A real example of what "telling the story" looks like.

This is an actual budget memo Amy created for a client — anonymized, but real. Use it as a model for how to present your budget to your board with context, not just numbers.

From the Helia Library — based on our Coffee Chat with Amy Omand

When would I use this?

You're preparing a budget presentation for your board and want to see what "done" looks like

You know your budget needs narrative context but aren't sure how much or what kind
Your board has been asking line-item questions when you want them asking strategic questions
You're presenting a deficit budget or tough numbers and need to frame them well

What Makes This Memo Work

Before you dive in, here's what to notice:

It leads with the headline. The first paragraph tells the board exactly what they're being asked to approve and the key context (conservative scenario, ending fund balance, months of cash on hand). No one has to hunt for the bottom line.

It explains the "why" behind the numbers. Revenue is down 14% — but the memo explains this is intentional (conservative assumptions on renewals). Expenses are up 66% — but the memo shows exactly where that's going (4 new FTEs, all programmatic).

It connects to strategy. This isn't just "here's what we'll spend." It's "here's what we'll spend and why that positions us for [goal]."

It ends with reserves. The board cares about financial health. Ending with "9.91 months of cash on hand, exceeding our 6-month benchmark" gives them confidence.

The Memo

[Below is the full example — adapt the structure for your organization]

2025 Budget Memo for Board of Directors

Updated: December 14, 2024

Overview

Today, we are asking for the board’s approval on the 2025 budget, highlighted below. This budget represents a conservative scenario of renewal contributions as well as bringing new funders to our cause. Expenses are increasing due to the planned addition of four new FTEs, along with related growth expenses for the expansion of the team. This scenario will leave the organization with an ending fund balance at 12/31/25 of $5.4M or 9.91 months of cash on hand at this new scale.

Income

In 2024, ExampleOrg raised a total of $6.3M in contributions from foundations and individuals. The 2025 budget for contributions includes two existing commitments as well as likely renewals from the donors listed below:

In 2024, the budget assumed $300K of additional funding to come in from unknown funders as well as upside in renewal conversations. We exceeded this amount in 2024, therefore in this next budget year we are increasing the amount to $500K. Our goal is that a maturing organization will be able to secure more multi-year funding commitments in 2025.

The 2025 budget also reflects $180K in expected earned income, as we continue to explore this revenue stream.

Expenses

2025 budgeted expenses total $5.8M, which is a 66% increase over 2024 expenses. Expenses consist of:

Personnel: the team will grow from 9 FTEs to 13, as we plan on adding 4 new full time staff in Q1/Q2 2025. All incremental staff will be programmatic, focused on executing state and policy work, rolling out new programs.
Professional Services: consultants will continue to be utilized for both programmatic work, as well as to support general, administrative (G&A), and fundraising functions as the organization grows to scale. Increases of professional services from 2024 expense levels consist of:

Communications provided by Vendor Name
Strategic planning work continuing in the first half of the year
Finance support expenses are increasing as the organizations grows in complexity and due to cost of an audit
Implementation costs for a new CRM system to better systematize programmatic outreach
Recruiting expense is budgeted to assist in finding new FTEs

Travel, Conferences & Events: budgeted amounts increase along with FTE growth
IT & Other Expenses: budgeted to support a disbursed, virtual organization

2025 Expenses will be tracked by “Class,” to ensure IRS requirements to segregate lobbying, G&A, and Development expenses from Programmatic work.

Fund Balances

We expect to end 2025 with a fund balance of $5.7M, which represents approximately 9.91 months of cash on hand. This exceeds our benchmark of maintaining our reserves to 6 months of cash on hand.

How to Make This Yours

Option 1: Start from scratch using this structure

Copy the headers and table formats. Replace with your numbers. Add your narrative.

Option 2: Use AI to help

What to upload:

This sample memo
Your budget spreadsheet (or even just key numbers)
Any context about what your board typically asks or worries about

The prompt: "Using this memo as a model, draft a budget memo for my board. Here's our budget data. Our key narrative points are: [we're in contraction/growth/steady state], [our biggest change from last year is X], [our board will want to know Y]."

Pro tip: After AI generates a draft, review it carefully — AI is good at structure, but you know your board and your story. Pay special attention to the "why" framing and make sure it sounds like you.

Take what's helpful, leave what’s not and make it your own - ALWAYS.

When a Template Isn't Enough

This memo shows you what to include. It doesn't tell you:

Whether your assumptions are actually realistic (or optimistically hopeful)
How to present a deficit budget without panicking your board
What to say when a board member challenges a specific line item
How to handle the politics of who sees drafts before the meeting

If you're presenting a tough budget — contraction mode, first time as ED, board that asks hard questions — sometimes you want someone to look at your draft before the meeting.

→ Book a budget review session with Andrea Chen at andrea@magnoliabloom.co— she'll review your memo and help you anticipate the questions.

Related Resources

Scripts for your Budget Convos — Language for presenting to your board and handling tough questions
Budget Workplan + Template — The full timeline for building your budget

This memo is from Amy Omand's article "Budget Building That Delivers" — read the full piece for the process behind the document.

Article & Resource Tags

Sample Budget Memo for Board Approval