One of the most important tools in the management of expenses is the Chapter budget. A budget is an intelligent estimate of income and an expense plan for the spending of that estimated income.
Why is a budget important?
A budget must be written. Without putting it on paper, it is just a dream. Failing to plan is planning to fail. You have to plan, project, and adjust your revenue and expenses in order to be successful.
What does a budget look like?
A budget has two sections: revenue (or income) and expenses. The estimated total revenue must always exceed the estimated total expense. The best guide is to overestimate expenses and under estimate income. This conservative approach will help the chapter or colony remain out of debt.
Here is a sample budget: SAMPLE BUDGET
Simply enter your membership size and edit estimated allocations, this will produce your estimated annual or per semester dues.
Who develops and approves the budget?
The budget is compiled by the Crysophylos with the input of officers and the chapter or colony finance committee (if applicable).
Once ready, the Board of Advisors reviews, helps adjust, and approves the budget.
Then the budget goes to a chapter vote with acceptance of budget at 51%. The budget should not be changed without the knowledge of the Board of Advisors. It is important to note that nobody can individually change expense allocations. Doing so is called misappropriation.
When is a budget written, reviewed and evaluated?
Here is a sample timeline for effective budget management:
March 1 – Crysophylos puts together initial budget
March 15 – Budget reviewed by officers and committees
April 15 – Budget reviewed and approved by Board of Advisors
May 1 – Budget approved by chapter or colony
First meeting of Fall – Re-Review budget with chapter or colony
January 15 – Board of Advisors financial audit
The Crysophylos should track, review and balance monthly.
How can we improve our budget performance?
Contact your key volunteers or your Regional Director for specific questions on your budget and how to improve chapter relations.
Login to your Chapter Module, click on Dashboard on the left. You have valuable resources listed under Professional Staff Contacts and Volunteer Contacts.
For more information, please contact:
Chief Financial Officer