A nonprofit consultant’s website recommends the following budget structure for new nonprofits. What is this budget structure called? What are the most important strengths and weaknesses for this type of budget structure? RevenueGeneral donationsAppealsMonthly givingFall galaProgram feesIn-kind donationsExpensesSalariesPayroll taxesInsuranceMarketing & PROffice suppliesPostage & PrintingProfessional servicesProgram suppliesTechnology & PhoneTravel & MileageAmount$2,500$1,500$1,200$4,500$15,000$5,000Total revenue $29,700Amount$17,000$5,000$500$500$350$400$1,500$2,050$1,500$900Total expenses $29,700Net gain/loss $0

THE GIVEN TYPE OF BUDGET STRUCTURE IS CALLED INCOME AND EXPENDITURE BUDGET This kind of budget is…

A nonprofit consultant’s website recommends the following budget structure for new nonprofits. What is this budget structure called? What are the most important strengths and weaknesses for this type of budget structure?

A nonprofit consultant’s website recommends the following budget structure for new nonprofits. What is this budget structure called? What are the most important strengths and weaknesses for this type of budget structure?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Budgeted Income Statement

Accounting is the process of recording business-related financial transactions. The process of accounting involves summarizing and analyzing the transactions. The financial statements which are prepared in accounting contain a summary of the various transactions that took place within a certain accounting period. Book-keeping or accounting is one of the most important activities of any business.

Question

A nonprofit consultant’s website recommends the following budget structure for new nonprofits.

What is this budget structure called? What are the most important strengths and weaknesses for this type of budget structure?

Revenue
General donations
Appeals
Monthly giving
Fall gala
Program fees
In-kind donations
Expenses
Salaries
Payroll taxes
Insurance
Marketing & PR
Office supplies
Postage & Printing
Professional services
Program supplies
Technology & Phone
Travel & Mileage
Amount
$2,500
$1,500
$1,200
$4,500
$15,000
$5,000
Total revenue $29,700
Amount
$17,000
$5,000
$500
$500
$350
$400
$1,500
$2,050
$1,500
$900
Total expenses $29,700
Net gain/loss $0

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