ATROOP, like any other going concern, must have money with which to conduct its activities. The sooner a Troop gets on a sound working basis financially, the longer it is likely to live and function.

The Troop Committee and the Scoutmaster should definitely face the problem of Troop Finance and establish a plan by which the Troop will operate. Because every phase of Troop management should be conducted so that it exemplifies the Scout Oath and Law, the Troop finances should show to the Scout the way of Thrift and the benefits of Preparedness through advance planning.

In business, the budget system has been accepted as the most successful and logical means of forecasting and meeting financial obligations. Since a boy must graduate from Scouting into the business world, his Scout training should be consistent with good business practice. For that reason, as well as for many others, a Troop Budget System is recommended as the basis for Troop finances.

Values Of A Troop Budget System

The experiences of Troops using a Troop budget system show conclusively the values inherent in it, among them the following:

1. It insures the prompt reregistration of the Troop. When a boy first joins the Troop, he is required to pay his registration fee. The following year his re-registration fee will be provided for through the budget.

2. It develops in the Scouts a sense of real responsibility to the business life of the Troop, thus providing an incentive to engage in systematic saving and stimulating regular payment of dues.

3. It provides for the upkeep of Troop equipment, resulting in pride of ownership on the part of each Scout.

4. It makes available to each Scout Badges and Insignia of advancement and office, to be presented to him on behalf of the Troop.

5. It makes BOYS' LIFE available to every Scout.

6. Through the provision in the Budget for community service and social welfare work, there is developed in each Scout an appreciation of his responsibility and obligation to society. It encourages in him the spirit of sharing.

The Budget Plan makes BOYS' LIFE available to every Scout in the Troop. They may not be thinking, but they are surely grinning.

Steps in Establishing the Troop Budget Plan

The Troop Budget plan involves three distinct steps:

(1) The adoption of a definite budget;

(2) The establishment of a Revolving Fund to meet immediate financial needs;

(3) The regular weekly payment of a small sum- usually a nickel or a dime-by each member of the Troop.

Planning The Budget

Before taking up the operation of the Troop Budget with the Troop Committee, it will be well to discuss it with the Patrol Leaders in the Troop Leaders' Council. There are two important decisions to be made, and the Patrol Leaders are best able to make them.

First: "How much can we expect each Scout to pay each week? Can we expect a dime, or should it be only a nickle? How much can he save weekly for this purpose? How much can he earn?" Discuss this frankly and determine upon weekly dues that will not be too much of a burden and yet will make each Scout feel that he contributes a real share to the financing of his Troop. The Scouts should be definitely urged to earn the money for their weekly dues.

Second: "What should be included in the Budget?" Among the items should be reregistration fees, subscriptions to BOYS' LIFE, badges for new Scouts or advancing Scouts, upkeep of Troop property. A majority of Troop Budgets provide for welfare work or charity.

The budget should be planned to meet the Troop needs in the most practical and economical manner. Usually, it should not include provisions for such things as Troop flags, tents, or other Troop equipment. Finances for such expenditures should be raised from other sources, as suggested later in this Chat.

After the Troop Leaders have discussed the Budget, it should be reviewed and approved by the Troop Committee, and the Treasurer (a member of the Troop Committee) should make himself responsible for its operation with the aid of the Troop Scribe.

The Budget is then presented to the entire Troop for adoption, together with a full explanation of what a Budget system is and why all well regulated businesses are operated on Budget plans. Emphasis should also be placed on each boy's personal responsibility for making a success of the plan by prompt payment of his own share of the necessary Troop funds. Parents should likewise be taken into confidence at the first possible occasion so that they may thoroughly understand what the Troop Leaders are trying to do and that the whole plan is more than merely a matter of collecting necessary funds, but also a real thrift measure with business training possibilities for their sons.

The Budgets as finally developed may be similar to the following:

On the basis of weekly dues of 10 cents-

On the basis of weekly dues of 5 cents-

The Revolving Fund

Of course, items will come up for which payment will have to be made immediately instead of deferring it until dues have accumulated in a sufficient amount. To take care of this, the Budget Plan calls for the establishment of some working capital, a Revolving Fund. This fund is simply a sum of money from which amounts may be taken as needed with the understanding that the normal receipts from Troop dues before the end of the year will replace the money spent. The Revolving Fund is not an absolute necessity, but it is very useful when properly managed and conscientiously preserved on a business-like basis.

The minimum amount of a Revolving Fund should he estimated on the basis of one dollar and twenty-five cents per Troop member. For twenty Scouts, $25.00; thirty-two Scouts, $40.00, etc. In a new Troop, the Fund should be based not upon the number of Scouts in it at the time, but on the number of Scouts to which it may be expected to grow the first year.

How this Fund is to be secured is of course for the Troop Committee and the Sponsoring Institution to decide.

