RESOURCE CENTRE MANUAL
HEALTHLINK WORLDWIDE
2.3 Financial planning
Responsibility for major financial decisions is likely to rest with a senior
member of staff of the organisation or institution hosting the resource centre.
The resource centre advisory committee may be involved in helping to set
spending priorities. Resource centre staff can manage expenditures for smaller
items up to an agreed value.
Financial planning involves:
• establishing the financial needs of the resource centre
• identifying assured and potential sources of income, including income-
generating possibilities
• drawing up regular – usually annual – budgets
• developing a plan for fundraising.
2.3.1 How to establish financial needs
Identifying the financial needs of the resource centre is the first step in financial
planning. It means looking at the resource centre’s objectives and planned
activities, and working out what it will cost to meet these objectives and to
carry out the activities. This initial financial planning exercise is very similar to
drawing up a detailed budget. However, it should include all the things you
want to be able to do, in an ideal situation. It should cover a fairly long period,
such as three years or five years.
A budget is usually a more defined tool which sets out in detail a realistic
expectation of what it actually will be possible to do. It usually covers a shorter
period, such as a year.
Both in the larger exercise of identifying the financial needs, and the more
detailed annual budgeting, it is important to include all the expected costs of
running a resource centre. You will need to find out prices or obtain estimates
from suppliers. Costs include capital costs, recurrent costs and possible special
project costs.
Capital costs are for items that are bought once (or infrequently) and then used
for several years. They include the costs of setting up a resource centre, or of
replacing essential equipment or materials, such as:
• furniture
• computer equipment
• photocopier
• video
• duplicator
• overhead projector
• typewriters
• heaters/air conditioners
• bookshelves.
SECTION 2: MANAGEMENT AND FINANCE
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