Appropriate Relationship Between An Organization 's Mission And Budgeting Practices

1002 Words5 Pages
The problem is the conflicting views shared by a Board of Directors regarding the overall purpose of a budget resulted in a rejected budget proposal and a divided nonprofit organization. The Board is split between the “accountants” who view budgets as a planning and management tool and the “artists” who view budgets as a limit on creativity and mission achievement. In this analysis, I will discuss the appropriate relationship between an organization’s mission and budgeting practices. Additionally, I will examine the sources of the divide which are rooted in financial knowledge, personal interests and backgrounds. The financial implications and future of the organization will be evaluated. Lastly, I will then conclude with…show more content…
Even though the organization had a stable and increasing income, GELT began to experience problems with money and the ability to pay their bills on time. The President-Elect, Janet Dobbs, decided her first priority would be to put GELT’s financial affairs back on track with a “reform” budget. Ms. Dobbs worked with the Budget Committee and proposed four key changes in the 2002 budget that highlighted the budget problems and offered solutions. The problems focused on the organizations past budgeting practice that overestimated revenue and expenditure that led to increasing debt. The solution included replacing the GELT debt with surplus during her second term of presidency. Ultimately, the budget proposal was rejected by a vote of 8 to 7 due to the conflicting views of the purpose of a budget within a nonprofit organization. Ms. Dobbs was stunned as previous GELF budget proposals has sailed through the Board completely unopposed without any discussion.
Analysis/Discussion
The agreements among all actors in this case are limited. Most notably, all individuals value their commitment to the organization and its mission. As the case study notes, all GELT Board members are unpaid volunteers who freely donate their time and energy to support the organization. All members also agree the organization should grow and the budget should reflect this growth with increased revenues and
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