HOW TO PREPARE YOUR LODGE BUDGET
SECTION 4 - THE HIRAM'S HANDBOOK
A budget should be used in every Masonic Lodge. You may not have
thought about it, but everyone makes use of budgets in one way or another. This
is true in every aspect of life, whether it be conserving energy for use in the
final minutes of a game, or reducing automobile speed to stretch-out the
remaining gasoline supply until you can reach a gas station.
Budgeting is necessary to attain your desired goals and to
keep your planning within the realm of reality. It requires a systematic
evaluation of estimated income and expenditures to ensure that funding will be
available for programs, activities and building maintenance.
The first step in creating a budget is to estimate the income
that the Lodge will receive. All budgets must eventually relate to the resources
or income available. These resources are determined by the size of your
Lodge’s membership, amount of investment yield, and other sources. It is not,
however, the most important aspect of the budgeting process, as we shall see
later. These Lodge resources are typically made up of one or more of the
following:
1) Dues
2) Interest and Dividends
3) Sale of Stocks or Bonds
4) Income from rental property
5) Applications and Affiliations
6) Donations
7) Other
Consult with your Secretary and Treasurer to learn how much
money is available in the several accounts held by the Lodge, and to determine
the amount of the annual income which may be expected from each account. Funds
available to your Lodge may be estimated by filling out the budget form shown in
Appendix
D.
The second element is to determine the costs associated with
your Lodge, and without which it cannot function. These are the fixed costs, and
should be itemized separately from non-fixed or discretionary expenses. Fixed
costs should include the following:
1) Rent/Maintenance
2) Utilities
3) Salaries and associated taxes
4) Trestleboard printing and postage
5) Telephone
6) Per-Capita tax
This list is presented as a suggested guide for planning.
Actual fixed cost items can only be determined by considering your Lodge’s
unique situation.
Once the resources and fixed expenses are identified and
cataloged, the real task of budgeting can begin. After all revenues are
identified, and the totals compared, you will have a good idea of the amount of
money available for your special programs or your program budget. This is the
point where dreams become realities as your ideas for the Lodge start to take
shape in the form of realistic programs.
When you have determined what your budget allows, you will
have to make some project or program choices. Projects and programs can be very
expensive or very inexpensive. It all depends upon what you plan and how you
execute it. The costs of various projects and programs must be carefully
estimated if you are to come up with a realistic budget. The following items
should be considered in your estimates:
1) Printing costs (special trestleboard inserts, flyers,
programs, tickets, etc.)
2) Postage for flyers and/or tickets
3) Entertainment costs (Musicians, entertainers, scenery and
misc. for home or local talent, etc.)
4) Decoration costs
5) Food or refreshments (include condiments, paper goods,
etc.)
You may not have all the details for each of your programs
worked out to the level shown above; but the closer that you can come, the
better your estimate will be.
As soon as you have determined what your budget allows, and
how much your proposed projects and programs cost, you will have to make the
hard decision as to which programs you can afford, and which you will have to
drop. Benefits of possible programs are not easily evaluated, but they must be
considered if you are to present your lodge with an interesting plan of
activities. You need to choose programs that will be enjoyable for the majority
of the members and will be well attended. The following points may help you in
this decision process:
1) Would the majority of the members be likely to attend? (Are
most of the members interested in this type of program or is it too specialized
- for example, a bridge tournament as opposed to a cribbage tournament?)
2) Is there a cost to individuals attending? (If the cost is
beyond the means of the members of your Lodge, then you can’t expect very many
to attend. In addition, Senior Citizens often have a limited income and cannot
afford functions that are too expensive.)
3) Is the distance to the event too far for most members?
(Should a bus or other transportation be provided?)
4) Is the event too late in the day for most members? (Again,
Senior Citizens would be unlikely to attend late evening events, but could be
available to attend week-day activities.)
5) What is the accessibility of the facility where the program
is to be held? (Uneven terrain or a great many steps could mar tfre enjoyment of
those members who are Senior Citizens or who are disabled).
Finally, you must estimate the value or benefit to the
membership of a proposed program, and relate it to the cost of the program. The
relative benefits of alternative programs must each be considered in light of
their respective cost. Those programs which yield the greatest benefit to your
lodge for the least cost are the most effective.
