| Vol. 3, Issue 10, March 9, 2005 |
| from Richard Male & Associates |
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Rich Tips is a free electronic newsletter published by Richard Male & Associates (RMA), a nonprofit consulting firm. Please send any suggestions or comments to nicolle@richardmale.com. *Please note* we are publishing Rich Tips a day early because our editor will be out of the office tomorrow.
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This week's tips:
Budget Tips
Most people go into the nonprofit sector to change the world, not to read financial statements and develop budgets. Alas, reading financial statements and developing budgets are critical tasks that executive directors and program directors must master.
The budget is a key tool, which executives in the organization use to make strategic decisions on managing and allocating resources. The board must also review the budget and financial statements to make sure the organization is in a financially solvent position.
If you aren't especially confident in formulating a budget, review our top ten budget tips below. If you need additional help, let us know:
- A budget is a planning tool that helps the organization move forward in its effort to accomplish goals and objectives.
- Develop a least two budgets for the organization. One should be a general operational budget and the other should be one or a series of program related budgets. Make sure when drafting a program budget that you include all of your administrative and overhead costs.
- Always develop the operational budget in conjunction with a review of the organization's values, mission, goals, and objectives — and with an eye on the upcoming year's programs and projects.
- The operational budget is essentially a financial road-map for the organization spelling out ways in which you can financially reach your goals.
- One way to begin the budget process is to identify the potential and committed revenue sources and then work in reverse in terms of costs and expenses before revenue. This may seem a bit backwards, but if you analyze your revenue first, you'll get a more realistic picture of what dollars you have available.
- When looking at revenue try to be as diverse and broad-based as possible. As you design the annual fund, incorporate such revenue streams as foundations, corporations, direct mail, small and major gifts, earned income or revenue generated by fees for services, contracts from governmental units, interest income, etc. The more financially diverse, the more stable and healthy the organization.
- Always write a budget narrative that explains the items in the budget. This will help the staff, board, and stakeholders fully understand the numbers.
- Develop the numbers with budget figures vs. actual figures so you can determine whether you are under budget, over-budget or on-budget. The board should review these figures at their regular meetings.
- Keep your program budget's administrative costs under 20 percent if possible. Administrative costs must be reasonable and shouldn't raise red flags when potential funders review them.
- Generally, the categories in a simple budget include: personal (salaried employees, plus fringe benefits); office expenses (including rent, computers, printing, postage, travel, telephone, parking, supplies); consultants; equipment (if you will be purchasing new equipment). Your program budgets will include the same budget categories, but should focus on particular programs.
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New Grant Opportunities
2004 Partners in Transformation Awards Program
The Partners in Transformation awards will go to winning FBOs who operate a social service program that (a) is showing tangible, positive results (outcomes) and (b) is operated through a meaningful collaboration with some organization(s) OUTSIDE the faith community (for example, schools, government agency, police, Chamber of Commerce, secular nonprofit).
For detailed information go to:
http://www.fastennetwork.org/Display.asp?Page=contest
Joyce Foundation
Funded by the Chicago-based Joyce Foundation, the 2006 Joyce Awards will support projects that advance the creation and production of works by minority artists in dance, music, theater, and the visual arts. The program is designed to enable Midwest cultural institutions to commission new work by artists of color; expand the repertoire of art that speaks to diverse urban audiences; and enhance the creative environment.
For detailed information go to:
http://www.joycefdn.org/programs/culture/content/zfactsheets/creativity.html
Tides Death Penalty Mobilization Fund
The Tides Death Penalty Mobilization Fund is a Tides Foundation initiative and donor collaborative supporting strategic collaborations of local, regional, or national nonprofits [501(c)(3)s and 501(c)(4)s] working on the death penalty.
The purpose of the fund is to support efforts that will lead to the abolition of the death penalty in individual states and as a national policy. Projects supported by the fund may focus on intermediate steps aimed at reforming certain aspects of the death penalty, on working towards a moratorium on executions, as well as on abolition activities.
The Rapid Response segment of the fund supports short- term, concrete projects such as media campaigns, polling leading to a larger community education and organizing strategy, components of legislative campaigns, and strategic public education campaigns and speaking tours. This segment of the fund does not make grants for general operating support or organizational development.
For detailed information go to:
http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/05-4103.htm
Human Rights and Governance Grants Program
OSI's Human Rights and Governance Grants Program (HRGGP) seeks proposals from national and international organizations to advance government accountability in Central and Eastern Europe, the former Soviet Union, and Mongolia . HRGGP will support efforts to promote public participation in and oversight of governmental activity, at both the national and local levels, including in the delivery of services.
For detailed information go to:
http://www.soros.org/initiatives/hrggp/focus_areas/b_accountability/guidelines
Third Wave Foundation - Organizing & Advocacy Grant
The Organizing and Advocacy Fund of the Third Wave Foundation financially supports organizing and activism work that exists to challenge sexism, racism, homophobia, economic injustice, and other forms of oppression. We provide grants for both specific projects and general operating support.
For detailed information go to:
http://www.thirdwavefoundation.org/programs/advocacy.html
Federal Grant Opportunities (if any of the following grants sound appealing, please contact Mourene Tesler to learn more about the application procedure - mourene@richardmale.com)
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William F. Goodling Even Start Family Literacy Programs--Grants for Indian Tribes and Tribal Organizations
Closing Date:
April 11, 2005
Amount:
$4,975,000
Estimated Range of Awards : $150,000-$250,000 per year
Estimated Average Size of Awards: $200,000 per year
Estimated Number of Awards: 20-33
Eligible Applicants:
Federally recognized Indian tribes and tribal organizations. Applicable definitions of the terms ``Indian tribe'' and ``tribal organization'' are in section 4 of the Indian Self-Determination and Education Assistance Act, 25 U.S.C. 450b.
Agency/Department:
DEPARTMENT OF EDUCATION
SUMMARY:
The William F. Goodling Even Start Family Literacy Programs (Even Start), including the grants for Indian tribes and tribal organizations, are intended to help break the cycle of poverty and illiteracy by improving the educational opportunities of low-income families by integrating early childhood education, adult literacy or adult basic education, and parenting education into a unified family literacy program. These programs are implemented through cooperative activities that: build on high-quality existing community resources to create a new range of educational services for most-in-need families; promote the academic achievement of children and adults; assist children from low-income families to meet challenging State content and student achievement standards; and use instructional programs that are based on scientifically based reading research and on the prevention of reading difficulties for children and adults, to the extent such research is available. A description of the required fifteen program elements for which funds must be used is included in the application package.
Listed in:
Federal Register:
February 17, 2005
Volume 70, Number 32
Page 8085-8089
For detailed information go to:
http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/E5-657.htm
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Other Announcements
Secondary Trauma Resiliency Training for those working in poverty and homelessness, presented by the HealthBridge Alliance. This innovative and interactive experience trains caregivers in skills to cope with the personal stresses of their work to reduce burnout and turnover. April 19-21 at the Foss Conference Center in the foothills of Jefferson County. The normal cost of the training is $340, but we are offering this training for the special low-rate of only $35 per person. Please contact Dace West at (720) 934-1066 or daceschlue@aol.com for more information.
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