Smart budgeting is more than just numbers on a page. It's the foundation of your club's long-term financial game plan.
This video covers the basics of budgeting and diversifying your revenue streams.
If you're on the management committee, a treasurer in the making, or just keen on keeping your club financially healthy, this video is for you.
Remember, the entire management committee is accountable for your club’s financial management – including setting the budget.
Ready to dive in? Think about these questions:
- How can a well-planned budget benefit your club?
- What's your strategy for setting membership fees?
- What ideas do you have to make more money?
Budgeting includes more than just looking at last year's income and expenses. It's about thinking ahead and considering what you'll need and what could change. Be cautious with your income estimates and pragmatic about your likely costs.
You should set aside the time to prepare your budget early.
Decide on your budgeting method - zero-based or based on last year’s performance.
Zero-based budgeting starts from scratch and might work best for a new or rapidly-growing club.
Basing the budget on previous years’ performance is fairly straightforward, as you can benefit from looking at the experience of past financial statements.
And importantly, continue to monitor your budget.
Monitoring your club's financial health isn't a once-a-year check-up. It should be a regular part of every management committee meeting.
When you compare your actual performance with your budget expectations on a regular basis, it enables you to make adjustments and corrections early if necessary, without having to wait until the end of the financial year to see how you performed.
Your membership fees are likely to be your largest regular source of income – so it’s important to set them correctly. Don't just aim to break even—value your sport and honour your volunteers. When you calculate your fees, cover your costs, aim for a reasonable surplus and remember the real worth of the experience your club provides.
Once you’ve set your fees at the right level, make sure that you collect them! Remember if someone isn’t paying their way, they are not a good customer and it’s unfair on other members.
To help collect all of your fees: set clear expectations, make sure that members are aware of payment deadlines, have easy-to-access payment methods and even consider flexible payment options. Clearly communicate this information through your website, social media, registration forms and member information.
Once you’ve collected all of your fees to cover your operating expenses, you can explore other fundraising activities to make more money. Clubs should always approach fundraising with a business mindset. Be creative when considering all the various revenue-generating opportunities you can try.
An example of a potential revenue stream is sponsorship. Scoring sponsorship is like signing a star player—it can give your club that extra edge. But it's not just about taking money. It's about creating value for your sponsors by helping them generate sales, so they experience a solid return on their investment in your club.
Get creative, find ways to boost their business and you’ll build partnerships that last longer than just a season.
Now you've mastered the financial fundamentals, plan your budget, set fees that reflect your club's value, make sure you collect what's due and diversify. Approach every financial decision with a sharp eye for opportunities.