CWC Project II
Chippewa Watershed Conservancy: Not-for-profit Budgeting
Case II: Functional and Flexible Budgets
Case II is a continuation of Case I. In this case you will convert the line-item budget developed in Case I into a functional budget. Then you will employ further information to create a flexible budget. Refer to the Case I Solution for data.
Assume that the CWC has adopted the budget as developed in Case I even though it does not hit the 5% budget surplus target. Now they want you to allocate the budget into functional areas. Revenue is not allocated to functions. However, expenses are allocated to functions using the percentages shown in the following section.
Part A: Functional Budget
Program Functions
Stewardship: Management of easements and preserves.
Outreach: Publicity and Education.
General Program: Activities directly related to project development.
Support Functions
Administration: Management of the organization and other activities not directly related to project development
Fundraising: Grant-seeking, special events, and fund appeals
P R O G R A M S U P P O R T Stewardship Outreach General Administration Fundraising Program
Expense
Travel 50% 10% 20% 10% 10%
Special Events 100%
Conferences 50% 50%
Fundraising 100%
Insurance 60% 20% 20%
Newsletter 80% 20%
Postage 10% 30% 10% 10% 40%
Professional Fees 50% 50%
Publicity 100%
Salary 30% 10% 30% 20% 10%
Supplies 30% 10% 20% 30% 10%
Payroll Taxes 30% 10% 30% 20% 10%
Telephone 30% 10% 30% 20% 10%
Questions for Part A:
1) Create a Functional Budget for the upcoming year. Use the revenue and expense allocations provided above and the Case 1 Solution for the next year.
Chippewa Watershed Conservancy
Functional Budget
PROGRAM EXPENSE
SUPPORT EXPENSE
Stewardship: Management of easements and preserves
Outreach: Publicity and Education
General Program: Activities directly
Case II: Functional and Flexible Budgets
Case II is a continuation of Case I. In this case you will convert the line-item budget developed in Case I into a functional budget. Then you will employ further information to create a flexible budget. Refer to the Case I Solution for data.
Assume that the CWC has adopted the budget as developed in Case I even though it does not hit the 5% budget surplus target. Now they want you to allocate the budget into functional areas. Revenue is not allocated to functions. However, expenses are allocated to functions using the percentages shown in the following section.
Part A: Functional Budget
Program Functions
Stewardship: Management of easements and preserves.
Outreach: Publicity and Education.
General Program: Activities directly related to project development.
Support Functions
Administration: Management of the organization and other activities not directly related to project development
Fundraising: Grant-seeking, special events, and fund appeals
P R O G R A M S U P P O R T Stewardship Outreach General Administration Fundraising Program
Expense
Travel 50% 10% 20% 10% 10%
Special Events 100%
Conferences 50% 50%
Fundraising 100%
Insurance 60% 20% 20%
Newsletter 80% 20%
Postage 10% 30% 10% 10% 40%
Professional Fees 50% 50%
Publicity 100%
Salary 30% 10% 30% 20% 10%
Supplies 30% 10% 20% 30% 10%
Payroll Taxes 30% 10% 30% 20% 10%
Telephone 30% 10% 30% 20% 10%
Questions for Part A:
1) Create a Functional Budget for the upcoming year. Use the revenue and expense allocations provided above and the Case 1 Solution for the next year.
Chippewa Watershed Conservancy
Functional Budget
PROGRAM EXPENSE
SUPPORT EXPENSE
Stewardship: Management of easements and preserves
Outreach: Publicity and Education
General Program: Activities directly