An alternative to "scholarships"

As I have said in other posts, many families will not apply for "scholarships" for youth events, no matter what.  It is a matter of pride.  However, one system I found worked was to offer a "stipend" (meaningless word in this context -- it just sounds good).  The first 15 campers that applied would get $x toward their fees.  Of course, there will be those that ask for it that don't deserve it, but there is no perfect system.  Most of the applications will be from families that need the help.  There may be other gimmicks for giving help to those who won't ask for a "scholarship."  I'd love to hear from people about other alternatives.  Just make a comment to this post.

Mission trip budget issues

Most mission trip projects explicitly or implicitly expect groups coming in to cover the costs of the project. Plan this into the budget. You also will have unexpected expenses as you need to buy tools, rent equipment, etc as the project unfolds.

When to write vouchers

Write the vouchers as soon as the amounts are known. Memory fades quickly so don't put this off. We may not like doing this kind of stuff but it can be the death of us if we don't do it and do it well.  [Remember the "Toad Rules"]

Accounting and money for large activities and trips

Leaders of youth are often more interested in the youth and the activity at hand than the mundane matters of money – and many a youth leader has gotten in hot water for mishandling of money. So here are some comments about money:

• Always have extra cash on hand to bail out a kid or two.
• Try to arrange to have a cash advance for fast-food and incidental expenses. I generally plan on $5/kid for breakfast, $5/kid for lunch and $10/kid for dinner for fast-food meals. If someone wants to spend more than this allotment, they can do so out of their own spending money. Often a youth who doesn't spend their allotment will cover the cost of the youth that needs more than the average.
• For fast food meals and other receiptless situations – issue kids or groups of kids whole bills (such as a $20 bill to a group of four) and get the change back and put in an envelope (I always keep a supply of dollar bill sized envelopes at hand). At a more leisurely time you can count the change and calculate the total cost of the meal or activity and put this on your ledger (I use the back of the envelope for a temporary ledger).
• Get a receipt for cash spent any time you can and stick in the envelope.
• If you can sell the Trustees on it, get a corporate credit card, if not, get a credit card separate from your own that you use only for church related activities. Use it any time this is possible, carrying large amounts of cash is a pain and potentially dangerous and harder to account for.
• Always produce a balance sheet of any complicated or expensive activities.

Economic Considerations for youth on a trip

Recognize that even in affluent areas there will be youths with very limited discretionary funds. Often it is impossible to tell who has money and who does not. To have expensive activities or a large number of less expensive activities is to exclude some young people from participation. Most churches have "scholarship help" available, but even this is of limited usefulness because for many youth who have limited income do not view themselves as "poor" and in need of scholarship help. They just can't afford this particular activity (nor the next one, nor ...).

• There may be other creative solutions to the problem, but the most commonly used approaches are an adequate youth budget and fund raisers by the youth. In any case, what needs to happen is for the cost per kid (c/k) be reduced across the board -- not just for those who "need" it.
• Scrupulously avoid any surprise expenses. Kids need to know exactly how much money to bring for an activity -- it is embarrassing to them to have to borrow money to get into something that is a group activity.
• Similarly, a healthy policy is that the initial fee for an event covers all necessary expenses -- all meals, housing, registration or entry fees. A kid could actually survive a trip or event without a dollar to their name.
• I usually include a disclaimer in information about an event that I cannot/will not predict how much money they need for personal use - i.e. snacks, CDs, souvenirs. Perhaps something on the order of: "Since different families have different traditions and practices about spending money, there can not be a recommendation on spending money. On this trip, however, there will be opportunities for people to buy snacks and gifts."
• To top all this off, if expenses are not covered by the initial fee or fundraising, you will need to be prepared to slip a kid or two the needed money.

Proportional budgeting

The church's financial software probably allows this, but figure budgets on a month to month basis, so that if there is a major expense expected in June, that month's budget should reflect those expense and if there is nothing at all to be spent from those line items in September, then that should be reflected in the September budget number. This helps planning and it keeps things from looking bad in months when there are major expenses.

Have some kind of “report back” to the congregation from major events, especially if there was fund raising for it.

• Use a “Moment for Mission” in worship, to highlight youth activities and missions.
  
• Host a thank-you dinner with presentation about the trip (press the youth to plan the presentation carefully, such presentations tend to be unprepared and extemporaneous and therefore inarticulate, long and boring if not embarrassing).
  
• Run a PowerPoint presentation continuously in the Narthex.
  
• Create a picture board in the Narthex or halls. Creating this is a good project for a youth not otherwise involved.
  

Shopping with the youth

• Adult sponsors and cooks usually don't like this activity, but it works and is fun for the kids: On a trip or for a big meal where there is a need to buy lots of groceries, divide the group into teams, go to a grocery store and give each team a portion of the shopping list to locate and gather.
  
• When planning a big event that requires shopping, take the planning committee with you to the store. This is a good bonding activity even if it is chaotic and you might get in trouble with the store manager...
  
• Take their suggestions seriously but you can teach them how to read pricing labels and get a good bargain and stay in budget.
  
• For “budgetary reasons” have them choose between two things they want.
  
• Help them realize they aren't just shopping for themselves but the whole group and have a responsibility to satisfy the whole group.
  

When putting a group meal on a credit card

• Set a maximum amount per person that is appropriate for the particular eating establishment. 
• If a person goes over that amount they are to reimburse the group. 
• What usually happens in real life is that one goes over and another is under so that it balances out and you don't worry about it.

Reservations for more than are signed up?

