Best Practices for Chapter Finances

Sound financial operations can be the make or break of an organization.
Plan practically.
Plan for all foreseeable expenses – Look at previous years.
A budget is only as useful as its application.
Budget on the side of conservatism when calculating income (dues & fundraising).
Be sure to accurately calculate new members.
Be willing to adjust budget after joining period.
Determine when funds are available – The full allocation of funds for a position is not available at one time typically.
Review your chapter’s new member/initiation fee regularly.
- What are those funds really covering?
- Are they actually covering new member education or programming?
- Is the initiation fee covering pin/badge, membership fees, etc?
Chapters with a new member fee traditionally exhibit a higher retention percentage.
Refer to other chapter’s dues to help determine the “market” benchmark.
Collect all dues/fees at strategic points in the year.
- Initiation
- Large Social Events
- Housing
Establish the precedent of financial responsibility during the new member period.
Transparency
- Present budget updates regularly to chapter members – set a schedule and stick to it.
- Who is reviewing receipts and charges from cards?
- Who is signing checks?
- How many signatures are on monthly bank statements?
If you do not have a process, create one and document it.

Questions To Help Better Understand Budgets

Where is a copy of the budget located?
What does your current budget look like?
How are the chapter’s values/mission/goals represented in the chapter budget?
What are the organizational policies for payment options?
Can you comfortably explain your chapters dues to someone who is not a member?
Be transparent with interested members. Students should not be in the dark about costs, where funds go and how to make payments.

Questions To Consider When Reviewing the Budget