How to disperse funds to fundraising workers for their efforts.

Dispersing Funds By Individual Effort

The Problem

The age old problem of dispersing funds fairly. How do you disperse funds fairly for use by your groups members? Did all of the members of your group work equally in raising funds?

Many leaders have faced the problem of being fair about dividing the funds raised with those that put in the proper amount of work vs. those that did practically no fundraising at all.

Here's an example: A member of your group rarely shows up at fundraising functions, but is a part of your scheduled group activity you have planned. Should you provide for their attendance equally along with others that have put in more work toward the fundraising efforts?

Another member is at every fundraising activity and even involves their parents. Who should get the biggest chunk of the pie to pay for future activities? The answer is obviously the member that put in the most effort. They should be rewarded the greatest for their hard work.

The Answer

Half of the funds raised by a group member goes into the overall group fund and half goes toward the individuals account as kept within a separate Individual Account Summary. The Individual Account Summary (IAS) will record the sales made and/or hours the individual and parents worked on fundraisers.

Division By Items Sold

The IAS can be used to separate the cash amount of items sold.

For example, a high school choir sells candy bars for 50 cents each. The candy costs the choir 20 cents to buy. Their profit of 30 cents is divided in half with 15 cents going to the general choir account and 15 cents placed under a member's IAS.

A choir member with the help of her parents sells 200 candy bars and is credited with $30 toward her choir trip. Be sure to allow parents to help sell at their place of businesses and among their acquaintances.

Division By Dues Given

Organizations that charge member dues may want to establish this same principle for their members. For example, Girl Scouts (GSA) and Boy Scouts (BSA) may charge $1.00 per meeting to help defer expenses for badges and awards.

Creating an account for paying for badges may help keep a fair accounting for those that keep their dues up to date versus those that rarely bring their dues. This will encourage responsibility from both scouts and their parents when paying their fair share of the dues.

Hourly Division Examples

A church youth group raises $1500.00 at an 8 hour car wash. A particular church youth member works all 8 hours at the car wash and his parents, also in attendance, work 6 hours each. The youth member has 20 hours credited toward his IAS.

Another youth member worked only 6 hours. There were 8 other members and 4 other parents that worked an additional 124 hours for a combined total of 150 hours.

Half of the $1500 goes into the general fund for a planned missionary trip. The remaining $750 is divided up among the participants.

Divide the $750 by 150 hours and you get $5 per man hour worked. Therefore, the youth with 20 hours of work credited will have $100 placed in his IAS. The youth with 6 hours work will receive $30.

This greatly adds to your workforce by rewarding those that really want to work. It also encourages parental involvement by crediting their child for their work as well.

A Few Rules

Rule #1 -- If a member quits the group or moves during mid year, then they relinquish any money that went into their IAS. These monies then revert into the groups general fund.

Rule #2 -- Make it clear that each IAS is only good for a given year or activity. After the current year lapses or the special activity ends, then all IAS monies revert into the general fund.

You may establish alternatives and allow funds to be carried over from one event to another during a given year. The key is to make fundraising participation fair without penalizing an individual because of something beyond his or her control.

Use these principles early on and it will prevent misunderstandings and problems with fairness later on. Just remember to make this policy clear to all parents and youth through flyers, announcements, and consistent reminders as the events you've planned draw near.