Deficits

When you spend more funds than are in your account, the account goes into a deficit.

Verify Your Funding

Your vendor payments will be subtracted from your account balance. If a funding source has verified that they will fund an event, we know the funding will be credited to your account, so it is permissible to spend into a deficit up to the amount of the verified funding, as this credit often does not come through until after you have processed payments for the event. A funding verification form must be on file with our office.

It is important to verify that funding is in place — either actually showing in the account or verified (with a funding verification form of promised funds on file with our office) — before you make any purchase arrangements. The goal is to be sure all promised funds are credited to your account before the end of the fiscal year, so you do not end the fiscal year in a deficit.

If your organization ends the fiscal year in a deficit, this deficit will be carried forward to the new fiscal year and you will need to fundraise to pay it back.