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Budget Amendments

Budget Amendments

Why Amendments?

Once a budget is approved, it represents your organization’s official financial plan. But circumstances change:

  • A fundraiser exceeds expectations
  • An unexpected expense arises
  • A program gets canceled
  • A grant opportunity appears

Amendments provide a formal process to modify an approved budget while maintaining:

  • Transparency: Changes are documented and visible
  • Accountability: Approvals are tracked
  • History: Original budget and changes are preserved

Amendment Types

BeeKeeper supports seven types of amendments:

Line Item Increase

Increase the amount budgeted for an existing line item.

Example: Teacher grants budgeted at $10,000, but you want to increase to $12,000.

Line Item Decrease

Decrease the amount budgeted for an existing line item.

Example: Fundraiser income budgeted at $20,000, but revised estimate is $15,000.

Line Item Addition

Add a new line item that wasn’t in the original budget.

Example: Received an unexpected grant - need to add “Grant Income” line.

Line Item Removal

Remove a line item entirely from the budget.

Example: Planned event canceled - remove “Spring Dance” expense line.

Category Reallocation

Move budgeted funds between line items without changing totals.

Example: Move $1,000 from “Office Supplies” to “Teacher Appreciation” - total expenses unchanged.

Emergency Expense

Document an unplanned, urgent expense that couldn’t wait for normal approval.

Example: Emergency playground repair needed immediately.

Mid-Year Revision

Comprehensive update to multiple line items, typically at fiscal year midpoint.

Example: Six-month review reveals multiple lines need adjustment.

Amendment Workflow

Amendments use a simple three-status workflow:

Draft → Approved (applied immediately) → Rejected → Revised (back to Draft)

Draft

  • Create and edit the amendment
  • Add line item changes and justification
  • Can be edited, deleted, or submitted for approval

Approved

  • An authorized user approves the amendment
  • Changes are immediately applied to the budget
  • The approval date and approver are recorded

Rejected

  • The amendment is rejected
  • Can be revised (returned to Draft for editing) and resubmitted

Creating an Amendment

Step 1: Start the Amendment

  1. Go to Budgets
  2. Open your approved budget
  3. Click Amendments
  4. Click Add Amendment

Step 2: Select Amendment Type

Choose the type that best describes your change:

  • Line Item Increase/Decrease for simple amount changes
  • Addition/Removal for new or deleted lines
  • Reallocation for moving money between lines
  • Emergency for urgent unplanned expenses
  • Mid-Year Revision for comprehensive updates

Step 3: Specify Changes

Add line items to the amendment. Each line item includes:

  • Account: The budget account being changed
  • Previous Amount: The current budgeted amount
  • New Amount: The proposed new amount
  • Change Type: Increase, decrease, addition, or removal

Step 4: Add Justification

Provide a reason explaining why the amendment is needed:

  • What changed since the original budget?
  • Why is this amount appropriate?
  • What’s the impact if not approved?

Good justification helps approvers make informed decisions.

Step 5: Save

Click Save to create the amendment as a draft. Review before requesting approval.

Approving an Amendment

When a draft amendment is ready and has both line items and a reason:

  1. Open the amendment
  2. Review the changes and justification
  3. Click Approve to approve and apply changes, or Reject to reject

Approval immediately applies the changes to the budget. The approver and approval date are recorded.

Revising a Rejected Amendment

If an amendment is rejected:

  1. Open the rejected amendment
  2. Click Revise to return it to Draft status
  3. Edit the amendment as needed
  4. Submit for approval again

Amendment Numbering

Amendments are automatically numbered sequentially within each budget (1, 2, 3, etc.).

Viewing Amendment History

See all amendments for a budget:

  1. Open the budget
  2. Click Amendments
  3. View list with type, status, and approval date

Each amendment shows:

  • Amendment number
  • Type
  • Current status
  • Approval date (if approved)

Tips for Effective Amendments

Plan Ahead

  • Batch small changes into one amendment when possible
  • Schedule amendment discussions for regular meetings
  • Don’t wait until year-end for obvious changes

Document Well

  • Detailed justification speeds approval
  • Reference specific circumstances or decisions
  • Include impact on overall budget balance

Know Your Bylaws

  • Check what requires membership vs. board approval
  • Some organizations have dollar thresholds
  • Follow your organization’s specific rules

Track Cumulative Impact

  • Each amendment changes the budget baseline
  • Review total amendments year-to-date
  • Consider if overall budget still makes sense

Limitations

  • Amendments can only modify approved budgets
  • Cannot delete amendments once approved
  • Amendment types cannot be changed after creation
  • Only draft amendments can be edited

Common Questions

How many amendments can we have? No limit. Have as many as needed, though frequent amendments may indicate planning issues.

Can I edit an approved amendment? No. Once approved, changes are applied to the budget and the amendment is locked.

Can I edit a rejected amendment? Not directly. Click Revise to return it to Draft status, then edit and resubmit.

Do emergency expenses still need approval? Yes, but the amendment documents what happened. The expense may already be paid, but the budget amendment formalizes it.

What happens to the original budget after amendments? The original approved snapshot is preserved. The “current” budget reflects all applied amendments.

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