How to Plan, Launch & Run a Booster Club: The Complete Nonprofit Guide (2026)

Master every phase of booster club organization—from founding to day-of execution. Real budgets, timelines, roles, volunteer recruitment, liability management, and proven strategies.

Whether you're launching a brand-new booster club for athletics, performing arts, or academics, or scaling an existing program, this guide walks you through every operational phase: founding and legal setup, goal-setting and budgeting, volunteer recruitment and screening, leadership structure, insurance and liability, fundraising and event management, and measuring impact. You'll find real costs, timelines, checklists, and role breakdowns drawn from hundreds of successful clubs across North America. For deeper insights into volunteer statistics and best practices, see the data behind this in our comprehensive statistics report.

By the end of this guide, you'll have the playbook to recruit and retain volunteers, manage finances compliantly, run secure fundraising events, and build a sustainable organization that serves your school or program for years to come.

Why Booster Clubs Matter
Legal Foundation & Nonprofit Status
Setting Goals & Defining Scope
Launch Timeline: Month-by-Month Roadmap
Budgeting & Real Cost Ranges
Fundraising Strategy & Revenue Streams
Recruiting & Retaining Volunteers
Leadership Roles & Organizational Structure
Volunteer Screening, Background Checks & Child Safety
Event Execution & Day-of Operations
Measuring Impact & Volunteer Appreciation
Common Mistakes & How Established Clubs Scale

Why Booster Clubs Matter

A booster club is a nonprofit organization that supports school programs, teams, and clubs through fundraising and volunteer efforts. More broadly, booster clubs are nonprofit organizations typically run by parents and volunteers to provide financial and logistical support for school-related extracurricular activities such as sports, music, arts, and academic programs. Unlike individual parent volunteers, booster clubs pool resources, establish formal governance, and create sustainable pathways for community support.

The impact is tangible. These organizations play a vital role in funding extracurricular activities, equipment, and experiences that might otherwise be unavailable to students due to budget constraints. For example, a single set of football uniforms can cost between $400 and $1,000 per player, while a high-quality marching band uniform can range from $300 to $500. Booster clubs often fund these purchases to ensure students have professional-grade gear. Beyond equipment, booster contributions typically go on equipment and supplies, transportation and travel expenses, meals, practice facility improvements, and other necessities.

Who you serve: Booster clubs support athletes, musicians, actors, debaters, STEM competitors, and academic clubs. Your founding members are typically parents and guardians, but may also include community members, alumni, and school staff (with some restrictions on board roles).

Legal Foundation & Nonprofit Status

To receive tax-exempt status and allow donors to make tax-deductible contributions, your booster club must register as a 501(c)(3) nonprofit organization. This involves both state-level incorporation and federal IRS tax-exempt approval. The ideal structure is a 501(c)(3) nonprofit. They are mission-driven, volunteer-led entities that reinvest every dollar raised into the programs they support — whether it's athletics, performing arts, academic clubs, or other extracurriculars.

Why nonprofit status matters: LLCs are for-profit entities and are not eligible for tax-deductible donations or nonprofit grants. Nonprofits unlock donor confidence and grant funding that for-profit entities cannot access.

Timeline for incorporation: Registering as a 501(c)(3) nonprofit provides tax-exempt status and takes 2-12 months, depending on the filing process. Start with state incorporation (typically 1–4 weeks), then file IRS Form 1023 or 1023-EZ (1–3 months for approval). Work with a nonprofit attorney if possible; state regulations vary, so familiarize yourself with your jurisdiction's requirements.

Key compliance obligation: Booster clubs must maintain Form 990 or 990-EZ (required annual tax filing for the IRS) and detailed financial records. If you're involved in running a 501(c)(3) non-profit booster club, proper documentation and meeting management are essential for maintaining your tax-exempt status and ensuring organizational success. The best way to ensure the health of the organization and maintain its 501c3 status is to make sure your booster club saves financial records for a minimum of 7 years.

Setting Goals & Defining Scope

Before you recruit a single volunteer, clarify your mission and scope. Success depends on strong leadership, clear goals, transparent finances, and consistent communication.

Define your mission: Are you supporting a single sport (football, soccer), a program (marching band, theater), or the whole school? Are you launching fresh or formalizing an informal parent group? A one-sentence mission—e.g., "Provide financial support and volunteer resources for our high school soccer program"—keeps everyone aligned.

