Deciding How To Spend Fundraiser Profits

Most fundraising groups go into fundraisers knowing what they want (or need) to spend their funds on. Having that goal is very helpful to boosting the success of the fundraiser. When it is all said and done though, and it comes time to disperse and spend fundraiser funds, fundraising committees sometimes find themselves a little ill-at-ease and unsure of where to start.

Responsible spending of fundraiser profits requires planning and examination.

Determine How Much Is Really Profit

Before you can spend fundraiser profits, you have to carefully examine fundraiser records and receipts to decide how much cash is really free of responsibility elsewhere.

Determine both major and incidental costs of everything, including all supplies

Determine the cost of pre-buying product and if funds need reimbursing

This will help you decide how much money to set aside for future fundraisers.

Make sure you have cleared all debts/receipts and paid all reimbursements

Know what percentage of profits is committed elsewhere (do you need to deposit $x into an organization account, does a certain amount go to a PTO or other partner? Is money to be contributed to individuals or scholarships?)

Know what monies need to be saved or paid in to cover tax responsibilities (if you do not know, consult your group's tax adviser)

Save For The Future

It's great to have big money to spend on the never-ending needs of your organization, but starting every year at zero makes life a struggle.

Allocate a certain amount to fund future fundraisers (such as pre-buying product); this opens bigger and better options for future fundraising campaigns.

Allocate an amount to fund larger organization projects and interests

Spend Your Fund Raiser Profits

Spend fundraiser profits responsibly to stretch your hard-earned dollars as far as possible and retain as many funds as you can for other/future projects. Here are some tips to help you save:

Know your tax exemption status. If you are tax exempt, you should have an ID number which you can present to retailers and suppliers so you don't have to pay sales tax. This can be a big savings, especially on big-ticket purchases.

Shop around. There are many suppliers waiting to sell to you; keep in mind, though, that just because a seller may be a 'school supply' they may not have the best prices. Get quotes from several sellers and let them know you are shopping around.

Ask for a discount. For a good cause, you'll often find a retailer is willing to cut a percentage off.

Having a little something left over for flex purchases and future fundraisers is a good thing, but you'll want to talk to a tax adviser about it. Depending on your organization, your tax exempt status, and the amount of excess funding, you may need to spend money within a certain time frame (before year's end) in order to avoid taxes and penalties. At every step, having a good tax adviser will ensure smooth sailing when meeting tax responsibilities and allocating and spending fundraiser profits.

This is an article created by the FundraisingIP.com Editorial Team. For more fundraising ideas and fundraiser help, go to our article directory at FundraisingIP.com/articles.

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