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Budgeting for organizations is not very different from budgeting for a single organization, though the scale may be different.
Government organizations prepare budget requests to a legislative body. Ultimately, the budget is set by the decision of that body.
Similarly, executives in for-profit organizations offer a budget that projects incoming revenues against expenses and desired profit to a corporate or business finance board.
Nonprofits also develop budgets at the executive level, but in consultation with board members and key program personnel, projecting possible funding levels from grants, contracts, and services. Then, they project the expenses for carrying out the mission and the programs.
Mixed (hybrid) organizations perform virtually the same process as organizations in the other sectors, but the budget reflects legislative or board mandates if the organization is a government/nonprofit partnership. If it is a for-profit/nonprofit partnership, then the revenue streams used to set the budget are defined by each of the partners, and then configured as a single budget.
Please use the planning a budget section in the Community Toolbox link to assist you in answering the discussion question.
