Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
Information Needed from Charity to Determine Compliance:
The charity provides a copy of its budget for the current fiscal year and indicates that this budget has been approved by its board of directors.
The Alliance reviews the information provided using the following criteria:
- The budget must clearly identify the charity's expected total expenses for the current fiscal year.
- A budget that identifies only the charity's natural expenses (for examples, salaries, postage, travel, etc.) but does not provide a functional expense breakdown as described below, does not meet this standard.
- At a minimum, the budget should include a functional expense breakdown that shows the total expected expenses for each major program service (for example, Program A, Program B, etc.), fund raising and administration. Example: If the charity has more than one major program service activity (e.g., both medical research and health education), then, correspondingly, the budget should include more than one program service expense category.
- The Alliance does not need to receive a detailed budget with dozens of pages. A one-page summary budget is sufficient as long as it includes the information specified above.
- Board approval of the budget is necessary to meet the standard.