This document outlines the steps for planning an annual budget, including determining projected expenses and income. It discusses estimating expenses across six categories like salaries and supplies. It also provides steps to estimate income from sources like fundraising, fees, dues, and investments. The document stresses analyzing the budget by comparing expenses to income and knowing how to address surpluses or deficits. Regular review and revision of the budget are also recommended.

1. Planning Annual Budget

2. Elements of an annual budget
• Projected expenses
• Projected income
• Interaction of
expenses/income
• Reflective
adjustments

3. Determining your needs:
• What would most help your program?
• How many staff positions are needed?
• How much will staff be paid?
• Where will staff salaries come from?

4. Projected expenses:
Six steps to estimate firm’s expenses:
• Develop ways of estimating expenses
• List yearly expense totals for absolute necessities
• List estimated expenses for things needed to conduct the
activities of the organization
• List estimated expenses for miscellaneous costs
• List estimated expenses for items you aren't sure you can afford,
but would like to obtain if possible
• Add up all of your expense items
Add up all expenses
(Advertising expenses, Automobile expenses, Computer, printer, and software, Consultant fees ,
Depreciation and amortization, Education expenses for maintaining or improving required skills
Email, Internet access, and web hosting services Fax machine , State and local business taxes
Preparation of business tax return Telephone expense , Travel expenses )

5. Projected Income
Follow these steps to estimate firm’s income:
• List all actual figures or estimates of amounts you can expect from your known
funding sources
• Estimate the amount you'll raise in the next fiscal year from fundraising
• Estimate the amount you'll take in for fees or services you provide
• Estimate the amount you will receive from yearly membership dues or fees
• Estimate the amount you will receive from items you may sell, such as pins, T-shirts,
books, blood pressure cuffs, etc.
• Estimate the income from any spaces you sublet or rent to others
• Estimate the income you will receive from any investments, endowment income,
annuities, or interest income (e.g., from a certificate of deposit, or from a Money Market
or checking account)
• List and estimate the amounts from any other sources that are expected to bring in some
income
• Add up all the income items you have listed to determine your total projected income for
the fiscal year
Add up all listed below
(Known income, Fundraising estimates, Commercial estimates, Membership dues, Sublet/rent
income, Investment income, Misc. sources)

6. Analyzing/adjusting the budget
The five steps of analyzing and adjusting your budget have been
followed:
• Laying out your figures in a useful format
• Comparing total expenses to your total income
• Knowing what to do if your budget is balanced
• Knowing what to do if you have a surplus
• Knowing what to do if you have a deficit

7. Work with your budget by:
• Reviewing on a regular basis.
• Revising on a regular basis.

8. Presentation done by Dixita
• Sources: Internet