Alternative Way to Fund Local Scouting

[Cburkhardt]

An Alternative Way to Fund Local Scouting

Several commenters has suggested we need to finance Scouting in a different manner.  Prior to forming a new Scouts BSA Troop two years ago, our formation group conducted focus groups with parents of prospective Scouts.  We included discussion on dues, fund raising and camping fees.  Here are their opinions:

• They want to know the full, actual cost of operating the Troop and the actual costs of camp activities (both weekend and long term residential).  They want this on a per-scout basis. 
• They do not want their children to engage in product sales fundraising (they mentioned cookies, popcorn and candy bars).
• The families with ability to pay prefer paying full amounts and disfavor typical fund raising activities.  The families not able to pay the full amounts want to pay something meaningful, and would like some help with the balance.

We calculated the annual all-in cost of operating the Troop (except for out-of-pocket fees, registration, food, fuel and other costs of camping activities).  This includes national dues, equipment, advancement, program activities, specialty uniform items (hats and t-shirts, etc.), Scout Handbooks, rope, tents, dining flies, pots pans, I mean everything.  We turned it into a detailed proposed budget.  The long-term residential camp fee is what our Council charges and we have an average weekend camp fee for all seven campouts (3 in fall and 5 in spring).

The annual non-camp cost is added-up and divided by the number of Scouts.  The families then pay that “dues” amount in equal lump sums at the beginning of each semester.  The families pay only for camp events their Scouts attend.  We never, ever, expect a dime in addition to these amounts.

Scouts from under-resourced families pay half of the above dues and fees.  We budget the support we provide them as “scholarship” money and raise it from three modest churches and through a no-cost annual community coffee reception our Key-Three organizes.  These are not big dollars.  Only the Scoutmaster and COR know who receives scholarship support.

Our Troop Committee believes financially supporting the local council is important, so we budget a single annual Troop contribution.  The Council gets about $80 per Scout.  We do not sell Council popcorn and we do not have the Council solicit our families for FOS.

 

What is different?

• ·       No traditional product sales fundraising.

• ·       Annual single contribution to Council.  They get more and there is no hassle.

• ·       Under-resourced Scouts pay 50% of dues and camp fees.

• ·       “Scholarships” are raised from local churches and individuals at single event.

• ·       Families pay transparent dues/fees.  All amounts known the entire year in advance.

We are a new and modest urban Troop and nothing is “deluxe”.  Two years of success prove this is a valid way to finance our unit and Council.  Are some of these approaches responsive to commenters suggesting we need a different way to finance Scouting?

[CynicalScouter]

This is fantastic! I only have three questions:

1) Per semester- how often (as a percentage of scouts or families) do you have to chase people down? My troop and pack does dues-due-at-recharter (so, once a year) stemming from a concern in the past that the treasurer or committee chair would spend half their time chasing down parents who haven't paid.

2) How do you distribute the annual budget? My troop posts to out website and directs people to the page. My pack emails the excel sheet around.

3) "Only the Scoutmaster and COR know who receives scholarship support." We have a scholarship system as well (100% coverage for certain scouts) but the way we read the BSA financial requirements the treasurer must know (and it is our committee chair, not our COR, who is the third person). Is your treasurer in the loop?

 

[CynicalScouter]

One other thing that my pack started to do last year: a fundraising goal. Scouts must either fundraise $200 of fall product sales (usually 2-4 hours in front of the local Home Depot) OR come up with $200 to the pack. Fall 2019 worked well and of course Fall 2020 was a bust.

 

[ParkMan]

I imagine our troop is somewhat traditional but has evolved to a model that appears to work well.  In short, we have a budget model that attempts to separate fixed costs with those costs incurred from activities.  Fixed expenses are shared by everyone, activities expenses are covered by people participating in activities.  

Fixed budget - We have a modest fixed budget that covers things like advancement, meeting supplies, adult leader training, new equipment purchases, and some upkeep on major equipment.  The fixed budget comes out to $35 a year per scout.