The most desirable method is to have it established by the Institution itself. Clear-headed business men recognize the value of thrift training, and if the Institution is financially able to do so, its board will establish the fund in order to make possible a thrift training within the Troop. Of course, it is the responsibility of the Troop Committee to present this matter to the Governing Board of the Institution.

A Scout Entertainment, planned under the leadership of the Assistant Scoutmaster, binds the Troop together. It also makes money.

In case the Sponsoring Institution is not itself able to finance the fund, a body within it-such as a men's organization, a men's Bible Class or the like-may be in a position to do so.

Occasionally the members of the Troop Committee themselves are able to establish the Fund.

And finally, the Troop itself may earn the amount through Troop money earning projects, such as collecting and selling old newspapers and magazines, putting on a Troop entertainment, etc.

As time goes on it is advisable to increase the Revolving Fund to take care of increased membership and expanded Troop activities.

Once established the Revolving Fund should be used only for Budget items. Care must be taken that the money spent from the Revolving Fund-for a Budget item-shall never exceed the total sum allowed for the year under that same item.

Collecting The Dues

When the Budget Plan is put in operation, every effort should be made to have dues paid with absolute regularity. Laxity in the collection of them will defeat the whole thrift training part of the program. And what is equally bad, once behind in payment, the boy may stay behind, while the dues accumulate far beyond his ability to pay, necessitating eventual partial or complete cancellation of them-obviously an unfairness to other Troop members who are paying their dues faithfully.

It should be the definite responsibility of each Patrol to collect the dues from its own members on time, and the responsibility of the Troop Scribe to gather the dues as Patrol "assessments" rather than individual payments and turn them over to the Treasurer. Let dues paid on time count heavily toward the Patrol's standing on efficiency.

The boy should receive a definite receipt whenever he pays his dues, either by a written or punched check on the space provided for this on his registration card, or on a special dues card developed by the Troop.

The collected dues should be turned over by the Troop Scribe to the Treasurer, who will place them in a savings bank account. It is suggested that a petty cash account in the amount of $5.00 or so be created for the Scribe, this money to be used for making small cash purchases such as Badges, Insignia, etc. When the Scribe has spent the full amount of his account and returned to the Treasurer receipted bills for his expenditures, another $5.00 will be issued so that he may carry on. This procedure will eliminate a great amount of waste motion. Larger bills will be paid by the Treasurer upon the recommendation of the Scoutmaster and with the approval of the Troop Committee.

BOYS' LIFE publishes a specie! Troop Budget Book. Contact your Local Council to get your copy. It makes budgeting easy.

Keeping The Records

The complete financial records of income and disbursements are kept by the Treasurer, who furnishes a brief report monthly to the Troop Committee and to the Troop on the status of the Troop treasury. Some Troops have found it helpful to have the Treasurer's report mimeographed each month so the Scouts can take it home.

A recommended form of records is that advocated in the Troop Budget Financial Record Book, which is produced by BOYS' LIFE Magazine and made available through the Supply Service, Boy Scouts of America, 2 Park Avenue, New York, N. Y. This Record Book contains full instructions for the establishment of a sound financial accounting system for the Troop, besides pages for income and expenditures and yearly dues records of individual Scouts.

Other Suggestions

It is recommended that when a new Scout joins the Troop he pay the full fifty cents registration fee regardless of Troop Charter duration at the time of his entry. The Troop sends to the Local Council office only the required pro rata fee, putting the balance in the Revolving Fund for use at reregistration time. It should be explained carefully to the new Scout that he is expected to pay weekly dues. Also he should be told how the money is spent-how at the end of the Troop year his reregistration will be paid by the Troop- that his share of the Troop's incidental expense is taken care of-how his welfare obligation is assured, and that he personally will receive a copy of BOYS' LIFE each month as long as he is a member of the Troop in good standing. Through this procedure, he will realize that he has a definite responsibility to keep his dues paid up and that he will benefit thereby.

The Scoutmaster of a Troop operating on the Budget Plan has complete control of the Troop's BOYS' LIFE subscriptions at all times. If a Scout transfers or drops out of the Troop, his subscription can be transferred to a new incoming Scout or stopped altogether. In the latter case a cash refund of the unused balance of the subscription price will be made by BOYS' LIFE to the Troop.

And, by the way, there is really no reason why the Scoutmaster, Assistant Scoutmasters and Troop Committee members shouldn't pay their weekly dues with the boys. It will simplify matters greatly when you come to reregistration time.

Money Earning Projects

As mentioned before, finances for the purchase of Troop flags, tents or other equipment are not meant to be provided by the Troop Budget. The Troop Budget is definitely designed to take care of the running expenses of the Troop. Capital expenses must be procured in some other way, preferably earned by the Troop as a whole.