# Budget Setting & Review

Clear budgeting ensures activities are impactful, cost-efficient, and aligned with Stellar Development Foundation (SDF)’s goal of supporting localized, mission-aligned initiatives that grow the Stellar ecosystem and empower communities. These guidelines help Chapters plan and justify quarterly budgets, with a focus on transparency, consistency, and strategic value.

### **Cadence**

Budgets are approved on a quarterly basis, covering three months at a time. At the beginning of each quarter, Chapters are asked to submit a budget proposal for the quarter, making sure the first two weeks of the quarter have no planned events. This ensures performance and goals of the previous quarter can be reviewed properly properly in time to approve funding before the next quarter begins.

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Example: If the current budget covers Q1 (January - March), the proposed events and other initiatives along with expected expenses, attendee targets proposal and strategic direction will be due in the first week in March, and reviewed and finalized by the second week. 
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### **Budget Proposal**

To successfully make a budget proposal for the following quarter ready for SDF review, Chapter Presidents must submit the following resources:

* [x]  Complete all event entries in the Airtable Dashboard of the previous quarter (including adding attendee numbers, github links, and relevant event recaps)
* [x]  Complete all expense entries in the Airtable Dashboard of the previous quarter (including adding actual expense amount in USD and local currency if applicable, vendor details and receipts and/or invoices)
* [x] Making sure all monthly goal tracking is completed in the Airtable Dashboard of the months of the previous quarter.
* [x] Attach a thorough quarterly recap of the previous quarter, specifying Chapter Goal progress as well as how each budgeted (and non-budgeted) initiative contributed to the Chapter Goals, as well as Lessons Learned.
* [x] Attach a thorough and ambitious strategic direction for the next quarter along with updated Chapter Goals for the quarter and an overview how planned initiatives will contribute to that goal.
* [x] Log all planned events and other initiatives as well as attached expense estimates in the Airtable Dashboard.

### **Budget Review Criteria**

Budgets are reviewed by SDF using the following review criteria in line with Chapter Goals of the program and overall program and chapter Return on Investment (ROI):

| Criteria                    | Retrospective (Past Quarter)                                                                                                 | Prospective (Upcoming Quarter)                                                                                                |
| --------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| **Chapter Goals Alignment** | Were the Chapter Goals achieved reasonable and impactful given the budget? Were there clear signs of local ecosystem growth? | Are the Chapter Goals specific, ambitious yet achievable? Do they reflect growth potential in the region?                     |
| **Budget Hygiene**          | Are receipts, dates, local currency conversions, and context clearly documented? Are all expenses eligible?                  | Is each planned activity and budget line item clearly described and aligned with approved expense types?                      |
| **Budget ROI**              | Did this budget result in good returns for cost compared across chapters? Was the spend efficient and impactful?             | Is the proposed budget reasonable for the intended Chapter Goals? How does it compare to similarly sized chapters or markets? |

### **Rollover Budget**

If the Chapter spends less than the budget approved for the previous review period, the surplus budget will be subtracted from the approved budget for the next period. If the expenses listed exceed the approved budget for a given review period, there will not be any additional budget provided to cover those additional expenses.

### **Allowed Expenses**

Allowable expenses include the following categories, which Chapter Presidents must report in an itemized budget for every event before and after each budget review period.

| Category                   | Examples & Notes                                                                                                                                | % Budget Recommendation |
| -------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- |
| **Local Events**           | Venue rental, A/V equipment, photo/video services, food & beverage up to $25/person\*, workshop materials, banners, signers, and branded decor. | **>60%**                |
| **Educational Sessions**   | Instructor stipends, translation services, materials for developer onboarding or builder education                                              | **<30%**                |
| **Marketing & Awareness**  | Paid ads and post boosts\*\*, design\*\*, subscription tools for social growth                                                                  | **<5%**                 |
| **Swag & Merchandise**     | Branded items\* for attendees                                                                                                                   | **<5%**                 |
| **Travel Support**         | Local/regional ambassador travel to strategic events, transport for key speakers not exceeding $500\*                                           | **<10%**                |
| **Content Creation**       | Educational video/audio production, explainers, workshop documentation (*should be regionally inclusive and evergreen*)                         | **<20%**                |
| **Collaboration Stipends** | Limited stipends to support high-performing ambassadors helping coordinate chapter efforts                                                      | **<5%**                 |

### **Disallowed Expenses**

* **Conference sponsorships** (require separate SDF process & approvals, please contact the SDF Program Manager for more information)
* **Non-Stellar-related sponsorships** (must clearly promote Stellar ecosystem, not general Web3 events)
* **Non-transparent services** (no proof of cost, missing receipts/invoices, no deliverables)
* **Luxury or unnecessary expenses** (e.g., expensive dining, premium venues that don’t serve a strategic purpose, luxury gifts)
* **Excessive food/beverage costs** (exceeding $25/person\* or not tied to meaningful engagement)
* **Inter-regional ambassador, president, or speaker travel exceeding $500**\*
* **Promoting a single product or service over others** – content must not market or prioritize one project, product, or token to the exclusion of others in the ecosystem. All content funded through this program should aim to educate, engage, or onboard.

\*Local exclusions may be considered depending on regional cost differences, please contact the SDF Program Manager for prior approval.

\*\*Must follow SDF’s [brand policy](https://stellar.org/brand-resources). Funds can be allocated for social media subscriptions and tools essential for event promotion and community engagement. This includes minor expenses such as obtaining account verifications (e.g., Twitter Blue) or paying for premium accounts on platforms like Medium to increase visibility and exposure. Additionally, funds may be used for promoting specific posts or tweets, as well as for any other digital tools or platforms selected by chapters to enhance outreach and engagement.