Activities budget - Every event has a separate cost that follows a pretty standard formula.  The event fee covers food, gas, and incidentals for the event.  There is also a small fee of a few dollars a scout that is added on to help cover overall budget items which are closely related to usage.  Wear and tear on trailers is a good example of this.  Event fees generally range from $15-$40 per scout per event depending on the size and scale.

Pass through fees - We collect national dues and council program fees and then pay them to council.  These vary year to year.  I think that they are around $140 right now.

This all gets very complicated.  To make it simpler, we do allow Scout and families to prepay and have some money in reserve.  That way when an event comes up a Scout doesn't need to pay each time.  This is pretty popular.

Council Fundraising - We generally avoid council fundraising.  We will organize popcorn sales, but it ends up being more just for fun.  The vast majority of our families would prefer to avoid any fundraising and so we don't build any expectations on fundraising into our budget.  Enough of our scouts enjoy it that we do it as an activity.  We make enough money for council from this that they don't grumble about our approach.  A good portion of the troop's take from this goes into our scholarship program.

Council FOS - We encourage robust participation in FOS.  Behind closed doors, we have all the normal leader grumbles, but come FOS time and in front of families we enthusiastically support FOS.  Yet, we don't twist arms or pressure people.  The net from this is that we do very well for FOS and those families who contribute are happy to do so.

Scholarships - We have an active scholarship program administered by the SM, CC, & treasurer.  There are few rules on this and basically if either the SM or CC decide to shift some money to a scout it happens.  There are no forms or anything here.  These leaders have the flexibility to make the right call when it's necessary.

Net of all of this - money is not an issue for our troop.  We have enough funds to do whatever we want to do.  We have a healthy bank account which enables us to make investments when necessary.  Our families do not feel overcharged because they determine cost by participation.  We are frugal enough and transparent enough with fees that parents don't grumble as they believe we are being fair.

Edited December 24, 2020 by ParkMan
grammer

[Cburkhardt]

15 hours ago, CynicalScouter said:

1) Per semester- how often (as a percentage of scouts or families) do you have to chase people down? My troop and pack does dues-due-at-recharter (so, once a year) stemming from a concern in the past that the treasurer or committee chair would spend half their time chasing down parents who haven't paid.

2) How do you distribute the annual budget? My troop posts to out website and directs people to the page. My pack emails the excel sheet around.

3) "Only the Scoutmaster and COR know who receives scholarship support." We have a scholarship system as well (100% coverage for certain scouts) but the way we read the BSA financial requirements the treasurer must know (and it is our committee chair, not our COR, who is the third person). Is your treasurer in the loop?

1)     Our Treasurer electronically invoices the parents at the start of each semester and all amounts are collected on our web site.  We have a couple of families that pay by check, which is fine.  Because we build-in the national dues and a council contribution into our budget, this means we collect only 2 checks per year.  We have 45 scouts and have a few families that are habitually late, but they eventually pay without much fuss.  Our volunteer treasurer handles it all.  The Scoutmasters never are put in the position of a bill collector.

2).    Our annual budget is drawn on a program year basis each summer by our volunteer treasurer and distributed to all parents and registered adults.  It is reviewed and approved during the July and August Troop Committee meetings (now on Zoom).  We do not post it to our web site, but it is broadly available to anyone and reviewed by the Treasurer of our CO, a very respected Episcopal Church parish.

3).    I should have mentioned the Treasurer is fully in the loop.  After all, she sends the invoices and needs to know the proper amounts.

I should add that we provide extra assistance in many different forms for Scouts that need it.  This spans from purchase of equipment, uniforms, bus fare and some of those subtle items that under-resourced families can’t always provide.  Examples would be those canvas Scout Handbook covers.  We make sure to help Scouts who are using tattered book bags for backpacks and similar things.  We get things donated for some of this, but make sure to provide some brand-new things — that is important to them.