Set SMART financial goals: Instead of "raise money," aim for "raise $25,000 by June 30 for travel, uniforms, and equipment." Break goals by category:

Equipment and uniforms: $X
Travel and transportation: $Y
Facility improvements or rentals: $Z
Administrative costs (insurance, website, bank fees): $W
Contingency (10% of total): $C

Estimate volunteer need: At the most basic level, a booster club raises money and coordinates volunteers so a program can operate beyond what the school or league provides. For a small club starting out, aim for 3–5 core leaders (president, vice president, treasurer, secretary, fundraising chair) and 20–50 active volunteers for events. Larger clubs grow into 10+ board members and 100+ supporters.

Launch Timeline: Month-by-Month Roadmap

Here's a realistic 6-month launch plan. Adapt timing to your fiscal year and school calendar.

Month 1 (May)	Key Tasks
Founding & Planning	Host founding meeting with 5–15 interested parents/community members Define mission, scope, and annual goal Outline leadership roles needed Select interim president/treasurer to lead formation
Month 2 (June)	Incorporation & Bylaws
	File state incorporation papers; obtain EIN from IRS Draft bylaws with officer roles, meeting frequency, election process Open dedicated bank account (separate from personal accounts) Hold first formal meeting; elect officers by majority vote Begin 1023 federal nonprofit application (with attorney guidance)
Month 3 (July)	Financials & Insurance
	Work with treasurer to establish chart of accounts and budget template Obtain general liability, D&O, and crime/bonding insurance quotes Begin recruitment outreach: email blast, school announcement, social media Set date for first major volunteer meeting (end of summer)
Month 4 (August)	Recruitment & Planning
	Host public volunteer recruitment event or information session Collect volunteer applications and interest forms Finalize annual fundraising calendar and budget Confirm school partnership and approval for club; clarify liaison roles Set up volunteer background screening process (if required)
Month 5 (September)	Operations Launch
	Hold monthly membership meeting; finalize officer election Conduct background checks and onboard screened volunteers Distribute volunteer roles (event leads, committee chairs) Launch first fundraiser (e.g., spirit wear, community event) Activate communication channels: email list, social media, website/app
Month 6 (October)	Momentum & Growth
	Hold second monthly meeting; report fundraising progress Evaluate early volunteer retention and event feedback Plan next fundraising push (fall sport-a-thon, holiday campaign) Ensure treasurer has 501(c)(3) confirmation or track application status

Budgeting & Real Cost Ranges

Your budget is your north star. Preparing and having the board or membership approve an annual budget and program plan is one of the most important legal responsibilities of nonprofit groups. A parent-led fundraising group budget may be fairly simple, setting forth the main sources of income, and the expected amounts for each, and the main categories of expenses and amounts of each.

Sample annual budget (small-to-mid-size club supporting one program):

Line Item	Amount	Notes
Revenue
Membership Dues (50 members × $50)	$2,500
Spirit Wear Sales	$4,000	Markup on vendor sales
Fundraising Events (Sports-a-thon, car wash, bake sales)	$8,000
Corporate Sponsorships	$6,000	5 sponsors × $1,200
Donations (unrestricted)	$2,500	Tax-deductible gifts
TOTAL REVENUE	$23,000
Expenses
Program Expenses (uniforms, equipment, travel)	$12,000
Insurance (liability, D&O, crime)	$1,500	Annual premium estimate
Event Supplies & Venue Rental	$2,000	Fundraiser costs
Administrative (website, bank fees, office supplies)	$1,200	Software, filing, communications
Volunteer Recognition & Appreciation	$800	End-of-year celebration, badges
Contingency (10% reserve)	$2,300
TOTAL EXPENSES	$19,800
NET (surplus to reserve)	$3,200

Budgeting best practices:

Gather financial information from previous years. Look for bank statements, receipts, and any past budgets or reports. Even imperfect records are helpful starting points.
Make a note of recurring expenses like equipment, uniforms, travel costs, and administrative fees.
Don't forget a contingency fund of 5-10% for unexpected expenses. This buffer helps handle surprises without derailing your plans.
Concessions, dues, sponsorships, fundraiser proceeds, and restricted donations should each get their own line. Uniforms, equipment, insurance, event costs, bank fees.
Not separating restricted funds. If a parent donates $2,000 specifically for new uniforms, that money isn't available for the pizza party. Report it separately or you'll accidentally spend it.

