Program Based Budgeting

As chamber leaders it’s important for us to fully understand our budgets and the budgeting process.

What is program based budgeting?

Simply put, it loads all the costs (i.e., food and beverage, marketing, rent and most importantly staffing) into the equation.

That way you get a true sense of whether a program/event is making money or losing money.

Don’t get caught in the trap of running programs and events that lose money and call it a member benefit.  Don’t laugh, we all do it!

There’s only one exception to this rule that I can think of and it’s your government relations (GR) budget.  That is a direct expense and it is a direct benefit to your members.

One could argue that may be the only reason a number of your member’s join. Chamber’s need to represent their members before elected officials to protect them from onerous regulations.

It’s the monthly luncheons, webinars, annual meeting programs that need to be fully loaded with costs for a proper cost analysis to determine their value, not only to your members but also for the financial stability of your organization.

If it’s not making money, it’s time to sunset the program!

For a program based budget builder from the Wallace Foundation go HERE.