Question

Funding Proposal for the YMCA - Budget

Funder: Happy Go Lucky Foundation, a private foundation started in 2011 with the mission of improving health and human services in Tennessee.

Grant Amount: $25,000 per year for three (3) years

Grant Focus: Three interconnected issues that represent the biggest levers in permanently moving individuals and families out of poverty- housing, education and jobs. Through our grants, we want to increase housing stability, improve educational achievement and ensure financial stability. When applying for a grant, you only need to address one of the following funding priorities.

Provide a budget that details how the grant will be spent. Up to 20% of the grant can be used toward overhead. The grant can be used toward staffing. It cannot be applied to a capital campaign or endowment fund.

Answer 1

Before starting with the solution , let us understand what a budget is .

Budget : A numerical statement showing expected results for a particular period of time .

Now , Results can be in the form of Time (in minutes/hours ), Money (In Dollars),Marks or any other item that can be quantified or expressed in terms of numbers.

The second thing for a budget is that it is always for a particular period of time .

For example, You are allocated 3 hours to attempt the "operations research " exam question paper. Here 3 hours represent the budgeted time for you to solve the question paper on a given day(day of your exam)

or you can say that you have got 3 hours(period of time) to get the maximum possible marks (say 100) .

Interpretation may vary from situation to situation.

Now that you know what exactly a budget is , let us solve the given problem.

Let us have a look at the key focus points before preparing the budget :

1).Grant amount : 25000 USD per year

2).Overhead spending limit = 20% of Grant Amount '

Note : Overheads means all the indirect expenses like staff salaries, administrative expenses,etc. that are not directly related to products or services sold.

3). There are 3 priorities for the budget (only 1 is to be addressed now )- Housing , Education and Jobs.

Also, the funds cannot be used for Capital Campaign (ad campaign ) or an endowment fund to finance expenditures.

Note : Grant amount can be used to get employees on board.

As per the above information, a budget that details how the grant would be utilized annually is presented below in the form of a table:

Following Assumptions are made while creating the above budget :

• Staffing and Recruitment expenses will amount to negligible as people will be hired for honorarium or for a nominal fee for providing services
• Maximum amount of 18750 USD has been allocated every year towards education of youth because people when educated will be able to earn more and provide for themselves on their own.

Hope the answer helps you .