Cohousing-L Mailing List: Re: Budget Surplus

[R Philip Dowds (rphilipdowds]

It seems like a useful reply should be in several parts:

     (1) I take “contingency funds” to mean, Funds collected and set aside as 
part of the budgeting process, and dedicated to wants and needs that might well 
arise, but are not predictable in detail at the time of the annual meeting.

     (2) At Cornerstone, we maintain a variety of contingency funds for 
everything from ugly maintenance surprises to fun cohousing activities or 
acquisitions.  Most of these are structured as “target balance funds” — 
meaning, Each fund account is authorized for $X,XXX of spending during the 
fiscal year.  The amount of $X,XXX is often the combination of what was unspent 
from the prior year, plus new monies collected during the current year.

     (3) Our biggest challenge has not been defining the target balance 
accounts, nor collecting funds with which to stock them.  Our biggest challenge 
has been clarifying who is authorized to make the decision to spend.  The 
Roofing Circle or Sump Pump Team?  A combination of a Maintenance or 
Celebration Circle with additional consent of the Top Circle (in our case: 
Managing Board)?  Or, Full Circle (plenary), via full metal jacket proposal and 
consent?

We are starting to work on dividing serious money from fun money, and funding 
the fun accounts from sources other than monthly dues … but here, we have a 
long way to go.

—————————---------——————
Thanks,
Philip Dowds
Cornerstone Cohousing • Cambridge, MA

> On Aug 23, 2024, at 12:09 PM, Mac Thomson via Cohousing-L <cohousing-l [at] 
> cohousing.org> wrote:
> 
> Our unspent contingency funds get automatically added to our reserves balance.
> 
> -- 
> Mac Thomson
> 
> Heartwood Cohousing
> Southwest Colorado
> http://www.heartwoodcohousing.com
> 
> 
> "Whatever you can do or dream you can, begin it, boldness has genius, power, 
> and magic in it. Begin it now."
>      - Goethe
> **********************************************************
> 
> 
> 
> 
> 
>> On Aug 22, 2024, at 11:58 AM, Stuart Selig <stuart.selig [at] gmail.com> 
>> wrote:
>> 
>> Hi, Folks. How are unspent contingency funds from annual budgets handled?
>> Are they rolled into next year's operating budget, dispersed back to the
>> community, or used to fund other projects?
>> 
>> Thanks.
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