Budget image from Shutterstock.
Our goals for 2016 include targets for raising more money, including from our upcoming reader drive, foundations, and corporate sponsors. When we posted the goals recently, some of you asked to hear more about our budget and why it’s getting bigger.
Last spring, Greater Greater Washington was in a very different place financially. We had just formally set ourselves up as a nonprofit organization,* and through the reader drive and gifts from our board, editors, we were pulling in enough to pay for a half-time editor (Jonathan Neeley).
However, editing the blog is much more than a half time job, and a part-time job is not a recipe to keep someone for the long haul. Our all-volunteer editorial board and board of directors were amazing, but most are far more interested in urban policy than running fundraisers. What to do?
What it takes to be sustainable
We could pull off an annual reader drive, but that alone would not make a sustainable organization. We especially needed someone to run the organization — to do all the financial tracking and tax filings and office policy writing and fundraising that it takes. Plus, there was a lot more we wanted to do — write more about topics besides transit, especially housing; about Maryland and Virginia and east of the Anacostia; about politics, education, and more.
Fortunately, the Open Philanthropy Project wanted to fund organizations that care about how not enough housing for everyone pushes housing costs up and up. A combination of a direct gift from Cari Tuna and a grant to our fiscal sponsor* funded us to grow to three people: Jonathan full-time, a Managing Director (Sarah Guidi), and a Housing Program Manager, who we’re working on hiring.
Big opportunity, big challenge
This is a big opportunity and we’re really excited about it. It’s a chance to make the blog better, and also achieve far more than we can by “just” running a blog. We’re doing this to make the city and region better, and want to find ways to actually push the ideas we discuss toward action. This is chance to do that.
It also creates a big challenge. First, we have to do a great job with the housing program Cari Tuna and Open Phil have funded. Second, even though this grant let us grow to three staff, they didn’t give us 100% of what we need to operate with three people. They provided two years of funding, but there’s no guarantee (far from it) that we’ll get another grant from them. So, we need to raise more money to keep Greater Greater Washington going at the current level.
Here’s our budget
Greater Greater Washington’s budget for 2016 is $253,126. This budget is a projection. It reflects what we think it will cost to run the organization in 2016 at this new level of growth.
Most of the time, organizations look at the previous year’s expenses to inform the current year’s budget. Since this time last year Greater Greater Washington was still a mostly volunteer organization with no full-time staff or office, we didn’t really have a budget. So, we had to build one from scratch. Our actual revenues and expenses may look a bit different at the end of the year, but we will aim to keep our revenues and expenses aligned with this board-approved guideline.
What we have to pay for
Management and the board predict it will cost approximately $253,000 to run the organization in 2016. That includes running the blog, carrying out the housing program, and exploring other projects that can further Greater Greater Washington’s mission. Here are the main categories of expenses we anticipate in 2016.
|FY 2016 Greater Greater Washington Organizational Budget|
|Computer and web||20,210|
|Total expenses||$ 253,126|
- Personnel: salaries, benefits, and payroll taxes for three, full-time employees (Staff Editor, Housing Program Manager, and Managing Director)
- Computer and web: server and hosting fees, plus costs for website upgrades (we are planning to move the blog to a real modern platform this year).
- General operating: rent, insurance, legal and accounting costs, professional development, processing fees to receive donations, printing, office supplies, etc.
- Reserve: It is good practice for a nonprofit to build a reserve that can be used to make up for the unexpected loss of a funding source, to purchase equipment not covered in a grant, or to invest in opportunities that will generate additional revenue.
Where the money will come from
Here are the types and amounts of funding we plan to raise in 2016:
|Fiscal Year 2016 Greater Greater Washington Organizational Budget|
|Individual donors||$ 72,500|
We’re hoping to have foundation funding plus donations from individuals (the reader drive and some large gifts) make up almost 95% of our revenue. Sponsorships from corporations and income from providing services for a fee (earned income) would make up the other 5%.
Other than the reader drive and the foundation funding from Open Phil, these categories are something of a guess as we don’t have specific committed revenue for any of these yet nor do we have past years’ experience with them. Therefore, there’s a good chance the end totals might shift a lot. That’s also why the numbers don’t all add up to exactly the same as the expenses. We may, however, need to go far above in one of the categories to make up for coming in far below in another.
We hope this is helpful. Please keep the questions coming. One of our major values, as a community-driven site, is being open with you about some of what’s going on behind the scenes. Thanks for being a part of our community!