1: The 30/70 Rule

A Smart Framework for Nonprofit Facility Budgets

written by UCCR Staff

(We’ll cover what to do during the off-season in our next post, which will be published next month.)

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Every nonprofit camp or retreat center faces the challenge of balancing mission and money.

Camps and retreat centers aim to provide hospitality, programming, and often spiritual formation that transforms lives, but behind the scenes, someone must keep the lights on, meals served, and facilities safe.

Without careful budgeting, it’s easy to overspend in the busy season and then struggle during the quieter months.

One of the most effective tools for budgeting is the 30/70 Rule: 30% fixed expenses and 70% variable expenses. This benchmark helps camp leaders plan realistically, maintain sustainable operations, and avoid the trap of spending summer revenue too quickly.

What Are Fixed vs. Variable Costs?

Fixed costs (approximately 30% of your budget) are those that remain steady regardless of the number of guests you host. These typically include:

Salaried staff and their benefits.

Property, liability, and auto insurance.

Basic property obligations, like debt service, if applicable.

Because fixed expenses don’t shrink when guest revenue dips, they require year-round planning. Many camps and retreat centers depend on subsidy payments from their parent organization or denomination to help cover these costs.

Variable costs (about 70% of your budget) fluctuate with guest activity and can be adjusted to match use. These include:

Food service and supplies.

Utilities: electricity, propane, water.

Housekeeping and paper products. Maintenance supplies and service calls.

Payroll for part-time, seasonal, or hourly staff.

Variable expenses enable real-time adjustments, allowing for budget compliance, especially during slow months.

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How to Use the 30/70 Rule in Practice

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• 1. Manage Utilities Intentionally

  Utilities are one of the easiest areas to overspend, yet many camps and retreat centers can save significantly by:

  • Draining then turning off hot water tanks between groups (refill and relight the day before arrival)

  • Heating buildings just before guests arrive, not continuously

  • Shutting down walk-in refrigerators and freezers in slow seasons, using stand-up units instead

• 2. Right-Size Food Purchases

  Food is another variable cost that can swing budgets.

  Order only enough food for each group and track food expense as a percentage of food revenue (rather than lumping it into lodging and/or program revenue).

  Facilities that maintain benchmarks, such as a range of 19–24% of food expense based on food revenue only for youth groups and 25–29% for adult or mixed groups, avoid overspending while still serving meals that guests enjoy.

• 3. Schedule Staff Strategically

  Payroll is the biggest “robber” of variable expenses if not carefully managed.

  Many camps and retreat centers succeed by employing staff (sometimes referred to as “retreat workers”) who can cook, clean, lifeguard, and support maintenance.

  This flexibility increases retention and keeps payroll expense closer to the ideal 33–36% of total revenue.

  Scheduling staff only when needed prevents summer surpluses from evaporating on unnecessary hours.

• 4. Use Summer Revenue Wisely

  For seasonal camps, summer income must cover most of the year’s expenses.

  It’s tempting to spend freely as revenue pours in, but wise operators hold to the 30/70 balance even in the busy season.

  That ensures enough cash flow to sustain the slower months.

“Without these guardrails, facilities can easily overspend on variable costs during peak months, leaving insufficient funds to cover the quieter periods. By tracking fixed vs. variable costs separately and reviewing monthly performance against projections, directors can stay in control of finances, rather than reacting to crises.”

— UCCR Experts

The Big Picture

The 30/70 Rule isn’t just an accounting principle. It’s a framework for stewardship. It ensures:

• Facilities are maintained without excessive deferred maintenance

• Staff remain sustainable and supported

• Guest rates reflect true costs without undercharging

• Camps and retreat centers can break even on guest fees alone

Ultimately, it helps nonprofits focus on their mission while knowing the “back office” numbers are working in their favor.

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Now that you’ve got a benchmark for your budget, the next question is — what do you do during the off-season to make the most of it? We’ll cover that in our next post, which will be published next month.

Need help applying the 30/70 Rule at your camp or retreat center?

At UCCR, we specialize in bringing financial clarity and operational expertise to nonprofit camps and retreat centers. From budgeting and cash flow to staffing and facility management, we help camps stay sustainable, allowing you to continue changing lives.