Pace Setter : April 2025

A Transparent Look: HMRRC's Budget

At the December 2024 HMRRC monthly meeting, the Board of Directors adopted the 2025 budget. The budget, running from January to December, is a roadmap that guides decision-making and planning. It helps the Club accomplish its mission of promoting the sport of distance running and personal fitness by organizing running events and social opportunities for members and the running community in general. This commitment to promoting a healthy and active lifestyle is at the core of the Club’s operations.    

Members often ask what happens with the funds that HMRRC earns. This article will introduce you to the Club's finances – its sources of income, the costs to run its operations, and what the future might be for a club that has been around for over 50 years!
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HMRRC's budget is a financial outline that shows the Club's projected annual income and expenses. Income includes race profits, sponsorships and donations, membership fees, grants, interest, and miscellaneous income. Expenses include the costs of putting on races, administrative costs, offering grants, scholarships, and funding programs, including Just Run. The financial health of HMRRC ensures that the Club can continue, and the budget is the tool that helps it operate within its means and prioritize spending to meet its goals. 

Key Components of HMRRC's 2025 Budget:

Sources of income:

Races: HMRRC's annual income is primarily generated through race events. In 2024, 83% of actual income was from race entries. In 2025, it is anticipated that approximately $87,000 (after expenses are paid) will be raised through race entries, a slight increase from 2024.

Sponsorships and donations:  In 2024, 7% of the Club's income came from sponsorships. This income included a $30K grant from a private foundation to support the Just Run program and title sponsorships for the CDPHP Workforce Team Challenge and the MVP Health Care Stockade-athon. Other sponsorships were provided to the Mohawk Hudson River Marathon and Half Marathon in 2024 from Apex Entertainment and Highmark, sponsor of the mile marker signs. These partnerships offer a highly visible platform to highlight the shared vision of these organizations and the Club in promoting a healthy lifestyle in our community. The Club expects these sponsorships to continue in 2025.

Additionally, HMRRC received nearly $4K in general donations in 2024, greater than the typical $2k budgeted in 2025. 

Memberships: Membership costs ($12 for individuals and $15 for families) have remained the same for decades. Although this results in an insignificant source of revenue for HMRRC, the Board of Directors has consistently believed that the low cost of membership makes it affordable to as many as possible.     Generally, membership income accounts for less than 1% of annual revenue, and 2025 projections will be no different. 

Interest on Bank Accounts:  The Club's long-standing fiscal conservatism has created a stable financial cushion. Interest and dividends from bank accounts contribute to approximately 1% of club income annually. The budget for 2025 reflects an unchanged budget from 2024, though noting that interest rates are decreasing. This stability ensures the Club's financial health and ability to continue its operations.  

Additional Income:  Other sources of income (while modest) include clothing sales, banquet income, and advertising sales, revenues of which are offset by the expenses incurred. 
 

Expenses:

Race Expenses: Costs incurred in the races HMRRC puts on annually account for 76% of total club expenses. Top race expenses include runner perks (37%), rentals (18%), timing services (14%), and emergency services (7%). In 2024, nearly $30K of race income (7% of race expenses) was donated to the Workforce Team Challenge Charity of Choice and non-profit groups volunteering at the Club's major races. 

Administrative Expenses: Administrative expenses account for 15% of total club expenses. Top administrative costs include Schrader Scholarships, grants, and Grand Prix Awards (30%), accounting services and software (15%), employee wages (15%), expenses for Wild Apricot (HMRRC's membership software) and HMRRC.com (8%). In 2024,  HMRRC awarded Schrader Scholarships of $18K to six local high school athletes. A $1K grant supported the Saratoga Stryder's free race on World Running Day. In 2025, the Schrader Scholarship and grant program budget will remain at 2024 levels, and an additional $25k has been earmarked for a new program to provide free or reduced entry fees to some HMRRC races for local college students to encourage healthy activities and running community involvement.   

Just Run:  The Just Run program accounts for 9% of all Club expenses. Although volunteers administer the program, many costs are associated with putting on the program, including stipends to school leaders and expenses related to directing Spring and Fall track meets for all participating schools and students.   

Transparency and Governance:

HMRRC strives to be open and transparent with members about all activities. The annual budget, tax return, and external audit report are available on HMRRC.com. Board meetings are held on the second Wednesday of each month, except in September, when the annual club meeting is held at the Labor Day 5K race. Meetings are open to all.   The Finance Committee, consisting of the VP of Finance, Club Treasurer, and Race Treasurer, ensures that all club financial activities occur on time and in line with the budget. The Race Treasurer processes most race expense payments, ensuring appropriate approval and entry into the Club's accounting system. The Race Treasurer works with each Race Director to develop a Profit and Loss statement for each race to ensure everything is accounted for.

The Club Treasurer handles most deposits and banking activities. They work with our external accountant to ensure accurate record-keeping. The VP of Finance oversees the Club Treasurer's activities, facilitates the annual external audit, prepares the budget, and ensures the Club is appropriately insured.

Committee Turnover: There will be two vacancies on the Finance Committee in 2025. If you want to volunteer for the Club to assist in its financial administration, please contact Kathy VanValen (kathyvanvalen@hmrrc.com)  or Ravi Chauhan (ravichauhan@hmrrc.com) to learn more.