Following is a transcript of this podcast episode, with audio/video below.
Welcome to the Two-Minute Treasurer’s Tip Podcast. I’m your host Cyndi Meuchel with MoneyMinder where our goal is to make your life as a volunteer way easier.
Erika writes: Our budget was put together by the previous board. We are halfway thru the year and are feeling as though we are not going to fund some activities that were decided on by that board. Can we reallocate funds even though that budget was approved?
Erika, it’s impossible to predict the future. Things change. Sometimes within our control. Sometimes way outside of our control. It’s important to have the ability to make changes as necessary throughout the year. These are called amendments to your budget.
Covid was a really great example of a good reason to amend a budget. The original budget that was likely set for the year probably became unrealistic or completely irrelevant at some point. Being able to change it was important to meet your changing needs during that time.
To get a better understanding of how or what you can change, check out your bylaws. Some bylaws will state a threshold where a vote might be required to make a change. They might also indicate if it requires the vote of the entire membership or just the board. I would caution you to make sure you’re clear on your group’s bylaws before you start making adjustments.
That’s it for today! Thanks for listening! If you have a question you’d like answered, email it to me at [email protected] My name is Cyndi Meuchel and this is your Two-Minute Treasurer’s Tip for today.