Real cost examples: A single set of football uniforms can cost between $400 and $1,000 per player, while a high-quality marching band uniform can range from $300 to $500. Travel, facility rentals, and competition fees add quickly. Use detailed historical data or estimates from your program's director to build realistic budgets.

Fundraising Strategy & Revenue Streams

Fundraising strategies like corporate sponsorships, spiritwear sales, and membership drives can maximize impact. Rather than throwing everything at the wall, design a focused annual calendar.

Seasonal rhythm (4–6 major campaigns per year):

The best fundraisers follow a simple rhythm, with four to six focused campaigns instead of constant asks. Fall (August to November): Launch spirit wear, start concessions, and lock in scoreboard or banner sponsors. Add a restaurant spirit night or fall sport-a-thon. Winter (December to February): Run a holiday gift card program, candy catalog, or mattress sale. This window also works for a silent auction, galas & events, or alumni games. Spring (March to May): Plan a spring sport a-thon, senior tribute program, golf tournament, or end-of-season banquet with an auction. Summer (June to July): Host youth skills clinics, launch crowdfunding for equipment or travel, and sell fall sponsorship banners early.

A focused calendar of four to six well-run fundraisers is often easier to sustain than a crowded one, and keeps volunteers willing to return next year.

Revenue mix to consider:

Membership dues: $30–$100 per household annually; easy to execute and predictable
Corporate sponsorships: $500–$5,000+ per sponsor; emphasize naming rights and branding
Spirit wear: Partner with vendors; typical margin is 30–50% on sales
Concessions: Games, tournaments, concession stands; labor-intensive but recurring
Auctions (silent or live): A strong silent auction can bring $15,000 to $40,000 when you draft a fundraiser plan early.
Golf tournaments or galas: A well-run tournament can potentially net $10,000 to $25,000.
Donations: Tax-deductible gifts; highlight impact in sample donation letters

Critical rule: The IRS has strict rules regarding nonprofits setting up individual fundraising accounts. Any time a donor receives something of value in return for the money paid, it is not considered a tax-deductible contribution. Track restricted vs. unrestricted funds carefully.

Recruiting & Retaining Volunteers

Volunteering is rebounding post-pandemic, but recruitment remains the top operational challenge for nonprofits. 75.7 million Americans volunteered in 2023, contributing nearly 5 billion hours of service. However, for many nonprofits, volunteers comprise a third or more of their effective workforce—making recruitment a mission-critical function, not an afterthought.

The recruitment gap—asking matters most: The most common volunteer activity in the U.S. is fundraising or fundraising support. Food preparation and distribution, and tutoring or mentoring, round out the top three. More importantly, the most common stated motivation is "to contribute to a cause I care about." Social motivations (meeting people, doing it with friends or family) are the second cluster, and skill-building or career-related motivations are the third.

Channels that work:

Direct ask (most effective): Email, phone call, or face-to-face: "I'm looking for someone to lead our fundraiser. Can I count on you?" Personal invitations outperform blanket announcements.
School & social media: The best way to find and utilize willing volunteers is through effective promotional strategies. The best way to find and utilize willing volunteers is through effective promotional strategies. Post on Facebook, Instagram, NextDoor; announce at school assemblies and PTA meetings.
Volunteer job fair or kickoff meeting: Host a public information session where potential volunteers learn about open roles and time commitments. When recruiting officers, lead with the time commitment, not just the title. People are more willing to say yes when they know exactly what they're signing up for.
Existing volunteer networks: Volunteers who report a "very satisfying" experience are dramatically more likely to recommend the organization to a friend. Word-of-mouth is the cheapest recruitment channel, and it is downstream of experience design.

Retention & engagement: Organizations that provide volunteers with well-structured roles have a 27% higher volunteer retention rate than those that do not. This means clear job descriptions, defined time commitments, and regular appreciation matter immensely. The cheapest volunteer to "recruit" is the one you already have. Retention also fuels fundraising: 62% of charitable donors are also recent volunteers, and 39% volunteered before they gave money — volunteering is a donor pipeline.

