Creating and maintaining a detailed and organized budget is the first step to attaining proper financial responsibility for your organization. When forming your fiscal plan it is important for all members of the executive board to work together throughout the development process; this helps ensure that all possible expenses and incomes are accounted for. If available, refer to past expense reports or budgets when creating new projections.
While developing a budget it is important to be realistic and conservative. All budgets consist of two main parts, incomes and expenses. Incomes include all sources of money taken in by your organization, such as fundraising and donations. As a group, the executive board should list all sources of income and projected amounts from each source to get a rough idea of the total expected income. It is a good idea to subtract ten percent from this number to remain conservative and plan for potential difficulties in the future.
Expenses consist of any money that is going to be spent throughout the course of the planned budget’s timeframe. These include all events, national membership dues, supplies, advertisements, and travel expenses.
The last step in this planning process is to subtract the final cumulative total of the expense list from the total projected income. This difference will be the amount of money that needs to be acquired to allow your organization to operate. This amount can be raised through further fundraising, SOFC event sponsorship, or membership dues.