Video: Five key stages of income budgeting

One of the most important aims of a budget is to produce a plan that has income and costs in balance. That means reaching a break-even budget. Charities may need to spend reserves or may wish to make a surplus to rebuild reserves, but ultimately the aim of all charities should be long-term sustainability. 

Our video looks at how charities can use income budgeting to prepare for a sustainable future. Charities can simply follow five key stages.

1. Consider each line of income independently
2. Identify known and committed income
3. Analyse forecastable income
4. Balance the risk in your budget
5. Minimise unforecasted income

For more information on charity finance, check out some of our articles.

• Charities need to focus on income diversity
• How to plan a more stable financial future

And check out some of our previous video by clicking on the below:

• Five fundamentals to managing your NPO finances

And check out Sage OFL below for some essential financial resources.