It is generally a bad practice to make plans or reservations for more than the number who have actually signed up. This is a good way to lose money. It is better to leave a few at home (although this kills my soul).

Seasonal Fund Raisers

Consider seasonal fund raisers:

• Winter: frozen home-made soups
  
• Christmas: Wreaths, Christmas package wrapping, baby-sitting service on a Saturday (for shopping), pie and cake sales
  
• Valentine's day: bake sale
  
• Superbowl or an important local televised football game: catering of sandwiches or chips and dips
  

(Add your own suggestions here as comments!)

Value and values of fund raising

I won't make suggestions or critiques of the infinite variety of fund raisers, but make a few observations about the phenomenon in general. The value and values of fund raising need always to be thought through explicitly:

• Is the sole goal to raise as much money as possible?
  
• How much has to be raised?
  
• Can it be done in one event or a series of events or activities?
  
• Is group building an important element?
  
• Do the youth actually have time to do the project? You can't accept promises. Look at their schedules and track record for showing up.
  
• How much of a mess will the project be and who is likely to be offended or impacted by the project?
  
• Will the youth themselves be doing the project or is it a parent project?
  
• Is the project ethical? Is it more than just fancy begging or tricking people?
  
• How much are you willing to rely on sympathy, guilt or the aren't-they-cute factor?
  

Trip deposits

Planning requires knowing exactly how many are going. This is not an easy thing to determine. Although different types of events have some variations concerning advance reservations by the youth, there are a lot common issues. One if these is requiring a deposit from youth intending to attend.

• The deposit should be high enough to make a difference.
  
• In times of great financial hardship, a quiet policy of allowing people to make deposits in installments may be necessary.
  
• A deposit should not be returned unless there was no room for the person, the event was canceled or date changed or any other church caused problem.
  
• Everyone thinks their reason for canceling is just as valid as anyone else's. If you try to choose which reasons justify returning a deposit, you'll cause more turmoil and complaints than if you do not allow refunds, no matter what.
  

Handling cash on trips and events

Cash can quickly become a problem on a trip and having accurate accounting of it difficult.  Here are some things I did to keep things straight in the midst of chaos.


• Be sure to plan ahead to get a cash check cut by the bookkeeper.
  
• Make a list of cash allocations (cooks = $1000; 6^th grade small group $200...).
  
• Put cash in money envelopes (from the bank or you can buy bill sized manila envelopes).
  
• Number envelopes to correspond with the list, put amount and purpose on outside.
  
• Each person with an envelope is to write on the outside of the envelope the itemized amounts spent and for what purposes.
  
• If there are receipts, they are to be put in the envelope.
  Have those issued envelopes tally and balance the envelope.
• Collect all the envelopes before the end of the event – once the staff leave with the envelopes it will be difficult to get them back.
  

Accounting for major events

There should be a clear, separate accounting of major events and trips.

• This serves several purposes, including giving budgeting information for future events (how much does it cost to feed the group), prevents surprise draws on the regular budget, and answers any questions or doubts about the finances.
  
• Set up a spread-sheet as a template that makes this easy.
  
  • The “profit/loss” cell then becomes the amount you can expect to affect your overall ministry finances.
    
  • As a part of the spreadsheet have columns that breaks down any checks that will need to be cut (credit card, one of the counselors, etc).
    

At some point I may make a sample spread-sheet available to blog participants

Group Fund Raising

Fund raising can be a group builder and worthwhile doing just for this sake. However:

• A project that is mostly done by parents and other adults benefits the youth only financially and lets them off the hook.
  
• A project that sends the youth out individually is less valuable than a project where they are working together.
  
• Even if you can get things donated or made by someone else, would the group gain by doing the preparation themselves? In other words, actually cooking the food themselves for a spaghetti dinner even though someone offers to cater it or having a baking party rather than only having people bring baked goods.
  
• A group project fund raiser also allows for youth that simply aren't or can't participate in an individualized fund raiser to be involved. Some youth can contribute time and effort but not money. Some youths are just too shy to do solicitations.
  
• Even though you can get away with it for awhile, congregations eventually tire of and resent fund raisers where they do not actually receive some value for their contributions.
  

Spending money

Do not have any activities or situations where the youth are expected to have money. Some may not have much and it puts them in a really awkward bind. All “required” expenses (from meals, to recreation) should come out of the collective treasury. Only personal expenses (from snack food to gifts for family) are to be paid for by the youth.

Requiring deposits

With some youth in some areas of the country, it is common for kids to wait to the last minute to make reservations while in other areas it is common for them to make early reservations and then cancel at the last minute. In either case a rigid deposit system and cut off dates are a help. There are real costs associated with preparation for an event, and preparation is usually based on expected attendance. These costs are paid for by the deposits. Do not compromise on Deposits – they don't go, they don't get their deposit back. Everyone thinks their excuses is excusable.

Budgeting

Good financial practices are essential for a healthy youth ministry.

• Budget carefully, regardless of what the church organization requires.  You don't want to spend money at the first of the year for something optional only to not have money for something essential later in the year.

• Avoid the common practice of spending everything left in your budget at the end of the year.  This makes financial types crazy and is questionable theologically.

Profit and Loss Accounting systems

Beware of the accounting practice used in some churches of having income completely separated from expenses on a “profit and loss” financial report.  This makes it look like you are spending a lot more of the church's money than is actually the case.  A proper ”Not For Profit” or “funds” accounting system (as opposed to a standard business accounting system) will allow for income and expenses to be booked against a single line item, giving a net.  Most major accounting packages can be set up as a “Not For Profit” system.