Finance Advisor Accreditation, page 2
Budgeting Best Practices
Perhaps the most important task of the chapter treasurer is to set the chapter budget. The budget should not just be set by the treasurer but by the entire executive board. Additionally, the budget should be prepared immediately after the chapter goal setting retreat. By doing this, the budget will match the goals of the chapter – as opposed to the other way around.
Each executive board member should prepare a budget for his position and their cabinet (if applicable). As a finance advisor, your role should be to help the chapter through this process by providing feedback on the proposed budget and noticing any glaring issues with expected income vs. expenditures.
The Standard Budget
Searching “Organizational Budget Template” on Google will bring up thousands different results that will all have different ways to budget. However, the Fraternity hopes to make it easy on our chapters by providing a Standard Budget that is recommended for all chapters to use. The Standard Budget can be found in the myPIKE Resource Center under treasurer documents. As the finance advisor, it is highly encouraged that you create a myPIKE profile and advise the chapter to fully utilize the standard budget.
The budget is broken down into income and expenses. The income section of the budget is pretty self-explanatory as it is a function of number of members in the chapter and the amount of dues charged to each member each semester. However, the real value in the budget is in being able to enter in the budgeted amount for each area of programming and keep track of administrative expenses. Due to this functionality, the chapter should not be surprised by going over budget or losing track of administrative expenses.
The local chapter is responsible for administrative expenses each semester that may include: the Liability Protection Program, local IFC dues, and national chapter assessment. In addition to these expenses, it has been clear that the best and most stable chapters budget to send their members to PIKE University events throughout the year. As a finance advisor, it is important to ensure that the chapter is budgeting for those certain administrative expenses and, if able, budgeting for PIKE University attendance. It is an investment in themselves.