MASONIC BUDGET PLANNING. MWPHGL Office of the Grand Inspector

Transcription

1 MASONIC BUDGET PLANNING MWPHGL Office of the Grand Inspector 1

2 Introduction The objective of this class is to help you create a efficient budget and market your events MWPHGL Office of the Grand Inspector 2

3 Budget What s a budget for? Your organization functions on at least two kinds, a budget that covers your organization as a whole, and smaller program or project budgets. If you re chairing a event, the most convincing part of it is likely to be the budget because it shows your members exactly what you plan to do with the money. MWPHGL Office of the Grand Inspector 3

4 Don t panic about the numbers The first step is: don t panic about numbers. Just start by making a list of everything you need for your lodge to function. Seriously: lights, heat, telephones, internet, rent, water, office supplies, printing costs,grand Lodge Fees. If you need special supplies or travel expenses, put those down on the list. Show the list to a trusted member (preferably someone who has arcane knowledge about the reality of your lodge operating needs) and ask if you missed anything. MWPHGL Office of the Grand Inspector 4

5 But find out what things really cost Ok, you have a list. Title it expenses. Here is the tricky part and it is the most important. Do not guess what these things cost. Find out what they actually cost, and write the price next to them. If you are estimating electricity costs for your whole year, call the electric company. If you are doing estimating for a event, take a percent of your lodge s last electricity bill and put that in. If you are looking at printing costs, call the printer and ask them. MWPHGL Office of the Grand Inspector 5

6 The Next Step For income, make a second list - on this one you put down all your sources of income. An easy way to do this is to look at your last financial statement or annual report. Just remember - do not guess here, either. Find out what money you can count on, and which you can t. If you are doing a budget for your event, make sure you know what date your deposits are due, and whether they re cancellation penalties. MWPHGL Office of the Grand Inspector 6

7 The Next Step If you are doing a project budget and you have no idea about how to make this bit work because the truth is you have no income yet, and no idea where it s coming from please consider the following; MWPHGL Office of the Grand Inspector 7

8 The Next Step Two primary accounting methods, which are cash and accrual basis are used in recognizing income (revenues) and expensing in bookkeeping in order to measure net income for a specified time interval (accounting period). MWPHGL Office of the Grand Inspector 8

9 The Next Step Cash basis is a method of accounting ( cash accounting") whereby cash flow of financial events is considered. The method recognizes revenues when cash is received and recognizes expensing when cash is paid out. In cash accounting, revenues and expenses are also called cash receipts and cash payments respectively. MWPHGL Office of the Grand Inspector 9

10 The Next Step Cash basis does not recognize promises to pay, or expectations to receive money, for events you may have in the future. MWPHGL Office of the Grand Inspector 10

11 The Next Step Cash accounting is simplest for individuals and organizations, which do not have significant number of such transactions, or when the time lag between the initiation of the transaction and the cash flow is very short. MWPHGL Office of the Grand Inspector 11

12 The Next Step Accrual basis is a method of accounting ( accrual accounting") whereby economic activities (rather than cash flow) of financial events are considered, because of two complementary principles, which (together) determine the point, at which expensing and revenues are recognized. According to revenue recognition principle, revenues are realized and earned, whether or not they are received in cash. Jointly, according to matching principle, incurred expenses are matched to related (recognized) revenues, whether or not such expenses are actually paid in cash. MWPHGL Office of the Grand Inspector 12

13 Budget Preliminary budget, you are finished. If you did this as part of a team, start slapping each other on the back. If you did this on your own, start shipping it around to members to see if they can spot problems. You will probably find the income part of your budget shows you need to attract individuals outside of the fraternity to help your events be a success. This is how funding developers set up their goals for the year - by starting with a budget. MWPHGL Office of the Grand Inspector 13

14 Budget One last thing. Budgets are fluid - this is why there are audits done on a quarterly basis to avoid nasty surprises. The budget you ve just done is a first step to getting on top of your finances, but expect it to change fast as you plan fundraising, discover new costs and get feedback from the rest of your lodge. MWPHGL Office of the Grand Inspector 14

15 Budget In this spirit, a really useful exercise on budget making in fundraising for events involves making three budgets: a dream budget (super ambitious), a worst case scenario budget (where only the bare essentials needed to keep your lodge operating are included) and an average budget, which merges these two. This exercise lets you practice predicting income, and lets you get comfortable with the kinds and amounts of money your lodge is dealing with. MWPHGL Office of the Grand Inspector 15

