Libraries have always had to determine how to allocate resources for the purpose of purchasing materials. As budgets shrink and as information becomes more open, objective methods of allocating funds become more attractive. This Clip Note examines the use of formulas in the smaller institution academic environment. It identifies elements used in allocation formulas and provides guidelines for college and small university libraries that want to implement formulas in their budget allocation process. A variety of sample documents are presented representing many different types and methods of applying formulas, including weighted, unweighted, percentage-based, and narrative description. (Author)