By Evelyn Dufford, CMCA, PCAM
Budget season is right around the corner and we’re all getting excited. I must confess I’m excited because it’s one of my favorite times of the year. One of my staff it excited because it means we’re closer to Christmas. Two unrelated topics entirely. Well, kinda.
Creating a budget for an Association is something that a Board is tasked with each year. And each year the membership is asked to ratify the budget. Basically, we get our financial crystal ball out and predict what will happen and what we want to accomplish next year. Then we go to the membership to get their blessing for the spending we are planning to do. When it comes to Christmas, we know the gifts we want to buy and how many paychecks until Christmas. If we go over budget or get carried away with the season, what do we do? We use a credit card and pay it off with future paychecks. Associations don’t have the luxury of credit. We can’t get a credit card issued to the Association in case we over spend or don’t receive all the assessments on time.
Associations and their Boards are being asked to do what we as individuals and America as a country don’t tend to do. And that is to work with a balanced budget. Now I could go on about the politics of a rising the debt limit and deficit spending, but I won’t. I want to focus on the types of strategies Associations can use to help create a balance budget with room for the unexpected.
Here are 5 things to consider putting in this year’s budget:
We will be discussing these and other ideas at our annual budget seminar scheduled for September 13th, 2011. Click here to register. As always, let me know if you have any questions or comments at firstname.lastname@example.org.