16 Marketing Plan In my view, all marketing activities should be measured and the budget constructed to ensure the event demonstrates a return on the investment. MWPHGL 4TH MASONIC DISTRICT 16

17 Marketing Plan The bottom line is that you, as the committee chairman, have the knowledge and expertise to communicate the event s needs and improve the measurement of your marketing investment. It all starts with your marketing plan.. MWPHGL 4TH MASONIC DISTRICT 17

18 Marketing Plan The first step is to demonstrate how other organizations have used metrics to improve their bottom line. Then, you can test the concept at your next event to prove your case. MWPHGL 4TH MASONIC DISTRICT 18

19 Marketing Plan To optimize your current system and better monitor and measure the results of your event, start with the following: clearly define your marketing goals for the event. If it is to increase participation, state a specific goal in your objectives. Is your goal to identify new prospects or increase customer loyalty?. MWPHGL 4TH MASONIC DISTRICT 19

20 Marketing Plan Identify the target audience of decision makers who will likely deliver the results during or shortly after the presentation. Whether or not you get the sale during by lodge participation or will you need to go outside to make you goal, a tracking system can determine their level of interest and monitor the ticket selling process. MWPHGL 4TH MASONIC DISTRICT 20

21 Marketing Plan Measurement and voice of the customer are keys to success. Prior to the event, use a short survey to understand attendees expectations. Measure during the event as you calibrate their interest level in new business and projects. And measure at the end of the event. Keep the measurement tool simple and direct so it will be non-threatening to customers. MWPHGL 4TH MASONIC DISTRICT 21

22 Marketing Plan Once you demonstrate the value of measurement tools, your leadership team will likely want you to do more tracking and establish a database of metrics. In turn, this will help improve the success of your next event and will better satisfy your customers in meeting their expectations for your products and services. Each time you improve your measurement tools, you enhance you build loyalty with your customers and potential prospects. MWPHGL 4TH MASONIC DISTRICT 22

23 Marketing Plan Until you have demonstrated increased business results with actual metrics, it is difficult to argue for increased funding. MWPHGL 4TH MASONIC DISTRICT 23

24 Marketing Plan Prioritized objectives. Don t let members draw their own conclusions about what s important. Begin your presentation by stating the event s business objectives in order of their priority. MWPHGL 4TH MASONIC DISTRICT 24

25 Marketing Plan Return on investment. Access and reference metrics from your events that justify investment in items such as audience quality, including new sales, customerretention increases, and cross-sell or up-sell metrics. MWPHGL 4TH MASONIC DISTRICT 25

26 Marketing Plan Best practices. Arm yourself with data and best-practice information from other successful events. Show your lodge how competitors are implementing hidden budget items at their events, and how you can customize their strategies to your event. MWPHGL 4TH MASONIC DISTRICT 26

27 Marketing Plan Budget breakdown. After you ve justified the investment landscape, present a budget that includes all of the hidden items along with the on-site costs. Ask for feedback and approval in a more aggregate way. Before budget-approval time, single out a member of your team with a vested interest in allocating budgets and present your case face-to-face. Having a senior ally or advocate can put weight behind. MWPHGL 4TH MASONIC DISTRICT 27

28 Marketing Plan Your ideas. If all else fails, find a way to pilot your program at low or no cost. Then present the results as justification for a proper budget. MWPHGL 4TH MASONIC DISTRICT 28

29 Marketing Plan Measurement data and detailed audience-profile information can provide a variety of benefits that your lodge may not be aware of, beyond simply justifying budgets. They can also help you do the following: MWPHGL 4TH MASONIC DISTRICT 29

30 Marketing Plan Assess the value of attendance, which will help you appeal to attendees in the future. In-depth assessment of value to attendees is the most important aspect of driving performance improvement. More specifically, you can evaluate the intrinsic reasons attendees come to your events and whether you are meeting those expectations. MWPHGL 4TH MASONIC DISTRICT 30

31 Marketing Plan Improve attendance promotion in the future. In addition to developing an effective value proposition, it is important to understand how your customers prefer to be reached. MWPHGL 4TH MASONIC DISTRICT 31

32 Marketing Plan Create a comprehensive attendee profile (their needs, interests, demographics, and buying power) to understand how to best meet attendee needs in the future. This information is also valuable in sponsorship sales efforts. MWPHGL 4TH MASONIC DISTRICT 32

33 Marketing Plan Test ideas that will help maintain the freshness and uniqueness of future events. If you position measurement as a tool for continuous improvement and for making more informed strategic and tactical decisions, perhaps members will be more inclined to see its value and approve your budget. MWPHGL 4TH MASONIC DISTRICT 33

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