Steps to Create a Booster Club Budget

Steps to Create a Booster Club Budget

Creating a booster club budget can seem like a daunting task. Your budget will serve as the basis for all of the activities and events that your club undertakes and will inform the decisions that the organization makes throughout the year. That’s a big deal.

Creating a budget is essential to good booster club management and for the success of your soccer team, drama club, or whatever organization your club supports. A good budget shows gives legitimacy to your club and shows donors exactly what they’re paying for.

If you need to create a budget for your booster club, here’s what you need to know.

Counting money to enter into booster club budget

Where to Start When Creating a Booster Club Budget

Your budget is a financial document that shows how your booster club will spend its money over a 12-month period and what the organization expects to accomplish in financial terms. Throughout the course of the year, the budget will be referred to for guidance and will be matched against financial reports to determine operational success of the club.

So, how do you go about creating a budget for your booster club? The most important thing to remember is that budgets are all about planning.

Before you can create a budget, first, you need to know as much about your organization as possible. Learn everything your booster club plans to do in a year and how that relates to your booster club finances. Some general questions to think about are:

  • What events do you have scheduled for this year?
  • How much revenue can you expect?
  • What are the biggest expenses?

Think holistically about your organization, and then work with your board and staff members to finalize all activities that your booster club has planned for the year. Only with proper booster club planning can you develop a solid budget.

If budgets from previous years are available, be sure to refer to them for guidance to estimate expenses and revenue. But if you’re creating a booster club budget for the first time, make sure to consider all aspects of your activities and operations. What donations, supplies, or facilities will you need to achieve your goals?

Always keep your organizational goals in mind. When you create a booster club budget, remember that its for the benefit of the program you support. Do you want to raise more funds from your annual silent auction? Are there annual expenses that could be redirected in much needed renovations or equipment for your team?

Know your organization, your goals, and your plan for the year before you start your booster club budget.

Entering items into a business budget

How to Create a Booster Club Budget

After you’ve finalized the goals and activities of your booster club with the board of directors and staff, it’s time to create your budget document.

Start by estimating your expenses.

If you have existing financial documents from previous years, they can be extremely helpful in getting an idea of what your expenses typically look like. However, you can also create estimates by contacting vendors and suppliers for quotes on the cost of predicted expenses. For example, if you need a rental hall for your annual end of the year gala, contact a few local venues and ask for their price, then include the average price in your budget.

Next, it’s time to estimate your revenue.

If you’re a completely new booster club and haven’t done much fundraising activity, this can be difficult at first. Try and create a comprehensive fundraising plan with each fundraising activity scheduled for the year, every raffle, golf tournament, and crowdfunding campaign. Be conservative with your estimates.

Try to keep your budget as simple as possible. Too many line items can be confusing and needlessly complicate your document. Adhering to too may specific line items can make your organization less flexible and impact your ability to raise funds.

 

A booster club budget ledger

What to Include in Your Booster Club Budget

Your budget reflects the goals of your organization and is one of the most important tools to manage a booster club. This document will show, in real numbers, how much your booster club invests in supporting their team or club.

But in simpler terms, a booster club budget shows your projected revenue and expenses. If you’re creating a booster club budget for the first time, you may be wondering what exactly to include as line items in your budget. It can be tricky, even counterintuitive to categorize revenue and expenses in nonprofit organizations, but here are some things to consider.

Expenses

In all likelihood, your booster club is run by volunteers and so, you won’t need to worry about paying staff, but there are other expenses for your organization that you should include in your budget.

Revenue

Your booster club relies on fundraising for revenue. There are probably several types of donations that you receive but try to categorize them together as neatly as possible. If your booster club has a membership fee for its board or staff, include it in your revenue.

  • General donations
  • Membership fees
  • Recurring donations (monthly)
  • Fundraiser revenue by event
  • In-kind donations
    • Goods
    • Services
    • Time
    • Expertise

Estimate the numbers for your expenses and revenue as accurately as possible if you can’t rely on previous budgets for reference. Enter the numbers for each line item, then total the cost. As a nonprofit organization, try your best to keep your budget balanced, so that revenue and expenses are equal.

Creating a budget for your booster club is a challenging task, but it’s also highly rewarding. Your budget will guide your booster club throughout the year, helping leaders to make important financial decisions. By planning ahead, keeping things simple, and working together with your fellow booster club members, you can create an airtight budget that will drive your team to success.

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October 27, 2020 / by / in

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