Budgeting for Regional Board Members

Course Goals/Objectives

Review elements of the annual budget.Develop a budgeting process.Understand variable vs. fixed costs.Discuss individual/specific budgets.Understand how to deal with under and over runs.

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Class Survey QuestionsDoes anyone hold a position other than Treasurer or an RC?

What other positions are in the class? RRA? RCA? CVPA? Registrar? Others?

Size of Region?Less than 300 players? Greater than 300 and less than 1000 players? Greater than 1000 players?

Size of annual Regional budget?Less than $50K? Greater than $50K and less than $100K? Greater than $100K?

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Financial Definitions

Annual Budget:

Actuals:

Forecast:

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Estimate of revenues and expenses for specified 12 months. A report of actual revenues and expenses for a given period.

NAP report.

Report with actual revenues and expenses to-date and estimates for the remaining time, usually one year.

Revenue (Income)

What items are included?

Registration feesSponsorshipsFinancial donationsFund-raisingIn-kind donations

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In-kind Donations What are they?

Product or services that are free or at less than market price. Local company donates t-shirts for coaches.

Why track them?For planning purposes, to ensure items are covered in future budgets.

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Major Expenses “Basic/Critical” (Musts)

What items are included?Players: uniforms.Volunteers: referee equipment, training, travel (Section Meetings).Organization: registration, publicity, supplies/postage/phone, fields.Capital equipment: goals, nets, etc.

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Other Expenses (Wants)

What items are included?

Players: awards, photos, apparel, …Volunteers: recognition, apparel, …Organization: postage, copying, meeting, …Capital: equipment, field development, …

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Who owns the budget?

Regional Treasurer withRegional Commissioner support and Regional Board Members providing information and Other volunteers as needed.

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The entire Board owns the budget!!

With whom should the Treasurer interact to prepare the budget?

Regional CommissionerRegistrarUniform and Equipment CoordinatorsCoach Administrator and Referee AdministratorOther Board and non-Board Members

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Building a Budget… from scratch

Create list of all possible expenses.Review past checks and receipts for items, costs, timing.Look at past deposits amounts and sources.Check with former Board Members.Schedule budget discussion meetings.Talk to suppliers.Call other Treasurers.

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Key Budgeting Factors

QuantitiesPlayers, teams, and players/teamReferees and coachesPractice fields per weekField equipment (nets, flags, paint)Training classesSection Meeting and NAGM attendeesSponsorsCopies, ads, mailings

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Key Budgeting Factors

Amounts/Costs ($$$)National player feesSponsorship $ levelsUniform costsReferee and coach equipment/apparelAwards/recognition costsTraining materials costsCommunication costs (printing, web, etc.)

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Budgeting ToolsPaper

FormsNAP reportsCheckbook

SoftwareExcelQuickenMoney

Other

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Budgeting Tools – Consideration Factors

Simplicity vs. complexity vs. flexibility.Special knowledge and/or equipment (computers) required and costs.Ease and timeliness of sharing past and future information.Time required to integrate changes.Ability to assess impact of what-if scenarios.Accuracy.Re-use of past, current, future data.Time needed to train successors.

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Major Consideration Variable vs. Fixed CostsVariable expenses are dependent on the number of players.

Uniforms, photos, participation awards, etc.

Fixed expenses do not depend on the number of players.

Field costs, tournament trophies, registration costs, etc.

Are “Fixed” Costs Unchanging?? No!!

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Costs vs. Number of Players

$0$10$20$30$40$50$60$70$80$90

0 250 500 750 1000

$000

Fixed CostsVariable Costs

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Total Costs vs. Number of Players

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

0 250 500 750 1000

$000

Fixed CostsTotal Costs

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Revenue vs. Number of Players

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

0 250 500 750 1000

$000

Fixed RevenueVariable Revenue

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Total Revenue vs Number of Players

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

0 250 500 750 1000

$000

Fixed RevenueTotal Revenue

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Revenue and Costs vs. Number of Players

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

0 250 500 750 1000

$000

Fixed CostsTotal CostsFixed RevenueTotal Revenue

Let’s now prepare a budget

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First - Obtain the budget form

Preparing a Budget – Next Steps

Using the form:1. Estimate revenues.2. Estimate expenditures.3. Subtract expenditures from revenues.4. Add in last year’s account balances.5. Celebrate the surplus.

