FINANCINGTHE PARTY

MEMBERSHIP DUES,

DONATIONS AND

ENTREPRENEURIAL ACTIVITIES

AARON BENEDICT DE LEON

Secretary-General, CDP

FINANCE IS THE

OF THE PARTY

COST IDENTIFICATION

FUNDS RATIONALIZATION

FUND SOURCING IDENTIFICATION

EXPENDITURE MANAGEMENT

PHILOSOPHY

• Spend only where you need to spend– Consider cost saving options (where item of

cost is cheap but investment is effective)– Consider exchange deals (give me this for free

for this kind of service for your group)

• Prioritize where you need to spend most– You need to maintain a main headquarters– You need to have one-two full time staff in the

HQ– You need to finance operational costs

FUNDS RATIONALIZATION

• Prepare a summary of your expected costs and expected revenues– Per Quarter– Per Semi Annual– Per Annual

• Prepare your Cost-Benefit Analysis– Staffing Analysis– Logistics Analysis– Investment Analysis

BUDGET/FINANCIALPLAN

• Identify general and specific items of cost– GENERAL: Party HQ Operations– SPECIFIC: Electricity, Water

Expenses/Staff Salaries etc.

• It’s okay to overestimate but it should not be overboard 10% of total expense– You need to put in a section for

“Miscellaneous Expenses” and or “Contingency Expenses”

COST IDENTIFICATION

• Prepare a specific breakdown of costs incurred and expected revenue– Staffing Salaries–Operational Maintainance Cost of

Headquarter– Logistical Costs– Communication Needs Cost

BUDGET/FINANCIALPROPOSAL

• Identify sources of fund for each specific item of cost (if on a tight budget ) or on a general item (if there is sufficient budget)– GENERAL: Party HQ Operations- SOURCE:

Membership Dues– SPECIFIC: Staff Salaries- SOURCE:

Remuneration from District Fund Raising Projects

• Don’t allocate for an item of cost if there is no corresponding source

FUND SOURCING IDENTIFICATION

• Prepare anticipated revenue generating items on your Monthly/Quarterly/Semi-Annual/Annual Report, including:– Regular Membership Dues Revenue– Party Donations– Contributions of Regular Party Donors–Merchandise and Fund Raising

Initiative Revenues

FINANCIAL INFLOWSOVERVIEW

• Review your costs on a monthly basis. If you can save, always save for future emergency allocations– If there is a need to decrease allocation,

decrease.– If there is a need to increase allocation,

justify first the need

• Have a financial inflow and outflow chart to show how much goes in and goes out.

• Bargain for better deals

EXPENDITUREMANAGEMENT

• Prepare a System of Reimbursements/Acceptance of Money Inflows– Receipt System– Recording System

• Prepare a Treasury Management System– Bank Account– Cashbox System

BUDGET/FINANCIALMANAGEMENT

SYSTEM

SOURCE OF FUNDS

Personalities bankrolls political parties

Personalities control political parties

Personalities/Political parties do not become answerable to members/people, only to patrons

MEMBERSHIP FEE

YOUR CONTRIBUTION TO THE PARTY’S DEVELOPMENT

WHEN IT IS NOT IN YOUR CULTURE...CONSIDER THE

ALTERNATIVES...

DONATIONSTHROUGH PROJECTSAND ADVOCACIES

DONATIONS THROUGH ADVOCACIES

THE

ORGANIZATION SHOULD BE

RAN LIKE A...

FUND RAISING THROUGH ADVOCACIES

• Budget Proposal detailing potential costs and sources of funding

• A Final Line-Item Budget detailing General and Specific Costs and Sourcing References

• Expenditure Breakdown- breakdown of actual costs with appropriate receipts

• Cost Analysis - an analysis of target vs. actual cost to determine a loss or gain

EXPECTED OUTPUT

You are given Php 100,000 per month as seed money for your organization for the next 3 months. After that, there will be no more seed money.

1.) How will you spend the P300,000 total if you need to maintain an office, support membership development and training and conduct party activities

2.) How will you raise funds to operate the party for the remaining 9 months of the year?

ACTIVITY