Fiscal Principles, Policies & Procedures

Approved by the Board of Directors on January 17, 2023

The principles and policies below are designed to support all Directors and Committee Chairs in effectively stewarding SFR funds. They also are designed to protect all SFR volunteers from allegations of abuse or impropriety. These are in addition to, and not in place of, any principles and policies outlined in our bylaws.

Principles

All income and expenses must be related to the SFR mission articulated in the bylaws. The following are additional principles adopted by the Board of Directors to guide SFR fiscal policies and decisions:

• In most years, revenue streams shall meet or exceed projected expenses.
• Revenue supports SFR expenses. Should revenue substantially exceed expenses on an annual basis, the Board should consider reducing income, particularly membership dues, or reviewing budget cost centers that do not meet expense projections.
• All expenses shall be carefully vetted. This means every expense must be pre-approved through the budgeting process (see below) or approved by at least two Directors before submitting to the Treasurer for review and reimbursement.

• SFR funds can be spent to support Board operations (e.g. fees for meeting spaces, low cost food and drink during meetings, etc.), but shall be done with discretion and, when possible at the direction of the President.
• Fiscal decisions, operations, income, and expenses shall be fully transparent to the membership, except for instances that might compromise a member’s privacy (e.g. a grant covering a race registration fee based on financial hardship) or confidential matters under review by the Board.
• As the ultimate steward of SFR funds, the Treasurer shall be responsible for ensuring proper execution of SFR fiscal policies and procedures. The Treasurer shall make information on the budget, revenue, expenses, available to the Board on a regular basis.

Policies & Procedures

The following policies are designed to carry out the principles above.

Budgeting

Before the start of the fiscal year, the Board shall build, approve, and share a projected budget in a manner transparent to the full membership. This budget shall include a detailed listing of projected income and expenses. The budgeting process, led by the Treasurer with support from the President, shall generally follow the process below:

1. The Treasurer requests budget proposals from committee chairs that detail projected income and expenses for the next fiscal year relevant to that committee. While proposals are estimations of income and expenses, committee chairs shall research approximate costs with the goal of making their estimates as accurate as possible.
2. The Treasurer and President shall compile projected income and expenses relevant to SFR’s general operations outside of any committee’s purview. These include, but are not limited to: state registration fees, insurance costs, Board expenses, legal fees, and memberships (e.g. USA Track & Field).
3. The Treasurer, with support from the President, shall build and present a preliminary budget to the Board for discussion and review.
4. The Treasurer and President shall make adjustments based on feedback from the Board in Step 3.
5. A final budget shall be presented to and approved by the Board.
6. The approved budget shall be made available to the membership, including a listing of revenue streams and expenses by category (e.g. DEI, Events, Run & Walk with Pride, etc). Line items within each category do not need to be included. However, this information shall be available upon request by any member.

After the budget is approved, Directors do not need Board approval to spend funds itemized in the budget, unless there is substantial discrepancy between the projected and actual cost (to be determined by the committee chairs and Treasurer). Expenses under $500 not included in the approved budget may be approved by the appropriate committee without a full Board vote, provided that committee includes at least two Directors. Any unplanned expense in excess of $500 must be approved by the full Board.

Reimbursements

SFR will reimburse Directors, committee members, and members-at-large for approved expenses related to club activities according to the guidelines below. Failure to comply with any of these stipulations may result in the denial of a reimbursement request. It is the responsibility of all Directors, committee members, and members at-large to know and comply with these policies. SFR is not liable for financial outlays that are not undertaken in accordance with these policies.

• Reimbursement requests may be made by committee chairs or their designees in writing following a protocol set by the Treasurer (see current protocol below).
• Requests from committee members or members-at-large must first obtain written approval from the authorizing committee chair before submitting their requests to the Treasurer.
• Reimbursement requests must include a written description and documentation of the expense (e.g itemized, dated receipt).
• General expenses (those outside the purview of a committee) must first be approved, in writing, by the President before the request is submitted to the Treasurer.
• When possible, no receipt should include taxes in recognition of SFR’s tax-exempt status.
• All requests must be submitted within 30 days of the incurred expense.
• To ensure adequate and comprehensive oversight, all reimbursement requests from the Treasurer shall be approved, in writing, by the President.

Currently, all reimbursement requests, including written descriptions and documentation of the expense, must be submitted using this form.

Below are policies regarding specific types of expenses:

• Meal Tips. Reimbursable at up to 20% of the bill.
• Mileage. Reimbursable according to recommended IRS rates.
• Alcohol. Reimbursable according to the amount pre-determined by the Board (e.g. bulk purchases for an event). If part of a meal, reimbursement is limited to one drink per person.
• Undocumented Expenses (e.g. valet tipping, coin-operated street parking, etc.). Maximum of $5 per item. Written description of expense required.