Or cry over the loss.6. Done!

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Are there any questions?Right

?

Using a Budget ProcessDevelop and communicate the calendar, including due dates for:

Submittal of individual budgetsBudget reviews and consolidationApproval meetingSubmittal to AD and National Office (by June 1)

Agree on the assumptions that will be usedHave each Board Member submit a budget to cover their area of responsibility

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Preparing a Budget: Using a Process

Estimate revenue first, or expenses first?

Depends upon degree of stability versus prior yearDo you wish, intend, or need to change fees?

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Preparing a Budget: Using a Process

Are you expecting significant growth?

Project revenue first, additional funds to spend on fixed cost items

Do you rely on sponsorships, donations, fundraising?

Project expenses first, then deduct fees to determine required level of fund raising

Did you achieve last year’s budget?If you overran expenses, do expenses first, determine where to “tighten things up…”If you ran a surplus versus budget, why? More players? Less expenses?

When should you begin the process?You need to allow enough time before your first registration since you may need to adjust your registration fees

Preparing a Budget: Using a Process

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Budgeting Exercise

Form into five functional groupsCoach AdministratorsReferee AdministratorsRegistrars/CVPAsSafety/Field DirectorsAdministrative group

Each group should identify budget expenses

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Coach AdministratorsCoach trainings/clinicsSupplies/equipment (whistles, clipboards, etc.)Coach shirts/uniformsTournaments

Budgeting Exercise

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Referee AdministratorsReferee trainings/clinicsEquipment/suppliesUniformsTournamentsAppreciation items

Budgeting Exercise

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Registrars/CVPAsRegistration event location expensesVolunteer flyersUniformsAwardsOffice supplies for registration eventsPostagePayments to AYSO

Budgeting Exercise

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Safety/Field DirectorsSAI brochures, formsGoals and netsFirst aid kitsField paintPark feesKids Zone® signs

Budgeting Exercise

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Administrative groupOffice supplies - postageMileage - travelMeeting expensesBoard trainingsAdvertisingAwards - photos

Budgeting Exercise

Are additional sponsorships or fund raising an alternative?If no other alternative, where can we cut expenses?Non-manageable expenses

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Adjusting your Budget aka “Now What??”

If no other alternative, where can we cut expenses ??

Less expensive uniformsUsually largest variable expense

Photos – charge separately if bundled

“Hidden” fee increaseLess expensive awards (trophies, medals)

Adjusting your Budget aka “Now What??”

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If no other alternative, where can we cut expenses (continued)??

No cost promotional opportunities

City events and publicationsSchool districts and child care organizations

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Adjusting your Budget aka “Now What??”

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If no other alternative, where can we cut expenses (continued)??

Seek no cost meeting locations available to non-profit organizations

Government organizationsSchoolsLocal hospitalsLocal utility companies

Adjusting your Budget aka “Now What??”

Ultimately, use appropriate balance of fundraising, fee management and cost management to “balance budget”Remember to budget a reserve!

$5 to $12 per player No budget is perfect!

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Adjusting your Budget aka “Now What??”

Additional Training Options

Developing a Regional Calendar

Auditor Training

Treasurer

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Available Resources

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See Resources on:www.ayso.org

For self-paced training modules:Registration Day – A Survival Guide30 Great Volunteer Recruiting Ideas30 Fantastic Volunteer Retention IdeasDeveloping a Regional CalendarBudgeting for the Regional Board

Job Descriptions

AYSO Reference Book

www.ayso.org

Available Resources

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