Fundamentals

Nonprofit Roles

Nonprofit Functions

Nonprofit Tools

Having an allocation table will help you organize your finances, which is part of your role as a manager.

An allocation table helps you be in compliance with the restrictions that some income may have. Like some grants or donations that are given for specific purposes. It also increases the overall transparency of your organization to all your funders, whether they have given you restricted gifts or not. It shows them how you are allocating their funds. And most importantly, it shows them that you are not allocating their funds to the same expenses you are allocating the funds of other sources of funds.

An allocation table also helps you with your planning. You can use it to identify expenses that you haven’t covered yet, or to figure out how to move unrestricted funds around, or negotiate restrictions with funders.

You can also use it as a governance tool, to communicate the financial situation of your nonprofit with your Board of Directors. And if you are a Board Member, you can request this table from your staff.

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