Budget

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[edit] Overview

Monthly Yearly
Expenses
Rent 434 5208
Common Area 50 600
Internet Access 130 1560
Insurance 37.95 455.4
Electricity 50 600
Infrastructure 100 1200

Income

Membership Dues 1000 12000
Fundraising 0 0
Donations 0 0
Total Income 1000 12000
Total Expenses 10823.4
Balance 98.05 1176.6

[edit] Discussion

Most of these numbers are prospective and may firm up once formal financial statements begin being presented at monthly meetings starting the first Tuesday of 2010.

We expect our biggest cost to be rent. The so-called final space carries a rent of about $500/month. That rent includes heat.

Networking is another monthly expense. Our Frontier bill (according to google groups traffic from mid-December) will be $130/month.

Electricty is another monthly expense. We don't really have a good bead on this. Based on User:Deejoe's personal experience, this will be at least $100/month.

So, throw in liability insurance and other very minor expenses totalling up to a few hundred dollars a year, and we're looking at the very barest minimum of $750/month in ongoing expenses.

The figure of $750/month does not include very much toward capital expenditures for building out the infrastructure or furniture or equipment, for a reserve fund, for professional services like legal or accounting help, for various filing fees, for promotional costs like printing fliers or postcards or business cards, or any of a number of other operating costs.

Our primary income consists of membership dues of $50/month (students: $35).

So, some simple arithmetic reveals we need at very least 15 members paying full freight to make this minimum budget.

Our reserve fund should include several months' worth of operating expenses. Significant milestones in this regard for a $750/month budget would be growing the reserve to include expenses for 6 months and then for one year ($4500 and $9000, respectively).

The following scenarios assume we get by spending only $750/month, and devote any income beyond that to building our reserves:

If we have 20 members paying $50 a month, that brings in $250 above minimum requirements, and would take us 18 months to build up 6 months' reserves, 3 years to build up a full years' reserves.

If we have 25 members paying $50 a month, that brings in $500 above minimum requirements, and would take us 9 months to build up 6 months' reserves, 18 months to build up a full years' reserves.


If we have 30 members paying $50 a month, that brings in $750 above minimum requirements, and would take us 6 months to build up 6 months' reserves, and 1 year to build up a full years' reserves.