Your goal for creating a budget should be to “operate below your means” and never overspend your chapter’s income. A surplus is a sign of success and will mean you have a buffer in the case of an emergency.
The first step in setting up a budget is determining your overall income or money coming into the chapter. Include all the funds, such as alumni grants, fundraisers, and dues, you collect each cycle. Next, determine your expenses. When adding up your expenses, it is essential to count everything. Leaving out costs could result in unknowingly spending more than you have. It’s a good idea to gather all your chapter’s expenses before including them in your budget.
You can track your expenses by dividing them into accounts and sub-accounts. For example, you should have a subaccount for all your initiation fees, another account for all your philanthropy events, and another for dining fees.
You should always review the current finances determining outstanding revenue to be collected and any expenses to be paid so you can account for this in your new year’s budget.
Pro Tip: We recommend you talk to the head of the chapter boards, have them submit a list of expenses, and consult the previous year's budget.
NOTE: The budget is based on the calendar school year, so when creating your number projections base it on all semesters/quarters.
Pro TIP: You should have a miscellaneous budget to give you a buffer for any unforeseen expenses.