Local Nonprofit Organization

Local Nonprofit Organization Budget Memo

TO: Board of Directors

FROM: LNO

Subject: Dealing with Budget Constraints

Respected Sir,

As we know that the mission of Local Nonprofit Organization is to encourage children to reach their full potential. Considering this mission, the budget has been proposed which will further describe dealing with the budget constraints.

In coming year, we expect that donation amount will increase since we have given proposal to big and well known companies and few politicians are interested in giving donation to our company. There was a positive indication from big companies since our mission is much attractive as compare to other companies. Hence, the range that was given to these two new additional headers was between $100, 000 and $80, 000. We expect that Big Companies would be giving $100, 000 and $80,000 from politician.

As far as first constraint is concern, 1% of the budget shall comprise of endowment, this makes total endowment $ 59,850 i.e. 58000+1850.

The second constraint is related to the local public funders cutting their contract due to higher taxed payment. As this will reduce overall revenue, we have decided to attract another contractor cover up the reduction. Considering this, we expect that at end of this month we will be able to acquire two more contractors. This will contribute about 20% of the total revenue. The third constraint is less possibilities in receiving grantees and might face losses. Hence to deal with this, we have decided to approach other countries that are involve in assisting such companies. We have already given proposal and we expect a positive sign from those countries. It is predicted that we will receive around $5 million from those countries. In case we are unable to obtain this, we have decided to reduce our expenses that are unnecessary.

As far as few foundation expectation are concern, they want that their contribution shall be made for better outcome or their contribution ill reduced, we have decide to create a small school with the name of the foundation which will reduce their uncertainty and hence, it might be possible that their contribution will increase.

Considering this constraint that there is a steady decline in attendance, particularly the book parties and the summer event. Here we need to restate our earnings from developing new events for both year budgets. We will increase the number of events particular their cost as well for higher revenues.

As capital funds contribution from donation is increasing each year, and these contributors are eager for further contributions. But the thing that restrict here is that only 40% of this amount can be used anywhere beside capital project. In order to deal this, we will be using 60% for the children and 40% for further children capital project such as purchasing additional things for their development, schooling etc and in assisting children in improving their skills.

As we expect that Premium will increase to 13.5% with family coverage of 15% for next year. In order to deal this, we will increase ...