Through Virginia Main Street’s (VMS) Firm Principles, Flexible Paths series, the Center of Nonprofit Excellence (CNE) is diving into their 7 Actionable Principles (7APs) to strengthen nonprofits and their relationships with funders. The 7APs offer a common language around key and proven practices, infused with values of equity and growth. The first principle relates to creating strategic budgets.
Actionable items include:
- Aligned with our strategic priorities, we create and manage transparent, realistic budgets;
- We develop processes and policies that enable us to incorporate all necessary costs and investments, justify each expense, identify cost-saving opportunities, and pursue predictable long-term revenue sources that are diversified; and
- Our budget is built from the individual budgets for each key function of our organization, inclusive of not just programs but also the operations required to maintain a healthy, functioning organization.
“There is no ‘right’ business model or balance sheet, other than the one that contributes to an organization’s ability to manage the unexpected, adapt to changing circumstances, and pursue mission imperatives.”
Nonprofit Finance Fund’s Top Indicators of Nonprofit Financial Health
At CNE, our vision is equitable, thriving, and just communities powered by healthy nonprofits, and our mission is to be a champion, learning partner, and advisor for Virginia nonprofits.
Virginia Main Street 