SFR Debit/Credit Cards

Select members of the Executive Committee (usually the President and Treasurer) may have bank issued SFR debit/credit cards. Because charges to an SFR debit/credit card are immediately deducted from the SFR bank account, it’s important that there are transparency and safeguards in debit/credit card spending. Accordingly, all receipts of debit/credit card expenses incurred by the President shall be shared with the Treasurer. Similarly, all debit/credit card expenses incurred by the Treasurer shall be shared with the President. Upon request, these receipts shall be available to any Board member.

Currently, documentation and written descriptions of all debit/credit card expenses should be submitted using this form.

Should the President or Treasurer charge an expense on behalf of a committee chair, the receipt shall also be shared with that committee chair and should follow the same requirements for authorization detailed above.

Reserves

SFR’s fiscal approach is to generate income necessary to support the annual spending of the club. However, it’s important that SFR have reserve funds for emergent or unexpected circumstances. Accordingly, the Board shall ensure the following at any given time:

• SFR will have one year of essential operating expenses in reserve. This figure will be computed annually by the Treasurer as part of the budgeting process. Should SFR suspend membership dues or lose other revenue streams (e.g. SFR ceases operation temporarily after an earthquake or because of a pandemic), the Board should ensure the club still has funds for basic operating costs (e.g. subscriptions to SFR’s membership and communication platforms, website maintenance, state registration fees, etc.).
• SFR will have at least $5,000 in reserves in addition to one year of essential operating expenses (e.g. for unexpected legal fees or other special contingencies).
• Should total reserves exceed the three-year average of total SFR expenses, the Board will initiate conversations about creating a more balanced budget.

Should the reserve drop below the thresholds stipulated above, the Board shall develop a plan to rebuild its reserve and shall share this plan with the membership.

Grant Program

SFR is committed to providing equitable experiences for all members. Accordingly, each year, the Board typically budgets an amount to be distributed as grants to support members who may need support to engage in the club’s activities. These grants may underwrite registration fees for races, costs directly related to participation in races (e.g., travel), running gear, and expenses related to participation in any SFR sponsored or endorsed event.

Race Grant Program

Any Seattle Frontrunners paid member (i.e., has passed their trial period) needing a grant for the registration fee for a race should submit a Grant Program Request. While a good faith effort will be made to accommodate all reasonable requests, priority consideration will be given to requests:

• For races on SFR’s Promoted Race calendar;
• Submitted at least one month prior to the race;
• From members who have not previously received a race grant in that fiscal year.

Because funds are limited, it is unlikely that SFR can provide funding for any member for more than two races per fiscal year. If a member receives a grant and then does not compete, they are required to notify and reimburse SFR for the total amount provided. SFR will typically provide funding only for standard registration fees.

Shoe Grant Program

Any member requiring funding for shoes for an SFR running or walking event, including SFR’s weekly runs/walks, is eligible for an annual grant of up to $80. Members requiring an additional pair of shoes within one year of receiving a grant (e.g. marathon runners) can apply for additional funding; these requests will be reviewed on a case-by-case basis. To apply, please submit a Grant Program Request. The number of shoe grants awarded will depend upon the availability of funds.

Additional Grants

SFR will consider supporting members to participate in SFR promoted events or in events where there is an SFR team, or in purchasing running/walking gear, on a case-by-case basis. To apply, please submit a Grant Program Request. SFR grants are unable to support airfare and international travel.

Grant Approval & Disbursement Process

1. The DEI Chair will receive all requests, and in consultation with another Executive Committee member, approve or deny the request. (For privacy reasons, the identity of applicants will only be accessible to the DEI Chair and Executive Committee). If the DEI Chair and Executive Committee member are unable to agree, the full Executive Committee, plus the DEI Chair, will render a final decision by majority vote. In the event of a tie, the DEI Chair’s vote will determine the outcome.
2. Next, the DEI Chair notifies the Treasurer, in writing, of the grant recipient and amount.
3. Then, the DEI Chair notifies the recipient, in writing, of the financial assistance they will receive and the expectations associated with the grant.
4. Finally, the recipient, after incurring the expense, submits the request and appropriate documentation here for reimbursement from the Treasurer. For requests related to participation in races or events, the recipient shall also provide proof of participation (e.g., race website result) to the DEI Chair.

Any grant provided must be used for its intended purpose. If a grant recipient would like to volunteer for SFR, they should contact an Executive Board member to explore volunteer opportunities.

Prizes & Awards

At some SFR events, there are prizes and awards for games and competitions, some of which are underwritten by SFR funds. Such expenses must be approved according to the policies above.

To avoid conflicts of interest, Board members are ineligible to win prizes if they comprise more than 25 percent of attendees at the event at which prizes are awarded. This protects the Board from perceptions or accusations that it “funneled” prizes or awards to itself. The Events Committee may adopt further policies on this matter subject to its discretion, provided it does not contradict the above stipulations.

Updated by the Board, June 9, 2024