Financial Management & Budgeting

Before you start planning your project with your partner organisation you will need to draw up a budget for your project and secure funding. You will need to make an estimate of all the money you will spend on your project (expenditure) and all the money that you hope to receive (income). This will give you an idea about whether your project is financially viable or not. If it isn't financially possible you will either have to lower the cost of your project or put more effort into raising more funds. Some examples are listed below.

List all the items of expenditure and income in two separate columns. When you have completed this inventory of cost items and sources of income, put an approximate cost on the different items, based (as far as possible) on real figures.

For example:

Out

In

Preparation meeting (travel, food, accommodation, rental of meeting room) Communication costs (e-mail, stamps, phone, internet, etc.) Office costs (electricity, rent, water, office stationary, etc.) Project costs (travel, visa & insurance, food & accommodation, rental of meeting room & equipment, material, leisure time activities, etc.) Trainer fees & staff costs Evaluation & follow-up costs Unexpected costs (5%) - etc

A mix of the funding providers listed below. EU Youth in Action Programme Grant from the local authority Fundraising (party, cake sale, etc.) Use of meeting room and computers donated by Company X Contribution from the organisation Etc.

Important tips!

• A budget needs to be balanced - every cent that you spend needs to come from somewhere.
• Phase your budget - put all the expenses and income on a timeline to see if there will be periods in which you will have to finance expenses before you have received the relevant grant (grants sometimes only arrive once the project is finished).
• Do your research - the more you base the figures on actual prices the more realistic your budget will be. Take into account price fluctuations, exchange rates, some unforeseen circumstances, etc. Don't base your budget on the cheapest of the cheapest as special offers might no longer be available when you will have to organise your project some
• Don't go it alone - it is very easy to make mistakes or to overlook certain costs or possible income sources - you could ask some people who aren't involved in the project to double-check the budget and the figures
  
• More information in the T-Kit on Funding and Financial Management, which you can download from www.youth-partnership.net or www.salto-youth.net/toolbox/

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