Division II receives 4.37% of the Association’s annual general operating revenue. General operating revenue includes at least all sources of revenue existing as of 1996. 

Division II member schools and conferences also receive services from the national office that are not paid for out of the Division II allocation, such as expenses for governance committees, National Collegiate Championships, legal services and staff compensation, among others. 

The Division II Executive Board has oversight and final approval of the Division II budget and expenditures and the division’s revenue distribution. Budget decisions are made to support the Division II Strategic Positioning Platform and the Division II Operating Plan. 

The Division II allocation is divided as follows (the percentages may vary slightly from year to year): 

• 65%  Championships. Funding for championships is a priority for the division. The calculation includes operating expenses and sport committee expenses, as well as travel and per diem costs, for all championships. 
• 14%  Revenue distribution (conference sports sponsorship and institutional equal distribution). Created in the late 1980s as a financial incentive for schools to maintain Division II membership affiliation, the revenue distribution allocates 75% to member conferences based on the number of sports offered, and the remaining 25% is divided equally among active and eligible Division II member institutions. 
• 21%  Strategic initiatives. These include items such as the conference strategic priorities fund, grants and scholarships, professional and leadership development opportunities, championships enhancements (including joint championships across the three divisions), drug-testing costs, brand enhancement, marketing and operational expenses.