly, reviewing the written portion after the budgets creation is also helpful to confirm if there’s missing numbers or holes in the budgets feasibility.
Takeaway 4: There are three kinds of costs to be considered in compiling the budget. There is the direct costs, which are expenses that are static/specifc and can be itemized in the budget (related to the general operation of the nonprofit as a whole). Indirect costs are amounts that may be shared across the organization or various programs, usually determined by a cost rate. Lastly, in-kind costs are those goods, services, or volunteers donated to the organization (usually included on expense and revenue budgets). Although it seems simple, this section of the chapter had me slightly confused in terms of the calculation of each (especially indirect). Also, if the direct and indirect costs ever touch edges or overlap.
