Strategic budgeting can present unique challenges in all types of organizations large and small. Being aware of these obstacles can help you better prepare to address them when they arise.

Strategic budgets are not “set it and forget it” exercises. In order to remain effective and relevant, the budget must be reviewed regularly. Depending on an organization’s size and complexity, they should generally review their actual performance against their budget on a monthly or quarterly basis.

Strategic budgeting is a critical tool for effective planning, growing sustainably, and your organization’s long term financial health. A well-crafted budget allows leaders to be comfortable with various possible scenarios, identify priorities and align resources to meet organizational goals.

Sorting out whether a nonprofit has unrelated business income and whether they need to pay unrelated business income tax can be daunting. The general public often assumes that nonprofit organizations pay no taxes. In reality, tens of thousands of nonprofits report billions in taxable income and hundreds of millions in unrelated business income tax annually. While many nonprofit organizations don’t have unrelated business taxable income after subtracting deductions, it is important to do a thorough evaluation. An unexpected unrelated business income tax can be a major expense.