24.7. Budgeting Expenditures
The accurate forecasting of departmental expenditures is a difficult but necessary task. While revenue sources may be somewhat limited, the width of expenditures is usually broad. Estimating expenses is usually more manageable than budgeting revenue; however, many times it is almost impossible to match the expenses incurred in providing a program service or in operating a department to any specific revenue sources that support these services. It will be easier to prepare the budget if expenditures are grouped into separate categories: salaries, supplies, operating expenses, and capital equipment.
For many not-for-profit organizations, the personnel costs represent a major portion of current expenditures. Therefore, this area should be constantly monitored, since it has a major impact on the total budget.
Operating expenditures are defined as expenditures other than those for personnel services, supplies, and capital outlays. They include gas and electric utility bills, telephone expenses, and reproduction costs.
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