As legislated in the NCAA Constitution, Division II receives 4.37 percent of the Association’s general operating revenue. About 60% of the Division II budget is allocated to operate the division’s 25 national championships, including travel and per diem. Other allocations are:

• Conference Sports Sponsorship and Institutional Equal Distribution Funds. Created in the late 1980s as a financial incentive for schools to maintain Division II membership affiliation, 75 percent of the fund is distributed to member conferences based on the number of sports offered, and 25 percent is divided equally among active and eligible Division II member institutions. 
• Conference Strategic Priority Fund. Each Division II conference is allotted $110,000 as a base amount for its first five members. A $12,000 premium is paid for a sixth member, with $4,000 allotted for each additional member up to 18. 
• Other Grants and Scholarships. These funds support academic achievement, diversity and inclusion, community engagement, and professional development. 
• Strategic Initiatives. These include items such as drug-testing costs, brand enhancement, marketing, professional and leadership development opportunities, and grants to affiliate organizations.

In most years, Division II also provides a supplemental distribution from surpluses in the previous fiscal year.