All of the above threaten your existence as a recognized SNC organization. So how does one avoid the perils of money management? No, you don’t need to hire an accountant - or even have an accounting major for your treasurer. The most important tools of a sound financial program is a budget and at least two people who know about your finances.

 

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Budget
A budget should be developed at the beginning of each academic year. It is best to have your new executive board and outgoing treasurer develop this together. That way you limit the possibility of missing revenue sources or possible expenditures.

It is also a good idea to have copies of your past budgets. Your organization’s history of income and spending is indicative of what you will do next year. When developing your budget, remember to be realistic and even conservative. Don’t plan for a tab of $2/person for a steak and seafood dinner dance! It probably won’t happen. Following are some ideas to consider when planning and laying out your budget.

The first part of your budget includes planned sources of income. These could include membership dues, student activity fee monies, activity fees, fund raiser revenue, accounts receivable (does anyone owe your organization money?), and any other planned sources. Each of these sources should be listed separately in the income section.

Once you have listed your projected income, it is a good idea to subtract a 10% buffer from your gross income. This buffer will help you stay within your financial limits and provide you with a net income to meet your expenses.

The second part of your budget includes all money you plan to spend throughout the course of the year. Examples are national membership dues, retreats, socials, membership education, alumni relations, supplies, public relations, conferences, rush, ... there always seems to be a never ending list of places to spend your money!

Once you have your budget, it’s like having an umbrella; it isn’t going to help unless you use it! Refer to it often and
update it as needed. While most organizations use a treasurer to manage financial matters, it is important that
more than one person understand the financial operations of the group. Even the best of treasurers need expectations
and direction. Requiring monthly financial reports and documentation could help divert a financial disaster.

It is also important that your members understand your financial operations. A lack of understanding leads to disregard for paying bills and controlling expenditures. The more your members understand your revenue potential and expenditure constraints, the more they are willing to work within them.

Use a Ledger
Using a ledger to track your financial transactions is highly encouraged, and even required if you are receiving student activity funds. If your organization has a banner account, you should have received instruction on exactly how to do this. LSI has also put a simple ledger form on the website to encourage the start of this practice. If you need assistance is setting a ledger up, contact LSI.

Tax Exemption
All recognized student organizations with a college banner account are tax exempt organizations. You may use the exemption to purchase organizational supplies (i.e., t-shirts, mugs, etc.), service (rentals), and equipment (computers, camera, etc.). It may not be used, under any circumstances, to purchase alcoholic beverages.

When making a purchase by contract, purchase order, or other means, supply the vendor with the College’s state sales and use exemption certificate number. You can get this number by calling Karen Filppula in LSI at x4025.

Purchase Orders
When you order merchandise (i.e., items to sell for a fund raiser, dinner dance favors, winter carnival t-shirts, etc.) or use a bus company, you will often be required by the company to use an official college purchase order. Purchase orders can be obtained from LSI. Tax exemption comes easily with an official college purchase order, as the number and proof of its authenticity is right on it. Complete the purchase order with the following information: