Affiliate Finance: ACNM Affiliate Finance: ACNM WebinarWebinar

Lorrie K. Kaplan, CAELorrie K. Kaplan, CAEACNM Executive DirectorACNM Executive Director

George Hamilton George Hamilton ACNM Director-MembershipACNM Director-Membership

Meredith Graham, MBAMeredith Graham, MBAACNM Director-FinanceACNM Director-Finance

Welcome and IntroductionsWelcome and Introductions

November 16 November 16 Webinar/TeleconferenceWebinar/Teleconference Q&A follow-up to this webinarQ&A follow-up to this webinar Any other agenda items requestedAny other agenda items requested Update on process of finalizing affiliatesUpdate on process of finalizing affiliates https://www1.gotomeeting.com/register/https://www1.gotomeeting.com/register/

256768353256768353

AGENDA AGENDA

Whose Money is it?Whose Money is it? The Financial Requirements of a The Financial Requirements of a

State AffiliateState Affiliate Dues Processing CycleDues Processing Cycle Federal/State TaxesFederal/State Taxes Cash FlowCash Flow BudgetsBudgets

WHOSE MONEY IS IT?WHOSE MONEY IS IT?

Affiliate has the right to charge dues for Affiliate has the right to charge dues for affiliate members, collected and affiliate members, collected and administered by the ACNM national administered by the ACNM national office.office.

All monies raised by the Affiliate and All monies raised by the Affiliate and collected from dues are the sole property collected from dues are the sole property of the Affiliate.of the Affiliate.

Affiliates will keep any assets they Affiliates will keep any assets they currently have and will retain control of currently have and will retain control of their assets.their assets.

Affiliate Financial Affiliate Financial RequirementsRequirements1.1. Maintain an accounting tracking of asset, Maintain an accounting tracking of asset,

liabilities, revenue, & expensesliabilities, revenue, & expenses

2.2. Maintain the same fiscal year as ACNM Maintain the same fiscal year as ACNM National (Jan-Dec)National (Jan-Dec)

3.3. Provide a brief annual financial report to Provide a brief annual financial report to ACNM nationalACNM national

4.4. Disclose annually to ACNM national Disclose annually to ACNM national whether you have filed the IRS 990 or 990-whether you have filed the IRS 990 or 990-N postcard N postcard

5.5. Comply with applicable state & federal lawsComply with applicable state & federal laws

Dues Processing CycleDues Processing Cycle

Affiliate Dues BillingAffiliate Dues Billing

All ACNM members are billed All ACNM members are billed for their national dues based on for their national dues based on the anniversary of their join datethe anniversary of their join date

Beginning with membership Beginning with membership renewals billed in January 2011, renewals billed in January 2011, all members will be billed for all members will be billed for affiliate dues at the same time affiliate dues at the same time as their national duesas their national dues

Setting Up Affiliate DuesSetting Up Affiliate Dues

Each affiliate must set and submit their Each affiliate must set and submit their complete dues structure to the national office complete dues structure to the national office by December 13, 2010by December 13, 2010

The dues structure for each affiliate will be The dues structure for each affiliate will be maintained in the ACNM national databasemaintained in the ACNM national database

Each affiliate dues category will be aligned Each affiliate dues category will be aligned with national dues categories. The main with national dues categories. The main categories are the following:categories are the following: Active, Associate, and StudentActive, Associate, and Student

Affiliate Dues ProcessingAffiliate Dues Processing

Members will pay their affiliate Members will pay their affiliate dues along with national dues– dues along with national dues– both will be sent to a lockbox both will be sent to a lockbox and processed into ACNM’s and processed into ACNM’s bank account bank account

Copies of dues notices and Copies of dues notices and supporting documentation are supporting documentation are forwarded daily from the lockbox forwarded daily from the lockbox to the national officeto the national office

Dues Reporting Dues Reporting

The ACNM database will track all The ACNM database will track all affiliate dues received affiliate dues received

The authorized affiliate leader can The authorized affiliate leader can run reports at any timerun reports at any time

Dues RemittanceDues Remittance

On the15On the15thth of each month, ACNM will finalize of each month, ACNM will finalize processing and reporting for the previous month.processing and reporting for the previous month.