Value your volunteers: The estimated value of a volunteer hour reached $36.14 in 2025. That is a 3.9% increase over the 2024 figure of $33.49. Recognize this in your annual report and grant writing. More importantly, celebrate volunteer efforts publicly: monthly emails, social media shoutouts, end-of-year awards, or small tokens of appreciation (certificates, coffee mugs, event tickets).

Leadership Roles & Organizational Structure

The primary booster clubs officials' roles are President, Vice President, Secretary, and Treasurer. This group is known as the Executive Board. Some clubs have additional VPs for Social, Fundraising, and Communications.

Core leadership roles and responsibilities:

Role	Key Responsibilities	Time Commitment
President	The President is the leader and "#1 Fan" of the club and the organization it supports. They're ultimately responsible for the overall operation of the booster club, including fiscal matters and filling vacancies for volunteer roles. Presidents are also the main point of contact between the group and the school administration.	10–15 hrs/week during peak season
Vice President	The Vice President fills the President's role as needed. Some VPs may oversee fundraising, and larger clubs may have multiple VPs with different responsibilities. Sometimes, the Vice President is a parent of a younger participant in the organization, learning how the club operates so that there's better continuity of leadership and direction year over year.	6–10 hrs/week
Secretary	The Secretary keeps all the records for the club, including meeting minutes for both Executive Board meetings and regular meetings. This officer may also be in charge of overall communications, such as sending out meeting information and regular email updates about the booster club.	5–8 hrs/week
Treasurer	The Booster Club treasurer handles all of the financial transactions conducted by the club. This can be everything from petty cash and bank account reconciliation to collecting dues and allocating payments for supplies. Managing finances is a critical responsibility. The treasurer oversees budgeting, tracks expenses, and ensures transparency in financial reporting.	8–12 hrs/week
Fundraising Chair	Some clubs conduct weekly fundraisers, such as at the Friday night game. Others have a big annual event that raises most of their funds for the year. In either case, the Fundraising Chair dedicates their time to planning these events, recruiting volunteers, and ensuring they are a success.	10–15 hrs/week during events
Committee Chairs (optional)	Committee Coordinators handle specific aspects such as membership, sponsorships, fundraising, concessions, and scholarships.	5–10 hrs/week

Important governance rules: The coach/sponsor/director is prohibited from serving as an officer of a Booster Club or being an authorized signer on a club bank account. This maintains independence and prevents conflicts of interest. District employees may not serve on the executive board for any booster or parent organization located at the site at which they work. This includes holding any booster club or parent organization board or officer positions.

Dual-signing requirement: Require dual signatures for transactions over a set amount. This protects against embezzlement and fraud. Typically, the treasurer and one board member must co-sign checks over $500–$1,000.

Volunteer Screening, Background Checks & Child Safety

If your booster club involves children—which most do—screening volunteers is not optional; it's a fiduciary and ethical duty. Nonprofits often work closely with vulnerable populations, which can increase their liability exposure.

Screening best practices:

Application form: Collect name, contact, background, volunteer role preference, and references. Use application templates to standardize the process.
Identity verification: Confirm the person is who they claim. Biometric identity verification is increasingly common and provides real-time confirmation.
Background check (FCRA-compliant): For volunteers with child contact, run a national criminal background check. Cost typically ranges from $5–$30 per person depending on depth. Many states also allow county-level checks or fingerprint-based FBI checks, which take longer but are more thorough.
Reference checks: Contact 2–3 personal or professional references. Automated character reference tools can streamline this process.
Signed waiver & code of conduct: Have all volunteers sign a volunteer agreement acknowledging they've been screened and agreeing to follow a code of conduct. Invite volunteers formally through a platform that documents consent.

Red flags to watch for: Any history of crimes of violence, sexual offenses, child abuse, or financial crimes should disqualify a volunteer from child-facing roles. Volunteers when the harm is caused by the operation of a motor vehicle, vessel, aircraft, or other vehicle for which the state requires an operating license or insurance. Any misconduct that constitutes a crime of violence, a hate crime, a sexual offense, or misconduct for which the volunteer is found to have violated a federal or state civil rights law or where the volunteer was under the influence of intoxicating alcohol or any drug at the time of the misconduct. Some organizations use FCRA adverse-action procedures if they decide not to hire a volunteer based on a background check; this requires providing disclosure and opportunity to dispute.

Immunization records (where relevant): If your program involves overnight travel or community events, some organizations verify verified immunization records as an additional safety measure.

