Budget help
 

Hi there I am currently working on starting a local sorority with some of my friends. We have to get a budget put together and I was just wondering of anyone can give some ideas on how they decided how much each catagory in the budget so be and how much to charge on dues. Thanks

Well, you need to think about what kind of events you want to have, and costs for things like pins/badges etc. I think you're looking at it from the wrong angle. Think like this:

If your pins cost $10 each
You want to have an even that will cost $100 dollars for the location
And $100 dollars per bus trip.
And you have 20 girls
You need 200 for badges,
And probably 300 for the event
Thus you need 500 overall
And dues should be 25 dollars for your first semester. (numbers are fictional)

You also REALLY need a finance major to do this stuff for you. Recruit one ;) Or have someone take a basic accounting class. Believe me, this stuff is 100% easier that way. Some other things to take into consideration are supplies for Greek Week/homecoming/Anything you want to participate in. Creating a savings of some sort. And money for your philanthropy.

Hope that helps a bit.

Very general advice.....

Plan your programs first, then plan your budget.

By that I mean you should look ahead for the next two semesters and decide what types of programs you'd like to have.

When you've done that, you then estimate how much each event would cost. (If you have a formal out of town/state, then make sure you account for space rental, transportation, snacks on the ride, etc.)

Be detailed in your planning.

So then when you've done all that, you have a "wish list" of sorts. You have several options from that point:

Divide your total budget amount by number of girls in the chapter, and that number is your annual dues.

...or/and, you can then strategize how to defray the costs of your events. Will the formal be ticketed or part of dues? Can you make new member gifts instead of purchasing them? Etc.

Perhaps your school provides funding for Greek life -- many do not, but several do. If you are service oriented, you might be able to apply for school or community grants to fund your service program, freeing up some funds for your social program.

I hope these ideas are helpful.

As you develop the categories of revenues (e.g. dues, fundraising, university funding, etc) and expenses (social events, big/little activities, insignia, service projects, advertising, etc) keep this in mind....

When you are working with the expenses, come up with your best estimate and then budget for 10% more than that.

Then do the same thing in reverse for the revenue categories: budget each category as if you will receive 10% less than what you really think you'll get.

Then make sure your final budget is balanced, i.e., your expenses do not exceed your projected revenue. Does that make sense?

If you practice this 'budget expenses on the high side and revenues on the low side', you will have a much better chance of keeping your spend within your budgeted revenue. You may even be able to sock a little away each semester for a rainy day!