Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
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I am a stake financial clerk. One of our wards held a joint YM/YW fundraising event (spaghetti dinner plus dessert auction). Some of the ward YM/YW leaders turned in reimbursement requests for expenses incurred in connection with that fundraiser. Should those expenses be paid out of the ward budget, or should they be paid using fundraiser proceeds? Neither HB2 13.6.8 nor the Help Center fundraiser article addresses this question directly. My private opinion is that since the only legitimate use of funds from a fundraiser is to pay camp expenses, any costs associated with holding a fundraiser should come from the budget, but I anticipate that we would get some pushback on that from ward leaders. Do you guys have any words of wisdom on this?
In the past, we have always covered the fundraiser costs from the proceeds of the fundraiser (the profit from the fundraiser is the total raised minus the costs to hold it). Then if there was not enough left for the camp, we cover that shortfall from the ward budget.
I'd say that a decision for the bishop and stake president. You're interpretation isn't unreasonable but I think a leader could also reasonably consider expenses for a camp fundraiser to be camp expenses. I don't know of any more specific guidance. But in every ward I've been in the fundraiser expenses have come out of the associated Other account.
guycolbyiv wrote:Should those expenses be paid out of the ward budget, or should they be paid using fundraiser proceeds? Neither HB2 13.6.8 nor the Help Center fundraiser article addresses this question directly.
True. My non-authoritative view is that the point of a fund-raiser is to raise funds, not consume them. However "Leaders who have questions about information in the handbooks or about issues that are not addressed should direct the questions to their immediate presiding authority." (Handbook 2: 0.3) In this case, you'd ask the stake president. If he's not sure, he can ask the area authority.
Hopefully the expenses are not that great as "The sale of commercial goods or services" and "Activities completed with paid labor" is prohibited.
I always cringe a bit when food is involved as one has to be careful that they don't run afoul of local laws in how they're prepared (perhaps requiring a commercial kitchen) as well as avoiding "Activities that would be taxable". Again, a local law issue.
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I have always paid the costs of the fundraising activity from the proceeds, not the budget. Some auditors in my stake disagree.
Dana Repouille, Plattsmouth, Nebraska
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