In a written proposal submitted to the donor organization, a budget is an important part. During the project phase, the leader is responsible for the use of the funds in accordance with the proposed budged. If this is not possible, e.g. because of unforeseen costs, the leader has to communicate a new budget with the donor.
In terms of finances, project management comprises the following activities:
- Adherence of the proposed budget
- Procurement of additional money in case of gaps
- Dealing with unforeseen costs
- Adjustment of the initial budget
- Communication of changes in budget with donor