AD Athletic Director Budgeting & Fundraising 2

Question 1

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

Accepted Answer

Zero-based budgeting

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

Ensure per-capita spending opportunities are proportional to participation rates

Answer

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

(AD) Athletic Director Certification Practice Test

(AD) Athletic Director Certification Practice Test

AD Athletic Director Budgeting & Fundraising 2