All affiliate dues will be remitted electronically to the All affiliate dues will be remitted electronically to the authorized affiliate bank account by the 20th of each authorized affiliate bank account by the 20th of each month. If the 20th falls on a weekend, dues will be month. If the 20th falls on a weekend, dues will be remitted on the next business day.remitted on the next business day.

Checks are also an optionChecks are also an option

Affiliate treasurers and/or authorized users will be Affiliate treasurers and/or authorized users will be able to view their own remittance reports online in a able to view their own remittance reports online in a secure area of the ACNM website.secure area of the ACNM website.

Federal Tax StatusFederal Tax Status

Federal Tax StatusFederal Tax Status

Affiliates and ACNM national are classified as Affiliates and ACNM national are classified as IRS 501(c)6 membership associationsIRS 501(c)6 membership associations

This means that we are a not-for-profit (vs. a This means that we are a not-for-profit (vs. a charitable) organizationcharitable) organization

Dues, donations, and other monies received Dues, donations, and other monies received by ACNM and/or affiliates may not be by ACNM and/or affiliates may not be classified by individuals or organizations as classified by individuals or organizations as charitable or non-taxable contributions but charitable or non-taxable contributions but may be classified as a normal business may be classified as a normal business expense.expense.

Federal Tax StatusFederal Tax Status

Form 990 is an annual reporting return that certain Form 990 is an annual reporting return that certain federally tax-exempt organizations must file with federally tax-exempt organizations must file with the IRS. the IRS.

It provides information on the filing organization's It provides information on the filing organization's mission, programs, and finances. mission, programs, and finances.

Effective FY 2010, any tax-exempt organization with Effective FY 2010, any tax-exempt organization with gross receipts less than $200K or total assets less gross receipts less than $200K or total assets less than $500K must file the 990 or 990 EZ than $500K must file the 990 or 990 EZ

Any small organization with gross receipts of $25K Any small organization with gross receipts of $25K or less must file a form 990-N, an Electronic notice or less must file a form 990-N, an Electronic notice (postcard) to the IRS, (postcard) to the IRS,

STATE TAXESSTATE TAXES

Federal tax exemptions do not Federal tax exemptions do not carry over into state jurisdictionscarry over into state jurisdictions

Each affiliate should contact its Each affiliate should contact its state department of revenue to state department of revenue to determine state tax statusdetermine state tax status

IRS GROUP EXEMPTION IRS GROUP EXEMPTION Requirements for both OrganizationsRequirements for both Organizations

National National Requirements:Requirements:

Submit annual report to IRS annually on behalf of the group

Develop standard governing documents

Provide each affiliate an annual financial report template

Affiliate Affiliate Requirements:Requirements:

Implement governing documents for affiliates

Annual filing of 990 or 990-N postcard

Submit to national a completed annual financial report (template will be provided)

Cash FlowCash Flow

CASH FLOWCASH FLOW

Because ACNM collects dues, Because ACNM collects dues, based on a member’s anniversary based on a member’s anniversary date, Affiliate cash flow will be date, Affiliate cash flow will be different than Chapter cash flow. different than Chapter cash flow.

Develop a transition plan for the Develop a transition plan for the first year. first year.

