Justifying Budget Loss
Not every operating budget must show a profit. For example, there are many examples of successful mental health and other health related programs that are referred to as “lost leader” programs because they show a loss. This is common with grant funded programs, or benevolent foundation funding. Discuss how you would continue to justify a budget loss 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?
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