AD Athletic Director Budgeting & Fundraising 3 — Questions and Answers
Question 1: Which document formally authorizes an athletic department to spend money and serves as the legal spending plan approved by the governing board?
- Program budget request
- Adopted operating budget (Correct answer)
- Financial audit report
- Chart of accounts
Correct answer: Adopted operating budget
The adopted operating budget, once approved by the governing board, is the legal authorization for departmental expenditures.
Question 2: An athletic director wants to launch a capital campaign to build a new weight room. Which step should come FIRST?
- Hire a construction contractor
- Conduct a feasibility study to assess donor capacity and community support (Correct answer)
- Open a separate bank account for campaign funds
- Announce the campaign at the next home game
Correct answer: Conduct a feasibility study to assess donor capacity and community support
A feasibility study determines whether sufficient donor support and philanthropic capacity exist before resources are committed to a campaign.
Question 3: What distinguishes a restricted gift from an unrestricted gift in athletic fundraising?
- Restricted gifts are tax-deductible; unrestricted gifts are not
- Restricted gifts must be used for a donor-specified purpose; unrestricted gifts can be used at the AD's discretion (Correct answer)
- Restricted gifts come only from corporations; unrestricted gifts come from individuals
- Restricted gifts require board approval; unrestricted gifts do not
Correct answer: Restricted gifts must be used for a donor-specified purpose; unrestricted gifts can be used at the AD's discretion
Restricted gifts carry donor-imposed conditions on their use, while unrestricted gifts give the department flexibility in application.
Question 4: A booster club collects funds independently and wants to purchase equipment for the football team. What must the athletic director ensure?
- The purchase is handled entirely by the booster club without school involvement
- The equipment purchase complies with school procurement policies and is properly donated to the district (Correct answer)
- Coaches negotiate the purchase directly with vendors
- The funds bypass the school's financial system to avoid delays
Correct answer: The equipment purchase complies with school procurement policies and is properly donated to the district
Booster club purchases for school programs must flow through proper school procurement and donation acceptance procedures to maintain compliance.
Question 5: Which cost classification includes expenses like utilities, facility maintenance, and administrative salaries that support the entire athletics program?
- Direct program costs
- Variable costs
- Indirect or overhead costs (Correct answer)
- Capital expenditures
Correct answer: Indirect or overhead costs
Indirect or overhead costs support the overall operation and cannot be attributed to a single sport program.
Question 6: What is the key advantage of a multi-year budget forecast for an athletics department?
- It eliminates the need for annual budget approval
- It allows the AD to identify long-term funding gaps and plan resource allocation proactively (Correct answer)
- It locks in spending levels that cannot be changed by the governing board
- It guarantees stable revenue from external sources
Correct answer: It allows the AD to identify long-term funding gaps and plan resource allocation proactively
Multi-year forecasting surfaces future shortfalls early, giving the AD time to develop strategies before crises occur.
Question 7: During a budget presentation to a school board, an athletic director should PRIMARILY focus on which type of information?
- Technical accounting details and journal entries
- Program outcomes, strategic alignment, and return on investment for requested funds (Correct answer)
- Competitor school spending comparisons only
- Individual athlete performance statistics
Correct answer: Program outcomes, strategic alignment, and return on investment for requested funds
Board members need to understand the value and strategic rationale of spending, not accounting mechanics.
AD Athletic Director Budgeting & Fundraising 3
Which document formally authorizes an athletic department to spend money and serves as the legal spending plan approved by the governing board?