Here’s an actual example of how Amy Omand presented the budget numbers to one of the Boards’ she works for for approval. All the numbers AND all the context!

AI Prompt

Create your budget memo with AI! Instead of just asking AI to produce something, build from here so you have a base to ensures it’s drafting you something that has a strong foundation!

- Talk it out with AI — Upload the recommended docs (scroll down!) and start with: Prompt: "I'm preparing a. budget memo for my Board building on this example that Helia' is sharing (insert link). Interview me about my situation so you can help me customize it. Ask me one question at a time." Please make sure to include questions on our financial context, the biggest budget shifts we have had and any specific questions I think the Board might lift up.
- Paste & go — Upload the below prompt to your AI service (Claude, ChatGPT, etc.) + the recommended docs (scroll down!), and ask AI to help you fill it in
- Last year's budget and/or actuals (including a previous budget memo you may have shared with the Board)
- This year’s proposed budget
- Your current chart of accounts (even if it's messy!)
- Monthly/quarterly financial reports from the past year
- Any additional notes, presentations, emails, etc. from recent financial conversations with leadership or board
- Voice memo of you talking through what's hard about this year's budget
- Link to this article(!) + any of the resources (automatically added to the prompt below!)
We’re preparing for our annual Board meeting to approve next fiscal year’s budget. Here's our situation:
- Our financial context is: [abundance/steady state/contraction - describe briefly]
- Our biggest budget shifts this year have been: [describe - e.g. shifting funding landscape, inflation, rising expenses, uncertain government contracts, multi-year grants, etc.]
- Specific questions I think the Board might lift up: [list any specific challenges or dynamics - e.g. confidence in revenue projections, significant changes year over year, reserve levels, etc.]
Based on Helia’s article with Amy Omand's article about human-centered budgeting, help me create a strong budget memo I can share with our Board.
Make this practical and specific to our organization's reality - pull only from the budgets and numbers I am providing and do not make anything up.

Additional links + resources to leverage as you answer the above -
- Helia’s article: https://www.theheliacollective.com/library/article/budget-building-that-delivers-ux-lgbnx
- Helia’s sample budget memo: https://docs.google.com/document/d/1ARMzrlhC9DZwSmCgzSB8aeyLXgWOQIWYsgyegWGc-UU/edit?usp=sharing
What questions do you have or additional information do you need to put this together?

Quick reminder: always remember to ask AI if there’s anything else they need to make this stronger and/or what else they might recommend!

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.

Article & Resource Tags

Sample Budget Memo for Board Approval