Finance Question

[Eclipse]

Why would anyone want a zero sum game? Have things changed that much since I cared about such things?

You might be disappointed, but probably not surprised.

[RiverAux]

No...you should not be doing that.   You should be sending up a budget that show where you plan to use your programed surplus.    So let's say you are goign to buy some new toy...not this FY, but may in three years.   You figure it will cost say $1000....you plan this year's fundraising efforts to make a "profit" of $300....over planned expenses.....so you put that $300 into the "special projects" column and you are good.

So, my new finance officer takes office and finds out that the squadron ended the year with $25 in the bank.  In no world is this adequate for even basic operations but you would argue that it is improper for her to try to raise the squadron funds to some basic safe level?  You would be comfortable planning to end the next year with $25? 

Now, every unit is going to know more or less what their usual expenses are going to be and should plan to have some padding on top of that to account for unexpected situations.  Squadrons probably don't need $30,000 in the bank, but I sure didn't want to have any less than $1,000 in the bank WIWASC. 

Having a "reserve" that isn't specifically allocated to some project is perfectly fine. 

[LTC Don]

The "explanation" is that "We're a non-profit, so we shouldn't have a profit."  Well, in the non-profit world, you simply rename the terms from "Profit" and "Loss" to "Surplus" and "Deficit".  Poof, no more profits.

And this is complete BS.  The NFL is a 'non-profit' too.

If my little podunk country squadron just happens to have $15,000,000 in the bank this does not mean we have lots of 'profit'.  Since Civil Air Patrol, Inc and it's subordinate units all work under the same EIN (and even before we moved to the Wing Banker program), then this merely means that none of it's national management structure can 'profit' monetarily or be monetarily compensated for their work for CAP, Inc.

Beyond that, all subordinate units should be assisted and encouraged to raise as much money as they reasonably and legally can.

When you look at what our mandates are according to Federal Law .. It ain't cheap, when one is legitimately trying to satisfy those mandates.

[Luis R. Ramos]

I just had my budget returned by the WFM saying ""expenses=income." If they do not zero out, put some in the "reserves.""