Nonprofit Budgeting: The Matrix Map

Do you have to make difficult budgeting decisions this year? Might the Covid-19 pandemic have made it extra hard? Might you need to cut back on a program or maybe even eliminate one?

Whether you’re the executive director, treasurer, finance director, or other leader at your nonprofit, these kinds of decisions can carry a heavy emotional weight and take lots of time.

The matrix map can help. This tool makes it quick and easy to visualize which programs contribute most to mission and the bottom line, and thus decide which others might need adjustments in next year’s budget.

The matrix map also brings a certain level of objectivity to this difficult process. Going through this exercise with key stakeholders can help them understand the difficult decisions you’ve made. With skillful facilitation, you can even involve them in creating the matrix map and thus feel more invested in the outcomes.

Here’s a quick video showing how to do it:

In some organizations, it could make sense to use a more structured approach to measuring mission impact. You’ll find a good methodology for that in Nonprofit Sustainability by Jeanne Bell, Jan Masaoka, and Steve Zimmerman.