Financial and Budgeting Best Practices

Financial and Budgeting Best Practices 1. Create a budget prior to the start of the academic year. See Appendix A for a budget template and recommendations for creating a chapter budget. 2. Have more than one account holder on the chapter bank account. 3. If applicable, access to online banking should only be shared between the counselor, president and treasurer. Having all three officers with access to the statements can help with checks and balances. 4. Deposit cash and checks in a timely manner. Keep the deposit receipt in the treasurer s records. Chapter rebates are mailed twice a year (September and January) and should be deposited within 90 days of receipt. Chapter rebates consist of any local dues collected via membership renewals plus any refunds owed to the chapter. 5. Log all financial transactions on a chapter ledger, even if the chapter has direct access to account statements. See Appendix A for a ledger template. 6. Submit the Annual Financial Report by August 1 st of each year. Chapters not submitting the required Annual Financial Report may be in violation of IRS regulations, place themselves at risk for disciplinary action by Kappa Delta Pi, and may not be eligible to receive a rebate check. 7. The treasurer should provide a quick financial update at each officer meeting. See Appendix B: Giving a Quick Financial Update at Officer Meetings for more information. 8. Keep all receipts. Print or photocopy all receipts, purchase orders, reimbursement requests, etc. for chapter and individual records. This includes printing invoices of purchases through the KDP Store, from the university for initiation catering, etc. Include a specific USB flash drive with the treasurer s binder to keep an electronic copy of all financial information. 9. Have officers and members submit a written reimbursement request for any expense. See Appendix C for examples. 10. Keep no more than $100 in petty cash at any time. This should be stored in a secure, central location, such as a KDP office, locker or in the Counselor s office. This should be in a location that can be locked at all times. Consider investing in a money box with a key. Petty cash should not be taken home with an officer for any reason. Follow the same guidelines for chapter checkbooks and/or debit cards. 11. Be aware of the financial property of the chapter and make sure this information is shared with the next set of officers. Does the chapter have a savings account in addition to the checking account? Does the chapter have an investment fund or separate account for awarding scholarships to chapter members? See Appendix D for information on KDP Chapter Grants. Note: If the chapter has a savings account, CD or other account with the exception of a chapter grant, these assets must be included in the Annual Financial Report. 12. Consider fundraising opportunities to help the financial sustainability of the chapter. See Appendix E for fundraising ideas and tips. 1

Appendix A: Creating a Chapter Budget Each year the treasurer should lead the chapter in establishing a budget for the upcoming academic year. Don t wait until October or November to do so. Chances are, expenses may have already occurred and you can t change how that money was spent. Prior to meeting with the officers to discuss the budget, the treasurer should review the financial statements from the previous academic year to develop a greater picture of the chapter s financial activity. Look for trends in spending and anticipate what will remain the same for the coming year as well as what may differ. Ask other officers to submit a position specific budget proposal (see below) detailing what expenses they anticipate for their position along with an explanation of how the money will be used and the reason for each expense. It may help to provide each officer with information regarding how previous officers in their position used chapter funds. Also remind each officer to be realistic as they set their budget proposals and to consider the other expenses in which the chapter may need to allocate funds. Combine these officer budget proposals with knowledge from the previous years finances to begin outlining the current year s budget. Remember to keep an income-based budget. This simply means that you keep in mind the income of the chapter as you create the budget to end the year with a positive balance. Do not count on income that isn t realistically obtained. For example, be conservative in calculating the anticipated local dues to be collected during the year. If your recruitment numbers are lower than previous years, the amount brought in as local dues will also be lower. Keep the chapter goals in mind. Haven t set any? Start there before finalizing the budget. The Chapter Planning Tool is a great resource to use as you set goals for the coming year. As you and the other chapter officers work through creating the chapter budget, continue to ask yourself if the budgeted expenses are using the chapter money in a way that supports the chapter s goals. If the answer is not a clear yes, you may need to reconsider the expense or search for more affordable alternatives. Have a long-term vision. Remember that your local chapter of Kappa Delta Pi will continue to serve your university s education students for years to come. Consider how you, as officers, can help to leave a legacy for future chapter members. By budgeting and spending chapter money wisely, you can impact the financial sustainability of the chapter in the coming years. This is a good time to consider establishing a chapter grant. See Appendix E for more information. Consider budgeting for a Rainy Day Fund. What would happen if you needed to pay the initiation expenses before the chapter collects the local dues or one-time initiation fees? Will the chapter have enough money to cover these expenses? Having budgeted funds for a rainy day may help with any unanticipated expenses down the road. As situations arise, be sure to explore all options before breaking into the rainy day fund. Although it may not be the easiest or immediate solution, would conducting a chapter fundraiser be a wiser choice than pulling from the previously set aside funds? If you have to use the rainy day fund, consider how you can replenish the funds in the near future. Chapter Challenge is Kappa Delta Pi s signature philanthropic initiative in which chapters can support the Society as a whole organization. Local chapters are encouraged to raise funds to support the mission of the Society and are recognized at Convo, in The Record, and the Award Booklet. Chapter Challenge is a requirement for the ACE Award application. Include Chapter Challenge in your chapter s budget rather than donating based on the remaining funds in the spring. Historically, chapters that budget for Chapter Challenge are more likely to follow through with their contribution. Consider donating on your chapter s anniversary as a way of honoring both charter members and alumni. Convo is another expense to consider when outlining the budget for the current year. Even if Convo isn t on the immediate horizon it is in the best interest of the chapter to plan for it and set money aside gradually. Having financial support from the chapter, can make attending Kappa Delta Pi s biennial conference much more of a reality for many students. Consider what the chapter can help pay for and for whom. Will the chapter cover the 2

