So, the ADDSTEAM Board passed a $100,000 budget for 2024. What does that actually mean?
The Budget represents a financial plan that outlines the expected income and expenses for ADDSTEAM in the upcoming year. That's it. It doesn't outline how to get revenue or what to spend money on.
Here's what it provides to board members and the president:
1. Financial Guidance: The budget provides financial guidance and sets clear expectations for ADDSTEAM's income and spending over the course of the year. It serves as a roadmap to ensure that ADDSTEAM operates within its means.
2. Decision-Making: The budget assists in decision-making processes. It helps the board and president evaluate proposals, projects, and expenditures to ensure they align with the ADDSTEAM's financial capacity. They can prioritize where funds should be directed to support various programs, events, and operational needs.
3. Fundraising: The budget may highlight the need for fundraising efforts to bridge any financial gaps. It can guide fundraising strategies, such as grant applications, donor outreach, and fundraising events.
4. Sustainability: Board members and the president can use the budget to assess the sustainability of ADDSTEAM's operations. They can monitor whether ADDSTEAM is generating sufficient revenue to cover its expenses and plan for future growth.
5. Monitoring and Reporting: Throughout the year, board members and the president will monitor actual financial performance against the budget. This allows them to identify any discrepancies, make necessary adjustments, and ensure ADDSTEAM remains on track.
6. Accountability: Board members are responsible for overseeing ADDSTEAM's financial health. The budget holds them accountable for fiscal stewardship, ensuring that the funds raised are used wisely and transparently.
7. Transparency: A budget fosters transparency within ADDSTEAM, as it provides a clear view of where funds are coming from and how they will be used. This transparency can build trust among stakeholders, including donors and partners.
Overall, the $100,000 budget serves as a crucial financial tool that enables board members and the president to make informed decisions, allocate resources effectively, and ensure the financial sustainability of ADDSTEAM in the year ahead.