VolunteerBadge provides national FCRA-compliant background checks at $5 per volunteer (no monthly fees), including free identity verification and character reference automation, making compliance affordable for small and mid-sized clubs. Learn how to run a check in minutes.

Event Execution & Day-of Operations

A successful fundraiser or event hinges on planning and logistics. Details make or break an event. Develop a detailed run-of-show and plan ahead for every phase.

Event planning checklist:

Check school calendars and community events to avoid conflicts. Book your venue early; ensure adequate size and amenities. Verify accessibility for all attendees (ADA compliance).
Create a master event timeline (including setup and cleanup). Rent or secure necessary equipment (AV, tables, chairs, lighting).
Recruit and assign volunteers: name a lead for setup, check-in, concessions, cleanup, etc.
The more visibility, the better your turnout and results. Create branded visuals and content for social media. Schedule posts leading up to the event (countdowns, sneak peeks). Send emails to club members, alumni, and past supporters. Hang flyers in schools, coffee shops, and community centers.
Test tech and run a tech rehearsal if using sound/video.
Plan for weather or other contingencies; have a backup venue or date if needed.
Set financial targets: goal revenue, projected expenses, break-even point.
Send post-event thank-you emails within 1 week; share final numbers with the board.

Financial tracking at events: Use a cash box with a starting float, track all revenue and expenses in real time, and reconcile at end of day. If online ticketing or donations are involved, reconcile within 48 hours. Beginning balance for the period, which should match last month's ending balance exactly. If it doesn't, something's wrong and you say so, not skip it.

Volunteer communication: Send volunteers a calendar reminder 2 weeks before, 1 week before, and 2 days before. Confirm roles, start times, and any needed equipment. On event day, have a simple checklist and designate a point person for questions.

Measuring Impact & Volunteer Appreciation

Common metrics include retention rates, participation frequency, engagement scores, satisfaction surveys, and mission-level impact tied to volunteer contributions. Track and report these to keep members engaged and funders confident.

Key metrics to monitor:

Dollars raised: By fundraiser, by quarter, cumulative vs. goal
Volunteer hours: Track hours by event and volunteer; multiply by $36.14 to show economic value
Volunteer retention: % of volunteers returning year-over-year
Program impact: Equipment purchased, travel funded, students served, events hosted
Satisfaction: Simple surveys: "Would you recommend this club to a friend?" and "Did we make good use of your time?"

Appreciation & recognition:

Monthly email highlighting top fundraiser results and volunteer spotlights
Social media shoutouts: "This week's hero: [Volunteer Name] led our car wash and raised $2,000!"
End-of-year celebration: pizza dinner or small gift with a heartfelt note
Annual report: one-page summary of funds raised, students served, and volunteer hours contributed
Certificates or badges for significant milestones (50 hours, lead role, etc.)

Remember: Volunteers remain crucial contributors to a nonprofit's fundraising success, with many contributing both their time and money toward causes they care about. To retain their high-value support, nonprofits must take the time to express appreciation and emphasize their impact on the community.

Common Mistakes & How Established Clubs Scale

Pitfall #1: Weak financial controls. One of the key takeaways from the conversation was the alarming issue of theft within booster clubs. McDonald highlighted the necessity of internal controls and oversight to prevent financial mismanagement and fraud, a risk that, while uncomfortable to consider, is all too real in volunteer-driven organizations. Prevent this with dual signing, monthly reconciliation, and annual independent audit if you handle over $50,000.

Pitfall #2: No succession plan. With small, primarily volunteer organizations, there is typically more leadership transitions. This puts the onus on the organization to maintain accurate records in the form of recordkeeping that works best for them. Document all processes (fundraising calendar, vendor contacts, treasurer procedures, role descriptions) in a shared drive or wiki. Onboard new leaders in May/June so they learn before taking office in July.

Pitfall #3: Over-reliance on one fundraiser or person. Select diverse fundraising approaches that collectively can achieve financial goals while balancing volunteer capacity, community engagement, and revenue potential. Avoid over-scheduling exhausting volunteers or overwhelming communities with constant solicitations. A healthy mix of 4–6 major fundraisers plus recurring membership dues and sponsorships spreads risk.

