Finance Made Easy

Understanding Your Unit's Money
By the Finance Committee

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Money can sometimes seem complicated, but it doesn't have to be. Think of your unit's finances
like planning a year-long road trip. Before you hit the road, you need to know:

• How much money do you have

• How much money you'll spend

• How you'll make sure you don't run out along the way

What Is a Budget?
A budget is simply a plan for your money. It estimates how much money will come in and how
much will go out during a certain period. Think of it like creating a spending plan before a
shopping trip. If you know what you can spend, you're less likely to run out of money halfway
through.
Why Does a Unit Need a Budget?
Once members approve the budget, the treasurer can pay bills and expenses that are already
included in the plan without needing a new vote every time. Imagine agreeing on the team's
game plan before the season starts. Since everyone approved it, the team can move forward
without stopping to vote on every small decision. This is especially helpful when bad weather or
other circumstances make it difficult to have enough members present at a meeting.

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Where Does the Money Come From?
Most units receive money from two main sources:
Membership Dues
Each unit sets the amount charged for senior and junior memberships.
For every senior membership:

• $18 goes to the National Organization.

• $12 stays in Minnesota to support programs, leadership development, junior activities,

• and department operations.

For every junior membership:

• $2.50 goes to the National Organization.

• $3.50 stays in Minnesota.

 

Fundraising
Fundraising is like earning bonus points in a game. Bake sales, raffles, dinners, and special
events can bring in extra money to help support your goals and programs.
What Does the Unit Spend Money On?
Some expenses happen every year, including:

• Membership dues sent to the Department

• District assessments

• Auxiliary programs

• Department and District projects

• Administrative expenses and bonding fees.

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Think of these as your unit's regular bills, like how families pay for things like electricity, internet, or groceries.
Staying Balanced
The goal is simple - Bring in more money than you spend.
If expenses are greater than income, you may need additional fundraising activities to balance your budget. It's like making sure your phone stays charged. If you're using battery faster than you recharge it, you'll eventually run out of power.
Unexpected Expenses
Sometimes something comes up that isn’t included in the budget.
When that happens, members must approve the expense at a unit meeting before the treasurer can pay it. Think of it like asking permission before making a surprise purchase with shared money.

A Smart Safety Tip
It's considered best practice to have two signatures on every check. I also recommend having three signatures on all your banking accounts. This gives you a backup if someone leaves unexpectedly.
Why? Because at least two sets of eyes are better than one. It helps prevent mistakes and protects the unit's funds.

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General Funds and Poppy Funds
Imagine having two piggy banks:

• One for everyday expenses

• One for a special purpose

That's how General Funds and Poppy Funds work. They may be kept in the same bank account, but they must be tracked separately in different ledgers.

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What Can Poppy Funds Be Used For?
Poppy Funds are special-purpose funds and can only be used for approved activities, including:

• Helping veterans

• Supporting veterans' families

• Assisting hospitalized service members returning home

• Providing help when financial or medical needs exist

• Purchasing supplies used to make and distribute symbolic poppies

Think of Poppy Funds like a gift card that can only be used at certain stores. The money must be spent only on approved purposes. If you need more information, you can download the donation forms on the ALA Department website.

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Making Donations
When donating to Auxiliary programs:

1. Use the official donation form available through Minnesota Auxiliary resources.

2. Submit one check for donations that may be paid from Poppy Funds.

3. Submit another check for donations that cannot be paid from Poppy Funds.

This helps keep everything organized and follows funding rules.

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Membership Matters
This year's theme is:
Grounded in our Roots, Growth through Renewals and New Members
Membership payments must be sent to the Department Office with a separate check and a
transmittal form.
Some units now use ALAMIS, which allows membership processing online. Units interested in
learning more can contact their District or Department Membership Chairman. [
Invite Others to Join!
A great team grows by welcoming new players. Every new member brings fresh ideas, energy,
and support for our mission.
Important IRS Requirement
Every Unit and District must file a Form 990 with the IRS each year. This is required by law.
If you need help understanding the process, reach out to your Risk and Compliance Chairman
or District President.
Back to the Basics
Working together and supporting programs financially helps carry out the mission of the
American Legion Auxiliary. Every donation matters. Even small contributions add up when
everyone participates. Imagine everyone dropping one coin into a jar. One coin doesn't seem
like much, but when hundreds of people contribute, the jar fills quickly. That's how positive
change happens.
Most importantly: Every dollar, every volunteer, and every member help make a difference.
Together, we recognize, respect, and remember those who have served.
If you have questions or need help with finance, you can contact anyone on your finance
committee:

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Cavalene Regan, ala100yrs@gmail.com
Tonia Betterman,  bettm88@outlook.com
Jill Davis, alajilldavis@gmail.com
Patti Coleman, pjc3555@aol.com
Beverly Gross, gr9562@yahoo.com