Chapter Budget and Record Keeping

          Many things need to be considered when you decide to start a Fools chapter.  There will be many questions that need to be answered.  The two things that are often forgotten is having and maintaining a budget and taking written minutes at meetings.  Both are very important to having a successful and effective local chapter.  The benefit of doing both is it protects the chapter and its members.

What does the chapter have to do to get started?  Decide what your chapter’s goals are going to be and your plans for reaching those goals.  If part of your goals is to collect dues, sell merchandise, donate to charities or hold events for charities or hold training events, it is highly recommended that you obtain a 501c3 status, to become non-profit/tax exempt. A common misconception is since the International is a 501c3 organization; the local chapters are as well. That is not true.  For that to happen, the International E-Board would need all the local chapter’s minutes and financial records. For more information on obtaining a 501c3 status go to the International web page. On the left side of the page there is a link called “Resources”.  Click on this link and find the article by Matt Gilbert (Fools International’s accountant). This contains the basic information on obtaining your own 501c3.

It is very important that the chapter keeps accurate records.  All TRANSACTIONS NEED TO BE DOCUMENTED.

Establishing a budget is not difficult, but it will take a good year or two figure it out.  Being a new chapter, you do not know how much money the chapter will be taking in and spending.  That is what you will be able to figure out once your chapter has been operating for a little while. What you want to do right away is open a checking account and/or a saving account. Now you have a place to put the chapter’s money which will keep the chapter separate from any personal accounts. You must keep accurate financial records.  This will take all confusion out of your secretary/treasurer’s hands.  Your secretary/treasurer must keep an accurate record of ALL financial transactions. This includes all money taken in (deposits) and all money paid out (expenses). At each Fools meeting, the secretary/treasurer should give a general overview of the deposits and expenses since the last meeting. It is not that important to set-up a budget right away, but it is very important to have all your financial records accurate from the start.

          I have talked about setting up a bank account and the importance of keeping accurate financial records; this holds true for everything that you do at your meetings. We work and live in a world now that tells all of its Firefighters and Officers to DOCUMENT.  What’s the saying, “if you did not document it, it did not happen”.  Accurate record keeping is how a chapter can protect itself and its members if any questions should arise at a later date. The more informed you keep your membership, the better the chapter will run because all of its members are involved and aware of the chapters business. The E-Board & members should decide how often meetings will be held. Some chapters meet once a month, some every three months; it is all dependant upon your chapters needs. What needs to happen, and I can’t stress enough how important this is, there should be an agenda for each meeting.  At this meeting, the previous months minutes should be read and approved. The designated E-Board member should be recording the minutes (written minutes) from the meeting that you are currently holding. This is something that should happen for every meeting.  If there are ever any disputes or conflicts about what was said or voted on from previous meetings, it is documented.  Minutes from all previous meetings should be available for reference.

          Remember all chapters have had the same concerns when starting a chapter; money, membership, and how to operate. Hopefully this information helped you. If you have any questions, please contact us. The International E-Board is here for you so take advantage of us and contact us anytime. Our info is on the web page.

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Thank you for your commitment to the Fools and the Fire Service!

Sincerely,

Rich Stack

Secretary Treasurer

Fools International