Involving the NGO team in developing the budget

Usually the senior and the experienced staff of the organization are involved in developing the budget. They should be in a position to take responsibility for financial aspects of the organization or a project. It is also better if they have experience in managing project finances in a cost-effective manner.

Following are the staff members who can be involved in developing the budget:

    Organizational Director
    Finance Officer
    Project Officer

It is important for all these staff members to be aware about the vision and objectives of the organization; the needs and integrities of the project implemented; the admin and financial policies of the organization; and the approaches of the donor agency.

The board members of the organization may have also constituted a finance committee to oversee the income and expenses. It would be a good idea to involve one of the members of this committee or take his/her opinion.

The Project Officer should be primarily responsible for developing the draft budget since this person will have a better idea of the field realities and requirements. He or she can then submit the draft to the Finance Officer for any inputs. The Director can then gather a meeting of key persons for final review and approval. In this way, the process of budget formulation will remain complete and all aspects of the organization and the project will be included.