Overview
As treasurer of the Society, I would like to share some of the exciting things SMPS is doing this year related to Society and chapter finance, as well as offer some best practices.
First, late in 2024 the SMPS board of directors activated this fiscal year’s Finance Committee with the purpose to assist the Society board in fulfilling its oversight responsibilities for financial planning, financial reporting, budgeting, and risk management. The committee ensures the Society’s financial health and long-term sustainability, consistent with the organization’s mission, vision, and legal responsibilities.
The committee includes Dr. Paula Raymond Stamp, MBA, FSMPS, CPSM (president), Ben Sawa, FSMPS, CPSM, PMP (president-elect), and Adam Kilbourne, FSMPS, CPSM (treasurer), along with Marci Thompson, DES (chief executive officer of SMPS and the SMPS Foundation), and Antonio Payne, CPA, CDE (chief financial officer and chief diversity officer of SMPS). The committee is meeting at least quarterly in between its regular board meetings.
September through December 2024 was a short fiscal year put in place as part of the first phase of the SMPS fiscal-year transition to a January through December fiscal year. Through the work of SMPS HQ with the guidance of the SMPS board, the short fiscal year finished in the black with about 2% surplus. The SMPS HQ staff have put together a realistic budget with slightly conservative goals to help stay on track for the 2025 fiscal year.
Chapter Health
Chapter health is evaluated through the Healthy Chapter Checklists. SMPS HQ analyzes education and financial reports to generate an internal scorecard, which results in a Chapter Health Score updated throughout the year. This score reflects key indicators, such as the submission of financial and educational reports, profitability, chapter growth (membership), financial reserves, and the coverage of the six Domains of Practice for Professional Services Marketing.
To find out your chapter’s health, contact Kai Wright, associate director, volunteer relations, at kai@smps.org.
Financial Best Practices
There are several key best practices that promote fiscal responsibility and transparency that chapters should follow:
- Create a budget prior to the start of the program year.
- If board members are making approved purchases, copies of receipts are required.
- Billhighway allows credit cards to be distributed to board/committee members who need them, and limits can be set. Please utilize the limits. Some members may need higher limits.
- A committee of at least three people, including the treasurer should review the finance reports on a regular basis. Depending on the size of your chapter and reserves, this could be monthly, quarterly, or twice a year.
How much money should your chapter have?
SMPS and its chapters are 501(c)(6) non-profit entities. That doesn’t mean that your chapter doesn’t need money to operate, but the chapter does not need to build up an endless reserve.
Chapters should strive to maintain a reserve that can support the chapter for six months. As your chapter exceeds the suggested reserve, the chapter should find ways to use extra money to give back to the membership.
The following are some examples of thoughtful uses for excess money:
- Bring in guest speakers – pay speaker fees and travel for quality speakers
- Buy Markendium for CPSM study groups
- Host scholarships or provide financial assistance to members to attend Amplify A|E|C, regional conferences, or AEC.AI
- Donate to the SMPS Foundation
- Donate to your regional conference
- Donate to a local community/charitable organization (ACE Mentoring or other)
- Buy a member gift each year – a book, swag, etc.
- Host free of charge members-only social gatherings
If you have any questions regarding chapter finances, you can reach out to the Society’s Chief Financial Officer Antonio Payne, CPA, CDE, at antonio@smps.org or to me at akilbourne@tecinceng.com. And, a quick reminder to chapter treasurers: federal taxes were due in January. If you haven’t filed your federal taxes yet, please contact Antonio Payne as soon as possible.
Have a great second half of the year!
Adam Kilbourne, FSMPS, CPSM
SMPS Secretary-Treasurer
akilbourne@tecinceng.com
440.388.4316
