Establishing a discretionary budget for your staff can be very beneficial.

As a result of an effective discretionary policy, you can provide:

• Clear understanding for each staff member or employee as to what they can spend as discretionary funds
  
• Promotion of personal and spiritual development
  
• Encouragement to the staff by letting them know the organization is committed to their growth and development
  
• Flexibility as to how each staff member chooses to spend the funds
  

When developing a policy, clearly identify the types of costs that fall into discretionary spending and make sure the allotted amounts are consistent for each level of positions within your organization.  Incorporate these amounts into the budget and make sure actual costs are within budget throughout the year.