transportation and/or lodging but require the members to cover the registration fee and food? Is it realistic for the chapter to plan to cover a quarter, half or all of the Convo expenses? Will the chapter offer assistance to any member interested in attending or will this be reserved for certain officer positions? Determine if the members need to submit a proposal for attending Convo with financial assistance from the chapter and how the experience can be shared with other chapter members afterwards. A lot goes into setting a realistic budget for the chapter but the work done up front will surely pay off throughout the year. Remember that establishing a solid foundation now will only pay off as time goes on. If you have questions regarding your chapter s budget, consult with your Chapter Counselor or contact your RCC. The Chapter Ledger and Budget spreadsheet provides samples and templates for creating a chapter ledger and yearly budget. The document already has the formulas embedded in the document to make the calculations easy. Note: The document contains several different tabs along the bottom of the spreadsheet. Appendix B: Giving a Quick Financial Update at Officer Meetings The treasurer should give a brief update of the chapter s financial status at each officer meeting. This can be quick, simple and should include information such as total amount deposited, total amount for expenses and the current account balance. The secretary should include this information in the meeting minutes. Typically the treasurer will not need to provide detailed information on each transaction unless a question arises. Appendix C: Requesting Funds for Chapter Expenses and Reimbursement Officers and chapter members should complete a written request to the treasurer for any anticipated expense. The keep a copy of this request for his/her records and return the original copy to the member. All members should be aware of this expectation and understand that the chapter can refuse to reimburse expenses if a written request is not submitted prior to the purchase. An invoice should be attached whenever possible. After purchasing approved items for the chapter, the officer or member should complete a written reimbursement request with all receipts included. The treasurer should sign and keep a copy of this before issuing a check to the member. The original copy should be returned to the member with the reimbursement check. Copies of all written financial requests should be filed in the treasurer s binder or in a secure, central location. An example of a reimbursement form can be found on the next page. Please note, this is for internal chapter operations only. 3

Internal Chapter Operations: Expense Authorization/Reimbursement Form Chapters may use this as a resource for tracking reimbursements to members for chapter s expenses. Attach all receipts to this Reimbursement Form for accurate record keeping. This is to be used as a resource for internal chapter operations only. To be Completed by Member Requesting Reimbursement: Name: Committee/Officer Position: Signature: Date: Date of Purchase: Place of Purchase: Purpose of Expenses Amount of Item 1. 2. 3. 4. 5. 6. 7. 8. Total Amount to be Reimbursed: Treasurer s Signature: Counselor s Signature: Check #: Date: Date: Date Issued: 4

