The short answer
- A club budget is two columns, income and spending, for the year ahead. Start from last year’s actual figures, not a wish list.
- Your constitution or rules usually say who keeps the accounts, who approves them and when the financial year ends. Read them first.
- In England and Wales, a charity usually has to register with the Charity Commission once its income tops £5,000 a year, and bigger charities need their accounts examined.
- In the US, a small tax-exempt group with gross receipts normally $50,000 or less generally files the short Form 990-N each year. Miss three years in a row and it loses its exemption automatically.
- Track budget against actual every month. At the annual meeting, explain the gaps rather than just reading out totals.
What the rules require (and what they don’t)
Many clubs, supporters’ groups, PTAs, choirs and neighborhood associations aren’t charities or tax-exempt bodies at all. For them, the rules come mostly from their own constitution: who the treasurer is, how many signatures a payment needs, when the accounts are presented. If yours says nothing, agree it in writing at the next meeting.
Once a group is a charity or tax-exempt organization, outside rules apply.
England and Wales (Charity Commission). A charity usually has to register once its income is over £5,000 a year (charitable incorporated organisations register whatever their income). The accounts rules for charitable trusts and unincorporated associations changed for financial years ending on or after 30 September 2026:
| Rule | Years ending before 30 September 2026 | Years ending on or after 30 September 2026 |
|---|---|---|
| Simple receipts and payments accounts allowed | Gross income £250,000 or less | Gross income £500,000 or less |
| Independent examination (or audit) | Gross income over £25,000 and up to £1 million | Gross income over £40,000 and up to £1.5 million |
| Audit by a registered auditor required | Gross income over £1 million (or over £250,000 with assets over £3.26 million) | Gross income over £1.5 million (or over £500,000 with assets over £5 million) |
Simple receipts and payments accounts allowed
Years ending before 30 September 2026Gross income £250,000 or less
Years ending on or after 30 September 2026Gross income £500,000 or less
Independent examination (or audit)
Years ending before 30 September 2026Gross income over £25,000 and up to £1 million
Years ending on or after 30 September 2026Gross income over £40,000 and up to £1.5 million
Audit by a registered auditor required
Years ending before 30 September 2026Gross income over £1 million (or over £250,000 with assets over £3.26 million)
Years ending on or after 30 September 2026Gross income over £1.5 million (or over £500,000 with assets over £5 million)
Charitable companies and CIOs follow their own versions of these rules.
United States (IRS). Small tax-exempt organizations generally satisfy their annual reporting requirement with Form 990-N (the “e-Postcard”) if their gross receipts are normally $50,000 or less. It’s due by the 15th day of the 5th month after the year ends: May 15 for a calendar year. An organization that doesn’t file for three consecutive years automatically loses its tax-exempt status.
Donations bring one more rule. For a donor to claim a charitable deduction for a single contribution of $250 or more, they need a written acknowledgment from the organization. The IRS says it must include the organization’s name, the amount of a cash gift (or a description of a non-cash gift), and whether the donor received any goods or services in return, with a good-faith estimate of their value. A treasurer who logs every donation as it arrives can send those letters in minutes.
None of this is legal or tax advice; if your group is near a threshold, ask an accountant or your umbrella body.
Building next year’s budget
A budget answers one question: how much will the group spend next year, and where will the money come from? Lay it out as two columns that balance. If spending is higher than income, find more income, cut a cost or agree to draw on reserves, and say so in writing.
Useful headings for most groups:
- Income: membership fees or dues, grants, donations, events and fundraising, sales (bar, merchandise), interest.
- Spending: venue hire, insurance, equipment, league or affiliation fees, travel, printing and publicity, bank charges, volunteer expenses, a contingency line.
Two habits make a budget realistic:
- Base it on last year’s actual figures, then adjust for what you know will change (a new venue price, more members).
- Mark uncertain income as uncertain. A grant you’ve applied for can go in the budget, but decide in advance what you’d drop if it doesn’t arrive.
A worked example: a youth soccer club with 90 members
The club has 90 members paying $75 a season. Its budget:
| Spending | Amount | Income | Amount |
|---|---|---|---|
| League and referee fees | $3,100 | Membership dues (90 × $75) | $6,750 |
| Field rental | $2,400 | Grant from the city parks fund | $1,500 |
| Balls, bibs, first-aid kits | $1,450 | Concession stand and tournament | $1,200 |
| Insurance | $900 | Donations | $600 |
| Tournament travel | $1,800 | ||
| Printing, website, bank fees | $400 | ||
| Total spending | $10,050 | Total income | $10,050 |
League and referee fees
Amount$3,100
IncomeMembership dues (90 × $75)
Amount$6,750
Field rental
Amount$2,400
IncomeGrant from the city parks fund
Amount$1,500
Balls, bibs, first-aid kits
Amount$1,450
IncomeConcession stand and tournament
Amount$1,200
Insurance
Amount$900
IncomeDonations
Amount$600
Tournament travel
Amount$1,800
Income
Amount
Printing, website, bank fees
Amount$400
Income
Amount
Total spending
Amount$10,050
IncomeTotal income
Amount$10,050
- Membership dues67 %$6,75090 members at $75
- City parks grant15 %$1,500Renewed yearly, never guaranteed
- Concession stand and tournament12 %$1,200Depends on weather and turnout
- Donations6 %$600Parents and local businesses
Tracking the budget through the year
A budget approved at the AGM and forgotten until the next one does nothing. Tracking comes down to four habits.
