charitable giving could be achieved through a letter writing campaign, a Performance Budget would be build to include the costs of stamps, printing, envelopes, and staff time needed to achieve this outcome. Performance based budgeting can help maximize the use of limited resources by creating performance measures that connect budgetary facts to decision making. In a mission-driven organization like AORE, this method of budgeting helps integrate the values of the Association with management and operational and financial accountability. To be effective, a performance budget begins with specific and measurable outcome goals.
A Performance Budget begins with a thorough understanding of the mission statement - the AORE’s basic purpose and primary reason for existence. The Board identifies priorities that support the execution of the mission. This allows AORE to set clear organization and program
goals, make sure that current and proposed programs and activities are appropriate, focus resources productively, determine the specific activities and expenditure that should be maintained and the ones that should be reduced or eliminated.
Budget Development Process
In 2016, the AORE adopted a Budget Development Process and Timeline to provide clarity and guidance for how budgets are created, vetted, and approved. This process allows for efficiency and accuracy in budget development and approval to ensure that committees and staff know what the AORE’s priorities are and what programs and initiatives will be funded so work can continue uninterrupted.
AORE’s Budget Development Process includes the following benchmarks:
1. The Board of Directors develops and approves the following fiscal year’s objectives and priorities
2. Committees work with the Executive Director and President to plan the committee work that will support the defined objectives and priorities
3. Committees provide information about the budgetary implications and financial support needed to carry out the work
4. Staff review current year’s income and expense and forecast to the end of the fiscal year
5. Accounting for all of the input and operationalizing the Board’s defined objectives and priorities, the Executive Director prepares a draft budget
6. The Executive Director and Treasurer meet to discuss budget draft and make revisions
7. The revised draft budget is sent to the FAC for a review a discussion
8. The Executive Director prepared a Final Budget Proposal and submits it to the Board of
Directors to review
9. The Board of Directors meets to discuss the budget and vote to approve the Final Budget
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