Managing Troop Finances
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- Jean Stella Berry
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1 Managing Troop Finances Helping girls earn and manage money is an integral part of the Girl Scout Leadership Experience. Your Girl Scout troop is responsible for planning and financing its own activities, with your guidance. This puts girls in charge, giving them the opportunity (with your oversight) to cooperatively set goals, manage a budget, spend responsibly, maintain records, earn social skills, and develop good marketing, entrepreneurial, math, and financial skills. Girl Scout troops are funded by a share of money earned through the GSCM Cookie Program, troop money earning activities (council approved, of course!), and any dues your troop may charge. This resource will provide some additional information about managing troop finances. Please also refer to the Council Policies (00-221) and Chapter Five of Volunteer Essentials. Money Matters - Definition of Terms Commercial Products Anything sold at retail. (GSUSA, Nov. 2000). Girls may not sell or endorse commercial products (i.e. girls cannot sell items such as candy bars, kitchen or makeup products as part of their money earning efforts). Donation The making of a gift; a free contribution. (Webster s Dictionary, 2002) An organization or corporation gives you something (often called a gift ) with nothing expected in return. Fund raising Techniques to appeal to the public to contribute funds to support the program and activities of the organization. Fund raising is the responsibility of adults. As part of the fund development plan for the council, board members, or other volunteers, work in partnership with staff to raise funds through grants, donations, campaigns and other types of funding avenues. Troop Money Earning Activities planned and carried out by girls and supported by adults, to earn money for the troop treasury. When girls create an activity plan that requires extra funds, they set a goal for money earning to cover these costs. Troops make a commitment to participate in the council sponsored Cookie Program. If the funds required for the activity are greater than the profit from the two council sales, troops may implement other types of money earning opportunities (i.e. car wash, crafts sales, etc.). GSCM also offers a spring magazine sale. Sponsorship A voluntary partnership between a community organization, business, or an individual and a Girl Scout troop or council. (GSUSA)
2 Girl Scouts of the USA Standards Related to Money Earning and Troop Finances Activities Involving Money Girl Scout troops are financed by dues, money earning activities, and a share of money earned through council sponsored product sale activities. Council Sponsored Product Sale Activities Girls can participate in no more than two council sponsored product sale activities each year and only one of those may be a cookie sale. The percentage of money to be allocated to participating troops is determined by the council and explained to the girls and adults as part of the product sale activity orientation. At GSCM, our primary council-sponsored sale is the Girl Scout Cookie Program. We also have a magazine sales program in the spring. Council Fund Raising Fund raising or fund development to support the Girl Scout council is the responsibility of adults, and this responsibility should not be placed with the girls. Girls may provide support to these efforts through voluntary service. Selling Girl Scout cookies is not a fund raising activity. Fund Raising for Other Organizations Girl Scouts, in their Girl Scout capacities, may not solicit money for other organizations. Girl members may support other organizations through service projects or a donation from their group treasury. Who Pays for Girl Scouting? The GIRL S FAMILY pays for: Annual national membership dues to GSUSA and the GSCM Activity Fee Troop dues Girl Scout books Uniform (optional) and insignia Transportation Fees for some troop outing, events, day and resident camp Family SHARE Contributions *The ADULT VOLUNTEER pays for: Annual national membership dues to GSUSA Girl Scout apparel (optional) Transportation (mileage) Adult education fees where applicable, such as classes or workshops which benefit the volunteer personally. The troop may vote to cover fees for required training such as First Aid/CPR. The GIRL SCOUT TROOP pays for/can provide: Troop activities out of the troop funds Additional insurance, if needed, for extended travel or other events Earned awards (if voted on by girls) Financial support of girls earning Girl Scout Bronze, Silver or Gold Awards Troop supplies and equipment The COUNCIL provides: Adult education courses Publications and other resources for troop leaders GSCM website Liability insurance for adult while they are acting in the official capacity as a leader
3 Council wide activities Staff to assist the leader and service team members Camping Sites The NATIONAL ORGANIZATION (GSUSA) provides: Development of books, training materials and other support materials Basic accident insurance for every girl and adult member GSUSA website - *As a Girl Scout volunteer you may be allowed a charitable tax deduction for your non reimbursed, out of pocket expenses that are directly connected with the performance of your service. Consult your accountant, tax preparer or the IRS. Sources of Troop Income Troop Dues Dues are collected from troop members on a regular basis to finance troop activities. The girls in the troop, with the assistance of leaders and family, decide how much they wish to collect as dues. Encourage girls to vote troop dues as low as possible, keeping in mind the goals they wish to reach. Help them learn to budget! Leaders and girls should review their budget regularly and make any needed changes. Keep the girls informed of their financial status throughout the year and at the end of the year when completing your annual troop financial report to the council. Troop leaders should be sensitive both to the needs of the group and to each girl s ability to pay dues. Girl Scout Cookie Program The Girl Scout Cookie Program order taking begins in September. Delivery and booth sales are from October to early December. Girl Scout Cookie program serve two functions: first and foremost to help girls develop a wide range of skills leadership, money management, decision making, planning, goal setting, teamwork, and many more. The second purpose is to generate income for Girl Scout troops and councils. An enthusiastic troop can earn a great deal of money by participating in product program. Adequate planning will ensure that this money is spent wisely on Girl Scout program and/or service projects. Product program earnings may be put to good use to: Register troop members for the following year Purchase troop supplies and awards Support a service project Go on field trips Go Camping Attend council program events Additional Money Earning Projects Money earning projects are special projects the troop develops to earn additional money for a specific major activity, not just to increase the troop s treasury. More guidelines and procedures for carrying out a moneyearning project are discussed in the Council Policies. Participation in the GSCM Cookie Program is required in order to conduct any additional money earning projects. Service Unit and Council approval is required for money earning.
