How can a non-profit organization create an interactive budget planning model in SAP Analytics Cloud?

The correct answer emphasizes a comprehensive approach to creating an interactive budget planning model that is well-suited for a non-profit organization. Employing value driver trees allows the organization to visualize and analyze the relationships between different financial drivers and how changes in one element can impact overall funding and budget scenarios. This is crucial for scenario planning, enabling the organization to assess the potential effects of different decisions or external factors on their budgets.

Utilizing version management helps to maintain multiple budget versions, making it easy to compare and contrast different planning scenarios. This capability allows stakeholders to evaluate different paths forward and understand the implications of various budgetary decisions through simulations.

Implementing what-if analysis enriches the model by allowing the organization to test hypothetical situations, such as funding changes or program adjustments, thereby uncovering insights that can drive better decision-making. This dynamic capability is essential for non-profits that often face uncertainty and need to remain agile in their financial planning.

The other options, while they incorporate useful elements for budget planning, do not collectively offer the same depth of analysis and adaptability as the correct answer. For instance, setting up allocations based on historical spending in one option does not provide the flexibility required for scenario management that a non-profit needs. Similarly, options involving predictive forecasting and data