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!
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.
- 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.
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