Budgets & Banking

Budgets & Ledgers

  • Importance of a budget
    • Keep track of your funds to reduce over- or under-spending
    • Solicit specific event sponsorships instead of generic donations
    • Easier to evaluate the ability to support events, scholarship, etc.
  • Types of SWE budgets
    • Yearly Section/Region/MAL budget (expected)
    • Event Budgets
      • Required for Program Development Grants (PDGs)
      • Recommended for any large event, e.g. conference
  • Ledgers help you manage your budget
    • Ledgers (or records/journals) track your income and expenses
    • Should be used to create the “actual Year-To-Date” column of your budget

Budgets: Income and Expense Examples

  • Income Sources
    • Dues Rebates
    • Program Development Grants (PDGs)
    • Corporate sponsorship and donations
    • Event Registration Fees
    • Interest or annual payout on any accounts you have
  • Expenses
    • Admin. costs: storage, postage, website fees, financial service fees
    • Event costs: room locations, speaker fees, etc.
    • Event supplies, food, paper products
    • Scholarships/Awards
    • Travel costs

Building Your Budget (from scratch)

  • Determine who will be involved
    • Executive board or event leadership
    • Collegiate: require approval of advisor/counselor after section approval
  • Create the “ideal” budget, and then modify for reality
    • Work with the leadership team to ensure all planned and desired activities are included in the ideal budget and in the modification of the budget
  • Goal: Balanced Annual Budget
    • You should not be making money every year unless you are fundraising for a long-term goal (e.g. a conference, scholarship, endowment, etc.)

Building Your (Better) Budget

  • Each year should be an improvement from the year before
  • Try to budget categories that parallel Section Finance Report Requirements
  • Analyze last year’s spending
    • What do you expect to cost more? Less?
    • Will any events be started or ended?
    • Is your membership growing or shrinking?
    • Can you use the same funding sources, or will you be looking for new ones?
  • Update your existing budget as appropriate

SWE Budget Template [NEW!]

  • SWE had created an excel budget template that can be modified and used for your SWE section/region/MALs
  • Important to Consider
    • You will still need to modify to fit your group
    • Minimize overhead expenditures (Administrative)
    • Excel formulas can be easily deleted, so be careful!
  • A budget is only as good as your ledger or record of expenses
    • Will need to reconcile your income and expenses in a timely manner by comparing to your bank statements and reimbursements

Resources

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