Appendix D: Chapter Grants The KDP Chapter Grant Program allows a chapter to establish a designated fund that will offer monetary awards to chapter members in perpetuity. Through gifts to the Kappa Delta Pi Advancement Department from chapters, individuals or a combination of both, KDP will establish an endowed fund to offer monetary awards or scholarships to local chapter members. Through interest, dividends and capital gains earned on the investment of the endowed amount, distribution of up to 5% may be available to award annually to a chapter member or members. The local chapter chooses the recipient(s) each year and awards the gift. This program is separate from the Chapter Challenge initiative and has many benefits to the local chapter and donor, including: The donations are restricted to exclusively serve a specific chapter; The grant award can recognize student achievement and service to the chapter; The chapter chooses the specific requirements for the award or scholarship; The chapter launches a legacy for their chapter that will support current and future members; The gift is tax deductible. For more information about the Chapter Grant Program, contact KDP Headquarters, 800-284-3167. Appendix E: Fundraising Ideas and Tips A complete list of fundraising ideas can be found on http://kdp.org/chapters/programmingandevents.php. Below are a few of the Regional Chapter Coordinators favorite fundraising ideas. Fundraiser Brief Description and Reason for Being Chosen as a Favorite Additional Tip or Suggestion from the RCC Sell ideas, not things Many chapters mistakenly fall into the trap that fundraising is the same as sales. While there are some chapters who find annual t-shirt sales or book sales lucrative, it is more common for chapters to realize there is little return on investment and that only a few people put in majority of the work. You are making your members into traveling salesmen. Before your chapter jumps in on selling discount cards or candles, explore fundraising options that require your funders to support an idea or belief that resonates with your chapter s mission and their motivation to give. Instead of an at home sales party, try motivating supporters to donate in an effort to recognize favorite teachers. Ask donors for $5 for a note card to write a note to a high school teacher or professor and your chapter can mail them near Teacher Appreciation Day. Your effort is a stamp and trip to the post office, but the good will shared will be cherished by both the teacher and the donor. Timing is everything. A book sale before Winter Break will give people a chance to buy presents for family. A book sale in the spring will be a headache to organize around student teaching, spring break and finals. Be sure you follow the rules for on campus fundraising, you don t want your bake sale shut down by the health department. Look for campus-based fundraising activities: working an athletic concession stand or cleaning up the stadium as a group is a social activity, bringing members together. 5

Restaurant Partnership Fundraiser Many restaurants, both local and chain, will support non-profit or student organizations through a fundraising event. Typically the restaurant will provide the chapter with a flyer to handout on campus and within the community. The chapter receives a portion of the check of any customers who bring in the flyer on the designated date. Katie participated in several of these fundraisers as an officer of a student organization and saw first-hand how an organization can successfully bring in funds with relatively little effort on behalf of the organizations leaders and members. You can usually find out which restaurants support this type of fundraiser by looking on the restaurant s website. We always tried to coordinate having a restaurant fundraiser on a Sunday evening. The dining halls, along with most of the sororities and fraternities at my university didn t serve dinner on Sunday nights. We tried to take advantage of one night that we knew many students ate out. We also set the restaurant s flyer as our profile picture on Facebook and other social media platforms to increase our audience. You can also double this as a social activity by encouraging all chapter members to eat together the evening of your event. Campus Odd Jobs Whether your campus is small or large, there is most likely a job opportunity for a hard-working group if you just ask! Many institutions allow student organizations to assist with tasks such as cleaning up concession stands after sporting events or setting up chairs for large meetings. For those members that don t mind getting their hands dirty, these jobs can be very lucrative! This can be a great way to use the community around you as well as on campus. Check with local sporting facilities and theme parks to inquire about clean-up opportunities that are offered to the community in exchange for donation or payment. Graduation Rose Sale The chapter officers from the Chi Chi Chapter at Lubbock Christian University buy roses from a flower wholesaler to resell at graduation. The chapter sets up tables at each of the entrances to graduation and the parents (not only KDP parents) buy roses for their graduating students. This event has been so popular they continue to sell out year after year. Consider how you can make any fundraiser special and promote Kappa Delta Pi s name on campus. The chapter could add green and purple ribbons to the roses purchased for KDP members. Also, find something that can be unique to your chapter. This fundraiser obviously wouldn t work if multiple student organizations tried to sell roses at the same time but this chapter has found their fundraising niche. In order to partner with a local business or large corporation for a fundraiser, you will likely need to prove that the chapter is a registered non-profit organization. As part of the larger Society of Kappa Delta Pi, all chapters are considered part of a registered non-profit organization and have a federal tax ID number. This can be found on the Chapter Profile (within Chapter Management) on https://www.kdp.org/ssa/logon.php. Contact your RCC for additional information. Note: In order to be exempt from paying sales tax, the chapter would need to register directly with your state and is not automatically eligible with the federal tax ID number. 6