Creating a budget

When you are working on your own initiative or project, in a lot of cases you have to deal with money. Often there are costs associated with its realization. In order to cover and pay those costs you will have to arrange financing, or in other words you will have to generate income. Sometimes this only involves a few amounts but it quickly becomes complex. Therefore, it is always advisable to prepare a budget.

What is a budget?

A budget is a schematic statement in which you list what all the costs are and what the revenues are in return. You put costs on one side and income on the other, or you put both parts together. A budget is always balanced, which means that at the bottom the costs (expenses) and the revenues (income) are equal. If the expenses are higher than the income then you are short of money (you have a loss) and if the income is higher then you have money left over (you have a profit). In both cases you include this in the budget. When you are dealing with subsidies or funds, however, your budget will always have to be balanced because then you cannot make a loss or a profit.

Why do you make a budget?

You make the budget primarily for yourself. This gives you an overview of the financial flows you expect around your initiative or project. You can keep it up to date and adjust it as the initiative or project develops and several issues become clear. Supplying a budget is also always a requirement when applying for grants and funds. This way, the person evaluating the application can clearly see what the costs and income are and what the proportion of the contribution is.

What's in the budget?

The budget will reflect all the costs you expect to incur. If it is a somewhat larger initiative or project, you can use different headings so that the budget becomes clearer. In that case, for example, you put all items related to production together and do the same for all program components, personnel expenses and communication. On the other side of the budget you list all income and here too you can make a distinction between, for example, grants and funds, sponsorships and audience income.

How do you create a budget?

You can create the budget in several ways. Most people use Excel or Word (or similar software) to do this. You then create a table in which you list the various data. You separate the expenses from the income. This can be side by side or below each other, there are no rules for that. Make sure the budget is neatly formatted, clear and pay close attention to spelling. It is not inconceivable that your budget will change during the development of your initiative or project and that you will adjust it as you get more clarity on costs and income. It is advisable to save several versions so you can always review how it has developed.

Examples of budgets

We have several budget examples ready for you:

• Click here for a sample statement of expenses and income
• Click here for an example of a simple project budget
• Click here for an example of a more comprehensive project budget
• Click here for an example of a very comprehensive budget, focused primarily on performing arts applications.

If, from your expertise, you yourself have knowledge that would fit this topic, or if you see opportunities to improve this text, we look forward to receiving your message at info@cultuuracademy.nl.