Your initial post should be at least 300 words on each discussion post and credibly supported by at least one brief cited and referenced current scholarly source no more than 7 years old. The post should focus on current realities. APA format, and references.

Week 3 – Discussion 1

Fixed versus Flexible/Variable Expenses

Evaluate how fixed and variable costs can differ based upon the industry. Which would you prefer to have more of in terms of expenses (fixed or flexible)? Provide rationale for your choice. Your initial post should be at least 300 words.

Resources

Readings

1.Textbook:

Dropkin, M., Halpin, J., & LaTouche, B. (2007). 

The budget-building book for nonprofits

 (2nd ed.). Jossey-Bass. 
       Chapter 14: Major

Components of Operating Budgets

2. Article:
    Chevarley, F., Owens, P.L., Zodet, M.W., Simpson, L., et al. (2006). Health care for children and youth in the United States: Annual report on patterns of coverage, utilization, quality, and expenditures by a county level of urban influence. Ambulatory Pediatrics, 6(5), 241-64.
3. Videos
    McCarthy, J., [goldstarjimmccarthy]. (2010, September 1). Difference Between Fixed and Variable Costs – Quick Draw with Jim McCarthy, Goldstar CEO [Video File]. Retrieved from 

https://youtu.be/wBBfA9q8FSQ (Links to an external site.)

   BPMSG, [BPMSG]. (2010, February 23). 06 Operating Expenses Fixed and Variable (Business Performance Management) [Video File]. Retrieved from 

https://youtu.be/Xc6F5rMCM40 

Week 3 – Discussion 2

Justifying Fixed and Flexible Expenses

Discuss how you would justify a budget’s fixed and flexible expenses to a board of directors or grant funding agency. What negotiation or conflict resolution strategy would you recommend if the board or agency does not accept the initial justification? Your initial post should be at least 300 words. 

Resources
Readings
1.Textbook:
  Dropkin, M., Halpin, J., & LaTouche, B. (2007). 
The budget-building book for nonprofits
 (2nd ed.). Jossey-Bass. 
       Chapter 14: Major Components of Operating Budgets
2. Article:
    Chevarley, F., Owens, P.L., Zodet, M.W., Simpson, L., et al. (2006). Health care for children and youth in the United States: Annual report on patterns of coverage, utilization, quality, and expenditures by a county level of urban influence. Ambulatory Pediatrics, 6(5), 241-64.
3. Videos
    McCarthy, J., [goldstarjimmccarthy]. (2010, September 1). Difference Between Fixed and Variable Costs – Quick Draw with Jim McCarthy, Goldstar CEO [Video File]. Retrieved from 
https://youtu.be/wBBfA9q8FSQ (Links to an external site.)

   BPMSG, [BPMSG]. (2010, February 23). 06 Operating Expenses Fixed and Variable (Business Performance Management) [Video File]. Retrieved from 
https://youtu.be/Xc6F5rMCM40 

Week 3 Instructor Guidance

“How wonderful it is that nobody need wait a single moment before starting to improve the world.” – Anne Frank

 
Components of Operating Budgets

In your readings this week, Dropkin, Halpin, and LaTouche (2007) describe the major components of operating budgets. The authors provide an easy-to-use blueprint for accomplishing this task. While Chapter 14 is the only chapter required for you to read in the textbook this week, please note that this very short chapter also references both the previous chapter and the chapter that follows. I encourage you to incorporate those chapters into your readings as well. Doing this will help you best understand the concepts! Combined, these are short chapters, but they have a great deal of very important information- especially for those new to the process of budgeting. I won’t repeat the information in your text here, but trust that you will attend to the materials thoroughly this week. Both of your discussion questions are based on these readings. 

You have one article to read this week, which relates to disparities in pediatric healthcare. Chevarley, Owens, Zodet, Simpson, et al. (2006) present interesting findings from their data analysis. This is the type of research article that helps to provide justification for budget items. For example, this article could be referenced to support health education in urban areas or culturally-specific healthcare materials to low-income urban families. As you prepare your own budgets and corresponding justifications, consider similar articles that support your cause. There are many databases out there and many research articles that can be used to lend support for why your nonprofit’s issue is important to fund. Adding a study or including statistics helps to show that your cause is viewed as important by others as well!

You have two videos to view this week. Both of these will help with your discussion questions and should provide you with additional information regarding budgeting concepts. You may need to watch the second video several times as the information is very technical. Please make use of the extra time you’ve gained with less reading this week to understand the information in this video! I’ve added one website for review this week (which was already included in my weekly announcements). The link below supplements your text in my opinion. I also encourage you to explore other areas of the Nonprofit Central’s website. For anyone in the human services, there is a great deal of relevant information on Nonprofit Central’s website.

·

Budget making for nonprofit organization (Links to an external site.)

References

Chevarley, F., Owens, P.L., Zodet, M.W., Simpson, L. et al. (2006). Health care for children and youth in the United States: Annual report on patterns of coverage, utilization, quality, and expenditures by a county level of urban influence. Ambulatory Pediatrics, 6(5), 241-64. 

Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). San Francisco: Jossey-Bass.

Nonprofit Central. (n.d.). Budget making for nonprofit organization. Retrieved from http://www.startnonprofitorganization.com/