Budget Justification Strategies

When it comes to budgets, “the worst they can say is no” is awful advice. The worst outcome of asking for more budget isn’t no – it’s damage to your boss’ perception of your business judgment. The best budget requests do three things: demonstrate awareness of the context, make a clear and obvious business case, and move with urgency if you get a “yes.” Here’s my best advice for getting approval for a budget request (and building credibility in the process): - Read the room. Show you understand the business context – the state of the business, availability of resources, and your status compared to other leaders or teams. - Ask yourself, “What would my skip level think of this request?” If it seems trivial or distracting, reconsider the ask. - Be obvious, not persuasive. I don’t want a sales pitch. I want a sharp, concise business case with indicators of 5-10x ROI. - Make the ask clear in the first 60 seconds. You’d be surprised how FEW people do this. - Show you thought about alternatives. Most CEOs will ask “can AI do this?” (especially if you ask for headcount). Present a table with the choices you considered before asking for money. - Don’t use bullshit rookie moves like, “This candidate will walk if I don’t get the budget now.” These “pressure tactics” might work on inexperienced leaders – but they will hurt your credibility with seasoned bosses. - If you get a yes, move fast. If you get a no, be gracious. And either way, ask why. You can learn a lot AND correct misaligned expectations this way. What would you add? If you want to save this post and go deeper, I wrote about it this week: https://lnkd.in/g5gETxYs

"Before You Pitch to a CSR, Do This—Or Risk Losing the Funding!" Securing funding isn’t about luck—it’s about preparation. Before you step into that meeting with a CSR head or an HNI, make sure you’ve checked off these non-negotiables: 1. Deep Dive into the Funder’s Priorities Visit their website, go through their CSR reports, and analyze their past grants. -Check if they fund multi-year projects or just one-time grants. -Find out their average grant size—you don’t want to ask for ₹5 Cr when they typically fund ₹50L projects. 2. Map Your Impact to Their Goals If they focus on livelihoods, don’t just say “we work on skill development.” Instead, say: -“In the last 2 years, we trained 2,500 youth, and 68% secured jobs within 3 months.” If they fund education, show how your intervention leads to higher attendance, better learning outcomes, or increased enrollment of girls. 3. Know Your Numbers Cold -Cost per beneficiary—How much do you need to impact one life? -ROI of your intervention—If they invest ₹10L, what measurable change will happen? -Scalability—What will ₹1 Cr achieve? What about ₹5 Cr? Always be ready with multiple funding scenarios. 4. Prepare a Logical Budget (Not Just a Wish List) -Show a breakdown of expenses—admin vs. program costs. -Justify overheads—Funders won’t pay 50% for salaries unless you show why it’s crucial. If you’re co-funded, mention who else has skin in the game—this builds funder confidence. 5. Anticipate and Pre-Answer Objections -“What happens when funding ends?” → Have a sustainability plan. -“How do you measure impact?” → Show data-backed tracking methods. -“How are you different?” → Be crystal clear on what sets you apart from other NGOs. 6. Have a Follow-Up Strategy (Because One Meeting Won’t Seal the Deal!) If they say "We’ll think about it", don’t just wait—ask for a follow-up call in 2 weeks. Share an impact report or a 2-minute video testimonial post-meeting to engage them. ✌ If they say no, ask, “What would make this a YES in the future?” Many funding decisions take months! 👉 The best pitches don’t just inform—they inspire funders to act. Are you ready for your next big pitch? Let’s make it count! #Fundraising #CSR #HNI #PitchingTips #ImpactFunding #NonprofitSuccess

Some CAEs struggle to get new initiatives off the ground because they can't secure approval from their managers to invest time or allocate budget. This could involve anything from changing their approach to SOX compliance, participating in a special project, or requesting budget for additional technology or headcount. However, I've often found that their manager isn't necessarily rejecting the idea or initiative itself, but rather responding to how it's being presented to them. Here are three strategies I've witnessed CAEs use to be more successful in their efforts seeking approval or budget. 1. You need to ask more than once Senior executives often initially resist new ideas. They need time to consider proposals and determine if the problem is worth addressing. Too often, I've seen CAEs give up after a single "no," without realizing they've only made one attempt. There's a sales adage that "it takes 13 no's to get to a yes." While 13 attempts may be excessive, internal audit leaders should recognize that socializing and campaigning for their ideas takes time—often 3, 6, or even 12 months. This process involves making both direct and indirect appeals. Initial rejections are part of the journey. Expect them, learn from them, and refine your proposal based on the feedback you receive each time you're turned down. 2. Organize your tribe Another reason internal audit leaders' requests are denied is that they make their asks alone. If your special project will have a positive impact on your company, enlist the help of your peers and managers to make the case. It will be harder for a manager to decline your request (at least outright) if you have support from leaders of other departments. For example, if a CAE is attempting to purchase technology to automate their SOX tasks, those who have enlisted the help of their Controller, Assistant Controller, and InfoSec teams have been far more successful in receiving the budget they need, compared to going it alone. 3. Social proof Executives may dismiss your requests due to a lack of context regarding its importance. To address this, consider providing relevant, external perspectives to further your cause. If you can connect external insights to the executive's ecosystem, you're more likely to succeed. For instance, if you're trying to shift audit's focus to be more risk-based, but your CFO wants to maintain the status quo, gather data on what other audit teams in your industry or region are doing. To go a step further, investigate how audit teams operate at your executives' previous companies. Is your Audit Committee chair serving on another Board's Audit Committee? How do they manage their audit function? Does your external audit partner have clients with more modern audit department practices? Aligning your request with concrete, relevant examples of industry and market trends can significantly increase your chances of approval. AuditBoard #InternalAudit #EnablingPositiveChange