CASH FLOW SCENARIOSCASH FLOW SCENARIOS

Suggestions to handle cash flow concerns: Suggestions to handle cash flow concerns: Obtain a roster of members and their anniversary Obtain a roster of members and their anniversary

dates from ACNM national. dates from ACNM national. For the first year, project your cash flow based on For the first year, project your cash flow based on

anniversary dates. This projection will allow you to anniversary dates. This projection will allow you to properly plan for highs and low of the cash flow properly plan for highs and low of the cash flow cyclecycle

Identify expenses in two categories: the necessities Identify expenses in two categories: the necessities and discretionaryand discretionary

Plan expenditures based on cash flow projectionPlan expenditures based on cash flow projection Put discretionary spending on hold until you meet Put discretionary spending on hold until you meet

necessary obligations necessary obligations Ask current members to pay additional dues/ Ask current members to pay additional dues/

donations if needed donations if needed Follow-up on cancellations and past due affiliate Follow-up on cancellations and past due affiliate

membersmembers Use reserves/savings and replenish based on cash Use reserves/savings and replenish based on cash

flow projectionsflow projections

CASH FLOW EXAMPLEMember Name/ID

Dues Category

Paid Date National Dues/

Affiliate Dues

June 2011

July 2011 Aug 2011

Kennedy Landon-299

Student 5/30/2011 135/13.50 13.50

Steven Erin Martin-213

Active 6/15/2011 $350/35.00 35.00

Daniel Miranda-20483

Active 6/16/2011 $350/35.00 35.00

Lilly Miranda-985 Active 5/1/2011 $350/35.00 35.00

Camaria Greenfield-18835

Student 7/10/2011 $135/13.50 13.50

Audrey Bush-777 Associate 7/11/2011 $135/13.50 13.50

AFFILIATE AFFILIATE BUDGETSBUDGETS

AFFILIATE AFFILIATE BUDGETSBUDGETS

Simply: A budget is an organization’s Simply: A budget is an organization’s plan of action expressed in terms of plan of action expressed in terms of dollars and cents.dollars and cents.

First steps to the budget:First steps to the budget: Identify your activities for the fiscal year Identify your activities for the fiscal year

(who & what)(who & what) Determine when the activities will take Determine when the activities will take

place (when)place (when) Determine how much it will cost to run the Determine how much it will cost to run the

state affiliate (how)state affiliate (how) Implement, monitor and evaluate budget Implement, monitor and evaluate budget

over timeover time

AFFILIATE AFFILIATE BUDGET TEMPLATEBUDGET TEMPLATE

We have designed a simple We have designed a simple budget template that will allow budget template that will allow you to track all revenue and you to track all revenue and expense over 12 monthsexpense over 12 months

The template is designed to allow The template is designed to allow you to track actual to budget you to track actual to budget revenue and expenses by revenue and expenses by project/activityproject/activity

KEY DATES TO REMEMBERKEY DATES TO REMEMBER

Dues structure and officer names Dues structure and officer names and contact info to ACNM national and contact info to ACNM national office by Dec 13, 2010office by Dec 13, 2010

ACNM dues remittance to affiliates ACNM dues remittance to affiliates by 20by 20thth of each month of each month First ACNM dues remittance to affiliates First ACNM dues remittance to affiliates

= Feb 20= Feb 20

990 or 990-N due May 15, 2012990 or 990-N due May 15, 2012

IMPORTANT LINKSIMPORTANT LINKS

State Affiliate WebinarsState Affiliate Webinarshttp://midwife.org/aff_devsup.cfmhttp://midwife.org/aff_devsup.cfm

Governance Policies-Governance Policies-http://http://www.midwife.org/governance_policies.cfmwww.midwife.org/governance_policies.cfm

Informational Tax Return Instructions for Informational Tax Return Instructions for (990,990-N etc) (990,990-N etc) http://www.irs.gov/charities/article/0,,id=1766http://www.irs.gov/charities/article/0,,id=176637,00.html37,00.html

   

Next StepsNext Steps

Register for Nov 16, 8-9:30pm Register for Nov 16, 8-9:30pm EST webinar/teleconferenceEST webinar/teleconference

https://www1.gotomeeting.com/rhttps://www1.gotomeeting.com/register/256768353egister/256768353