Although the Treasurer plays an important role in preparing the budget, the Assembly as a body is responsible for developing the financial plan, as the budget is often described. The task of preparing the budget should begin in February or March with local committees submitting estimates of resources they will need during the coming year.

Alternatively, the Assembly may advise its committees how much it is prepared to provide during the coming year, based on its assessment of goals and income, and ask them how they will spend an allocated portion of the total in order to get the best results. The Assembly, possibly with the aid of a Budget Committee, then develops a proposed budget. The Budget Worksheet and the Financial Report to the National Spiritual Assembly are tools which include budget templates that may be useful; both are available in the Treasurer’s Tools.

The Local Spiritual Assembly needs to set a goal for its own contributions to the various Funds. In order to set these goals, the Assembly should consult on the amount of money it plans to provide to the Funds during the year. One method of estimating this amount is to use contributions of recent years as a guideline. The Assembly would wish to consider increasing its goals to offset the effects of inflation. When the Assembly arrives at goals that are challenging, divide this amount by nineteen. The resulting number is called the Monthly Contributions Goal; individual goals for the major Funds may also be set.

There are priorities for contributions which have been set by the Guardian and the Universal House of Justice. Regular giving to all the senior Funds should be a consistent pattern for the Local Fund, just as it is for the National Bahá’í Fund. This continuous and regular flow of money through the Administrative Order strengthens the Cause both in this country and throughout the world.

Once your Assembly decides the monthly amount it wishes to contribute to the National Bahá’í Fund and the International and Continental Funds, it is then the Treasurer’s obligation to make sure this contribution is sent with unfailing regularity.

The third column of the Budget Worksheet is used to develop a proposed budget for the New Year.

To prepare such a budget, we suggest that the Assembly use a procedure similar to the following:

● Decide some short- and long-range goals for the growth and development of the community. These goals will be modified as programs are actually carried out and circumstances change, but by consulting about some of the alternatives, the Assembly and community increase their capacity to use new circumstances for the Faith’s benefit.

● Review committee requests for resources (or make tentative resource allocations).

● Include an annual payment (currently at least $175) to help defray the cost of the Liability Insurance the National Spiritual Assembly provides for each Local Spiritual Assembly.

● Estimate available resources such as money, human resources, supplies and equipment. A good way to estimate how much money you will have to work with is to look at past years’ levels of contributions. Then adjust this number up or down according to the current condition of your community.

● Make plans to win your community’s goals; these should be as specific as possible with room for flexibility. Decide how and when the plans will be carried out. Ideas can come from the Assembly, its committees and from the community, either at the Feast, or through meetings specially called for this purpose.

● Estimate the cost of each plan.

● Arrange the plans in order of importance.

● If it looks as if your plans are going to cost more than you will have (which is usually the case), now is the time to balance the budget. Try adjusting your plans, cutting unnecessary costs or finding less-costly ways of accomplishing the same goal—creativity is important here! Some projects may have to be eliminated, starting with those of lesser importance.

● Fill in the dollar amounts for each category of the proposed budget. (NOTE: After the first five steps have been completed, the Assembly may want to appoint several individuals—a budget committee—to develop a proposed budget for the approval of the entire Assembly.)

Since the budget takes the Assembly’s plans and goals and expresses them in financial terms, it also becomes the basis for everything the Treasurer does during the year. Checking the budget regularly ensures that resources are being used as intended. There may be times during the year when the Assembly will want to make changes in its budget due to changing conditions in the community.