Less Federal Funding = More Competitive Grant Writing = Stronger Justification & Outcomes With federal and state funding becoming increasingly competitive, securing grants isn’t just about identifying a need—it’s about proving impact, justifying every dollar, and demonstrating long-term value. Funders are looking for investments that yield measurable results and financial accountability. To compete, organizations must go beyond writing strong proposals and focus on building data-driven, outcome-oriented programs that stand out in a crowded funding landscape. How to Strengthen Your Grant Strategy in 2025 1️⃣ Set SMART Goals That Prove Impact Funders want to know exactly how their investment will drive change. Set clear, outcome-based goals that align with their priorities. ✅ Specific – Clearly define what you’ll achieve (e.g., “Provide job training to 150 small business owners in 12 months”). 📊 Measurable – Quantify the expected impact (e.g., “Increase employment by 20%” or “Launch 50 new businesses”). 🎯 Achievable – Base targets on past performance and industry benchmarks. 🔗 Relevant – Align goals with funder priorities (e.g., workforce development, environmental resilience). ⏳ Time-Bound – Set a clear implementation and reporting timeline. 2️⃣ Use Data-Driven Storytelling Winning proposals blend compelling narratives with hard data. Funders need both the numbers and the human story to make informed decisions. 📌 Leverage national and local data to quantify the problem. 📌 Showcase past program success to demonstrate credibility and effectiveness. 📌 Incorporate real beneficiary stories to connect funders to the impact on a personal level. 3️⃣ Justify Every Dollar in Your Budget Funders scrutinize budgets for transparency and ROI. Tie every line item directly to measurable outcomes. Example: Instead of requesting a lump sum of “$500K for program expansion,” break it down: 💰 $200K for staff = 300 additional participants served. 💻 $150K for technology = 40% faster service delivery. 📢 $150K for outreach = 25% increase in community engagement. Funders will ask: Why this amount? Why this allocation? What’s the return on investment? 4️⃣ Demonstrate Sustainability & Scalability With fewer dollars available, funders prioritize projects that create long-term impact. Strengthen your case by showing: 🔄 Diverse funding sources (public-private partnerships, earned revenue). 📈 Scalability (how the project can expand or replicate). 💡 Federal and state dollars are shrinking, but outcome-driven, evidence-backed proposals will rise to the top. Winning grants in 2025 requires more than strong writing—it demands a strategic approach. The organizations that secure funding will be those that justify their requests, prove measurable impact, and design programs built for lasting change. #GrantWriting #FundingStrategy #SMARTGoals #Nonprofits #ImpactMeasurement #CompetitiveGrants

BUDGETING FOR FUNDRAISING BIDS Effective budgeting is paramount to securing funding. Crafting a compelling budget goes beyond numbers; it's about presenting a strategic financial plan aligned with your mission/goals and the requirements of the prospective funder. You should: 1. Understand Your Scope/Objectives Begin by defining the scope and objectives of your project. What are you aiming to achieve? Outline the activities, milestones, and deliverables required to accomplish these goals. Understanding the intricacies of your project will enable you to accurately estimate costs. 2. Research Costs Research is fundamental to building an accurate budget. Explore all potential expenses associated with your project, including staff/volunteer costs, equipment, materials, and overheads. Engage with suppliers to gather quotes and negotiate where possible. Factor in a contingency 'pot' to ensure financial resilience throughout the project lifecycle. 3. Allocate Resources Wisely Allocate resources based on project priorities. Identify critical areas requiring substantial investment versus those operating with minimal resources. Optimise resource allocation to maximise impact and demonstrate efficiency in how you will use funders' donations. 4. Be Realistic Yet Ambitious Strive for a balance between realism and ambition in your budget projections. While it's crucial to be conservative in estimates, avoid undervaluing essential costs. Present a budget that inspires confidence in your ability to deliver tangible outcomes. 5. Consider Sustainability and Longevity Incorporate sustainability by demonstrating how your project will have lasting effects beyond its implementation. Highlight investments that contribute to long-term impact and resilience. 6. Justify Components Clearly Every line item in your budget should be justified. Provide explanations for how you have derived each expense to build credibility and transparency. Ensure that funders understand the correlation between budget allocations and project outcomes. 7. Tailor Budgets to Funders Requirements Familiarise yourself with funders' priorities and preferences then customise your budget to align with these. Adapting your budget to match funder expectations enhances both eligibility and competitiveness. 8. Review, Revise, and Iterate Budgeting is iterative. Continuously review and revise your budget based on feedback and changing project dynamics. Solicit input from colleagues and experts to refine estimates and enhance coherence. Effective budgeting can significantly influence the success of bids and adopting a strategic approach to budget development/presentation can elevate your ability to secure vital resources for meaningful projects. If you need help to bid for funds or to develop well-structured and planned projects/project budgets @Heaward Solutions can help! #notforprofit #community #charity #socialenteprise #cic #fundraising #grants #financialmanagement