C

For the Club President

CLUB FINANCES

In the by-laws which the board of
directors of R.I. recommends for club
adoption there appears in Section 5 of
Article X the statement that at the be-
ginning of each fiscal year the (club)
board of directors is to prepare or cause
to be prepared a budget of estimated
expenditures for the year, which, hav-
ing been agreed upon by the board,
shall stand as the limit of expenditures
for the respective purposes unless other-
wise ordered by the action of the board.

It is not necessary to have a special
finance committee unless the club by-
laws prescribe one. However, some
clubs do have such a committee whose
duty is to prepare the budget for
presentation to the board of directors
and to cooperate with the board and
the club treasurer in seeing that the
budget which the board adopts is care-
fully observed.

The adoption of a budget for han-
dling club finances is the best pro-
tection a club can have against finan-
cial difficulties. It protects against over-
enthusiastic expenditures on the part
of any one committee. Furthermore, it
guards against the club obligating itself
beyond its means. The budget plan is
an accepted part of practically every
modern business and for that reason
should appeal particularly to Rotarians
who are the business leaders in the
community.

In preparing the budget at the be-
ginning of the year, there is danger of
over-estimating the income and, in
turn, letting expenses run too high.
Be conservative in setting aside
amounts for club activities. Plan to
show a favorable balance at the end
af the year. Then work the plan. The
cost of membership to the individual
should be low enough to permit par-
ticipation by men of average means.

Appropriations from the club treas-

ury should be made only upon action
of the board of directors of the club.

Many club budgets are prepared as
follows:

INCOME

First estimate the income which will
probably be received during the year
in order to determine the amount avail-
able for expense appropriations. The
sources of income are principally dues
and admission fees.

ORDINARY EXPENSES

Per Capita Tax and Subscriptions to
“The Rotarian” (or other magazines):

The computation of these amounts is
fully explained in the by-laws of Ro-
tary International, under Article XIII,
Sections 1, 2 and 3, and Article XVI,

Section 6.

International Convention: Some clubs
pay all of the traveling cost of their del-
egate(s), one of whom very frequently
is the incoming club president. Others
pay only a portion.

District Conference: In compact dis-
tricts a club often appropriates only a
very small sum toward the conference
expenses of its delegates; in others a
substantial appropriation is granted.

District Assembly. It is customary in
many clubs to reimburse the president
and secretary for traveling expenses
incurred in attending this meeting.

Secretary's Office: The expenses
which should be provided for under
this heading will depend almost en-
tirely upon the size of the club and the
manner in which the work of the sec-
retary is handled. A review of the ex-
penses for previous years will suggest
the items which should be listed. These
may include such items as equipment,
printing and stationery, salaries, post-

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