Current Budget (and prior budget archive)
This shared Google Drive PDF file is the current 6-month budget for the second half (July to December) of 2022.
What is this budget eye chart (born on 07/11/2022) trying to show?
- First, it shows the past 18-months of the legacy financial details (from January 2021 to June of 2022) for reference.
- It then projects the last ACTUAL month (June 2022) as a summary for the yet-to-happen next six months (July to December 2022)
- The projected summary presumes the same June 2022 membership income $6,410.99 (green) for each of the next six months
- The projected summary presumes the same June 2022 fixed expense -$3,425.47 (red) for each of the next six months
- The projected summary uses the above two numbers to presume a net discretionary contribution (gold). Here is the math: $6,410.99 - $3,425.47 = $2,985.52 for each of the next six months
- Ignoring all other details, $2,985.52 for six months totals $17,913.12 in new in new net discretionary contribution (gold)
- This $17,913.12 in new net discretionary contribution (gold) projects to double the current $17,029.46 discretionary reserve to total $34,942.58 by year end 2022.
- What is our considered strategic plan for allocating this projected opportunity?
Overview and Rationale
Hive13's business accounting year matches the calendar year; January 1 to December 31. Hive13's annual meeting (when we elect officers) occurs every year during mid-summer.
Our strategy at the end of each December, is to publish an annual 12-month budget projection for the upcoming year, January 1 to December 31. As part of this exercise, the treasurer tallies the actual year-end figures for the current year as a historical record and as the basis for the formula-based budget projections for the upcoming year.
Six months later, at the end of each June, this budget is updated to show actual figures for the first half of the year (January 1 to June 30) and adjusted projections for the second half of the year (July 1 to December 31).
The annual budget projection is a tool to help our organization remain financially viable for the long-term. We seek to grow and remain cash positive. We think to maintain a rainy-day minimum reserve that would enable operations to continue for a year with no income. We use realized income to enable desired expenses. The budget process helps us to determine a reasonable allowance for the extent of desired upcoming member-voted procurements.
Income derives from three primary sources:
- Membership dues (Cornerstone, Full Member, Full Member Area Warden, Student Member, Student Member Area Warden, and Family Member)
- Donations (made direct to the Hive, and donations from conducting community outreach activities such as "Learn2Solder")
- Class Income (nominal Member and Guest tuition fees from Hive run classes)
- Other Sources (such as Soda credits)
Expenses are subdivided into two groups; fixed expenses and variable expenses
- Fixed expenses include rent (gas, electric, and water utilities are included in the rent), insurance, internet charges and area warden budgeted monthly expenses.
- Variable expenses are almost exclusively member-voted purchases.