Since Circle K is a nonprofit organization, there are two distinct parts to the budget. Your budget needs to contain two separate budgets; one is for administrative activities (for things such as printing, meeting costs, and travel) and one is for service activities (technically defined as any activity that returns a service to the public). You will have separate income for each section, and separate expenditures for each section. CKI is a nonprofit organization, receiving much of its receipts from the general public. Therefore, the law requires that two separate accounts for receipts and expenditures be maintained. These accounts are the service account and administrative account.
All monies collected form the general public must be returned to the general public. Such monies cannot be used for club administrative costs, such as printing, conventions and conferences, and travel to nonservice projects.
The administrative account is the operating account for the club. It is used for those monies to be spent on club administration and/or the members. Monies coming into the administrative account are collected from dues, Kiwanis-family members, and college or university subsidies. Monies in this account may be used to buy supplies, purchase advertising, send members to conventions and conferences, etc. Funds in the administrative account can be transferred to the service account. However, funds from the service account cannot be transferred to the administrative account.
It is helpful in bookkeeping and auditing to note on each receipt into which account the money was deposited. Likewise, all checks should note from which account the line item, if appropriate, the money was drawn. You are allowed to transfer money from the administrative account into the service account, but you cannot transfer money from the service account to the administrative account. This is because you cannot do a fundraiser for a service project, and then use the money to buy staples. Also, you may count service hours for a fundraising project for service projects, but not fundraising projects for administrative expenses.