Families who wish to be on our scholarship program discuss things in confidence with the COR, who then confers with the Rector of the Parish and me.  We never put any of our Scoutmasters in a potentially-awkward decision making role.

Collecting Camping Fees

We send out a “Scoutmasters Note” two weeks in advance of each campout that includes a pre-drafted permission slip and web link to submit payment if their Scout will be attending.  Payments and slips are due one week in advance, so each patrol knows how much food to buy for their patrol.  The scouts plan their meals with a budget, purchase their food the week before the event and are immediately reimbursed by our Treasurer when they provide receipts.  The Treasurer maintains an accessible Google document listing who has registered to attend, so Patrol Leaders can urge attendance.

Disadvantages of Our System

I like our system, but because it provides for an “all in” dues amount, it can make it look like we are over-charging.  Other Troops are continuously collecting small amounts for everything like award patches and camporee fees which are not included in their “dues”.  God bless the Treasurers of those Troops, who fill one of the least rewarding jobs in a Troop.  We include absolutely everything and never, ever ask for another dime.  And we don’t do product fundraising.  However, we have an occasional parent who insists we charge too much.  We show them the transparent figures and offer them the chairmanship of a new Product Sale Fundraising Committee to fill the financial gap that would be created.  I have never had anyone take us up on that offer.

long Term Camp

In May, the families sending their Scout to summer camp with us pay our Treasurer the lump sum our council charges.  The families on scholarship are provided a 50% campership from our council, so they pay us that reduced fee (and we sometimes help with that as well).  What a splendid thing our Council does for us in that regard.  Almost reason by itself to justify our Troop’s contribution to our Council.  The fund for this was provided by a former national BSA officer.

[Cburkhardt]

Very solid ideas from Parkman.

One difference between his Troop and ours is that we started from scratch two years ago and needed to build-in some capital acquisitions into our budget for the first three years or so.  We also had some extra start-up money from the church and a individual funding “angel”, but regardless had to pay for things ranging from flags, flag stands, essential program equipment to camping gear.  We are at 45 and are naturally growing approximately 5 Scouts net per semester.
 

After we have finished acquiring the basics, we will further build our “rainy day” fund and re-evaluate our dues level then.

[Cburkhardt]

16 hours ago, CynicalScouter said:

One other thing that my pack started to do last year: a fundraising goal. Scouts must either fundraise $200 of fall product sales (usually 2-4 hours in front of the local Home Depot) OR come up with $200 to the pack. Fall 2019 worked well and of course Fall 2020 was a bust.

Sounds like a valid approach.  Do the families tell you at the start of the year whether they will pay directly or fundraise? If not, you might ask that question in September and immediately invoice the families who opt to pay directly.  This might avoid awkward pursuit of families that do not fundraise and later use excuses like “If you had chosen a better product to sell my child would have participated.  Call me next year.”  It would also bring in cash early to fund the operation during early months.  In any case, great to hear about your success.

[ParkMan]

20 minutes ago, Cburkhardt said:

Very solid ideas from Parkman.

One difference between his Troop and ours is that we started from scratch two years ago and needed to build-in some capital acquisitions into our budget for the first three years or so.  We also had some extra start-up money from the church and a individual funding “angel”, but regardless had to pay for things ranging from flags, flag stands, essential program equipment to camping gear.  We are at 45 and are naturally growing approximately 5 Scouts net per semester.
 

After we have finished acquiring the basics, we will further build our “rainy day” fund and re-evaluate our dues level then.

For a newer troop, I would think a model like ours would be more challenging.  Our system relies on the notion that our fixed costs are fairly low.  We don't need to acquire equipment.  We have a healthy stockpile of awards.   I believe to make a model like ours work you'd need to increase the core dues and run pretty lean while you build up supplies.  Angel donors are always a bonus if they exist.

