With today’s volatile economy many people are tightening their purse strings – something that is adding to the challenges of fundraising and budgeting for non-profit groups and organisations.

Thanks to budgeting website www.whostolemymoney.com you can take a closer look at your group’s budget and get smarter with your financial planning.  You can also get some FREE assistance with your finances – read on to find out more!

Founder and chief of Who Stole My Money, Grace Xue, says effective budgeting is becoming necessary for people of all ages and incomes, and the number of people seeking advice is  on the increase.

When starting out, the first thing to look at is what you earn in the hand, how much you spend and what you spend it on.

Grace Xue believes it is vital to understand your group’s spending and to identify which items are necessary expenses and which are luxury items.

The second step is to plan. Decide on your goal and establish a spending plan that is achievable, sustainable and tailored to your needs.

Finally, you need to monitor your progress. If your situation changes you need to adjust your plans accordingly.

Getting Past Daunting Budgeting Myths

Despite the nerve-wrecking connotations connected to the word, a budget is really just a list of all the money coming in and going out – in short, a spending plan.

Understanding where your money is going can help you make a few little changes that can make a big difference in your financial situation.

Keeping a track of your spending through a monthly budget can help you decide which costs can be cut if a fundraising venture falls over and money stops coming in.

Starting Your Budget

Creating a budget is simple, you just need to record all your income and expenses. The trick is to ensure you record everything.

To individuals, income often means a pay cheque. To voluntary groups and organisations it can be member subscriptions, fundraising and grants. Income doesn’t have to  arrive regularly. For instance, a tax refund or interest earned in a savings account is part of your income. When you calculate your income, make sure you include all money coming into your group.

Most expenses are clear; for example, when a cheque is written or cash withdrawn. However, there are come “hidden” expenses that are not quite as obvious:

• City council and Regional council rates.
• Automatic payments from your bank account.
• Bank fees taken directly from your account.
• Small charge expenses, such as odd bits of food or equipment or parking charges.
• Taxes on interest
• Outgoing donations.

At the end of each month add up the expenses and compare them to your  group’s income.

The key to improving your group’s financial position and to plan for a better future is to understand how much money is coming in, and how much you are spending.

Balancing Your Budget

If you have more income than expenses, you have a surplus. Make a plan for this spare money, you could keep it in a “rainy day” savings account, or put it aside for the project you have been fundraising towards. This can help keep an eye on this surplus, and prevent it slipping through the cracks.

If your expenses are more than your income, you have a shortfall – this is when the tracking of your expenses becomes vital. You can comprehend where each dollar is going, and what areas can be trimmed back. A few dollars here and there can make a big difference – every bit helps!

Setting Firm Goals

Saving money is much easier when you set goals to work towards. Make sure this goal includes a firm timeframe – this makes the goal much easier to reach.

Ensure the goal is realistic. Failure will only discourage you from reaching your goal.

Cutting Expenses

To cut expenses, look at your group’s flexible costs first.

How could your spending be better managed? For example, find ways to avoid ATM or banking service fees. By paying bills on time you could prevent extra interest charges, or late payment fees. Check your bank account balances regularly to make sure there are no un-expected fees. Failed automatic payment charges can be crippling, if your group gets a fee, do not be afraid to call your bank. Most banks will waive the fee if it was a genuine mistake or unintentional oversight – especially for volunteer groups!

Look at ways of saving money on your regular expenses. Seek out better deals with phone or power providers. Barter with other community groups or individuals for goods and services. For example, you might borrow a lawnmower from a group member rather than purchasing one. Group members could then rake leaves at the member’s house as a way of thanking them.

Do your homework when making those big purchases. Making sure you know your options and any hidden costs can save a lot of money in the long run.

Cutting expenses does not have to mean “stopping buying”, it just means being smarter with your purchases. Purchasing bulk non-perishable items.

Check Out the Who Stole My Money Website

Thank you to www.whostolemymoney.com for supplying the information for this article. This website is a great resource both for your community group as well as for your general household budgeting. There are already non-profit organisations who are using this site to help with their group’s budgeting.

Who Stole My Money has generously agreed to sponsor Community Connect non-profit or charitable organisations by offering them Premium Membership on their www.whostolemymoney.com budgeting website free of charge.

To Qualify, the person who registers must use an official e-mail address from their organisation. Please send an e-mail to support@whostolemymoney.com to let them know your details for the upgrade. Please note, this very generous offer is for use by non-profit or charitable organisations, and not for personal use.

Above: Grace Xue, founder and chief of Who Stole My Money.