- 1Log everythingEvery payment in and out, with the date, amount, category and receipt.
- 2ReconcileCheck your list against the bank statement and the cash box: the balances should match.
- 3CompareFor each category, this year’s budget against what’s actually been spent or received so far.
- 4Flag itAny category more than 10% off track goes to the committee now, not at year end.
Example at mid-season: the club has collected $6,150 in dues instead of $6,750, because only 82 members renewed. The committee knows about the $600 gap in January. It can chase late payers or push back the new kit order. Found in June, it would simply have become a deficit.
Receipts matter as much as amounts. Grant funders often ask how their money was spent, and a lost receipt is a cost you can’t prove. Snap every receipt the day you get it. Our guide on how to photograph and keep receipts covers the method.
Reporting at the annual meeting
Your constitution sets who approves the accounts and the budget. In most groups, the treasurer presents a one-page financial report in four parts:
- The year’s actual figures: total income, total spending, surplus or deficit.
- Budget against actual: category by category, with one sentence for each big gap.
- Cash position: what’s in the bank and in the cash box at year end.
- Next year’s budget, put to a vote.
- Bank balance matches the treasurer’s list at year end
- Every expense has a receipt or a note
- Budget vs actual table with a line on each big gap
- Draft budget for next year circulated a week before
- Donation acknowledgments sent (US, $250 and over)
- Filing deadline noted (Form 990-N or charity annual return, if it applies)
Keeping the books as a team, from your phone
Money in a club goes through several hands: the treasurer, whoever runs the snack bar, the coach who pays for gas. A shared assistant in Binome360 lets each of them log what they take in or spend when it happens, with a photo of the receipt.
Snack bar at the tournament took $385 in cash
Ready: $385 income, category Concession and tournament, cash, today. Save it?
Your assistant prepares the entry; nothing is saved until you confirm. Committee members you invite see the same list.
Try Binome360 for freeYou can set a budget per category (equipment, travel, fees), see the total spent in each, and export the list for the annual report. A reminder can warn the committee a month before the AGM or chase dues at the start of the season. The app isn’t double-entry accounting software and isn’t certified for statutory accounts: if your group needs an independent examination or an audit, your examiner or accountant is the right person.
Frequently asked questions
Does a small club have to keep accounts?
If it isn’t a registered charity or tax-exempt body, the main rules are in its own constitution. In practice every group needs a record of money in and out, or it can’t report to members, apply for grants or hand over cleanly to the next treasurer.
Who approves a club’s budget?
Your constitution decides. Usually the committee proposes it and the members vote on it at the annual general meeting, along with the accounts for the year just ended.
Does the budget have to balance?
On paper, yes: planned income should equal planned spending. If costs are higher, show where the difference comes from, such as a planned draw on reserves.
How much should a club keep in reserve?
There’s no single rule. Many groups aim to cover a few months of fixed costs (venue, insurance, fees) so a late grant or a bad fundraising year doesn’t stop activities. Agree a figure and write it in the budget.
What is Form 990-N?
A short annual electronic notice for small US tax-exempt organizations whose gross receipts are normally $50,000 or less. Groups that fail to file for three consecutive years lose their tax-exempt status automatically.
In short
A club budget is two balanced columns built from last year’s actual figures. Track it monthly against what really happens, keep every receipt, and at the annual meeting explain the gaps, not just the totals. First step: find your constitution, check who approves the accounts and when your year ends, then copy last year’s figures into a budget/actual/difference table.
Sources
- GOV.UK, Charity Commission, “Charity accounts: rules for trusts and unincorporated associations” (thresholds for financial years ending before and on or after 30 September 2026): gov.uk.
- GOV.UK, Charity Commission, “How to register your charity (CC21b)” (£5,000 income threshold): gov.uk/guidance/how-to-register-your-charity-cc21b.
- IRS, “Annual electronic filing requirement for small exempt organizations: Form 990-N (e-Postcard)”: irs.gov.
- IRS, “Charitable contributions: written acknowledgments”: irs.gov.
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