Financial Health

Preparing a budget is essential for effective planning and should run alongside the project plan.


 Budgeting will help to:

  • Estimate project costs
  • Identify funding needs
  • Inform financial decisions and avoid unexpected costs
  • Plan for contingency
  • Keep track of when payments need to be made
  • Understand, in monetary terms, what your group is going to do


 A budget will include


Expenditure: items to be paid for; overheads including leases/ rent, insurances, equipment, salaries, marketing and publicity costs. Office costs are also included such as phone, postage, travel costs for meetings and activities. Unknown costs should be estimated.


Capital or Revenue: expenditure items are classed as capital or revenue. Capital items will be equipment with a resale value for up to 2 years. Revenue items are day-to-day or running costs such as rent, admin and volunteer expenses as well as hidden costssuch as insurance or phone credit.


Income:  Initially this will be income from grants already received and anticipated amounts from grants that may be awarded, membership subscriptions, fees and donations.


Budget presentation

  • Use a format such as a basic Excel spreadsheet, or simple tables with columns and rows.
  • Quotes should be obtained for each item listed in your budget. Funders will require evidence of competitive quotes.
  • Figures should be accurate, underestimating could lead to future financial difficulties and overestimating could affect funding application decisions.
  • The budget should be regularly updated with changes to costs and income.
  • Updates should be presented in the treasurer’s finance report to the group.
  • The report should show actual income and expenditure against the budget figure.


Business Planning  

WCVA - The Business Plan

WCVA - Business Planning


Getting Money 

WCVA - Finding and getting money


Managing Money

WCVA - Managing money

NCVO - Finance 

Resource centre - Budget for community groups




ID: 3800, revised 29/06/2021