Pitfall #4: Volunteer burnout. Rotate leadership responsibilities so no one burns out during their favorite season. Cross-train volunteers so knowledge transfers between seasons. Encourage shorter-term roles (one-event or one-season volunteer) alongside long-term board positions.

Pitfall #5: Missing insurance. Most school districts explicitly state that their insurance does not extend to booster clubs, even when operating on school property. This means your club is fully exposed to liability risks without your own coverage. Common coverage includes general liability, directors and officers (D&O) insurance, and crime insurance. Annual premiums typically range from $65 per year for basic event coverage to $1,500–$3,000 for comprehensive annual policies.

Scaling a successful club (Year 2+):

Formalize your volunteer management: Move from ad-hoc sign-ups to a volunteer database (Google Sheets, VolunteerBadge's volunteer management courses, or a dedicated platform). Track roles, hours, and contact info.
Expand fundraising diversity: Once you've proven spirit wear works, add a second revenue stream (sponsorships, auctions, or recurring monthly giving).
Build board depth: Instead of one president doing everything, grow to 5–7 officers with clear portfolios. A study published by the Stanford Social Innovation Review found that nonprofits with clearly defined structures and leadership frameworks are significantly more effective at fundraising and sustaining donor engagement.
Invest in communication tools: Move from email to a member portal, website, or app where volunteers can sign up for shifts, see calendar, and access documents.
Seek grant funding: Once you're established with a 501(c)(3), apply for small grants from community foundations or corporate giving programs.
Audit and evaluate annually: Review what fundraisers worked and which didn't. Keep the winners, retire the losers, and test new ideas in Year 3.

Screen Your Volunteers the Easy Way

Volunteer screening is non-negotiable if your booster club works with children. VolunteerBadge makes it simple, affordable, and compliant:

$5 per national background check (FCRA-compliant, no monthly fees)
Free biometric identity verification to confirm volunteers are who they claim
Automated character references and health card verification included
Bulk import volunteers from a roster or spreadsheet with bulk import tools
Instant results: Many checks complete in minutes; volunteers can pay their own $5 fee or you cover it
FCRA-compliant adverse-action workflow if you decline a volunteer based on their report

Get started in minutes: Create a free VolunteerBadge account and see pricing. For detailed guidance, check out how to run a background check or how to invite volunteers to apply.

Frequently Asked Questions

Q: Do we need to be incorporated as a 501(c)(3) to start a booster club?
A: You can begin as an informal group, but incorporating and filing for 501(c)(3) status unlocks tax-deductible donations, grants, and limited liability. Most clubs do this within the first 6 months. It takes 2–12 months but is well worth the investment.

Q: How much should we charge for membership dues?
A: $30–$100 per household is common. Set a price that's accessible to families in your community. Make it voluntary so cost doesn't bar participation, but encourage it as a symbol of commitment.

Q: Can we refuse a volunteer based on a background check?
A: Yes, but you must follow FCRA adverse-action procedures: disclose the report, give the person a chance to dispute, and provide a final written notice if you deny them. VolunteerBadge provides templates for this workflow.

Q: How often should the booster club meet?
A: Most booster clubs meet monthly, but frequency depends on club size and activity level. Aim for 45-60 minutes to keep discussions focused while covering necessary topics.

Q: What if a volunteer gets injured at an event?
A: This is exactly why liability insurance matters. Your general liability policy should cover volunteer injuries at sponsored events. Make sure volunteers understand the activity and inherent risks; have them sign a liability waiver (with your attorney's guidance) before high-risk activities.

Q: Can booster club funds pay for individual students or athletes?
A: Generally speaking, covering expenses for an entire team or group of athletes is allowed. However, paying tuition, scholarships, or individual allowances raises complex tax and fairness issues. Check IRS rules and your school district's policy before doing so.

Q: How do we manage volunteers from different backgrounds or languages?
A: Inclusive recruitment and engagement practices expand access, strengthen belonging, and improve long-term retention, making DEI a central part of association volunteer trends. Use simple, clear language in materials; provide translations if your community needs them; hold meetings at accessible times; and actively recruit volunteers from under-represented groups in your school.

Q: What happens if we can't reach our fundraising goal?
A: Prioritize essential program expenses (uniforms, travel, safety equipment) over nice-to-haves. Build a modest reserve in Year 1–2 to smooth shortfalls. Be transparent with your program director and members about the shortfall and adjust next year's plan accordingly.