Not all programs need to be funded entirely by the Lodge
revenues. A significant portion of the costs related to some kinds of programs
could properly be borne by those who choose to participate. For example, a
Family Night Program that involves a dinner with a Magician’s act following
the dinner could properly charge those attending a donation for the dinner plus
some or all of the entertainment. In those instances, it is recommended that the
precise amount of lodge contribution to the program be identified early, and
that the user portion of the program costs be advertised in the trestleboard
well in advance of the event. Be sure to state definite cutoff dates for
reservations. Also any necessary deposits should be requested at that time. This
will have the effect of reducing the number of “no-shows” and will also
provide working capital for the program. In many instances, programs can be put
together which cost very little and yet are still of great interest to many
people. Examples of these might include a tour of some private or public
facility such as a major dam and powerhouse, a pulp mill factory, a historical
museum, train or car museum or... Look around your area, and use your
imagination. Your local Chamber of Commerce is a great resource tool that you
can use for facilities appropriate to your area.
Also, public relations offices are established by many firms
and public agencies to make their services known and to establish good rapport
with the general public. They often welcome guided tours of interesting
operations. Taking advantage of such services may materially reduce your program
costs and at the same time provide an interesting program. In some cases, it can
even make a good program possible in the first place. An excellent program does
not have to be expensive.
You now come to the best part of the budgeting process. You
have by now completed the project or program evaluation process and know how
much revenue is available for these items. In some instances you may have
determined that the benefits to be derived from a particular program warrant its
full support by lodge funds. In others, participant charges for all or a portion
of the program costs may be warranted. For still others, you may have decided
that the lodge cannot afford the program at this time and may
have chosen to give the idea to one of your Wardens for their use at a later
date. You are now ready to finalize your plan and to correlate your budget with
the calendar from your Annual Plan. Your preliminary budget, with your calendar,
should be submitted to your budget committee for review and their comments.
The final budget should ten be prepared by the budget
committee for submittal to and approval by the Lodge. After the budget is
approved by the Lodge your plan is ready to submit to your Entertainment
Chairman for implementation.
REMEMBER, your budget is a plan and as such is subject to
change. Don’t hesitate to change the plan, with the approval of the Lodge,
when it becomes necessary.
SAMPLE LODGE BUDGET
BOAZ LODGE NO. 59, A. F. A. M.
January 2, 1997
REPORT OF BUDGET AND FINANCE COMMITTEE FOR 1997
The Budget and Finance Committee met on
December 31, 1996 to prepare a Proposed Budget for 1997, which the Committee
recommends as follows:
PROPOSED BUDGET FOR 1997
| ESTIMATED INCOME |
|
1996
Actual
|
1997
Budgeted
|
| Dues |
|
$7,410.00 |
$7,410.00
|
| Income from Suppers |
|
$2,240.00 |
$2,000.00 |
| Interest on Lodge Investments |
|
$300.00 |
$300.00 |
| Interest on Checking Account |
|
$15.00 |
$10.00 |
| Miscellaneous |
|
$320.00 |
0.00 |
|
|
$10,285.00 |
$9,860.00 |
|
|
|
|
| PROPOSED EXPENDITURES |
|
|
|
|
|
|
|
| Secretary’s Expenses |
|
$1,100.00 |
1,175.00 |
| Rent |
|
$4,200.00 |
$4,200.00 |
| Aprons |
|
$150.00 |
$180.00 |
| Postage |
|
385.00 |
400.00 |
| Sewer |
|
300.00 |
425.00 |
| Electricity |
|
485.00 |
500.00 |
| Salaries |
|
800.00 |
800.00 |
| Per Capita |
|
1,852.50 |
1,852.50 |
|
|
$9,272.50 |
$9,532.50 |
The following will summarize the Committee’s considerations in preparing
the proposed 1997 budget.
Dues $7.410.00. The dues estimate was based on 247 dues paying members at $30
each.
Application Fees. Following a policy established several years ago, we should
not rely on the uncertain receipt of application fees in order to prepare the
lodge budget.
Secretary’s Expense and Printing $1,175.00. These amounts were estimated as
follows:
|
Trestle Boards |
240.00 |
|
Installation Printing |
50.00 |
|
Secretary salary |
500.00 |
|
Supplies and envelopes |
200.00 |
|
Cards for members |
150.00 |
|
Miscellaneous |
35.00 |
|
TOTAL
|
$1,175.00 |
|
|
|
|
Mailing permits |
60.00 |
|
Trestle Boards |
250.00 |
|
Birthday cards |
50.00 |
|
Miscellaneous |
40.00 |
|
TOTAL
|
$400.00 |
Aprons $180.00. It was estimated that we will purchase a six candidates
aprons.
Postage $400. The postage expense was estimated as follows:
Per Capita $1,852.50. Total per capita tax was computed at $7.50 for each of the
247 members.
Respectfully submitted,
BUDGET AND FINANCE COMMITTEE
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