Budgeting 101: Tips for Early-Stage Community Initiatives

Any community organizer will tell you that managing your finances is the centerpiece of any community initiative. But when you are down in the weeds of an individual project, it can be hard to keep the long view in mind.

We’re going to break down some major components of budgeting here to make your job that much easier.

Managing funds

It’s as obvious as it sounds. Keep track of your income and spending, label funds appropriately, and tally projected costs. Managing funds is all about having a clear picture of the present while also looking to the future. Potential tasks can also include:

• Create a detailed budget that tracks daily, weekly, and monthly expenses and income. 
• If possible, build a “working capital” fund to tide your organization over during difficult periods.
• Maintain transparency about your finances and communicate clearly about spending guidelines.
• Make sure you are compliant with current IRS regulations.

Try to have multiple funding sources to avoid major financial fallout.

Donations

Donations are a foundational piece of almost every community initiative. Not only do they provide organizations with much-needed funding, but they also serve as a benchmark for the level of engagement they receive from their audience. The best way to handle donations is to do the following:

• Keep track of donation totals
• Have multiple methods of donating to your initiative
• Take note of what events and ads drive the most interest and engagement
• Encourage people to donate any amount, regardless of how small (this is a commonly used tactic by political campaigns)

Grants & awards

Given recent events, securing grant funding has become more complicated for many community initiatives. While federal funding may currently be unavailable, there are several private grants that organizers can (and should!) pursue. Grant applications can seem daunting, but if you break them down, you can work through them fairly quickly. While looking for grants and awards, consider the following:

• Have a strong narrative about your initiative
• Be able to articulate your specific goals and work
• Make sure to have all necessary information and documentation on hand
• Focus on grants that are within your area of focus (for example, don’t apply for a grant about food insecurity if you are running a physical education initiative)
• Keep a spreadsheet of all major upcoming deadlines, like this, for example, or use project management tools like Asana or Trello.

If you are just getting your initiative off the ground, you have the option to pursue a specific kind of funding. Seed funding, or foundation grants, is a great way to launch your initiative. These are grants specifically designated for new organizations. The key here is to have a clear, compelling pitch for your initiative. For more information about this avenue, check out our related article, Grant Writing Workshops.

Budgeting may not be the most exciting aspect of a community initiative, but it is often what separates those that last from those that don’t. Keeping your community venture stable and solvent doesn’t just come down to big fund drives; it means knowing the details, such as staying on top of your projected income and expenses and identifying all possible funding sources. If you manage all of this, you can make a lasting commitment to your community.

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Looking for additional funding sources to continue your community action? Click here to learn about other funding sources to aid in your efforts.