For
many, budgeting is often the elephant in a room. Though necessary function of
business, it seems to be everyone’s least favorite topic of discussion. I
would like to take a moment to show our members the money, so to speak, and
decode how the Chapter raises and uses funds.
Reporting
Responsibilities: Each Chapter president and board members are ultimately
personally responsible for the finances of their chapter and have
responsibility to our Chapter members to share the chapter’s finances.
In an effort to maintain transparency and meet with guidelines from the
State offices, our Chapter has been announcing our treasury totals at each
chapter meeting. For those interested, the Chapter keeps all financial records
up-to-date and available for review by chapter members.
At
our monthly meetings of the board of directors, we review a detailed
Treasurer's Report outlining all sources of income and expenses. The treasurer
also compares actual figures against projections to ensure the budget stays in
balance.
Quarterly,
each Chapter president must provide reports to the state executive committee to
demonstrate results, as well as the effective use of budgets and resources. At the end
of each year a report is then due to state as a recap of all executed
activities – the ultimately goal of which is to stay within the allotted yearly
budget.
Planning
and Preparation: At the beginning of each year, the incoming board of
directors reviews the financial accomplishments and situations from the
previous year. This review process helps set chapter goals for the year and
allows the board evaluate financial resources needed to reach these goals in
the new budget.
Additionally,
our Chapter sends out a membership survey at the start of the year to ask
members for input as to what types of programs and offerings each member would
like to see in the year ahead. The board of directors then has the
responsibility to set goals to achieve these programs while avoiding strain on
chapter finances.
Auditing: Each Chapter must arrange for an annual
audit and or review at the end of each fiscal year. Findings are then reported
to the State office and the state files the necessary tax forms.
Financial Reviews of the chapter have been conducted internally by a
three-member review committee. If there is issue with the Chapter
financing, state can recommend a professional audit at the Chapter’s expense.
Operating Expenses: The State bylaws require each
Chapter to maintain at least six month’s operating expenses in a savings
account, CD, etc.
So the money our chapter has in the savings account should
almost be considered invisible money as it is to only be used in dire
situations. This then means all events, programs and offerings for the year
must be achieve through funds solely from the Chapter Checking account.
How
do we raise money?
In
these economic times, everyone is doing less with more. Though it may seem like
the Chapter has a very healthy treasury, it is important Chapter funds are
used.
1.
Membership
- A healthy membership is critical to maintaining a healthy treasury. A
percentage of individuals membership dues are returned to the local chapters to
help develop programs, etc. Renewing your membership by Oct 31 is critical
because it allows for the chapter to plan for any dips in membership early on.
An unexpected decline in membership, can negatively impact overall chapter
finances. So, as a rule of thumb, chapters often try to grow their treasury to
help offset any drop in future membership.
2.
Sponsorships
– This year we reintroduced annual sponsorships and continue to offer
sponsorship opportunities for our special events. Though we have a healthy
treasury now, sponsorships are still crucial to the sustainability of our
Chapter. They provide an opportunity to reach and educate our members and to
cover the costs of producing programs as well as any dip in attendance or
speakers fees. Without sponsorships our Chapter would not be able to
provide the frequency and caliber of programs that members have indicated they
want through surveys.
3.
Chapter
luncheons – Typically a nominal profit is made off our Chapter luncheons.
Member participation in Chapter events from luncheons, to mixers and
professional development seminars is crucial to maintaining a healthy treasury.
Where
do we spend Chapter finances?
At
the start of each year the board of directors determines where Chapter finances
will be distributed. Sponsorship, member participation and member rebate help
build our treasury so that we can offer programs such as:
·
Membership Scholarships
·
Scholarships to annual conferences,
·
Sponsorship of annual conference,
·
Chapter programs and special events
·
Maintains Chapter resources like our web site
·
Image Awards
·
Chapter Awards
·
Accreditation
This is a cycle that begins again with the passing of the
torch from one leadership year to another.
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