Budget? …What’s That?

Budget: …What’s That?

Presented at the 2011 OAC Greek Leadership Conference, hosted by Otterbein & Capital Universities

by Andi Kelley, Graduate Assistant, Office of Student Involvement & Leadership, University of Mount Union
and Dave Kokandy, Graduate Assistant for Career Development, University of Mount Union

View our presentation!
Budget? …What’s That? [PDF]

Download our Handouts!
Outline [PDF]
Budget Planning Worksheet with Itemized Breakdown [.DOCX]
Budget Planning Worksheet with Budgeted/Actual/Difference [.DOCX]

What is a budget?

• An organized plan of future revenues and expenses
•  A FLUID document that should be changed as the facts change
•  A visual representation of your organizational priorities.

 Why budget?

• Keep your organization and its members fiscally responsible.
• Help your organization make decisions on spending and event planning.
• Forces your goals to be more firm.  Assists in longer-term organizational strategy.
• Plan for forthcoming revenue and expenses.
• Preserves historical financial information for future chapter leadership
• Allows you to evaluate spending and improve future budgeting.
•  Report financial info to university, national.

 When to budget?

• Plan your budget in advance!
• Review your budget throughout the year
• Adjust/Reallocate your budget accordingly

 Where does the money go?

• Consider all revenue sources, including dues, fees, national/alumni support, fundraising
• Expenses include dues, maintenance, rent, security, apparel, philanthropy, events

 How to budget?

• Do your research!
• Be a good fiscal steward!
• Waste not, want not.
  
• Plan dues based on necessary expenses, not from a number out of the sky.

Planning Fundraising/Philanthropy:

How do you raise money with events?

• Cover charge for events
• Selling goods, services, or intangibles
• Seeking free-will donations

Is your fundraiser fiscally sound?

• If revenue < expenses, you spent more money than you received. You spent a lot of money on the event. You won’t be giving much to your charity. If this was a fundraiser for your chapter, you failed.
• If net income < expenses, you earned enough to cover your expenses, but spent more than you made. If this was a fundraiser for your chapter, you earned a little money, but if this was a fundraiser for your philanthropy, you should have just written them a check.
• If net income > expenses, your event was a success.

Types of Costs

• Fixed costs –Certain items will cost the same no matter how many people participate
• Incremental costs –Certain costs will increase per each additional attendee
• Step costs –Certain costs will increase in intervals of increased attendance
• Overhead –Certain costs cannot be assigned to particular functions, but must still be paid