Budgeting

The Budget of the International Board of ELSA is a planning process with a financial document serving as an essential tool for organising the financial year, which runs from 1 August to 31 July. It is prepared on the basis of the organisation’s financial performance in previous years together with the expectations for the current year, enabling an estimation of the income and expenses expected throughout the financial period.

This tool is presented to the International Council, which is responsible for deciding on its approval. In this sense, it functions as a roadmap for the International Board’s financial responsibilities during the year, as the Board is expected to comply with the budget and work towards its implementation.

This tool fulfils two main functions:

On the one hand, it supports the planning of all economic activities to be carried out at the beginning of the year, and
On the other hand, it serves as a control mechanism to assess whether actions taken throughout the financial year remain consistent with the established planning.

The current structure is composed by:

General Budget

General Incomes: Partnerships; Online Advertisement; Unrestricted Operational Grants; Fees.

Other Incomes: Financial Income; Previous Term General Income; Uncategorised General Income.

General Expenses: General Administration; Board Administration: Network Administration; Externals Administration.

Other Expenses: Financial Expenses; Previous Term General Expenses; Uncategorised General Expenses.

Project Budget

JHJMCC

EHRMCC

Synergy

Career Launch

ELSA Law Schools

Webinars

How to Prepare the Budget

To put this into practice, here are some instructions on how to prepare the budget:

Step 0

When it comes to preparing a budget, you need to ask yourselves where you should start and which things should be taken into account. There are a variety of things you need to take into consideration before preparing your budget:

You should take a step back and analyse the financial situation of your association if you need to increase or maintain your income or if you have debts from the previous year you need to pay for.
Another aspect we have to consider are other strategies you are involved in. You e have to take into account your strategic goals, and more concretely your financial strategy as well as how you can design the budget to comply with these goals.

Step 1

Start by making separate budgets for each of the points or activities you prepare. Then select one of them, and start working individually.

Project expenses should be identified first by listing all expected costs. These expenses may be divided into general project expenses or expenses related specifically to participants.
General expenses that are not connected to a specific project should also be analysed, including costs such as bank and registration fees, web services, and allowances.
Once all relevant information has been gathered, the organisation’s financial possibilities can be assessed in light of the expected funding sources, allowing the income side of the budget to be completed accordingly.:

a) Record the income that is already expected to be received for the general budget, including sources such as membership fees and partnerships that have already been concluded.

b) Apply the same approach to project budgets by recording the income already secured, such as participation fees and existing partnerships.

Once the expected income has been identified, it becomes easier to assess any remaining financial gaps, determine whether the project is feasible, and evaluate whether additional sources of income still need to be secured.
After this has been established, discussions should take place with the Board and the officers responsible for each project in order to determine the financial strategy, including possibilities for additional partnerships, grant applications, and the prioritisation of budget items.
Once the budget has been finalised, it is important to present it to the Council for approval of the financial activities for the term.

Tips & Tricks

At this stage, it should be kept in mind that contingencies may arise during the implementation of the project, and it is recommended to allocate a contingency margin of at least 5–10%.

When preparing a project budget, it may be useful to develop three different versions of the budget:

The first budget should include only the absolute necessities required to organise the project, focusing exclusively on essential expenses that cannot be avoided or obtained free of charge. This provides an overview of the minimum costs required, such as selecting the most economical accommodation option.
The second budget may build upon the first by including additional elements that are not strictly necessary but would improve the quality of the project.
The third budget may include more ambitious or exceptional elements that would significantly enhance the project, such as higher-quality accommodation, transportation arrangements, or a larger gala event.

Once income sources have been identified and the project has been fully assessed, adjustments can be made between the different budget versions depending on the amount of funding available.

Templates

In accordance with all the information provided in this page, you can find two budget templates in our Officer’s Portal that may help you in the process of drafting your own. These templates are divided by areas, and you can introduce different projects in each of them as well as the different incomes or expenses you foresee.

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