As your PTA’s treasurer and chair of the budget committee, you’ll want to start developing next year’s (July 1 -June 30) budget soon.
Who should you ask to join you? Good choices are often the incoming president and treasurer, and outgoing president because they understand the past and future needs of your PTA. This also provides a more seamless financial transition for the incoming board.
Here are the basic steps for budgeting:
- Refer to your approved goals and objectives, and make sure those are reflected in your budget. Assign estimated costs to them. Include costs to maintain your administrative and training needs (insurance, Convention, Legislative Assembly, corporate renewal etc.)
- Add revenue sources to cover those costs (fundraisers, grants, matching funds etc.)
- Make sure you have enough income and/or cash on hand to cover expenses. Leave between 6-18 months of cash in reserves in case something unforeseen happens.
- Present your budget draft to your board of directors, then to your members for approval (members must vote) before June 30, 2022. Without an approved budget, your PTA does not have authority to spend money.
It’s a good idea to revisit and vote on this budget again next Fall because things may have changed. Budgets are fluid and can be amended by members’ vote throughout the year. Resources to help can be found on the Leadership Guides webpage.