Athletic Director Budgeting & Fundraising Flashcards

Which budgeting approach requires each department to justify all expenditures from scratch each fiscal year rather than using the prior year as a baseline?

Answer: Zero-based budgeting

Zero-based budgeting requires every line item to be justified anew each cycle, regardless of historical spending.

An athletic director discovers mid-year that the football program overspent its travel budget by 15%. What is the BEST immediate corrective action?

Answer: Issue a budget amendment and identify offsetting cuts in lower-priority line items

A formal budget amendment with identified offsets keeps spending within authorized limits and maintains transparency.

Which fundraising vehicle allows donors to receive a charitable tax deduction while directing funds to a specific athletic program?

Answer: Gift-in-kind donation to a 501(c)(3) foundation

Donations to a 501(c)(3) foundation are tax-deductible, unlike direct payments to teams or for-profit entities.

A school's athletics department relies on gate receipts that vary significantly year to year. Which budgeting strategy BEST manages this revenue uncertainty?

Answer: Use a three-year rolling average to project gate receipt revenue

A rolling average smooths year-to-year variability and produces a more defensible revenue projection.

Under Title IX financial equity requirements, how should an athletic director approach budget allocations between men's and women's programs?

Answer: Ensure per-capita spending opportunities are proportional to participation rates

Title IX requires proportional benefit, meaning per-participant spending should be equitable across genders, not necessarily equal in total dollars.

What is the primary purpose of an athletic department's reserve fund?

Answer: To cover unexpected expenses or revenue shortfalls without disrupting program operations

Reserve funds serve as a financial buffer against unforeseen costs or revenue gaps so day-to-day operations remain stable.

When negotiating a corporate naming rights agreement for a school facility, which factor MOST affects the valuation of the deal?

Answer: Audience reach, event frequency, and media exposure the venue provides

Naming rights value is driven by how many people see the sponsor's brand through attendance, broadcast, and media coverage.