The budget is the heart of a program. Without a budget, the program cannot function. In a strategic plan, the budget evolves from an understanding of the organizational mission, the available resources, voluntary or non-cost supports, potential activities, the benefits resulting from the activities, and, ultimately, objectives.

These are the key parts of a logic model that form the foundation of your budget process. The Kellogg Foundation defines a logic model as “a systematic and visual way to present and share your understanding of the relationships among the resources you have to operate your program, the activities you plan, and the changes or results you hope to achieve” (W. K. Kellogg Foundation, 2006).

Review the “Use Logic Models in Evaluation” Evaluation Toolkit Web page from The Pell Institute and Pathways to College Network, which describes logic models. Then, discuss how you would use a logic model to explain how and why your chosen program or organization will work with possible budgetary resources.