Developing Bridges Center Grant Proposal: A Budgeting Case for a Nonprofit Organization

The case study introduces the challenges and unique accounting needs of nonprofit organizations, particularly in budget preparation and the grant proposal process. The case is designed for courses that focus on not-for-profit accounting or managerial accounting. As students are becoming more interested in social responsibility, this case provides an opportunity for students to develop a deeper understanding of budgeting concepts by introducing a nonprofit perspective into the budgeting material traditionally covered in a managerial accounting course. Students learn about differences in budgeting for a nonprofit organization compared to a business that operates for profit including sources of revenue, mission-driven focus, receipt of in-kind donations, unbalanced budgets, the role of the board, and data availability. Students are required to use problem-solving skills and external resources to estimate amounts to create a budget for a nonprofit organization in a scenario where information is incomplete, much like a real-world situation