SUSTAINABLE AND EFFECTIVE SPENDING

Introduction:

Every financial decision your group makes affects both your current members and future committees. Spending sustainably means getting the greatest value from your funds, planning ahead, and ensuring your group's finances remain healthy throughout the year.

Understanding and using your funding appropriately:

Different funding sources exist for different purposes.

Grant:

Is Intended to support the activities it was awarded for and cannot be carried forward into future years. You should:

• Spend grant in line with your approved budget.
• Code expenditure correctly.
• Submit transaction corrections if costs have been allocated to the wrong funding code.
• Spend grant before the annual deadline.

SGI:

gives groups greater flexibility but should still be used responsibly. Remember:

• SGI belongs to your whole membership.
• It should not be treated as a committee fund.
• Your SGI account must not go into debt.
• Consider the impact your spending will have on future committee

Event budgeting principles: 

When preparing an event budget:

• Budget using realistic income and attendance figures.
• Prioritise essential costs first.
• Ensure expenditure reflects the scale of the event.
• Build in a small contingency where appropriate.
• Review previous events to improve future budgets.

An accurate budget helps both your committee and the Union understand whether an event is financially sustainable.

Look beyond one event:

When planning expenditure, consider both the immediate benefit and the long-term impact, asking yourself:

• Will this leave enough funding for future activities?
• Could the money benefit more members if spent differently?
• Is this purchase reusable?
• Could another group benefit from sharing the cost?

Good committees leave their group in a strong financial position for the next year and this is one of your responsibilities as a Committee Member with financial responsibility.

Spending with Purpose:

Before committing any expenditure, ask yourself:

• Does this directly benefit your group's members?
• Does it support your group's aims and charitable objectives?
• Is this the best use of our funds?

Your SGI and grant funding should always be spent for the benefit of your whole membership, rather than a small number of individuals. Spending that does not support the Union's charitable objectives or primarily benefits committee members may be rejected.

Value for Money:

Sustainable spending isn't simply about spending less—it's about achieving the greatest impact with the money available.

Before making a purchase:

• Compare prices from different suppliers.
• Ask whether student discounts are available.
• Consider whether another student group or the Union already has equipment you can use.
• Buy only what you actually need.
• Book travel and accommodation early where possible.

Small savings across the year can significantly increase what your group is able to offer members.

Planning Ahead:

Good financial planning reduces risk and avoids unexpected costs so when budgeting:

• Prioritise core activity before optional events.
• Allow a contingency for unexpected costs.
• Only include confirmed income when committing expenditure.
• Be realistic about ticket sales and attendance.

For example, if an event budget relies entirely on selling every ticket available, consider what would happen if fewer members attend. Do not commit expenditure based on funding or sponsorship that has not yet been confirmed.

Still have questions? Check out the rest of our knowledge base articles or  submit a ticket to the Activities Team.