Presented by Aaron Benedict de Leon at the Trainers' Training for the Development of Bangsamoro Political Party | Best Western Hotel La Corona, Ermita, Manila | March 26-31, 2014

1. FINANCING
THE PARTY
MEMBERSHIP
DUES, DONATIONS
AND
ENTREPRENEURIA
L ACTIVITIES
AARON BENEDICT DE
LEON

4. FINANCE IS THE
OF THE PARTY

5. COST
IDENTIFICATION
FUNDS
RATIONALIZATION
FUND SOURCING
IDENTIFICATION
EXPENDITURE
MANAGEMENT
PHILOSOPHY

6. • Spend only where you need to spend
– Consider cost saving options (where item of
cost is cheap but investment is effective)
– Consider exchange deals (give me this for
free for this kind of service for your group)
• Prioritize where you need to spend
most
– You need to maintain a main headquarters
– You need to have one-two full time staff in
the HQ
– You need to finance operational costs
FUNDS
RATIONALIZATION

7. • Prepare a summary of your expected
costs and expected revenues
– Per Quarter
– Per Semi Annual
– Per Annual
• Prepare your Cost-Benefit Analysis
– Staffing Analysis
– Logistics Analysis
– Investment Analysis
BUDGET/FINANCIA
L
PLAN

8. • Identify general and specific items of
cost
– GENERAL: Party HQ Operations
– SPECIFIC: Electricity, Water
Expenses/Staff Salaries etc.
• It’s okay to overestimate but it should
not be overboard 10% of total expense
– You need to put in a section for
“Miscellaneous Expenses” and or
“Contingency Expenses”
COST
IDENTIFICATION

9. • Prepare a specific breakdown of costs
incurred and expected revenue
– Staffing Salaries
– Operational Maintainance Cost of
Headquarter
– Logistical Costs
– Communication Needs Cost
BUDGET/FINANCIA
L
PROPOSAL

10. • Identify sources of fund for each
specific item of cost (if on a tight
budget ) or on a general item (if there
is sufficient budget)
– GENERAL: Party HQ Operations- SOURCE:
Membership Dues
– SPECIFIC: Staff Salaries- SOURCE:
Remuneration from District Fund Raising
Projects
• Don’t allocate for an item of cost if
there is no corresponding source
FUND SOURCING
IDENTIFICATION

11. • Prepare anticipated revenue
generating items on your
Monthly/Quarterly/Semi-
Annual/Annual Report, including:
– Regular Membership Dues Revenue
– Party Donations
– Contributions of Regular Party Donors
– Merchandise and Fund Raising Initiative
Revenues
FINANCIAL
INFLOWS
OVERVIEW

12. • Review your costs on a monthly basis.
If you can save, always save for future
emergency allocations
– If there is a need to decrease allocation,
decrease.
– If there is a need to increase allocation,
justify first the need
• Have a financial inflow and outflow
chart to show how much goes in and
goes out.
• Bargain for better deals
EXPENDITURE
MANAGEMENT

13. • Prepare a System of
Reimbursements/Acceptance of Money
Inflows
– Receipt System
– Recording System
• Prepare a Treasury Management
System
– Bank Account
– Cashbox System
BUDGET/FINANCIA
L
MANAGEMENT
SYSTEM

14. SOURCE OF FUNDS

15. Personalities bankrolls political parties
Personalities control political parties
Personalities/Political parties do not become
answerable to members/people, only to patrons

16. MEMBERSHIP
FEE
YOUR CONTRIBUTION TO THE
PARTY’S DEVELOPMENT

17. WHEN IT IS NOT IN YOUR
CULTURE...CONSIDER THE ALTERNATIVES...

18. DONATIONSTHROUGH PROJECTS
AND ADVOCACIES

19. DONATIONS THROUGH ADVOCACIES

20. THE
ORGANIZATION
SHOULD BE
RAN
LIKE A...

23. FUND RAISING THROUGH
ADVOCACIES

24. • Budget Proposal detailing potential
costs and sources of funding
• A Final Line-Item Budget detailing
General and Specific Costs and Sourcing
References
• Expenditure Breakdown- breakdown of
actual costs with appropriate receipts
• Cost Analysis - an analysis of target vs.
actual cost to determine a loss or gain
EXPECTED OUTPUT

25. You are given Php 100,000 per month as seed
money for your organization for the next 3
months. After that, there will be no more seed
money.
1.) How will you spend the P300,000 total if you need
to maintain an office, support membership
development and training and conduct party activities
2.) How will you raise funds to operate the party for
the remaining 9 months of the year?
ACTIVITY