D5000 PETS

Budget Training 2013-2014

“Don't tell me what you value, show me your budget, and I'll tell you what you value.”

~ Joe Biden

The “B” Word

S  The Budget is one of the single most important management tools you have as Club President

S  Consensus building among the members of the board, and joint construction of the final budget is critical to its success

S  Sticking to the budget is critical to YOUR success

S  Accountability and reporting to the entire membership on a regular basis is an easy way to “alleviate the mystery”

The “F” Word

S  Fundraising should be driven by the final budget of the club, and not be the past practices of the organization

S  After the desires of the club are established, and the budget is developed, the fundraising needs of the club should be addressed in total

S  Leaving the club better that you found it should be the top priority of every President

Analyze

S  Survey Members – What do they want? S  Are the budget priorities in line with the club needs? S  What makes your club members feel “connected”?

S  Ask Questions S  Are the “same old projects” the best projects? S  What are you focused on locally? S  What are you focused on internationally? S  Are the projects sustainable?

S  Review Historical Averages for Avenue of Service S  IE: Community Service: 20%, International Service 20%

Strategic Planning

S  Set a timeline – NOW

S  Visioning Meeting – 3 Year Plan – Goals & Benchmarks S  Membership Growth S  Foundation Growth S  Projects – Local and International

S  Operational Planning – What does it really take to run the club?

S  Sample Timeline: S  April 1, Strategic Planning/Retreat S  May 1, Preliminary Budget S  May 15, Final Planning S  June 1, Final Budget

Zero Based Budgeting

S  Act like this budget it’s the first budget – throw all of the old thinking OUT THE WINDOW!

S  Gather the “requests” of the committee chairs

S  Compile the requests and publish the “roll-ups” or versions to the board of directors – this will assist them in understanding the necessary changes (reductions) that need to be made

S  Run fundraising scenarios based on the preliminary budget roll-ups

S  Don’t forget: This is YOUR budget – and YOUR year

Expense Example:

Balance Forward: $10,000

Meals Expense: $72,000 53.53% Operational Need: $35,000 26.02% Club Service Request: $1,000 0.74% International Service Request: $15,000 11.15% Community Service Request: $5,000 3.72% Vocational Service Request: $1,000 0.74% New Generations Request: $2,500 1.86% Membership Request: $2,000 1.49% Public Relations Request: $1,000 0.74% TOTAL Preliminary Expense: $134,500 100%

Less Balance Forward: $124,500

(Net) Income Example:

Preliminary Expense Needs: $124,500

Dues & Income (local): $30,000

Meals Compensation: $72,000

Fundraiser Net: $25,000

Happy Dollars & Misc: $5,000

Gifts & Other: $5,000

TOTAL Preliminary Income: $137,000

NET Balance Year End: $12,500

Last year Balance Forward: $10,000

Variance: $2,500

Monthly Dashboard Report:

Summary Page:

Monthly Dashboard Report:

Committee Page:

Monthly Dashboard Report:

Committee Page:

Conclusion:

S  Make sure that the final budget is in line with the needs and desires of the club members – it’s their money!

S  Make sure that each of the committee chairs are accountable to their area of the budget

S  Report regularly to the membership on the financial health of the organization

It's clearly a budget. It's got a lot of numbers in it.

~ George W. Bush