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funding your program
Fund the member promise from an explicit economic owner, then test the cash, margin, liability, and partner contribution separately. A programme is affordable only when each reward has a named source of funding.
## The mechanism
Funding can come from the operator margin, a participating partner, a supplier subsidy, or a fee paid by the member. Record the source beside the earn event and the redemption obligation. A funding label without a settlement rule is only an assumption.
## Worked example
A member earning 2 points per dollar on 400 dollars of spend holds 800 points. At a 1 cent point value, the balance represents 8 dollars of liability. Decide whether that amount is paid from transaction margin, partner settlement, or a member fee before publishing the benefit.
## Do it
Map each reward to its payer, settlement trigger, accounting treatment, and approval owner. Compare the funded amount with the operator cost of fulfilment. Test reversals and unused balances as separate cash and liability cases.
## Common mistakes
- Calling breakage funding. Treat unredeemed value as an exposure until evidence supports another treatment. - Mixing partner revenue with operator margin. Reconcile each source separately. - Funding benefits before defining settlement. Put the trigger in the commercial terms. - Ignoring fulfilment cost. Price the delivered reward, not only its face value.