The downside to our model is that it financially discourages participation in events.  Our low fixed costs make it easier for youth to join, but then backload many of the fees over the course of the year.  So a scout constantly has to ask their parents for money for events.  It makes it trivial to add more events and so it's possible to constantly be doing things in our world.  This is in part is why we have the model we do - it allows us to be exceedingly dynamic.

The upside to a model like @Cburkhardt has is that it reduces the barrier to event participation.  A scout has already paid for the event, they might as well go.  

[CynicalScouter]

43 minutes ago, Cburkhardt said:

Do the families tell you at the start of the year whether they will pay directly or fundraise?

Prior to 2019 there was an "expectation" and "encouragement" for $200 to pay or fundraise. This came from a parent who did swim team that had this as mandatory.

The first year we "paid it forward"; a scout who between September-November 2019 did the $200 fundraising or direct pay was good to go for 2020 recharter and had only to pay the national dues + council dues (we got hit with an insurance fee) + our pack dues of $25 in December 2019. Parents who didn't make the $200 were told how short they were (some scouts did 1 hour in front of the Home Depot and got $45 credit I believe).

This year (2020) we are offering the option in December to decide NOW if they will pay direct or fundraise in fall 2020. I haven't reached out to the committee chair or treasurer yet to see what the outcome was, but I suspect we will have lots of parents who will say they will fundraise in fall 2020 and then if they fail to meet target we'll have to follow-up after.

 

[Cburkhardt]

One aspect to all of this is convenience and regularity in the payment system itself.  We use our troop web site and collect nearly all fees and dues through it.  This is what every parent of a Scout today wants to do.  Any unit collecting cash or checks on a regular basis is rubbing against the personal finance practices of young families of today.

Another aspect is being really direct and up front with parents and others about the tremendous value a family and Scout get from participation in a Troop activity.  Compared to the fees of school, community and athletic groups, which often charge $500 - $1,000 for a single weekend ski, cheerleading, science or other event that requires registration, travel, food and program, we are “dirt cheap”.  We all know how to put on a program that delivers great value and program for very little cost.  We should not apologize for small fees we charge for a weekend Troop outing.  Our Council camps are similarly huge bargains compared to “sleep away” camps that charge multiples of 3 or even 4 times the typical BSA fees.

For a weekend event with our Troop, the Scout gets all snacks, meals, equipment use, volunteer supervision and instruction, plus whatever materials are necessary to participate in the theme of the weekend (rope, compasses, whatever).  Our grand total for this costs rarely exceed $40 per event per Scout, and we are charging a small extra amount to acquire equipment.  Our Troop took a canoe trip in September that even included transportation for a piddling $70 per Scout.  Yes, that even included the canoes, because our Council let us use them without cost.  I got on a high school web site from a district near the District of Columbia and found a less impactful weekend trip costing participants $345.  No kidding.
 

We should all be proud of what we are doing cost-wise.

[CynicalScouter]

6 minutes ago, Cburkhardt said:

One aspect to all of this is convenience and regularity in the payment system itself.  We use our troop web site and collect nearly all fees and dues through it.  This is what every parent of a Scout today wants to do.  Any unit collecting cash or checks on a regular basis is rubbing against the personal finance practices of young families of today.

Both my pack and troop treasurers are opposed because they don't want to have to learn Paypal or Square.

Edited December 24, 2020 by CynicalScouter

[Cburkhardt]

Your Troop Treasurers have no idea how much convenience and efficiency they are losing by not collecting electronically on a web site.  More important, young families today have a better attitude when it comes to paying for something with their debit or credit card at home on a web site or in-person (using one of those devices that your treasurer can plug into his smart phone).  Parents today will promptly pay your fees without much fuss if you use a web site.  I am no expert about this, but the technology experience of the transaction itself somehow makes the payment seem more secure and “worth it”.