4 Troop Budgeting Helping Girls Reach Their Financial Goals One of your opportunities as a volunteer is to facilitate girl led financial planning, which may include the following steps for the girls: 1. Set goals for money earning activities. What do girls hope to accomplish through this activity? In addition to earning money, what skills do they hope to build? What leadership opportunities present themselves? 2. Create a budget. Use a budget worksheet that includes both expenses (the cost of supplies, admission to events, travel, and so on) and available income (the troop s account balance, projected cookie sale proceeds, and so on). 3. Determine how much the troop needs to earn. Subtract expenses from available income to determine how much money your troop needs to earn. 4. Make a plan. The troop can brainstorm and make decisions about its financial plans. Will the cookie program, if approached proactively and energetically, earn enough money to meet the troop s goals? If not, which troop money earning activity might offset the difference? In this planning stage, engage the girls through the Girl Scout processes (girl led, learning by doing, and cooperative learning) and consider the value of any potential activity. Have them weigh feasibility, implementation, and safety factors. 5. Write it out. Once the troop has decided on its financial plan, describe it in writing. If the plan involves a troop money earning activity, fill out an application for approval from your council and submit it along with the budget worksheet the girls created. Remember: It s great for girls to have opportunities, like the Girl Scout Cookie program, to earn money that helps them fulfill their goals as part of the Girl Scout Leadership Experience. As a volunteer, try to help girls balance the money earning they do with opportunities to enjoy other activities that have less emphasis on earning and spending money. Take action projects, for example, may not always require girls to spend a lot of money! A budget is a plan for spending money based on the amount of money you have to spend. Just as a budget is crucial to a smooth running household, a troop budget is crucial to a smooth running troop. Girls at any grade level can learn about budgeting and its benefits. Girl Scout troops should be self supporting as much as possible. If plans need to be changed because the troop can t afford it, leaders will have a good opportunity to help girls think of other ways to do the same thing or figure out what else we can do to accomplish the same purpose without tapping into the parent bank. The age, ability and experience of the girls will determine the amount of responsibility they can assume. The youngest Girl Scout can be informed about our troop treasury and can be given the opportunity to make choices. Girls may be encouraged to designate a portion of their troop treasury to be used for annual membership dues for the members.
5 Fundamental Steps for Developing a Troop Budget 1. Brainstorm what the troop wants to do for the year, keeping in mind that troop funds must cover all needed activities and events. a. What does the troop want to do? b. What will cost money? 2. Discuss what things the troop will need money for besides activities. a. Pins, patches, recognitions b. Ceremonies c. Service Projects d. Thank you notes e. Parties f. Field Trips 3. Estimate costs and compute a grand total. 4. Discuss alternatives. a. What can the troop do that will not cost money? b. What can the troop do to save money or cut costs? c. Where will the money come from? d. Where will it be spent? e. What will the girls dues cover? f. Does the troop have any funds carried over from last year? 5. Decide on the amount of dues to be paid and how often. a. $1.00 to $3.00 per meeting are the preferred limits 6. Set goals for Cookie Program. a. What is our goal? b. Will the troop earn enough from these program to cover the anticipated expenses? c. If there will be a shortfall, reassess your plans. Troop Money Guidelines Spending Troop Funds Troop funds may be used to pay for the following types of expenses: Pins, Badges, and Patches Field Trips and Travel Materials for troop projects Camping Any other expenses directly related to troop activities Snacks Girls in re registering troops may vote to use troop funds for their annual GSUSA membership dues. In addition the girls may vote to use funds from their treasury to pay for: GSUSA membership dues for the leader or product program manager, Girl Scout publications (i.e. journeys, Girls Guide to Girl Scouting, song books, etc.), or small gifts for troop leaders.
6 If the troop account is not capable of funding large scale activities such as camping or trips, ask parents of the troop members to donate the food or supplies or to lend camping equipment. Many parents already have many items needed and they would gladly share them with the troop. If you need a first aid kit, ask the parents to donate specific items for the kit. Their daughters directly benefit from these donations. Being Fair Remember, once something becomes the property of the troop, it is now a Girl Scout item and should be kept with the troop things. It does not belong to individual girls or parents/guardians. Troop money should be used to equally benefit the troop as a whole, not individuals. Keeping records to show how much each girl or family earns or contributes is not appropriate. Girls should be taught that they all must do their best to help the troop earn enough money to do what they want to do. Girls should not be singled out for praise or blame for how much money they earn for the troop. Not all girls will perform or achieve equally. If a girl s parents/guardians do not give her permission to participate in every money earning opportunity, whether due to illness or other personal circumstances, the girl should not be penalized. Be very careful about saving money for activities several years away. In this mobile society, girls move frequently. If current troop program is hindered in order to save money for the future, these girls do not receive the full benefits of Girl Scouting now. On the other hand, it is entirely appropriate to save some money to be used to reregister the troop for the next year, and to carry the troop through the fall. Plan ahead for some of next year s activities with the girls so that any money held over has a purpose. This planning will help the girls stay excited about Girl Scouts. Communicating with Parents Parents/guardians have a right to know what happens to troop money. Set up a kind of system (newsletter, financial report, regular parents meeting) to keep them informed about how troop money is being used. Troop financial records should be open for parental inspection at all times. Leaders should provide the parents with a copy of the Annual Troop Financial Report. Parent/guardians also need to know that money in the troop s treasury does not belong to individual girls. Troop money cannot be divided among the girls for personal use. If a girl drops out of the troop, she may not take money with her. Adapted from Girl Scouts Heart of California
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