CWC Project II

Topics: Tax, Project management, Project Pages: 5 (1054 words) Published: February 18, 2015

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
StewardshipOutreachGeneral AdministrationFundraising
Program
Expense
Travel50%10%20%10%10%
Special Events100%
Conferences50%50%
Fundraising100%
Insurance60%20%20%
Newsletter80%20%
Postage10%30%10%10%40%
Professional Fees50%50%
Publicity100%
Salary30%10%30%20%10%
Supplies30%10%20%30%10%
Payroll Taxes30%10%30%20%10%
Telephone30%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 related to project development Administration Management of the organization and other activities not directly related to project development Fundraising: Grant-Seeking, special events, and fund appeals TOTAL

Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent
Amount
Percent

Expense

Travel
2,200
50%
440
10%
880
20%
440
10%
440
10%
4,400
Special Events

10,400
100%
10,400
Conferences

1,100
50%
1,100
50%

2,200
Fundraising

7,200
100%
7,200
Insurance
2,640
60%

880
20%
880
20%

4,400
Newsletter

4,800
80%

1,200
20%
6,000
Postage
360
10%
1,080
30%
360
10%
360
10%
1,440
40%
3,600
Professional Fees

2,750
50%
2,750
50%

5,500
Publicity

3,300
100%

3,300
Salary
11,400
30%
3,800
10%
11,400
30%
7,600
20%
3,800
10%
38,000
Supplies
1,320
30%
440
10%
880
20%
1,320
30%
440
10%
4,400
Payroll taxes
1,140
30%
380
10%
1,140
30%
760
20%
380
10%
3,800
Telephone
396
30%
132
10%
396
30%
264
20%
132
10%
1,320
Total Expense
19,456
21%
14,372
15%
19,786
21%
15,474
16%
25,432
27%
94,520

2) What percent of the total expense budgeted by the CWC for the next year is spent in each of the five functional areas?
Stewardship = 21%
Outreach = 15%
General Program = 21%
Administration = 16%
Fundraising = 27%

What percent is Program expense (total of Stewardship, Outreach, and General Program) and what percent is for Support (Administration and Fundraising)? Program expense = 57%
Support expense = 43%

Part B: Flexible Budget
The CWC budgeted on the basis of the existing 14 preserves and 27 conservation easements. “New” refers to additional preserves and/or easements.
“X%” refers to the...
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