You're right that creating a budget at the beginning of the year is a best practice for PTOs and really, for any organization. Creating a budget doesn't mean you have to spend your money exactly as you have outlined; it just acts as a guide to let you know where you stand as far as income and expenses at any time during the year. If you hoped to raise $15,000 and in fact only raise $10,000, for instance, knowing roughly how much you need for each activity you've planned during the year will help you make decisions on what to cut or whether to hold another fundraiser. That said, some groups do operate without a budget. Is that OK at your school? Unless your group's bylaws require a budget, the answer is probably yes. It's not a best practice, but on the other hand you wouldn't want the group's activities to come to a complete halt because there's no budget.
- Craig
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