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?