Finance frustrations

WesternAlumn · #1 10-31-2005, 09:46 PM

Long story short - nobody cares about the chapter's finances. Finance officer does not really care and Chapter Operations does not want to handle it again as she was the Finance Officer last year.

Nobody seems to understand that the GLO is a business. Dues needs to come in order for expenses to be paid.

How can I get it through to them and to the chapter members the importance of the chapter finances?

AGDee · #2 10-31-2005, 10:41 PM

It usually hits home when there is no social budget anymore...

KSUViolet06 · #3 10-31-2005, 10:48 PM

If girls aren't paying dues, then they need to be put on discipline, or sent to standards, whatever your sorority has in place. Let them know that in order for the chapter to FUNCTION, dues need to get paid. If they want the chapter to close, then they are welcome to continue not being concerned about paying dues. That usually hits home. Also, not allowing social functions is a good idea, since that usually is the FIRST thing to be cut when the budget can't support it.

Sistermadly · #4 10-31-2005, 11:03 PM

I had a similar problem with the chapter I advise. Along with the Finance Advisor, we came up with two major deadlines:

If so much as one person had not paid/made payment arrangements by the fall cut-off date, then the one big social event of the fall would be cut off, and the person responsible would be named in front of the whole chapter. Similarly, if one person missed payments by the spring cut-off date, then formal would be cancelled. After implementing this, everyone in the chapter made arrangements/paid in full by the first cut off date - this is the first time in recent memory that we've had this kind of buy in.

It makes you seem like an ogre, but in the long run I think it's a good lesson on financial responsibility for the actives to learn.

33girl · #5 11-01-2005, 12:26 AM

Do you have a separate finance advisor or a finance person at your HQ that can help hammer home the importance of this?

When you say nobody cares - do you mean no one is paying dues, or just no one wants to take on the job of treasurer? If it's the latter, I don't blame them. It is a crappy job. You might be better served by having a finance team, or at the very least an assistant treasurer and treasurer, than putting it all on one person.

Kevin · #6 11-01-2005, 12:42 AM

I was treasurer -- you know what? 33's right. It completely sucked. In chapters where previous treasurers have been lax in collections, your problem is especially huge. There's a culture of "pay as I feel like it", and that's tough to beat.

In my case, to get people to pay, I would call them every day, ask them every time I saw them, generally harass them about paying. If they were under 21, I'd hit their parents up behind their backs -- I admit, I was a dick, but we got our collections to 100% by God.

Since me, treasurers have had to learn the hard way -- this is the only way to get folks to pay. Just sending them a bill isn't enough to cut it.

-- Omegafi was a HUGE help though, I don't know if I could have been nearly as effective without it.

As to how to actually recruit a treasurer? It depends on the group, but here's how I ended up doing it. I deeply cared about my chapter and did not want to see it go to pot. I ran for Pres (I was VP) and lost, the remaining group of candidates for Treasurer would have been disasters. Because I cared for my chapter more than I cared whether or not I liked a particular job, I ran. I actually had another event I had to attend that night [concert dress rehearsal], so I left chapter after announcing my candidacy on a suspension of the rules, etc... I won, the rest is history.

I'd appeal to your chapter on the grounds that there has to be at least one person among them that gives enough of a crap about this chapter that they want it to succeed. They have to put aside "What's fun", and instead focus on what they can do for the greater good. They'll learn a lot more as treasurer than they will arguably in any other position -- or at least that was my experience.

JonInKC · #7 11-06-2005, 11:21 PM

I know these guys that I go to when I have a "situation" such as this comes up.

When given the option of cement shoes or paying up,...well, you know.

ECUJacob · #8 11-08-2005, 11:33 AM

Omega Financial has helped our chapter, too. It helps that each person gets a statement each month and the treasurer can track receipts online very easily.

We basically cut off socials for an entire semester once, to prove the ponit that $$ is necessary to have events. They got the picture, but unfortunately that wasn't our most fun semester ever.

Zillini · #9 11-09-2005, 07:28 PM

Let's face it, financial management of a large organization made up of 18-22 year olds is a neverending nightmare. The only way it can be done well is if every officer understands that money drives everything. No money, no parties, no Recruitment, no anything.

Each year at officer transitition I bluntly explain how this works to each new officer. If money doesn't come in, no money goes out. They each have a budget and if anyone exceeds theirs, it comes out of the Social Budget.

You have got to be on top of collections. I highly recommend using an outside accountant or billing agency if you can afford it. Often the increase in collections can offset their fees. They are professionals and know how to deal with irate members and/or parents. (I'm always shocked at how ugly a deliquent member's parent can be over the phone talking to our young Treasurer. It's appalling!) They also usually have contracts with a collection agency. Sometimes the threat of turning the bill over and hurting their credit will shake the cash out of them.

You have to be willing to make hard and unpopular decisions if you don't collect. This might mean cancelling parties. It might mean cancelling memberships and even eviction. It also means not allowing the delequent member to attend parties, vote in elections or membership selection, have a little sister, or eat at the house. Usually it takes an extreme statement for folks to realize that you're serious.

It takes a team effort of all the officers lead by the Treasurer. Again let's be honest, this job is lousy. I try to encourage Accounting, Finance, or some other Business-type major to run for it. I use the sales pitch that it is a fabulous resume builder. Actually this is true for any major. Not only the accounting aspect, but also you have to possess time management skills, people management skills (both keeping officers on budget and dealing with members), negotiation skills, handling pressure and difficult situations. The list goes on and on.

Another thing, some chapters are able to offer the Treasurer a break in rent, but we aren't. We do however provide a parking space at the house (which is highly coveted), the largest room in the house with a small attached office and a computer. (FYI - while the President has a smaller room, it's the only single in the house.)

One other thing, while not set in stone we strongly encourage and expect the Asst Treasurer to run for Treasurer the next year. This way they have an idea of what the job entails and aren't completely overwhelmed when they take over the office. As the year goes by the Treasurer trains the Asst and gives her more and more responsibility. It's been very beneficial.

Hope some of this helps.

Kevin · #10 11-10-2005, 06:13 PM

Quote:

Originally posted by Zillini

One other thing, while not set in stone we strongly encourage and expect the Asst Treasurer to run for Treasurer the next year. This way they have an idea of what the job entails and aren't completely overwhelmed when they take over the office. As the year goes by the Treasurer trains the Asst and gives her more and more responsibility. It's been very beneficial.

Hope some of this helps.

My chapter took that a step further. There is no treasurer election. The Assistant Treasurer is simply confirmed by a closed ballot -- it takes 3/4 to knock him out of the running for treasurer. The treasurer is the last person that should be doing on-the-job training. Also, you tend to get a little higher quality Assistant Treasurer this way.

Tom Earp · #11 11-21-2005, 04:56 PM

If this is still a viable Thread, The Housing Corp. Tres. took over the Chapter Finances, We went with Omega Fin.

Parents had to sign to be responsible for outstanding debts.

Yes, a Fraternity/Sorority no matter what level has to be run like a business. That is what it is.

No Money=No Party Budget.

Not paying House Bills and Rent, means not paying for Utilities.

Why should One or Two Members Hurt The Rest?