[yknot]

1 hour ago, Cburkhardt said:

Collecting Camping Fees

We send out a “Scoutmasters Note” two weeks in advance of each campout that includes a pre-drafted permission slip and web link to submit payment if their Scout will be attending.  Payments and slips are due one week in advance, so each patrol knows how much food to buy for their patrol.  The scouts plan their meals with a budget, purchase their food the week before the event and are immediately reimbursed by our Treasurer when they provide receipts.  The Treasurer maintains an accessible Google document listing who has registered to attend, so Patrol Leaders can urge attendance.

This is the ideal but in our units the scouts are in charge of running each activity so things get a little messier sometimes. They have an adult mentor who is supposed to help them but depending on the adult they are sometimes no more organized than the kids. There is a punch list for activity planning and a templated calendar of what needs to happen and when, but oftentimes these things happen last minute. Unless we morphed to a more adult run system, we would not be able to budge this way because too many things change. We also seem to have a lot of families with very irregular schedules between work, recreation, sports, or other activities and I think they would be reluctant to commit lump sums ahead of time.

 

7 minutes ago, Cburkhardt said:

Your Troop Treasurers have no idea how much convenience and efficiency they are losing by not collecting electronically on a web site.  More important, young families today have a better attitude when it comes to paying for something with their debit or credit card at home on a web site or in-person (using one of those devices that your treasurer can plug into his smart phone).  Parents today will promptly pay your fees without much fuss if you use a web site.  I am no expert about this, but the technology experience of the transaction itself somehow makes the payment seem more secure and “worth it”.

We had some similar holdouts but most younger families do not even have paper checks anymore so they had to switch to be able to accept Paypal, Venmo, and the like. Also, once Covid hit, we did not want scouts handling cash or checks. We have tried to be as touchless as possible. 

[Cburkhardt]

We recently had our annual Troop no-cost community fundraiser on Zoom to raise our scholarship money for Scouts from under-resourced families (last year we did a live coffee reception).  We collected about $7,000 on our site within a day or two.  The cash zaps instantly into our bank account.  I think we would have received far less if we had encouraged potential donors to “mail it in” or “drop by a Troop meeting and leave some cash”.  Instead, we sent them a link to a special donor page on our beautiful web site (the viewing of which encourages them to contribute as well).  It is the same basic process for collecting dues and Troop event fees.  
 

Unit treasurers need to consider the cash income that goes uncollected from these younger Scout families and potential donors.  Most families only write a couple of checks per month and nobody uses cash anymore (due to COVID).  By the way, the Scouts themselves now manage our web site and are quite familiar with all of this, although they are not involved in the money management.  So, your Treasurers can look the the young people for guidance.    I’ll stop talking about electronic banking now, because I do want to wear out the topic!

[yknot]

The trend in my area is to move to basically a self funding option supported by fundraisers that do not involve product sales. Most activities are pay as you go although the fundraising we do allows us to often defray costs for certain activities. Our fundraising is mostly connected to service where scouts are out in uniform doing something in the community and we set out a tip jar.

A few random things: 

• Council sites need a freecycle feature where units can donate used flags, stands, camping equipment, etc., to defray start up costs for new units. Councils should also even offer seed funds to new units. 
• Family bonds are used in other activities, especially in sports. You pay in an amount and can work it off through volunteering and get it back. If not, they use it to hire help or pay for equipment. Scouting should look into this more. 
• Advancements line item was always a challenge for us, first when I was Committee Chair of the Pack and later at Troop. Our units always paid for advancements, but some scouts would earn way more bling and that was an issue for some families. Some kids are just not that interested in merit badges they just want to camp. 
• If you do go a family bond or promised fundraising option, you need to balance that with not making some volunteer's job more time consuming by tracking such things.  
• Scouting is not 'dirt cheap'. It is pretty comparable to other activities. You can always find examples that reinforce that message, but those examples often don't include items like the fact that it is not really a drop off activity and most parents need to volunteer far more than they do than with other organizations, or that you can't compare the accommodations of a campground in the woods with a stay at a Marriott at the beach or ski resort. We need to stop using that mantra because it's not true and eventually families figure that out. We need to focus on what scouting offers that no one else does instead.