The Sensible Budget Approach

Editorial by Tyler Danke

And note the link to https://profitfirstbook.com/ Profit First by Mike Michalowicz.

Why the LNC Should Budget Like a Business: The Case for the Profit First Method

Let’s face it: political organizations aren’t famous for financial discipline. The Libertarian National Committee has, at times, found itself hoping for future fundraising miracles rather than managing current dollars with surgical precision. But hope isn’t a strategy. Liberty deserves better.

That’s why it’s time for the LNC to adopt the Profit First budgeting method—a proven, percentage-based financial model used by small businesses and nonprofits nationwide.

WHAT IS THE PROFIT FIRST METHOD?

Instead of creating a budget based on wishful projected income, the Profit First model works like this:
Every dollar that comes in gets immediately split by percentage into pre-set categories.

You only spend what you actually have.

You adjust quarterly, not annually, based on real income and evolving strategy.

No more chasing unicorn budgets. No more kicking the can down the road. No more wondering how we’re going to pay for that campaign, that convention, or that crisis response.

HOW WOULD THE LNC USE THIS?

Let’s say the LNC receives $100,000 in donations this month. Instead of a vague hope-driven budget, those dollars would be divided—on the spot—like this:

20% Administration
20% Strategic Reserves
10% Affiliate Support
10% Candidate Development
10% Ballot Access
10% Outreach
10% National Convention Fund
10% Special Projects or Growth Initiatives

Every category gets its fair slice, and spending decisions follow what’s actually available—not what’s imagined.

This also means when income is tight, every category scales together. When we grow, we all grow. When we tighten, we all tighten—without gutting mission-critical efforts.

WHY IT WORKS FOR A POLITICAL PARTY

No more chasing unicorn budgets.
Affiliate support becomes predictable and reliable.
Ballot access and candidate support don’t get left behind.
Reserves actually grow—providing real resilience for lean months.
Members and donors gain trust, because money is handled like it matters.
The Profit First approach makes every dollar a vote for our principles—transparency, decentralization, and discipline. It builds trust. It creates order. It turns the LNC from a financial rollercoaster into a reliable engine of liberty.

FINAL THOUGHT

The state uses debt, deficits, and dysfunction. But the Libertarian Party shouldn’t. By budgeting like a business—and putting profit (aka mission-focused sustainability) first—the LNC can lead by example and fund a freer future.

Let’s stop budgeting like bureaucrats. Let’s start stewarding like entrepreneurs.