Eastern Area Leadership Forum

Money! Money! Money

Links Finance

Agenda

• Presenters

Ethelyn S. Bowers, Area Treasurer

esbowers@comcast.net 862-926-9333

Valerie Lancaster Beal, Area Financial

Secretary

vlancaster@mrbeal.com 917-576-8302

Agenda

• DUTIES

Treasurer & Financial Secretary

• BUDGET & FINANCES

• BANK ACCOUNTS

• ACCOUNTING PRACTICES

• LIABILITY & BONDING INSURANCE

• FUNDRAISING IN LINKDOM

Agenda

• 503c(3) vs. 503c(4) – WHY & SO WHAT?

• MOVING TOWARD TRANSPARENCY

IN THE EASTERN AREA

DUTIES

• Treasurer

Receive monies collected by Financial Sec.

Deposit money promptly in all accounts

Pay all accounts, approved by chapter

(all checks to be co-signed by President)

Checks should be documented with a voucher

DUTIES

• Treasurer

Checks should be printed with “Void after 90 days”

Reconciles book balances with monthly bank

Statements

Prepares complete financial report at each chapter meeting

DUTIES

• Treasurer

Presents annual report at May chapter meeting

Submits books to internal audit committee with 40 days of April 30th

Engages professional external auditor biennially ; when officers and/or treasurer change

DUTIES

• Financial Secretary

Receives all money from whatever source; provides receipts in triplicate (1 for payee, 1 for treasurer and 1 for Financial Secretary)

Reconciles funds to total received, purpose of funds and turns over to treasurer

Keeps record of individual member obligations

BUDGET & FINANCES

• Budget is a “plan of action”

Budget should be approved by chapter at least 2 months prior to the end of fiscal year

Budget should be presented NO LATER than Feb. 1st

Financial Officers: Treasurer, Financial Secretary, President, VP

BUDGET & FINANCE

• Finance Committee is appointed by the

Chapter president; chaired by the Treasurer and includes the Financial Secretary

ACCOUNTING PRACTICES

• Fiscal Year (May 1 through April 30)

Payment of chapter & National dues must be submitted through local chapter (exception is Affiliate members)

Chapter President or designee, shall sign all contracts

Monthly financial report reveals complete financial status of chapter

ACCOUNTING PRACTICES

• Restricted Funds

Funds received or solicited for Program Facets

Grant in aid contributions

Funds derived from public, individuals/corp. by special events, grants or solicitations

ACCOUNTING PRACTICES

• Restricted Funds

Received for “Benefit –The Links Foundation” and/or grants written by chapters and funded by Links Foundation

TAX DEDUCTIBLE for contributors

Allowable expenditures (up to 10% of net income; cost of delegate to National/Area meeting

ACCOUNTING PRACTICES

• Unrestricted Funds

Chapter dues, assessments for social events , amount permitted from restricted funds (up to 10%)

Chapter Assessments – are due & payable prior to leave of absence being granted

Financial obligations & service hours must be met prior to National dues being paid

ACCOUNTING PRACTICES

• Group Exemption Number is 1520

All chapters must file Form 990, 990EZ or 990N regardless of income level

Forms submitted to IRS and National HQ

LIABILITY/BONDING

• Liability Insurance

Has been automated – information is online; coverage is mandatory; chapter shall be covered for all activities/events

Chapter is assessed $5/member for umbrella liability insurance

Chapter is permitted to secure a rider for additional coverage at a reduced rate

BONDING INSURANCE

• Process has been automated – forms online

Chapter officers who handle funds must have bonding insurance; all signatories on chapter checks must be bonded

Payment due September 15th

$500 penalty for failure to meet deadline

FUNDRAISING

• The Links, Incorporated

501c(4) – Exempt from paying Federal Income tax; contributions NOT tax deductible

The Links Foundation, Inc

501c(3) – Exempt from paying Federal Income tax; contributions ARE tax deductible

Chapter establishes separate account

FUNDRAISING

• Chapter Fundraiser

Establish separate checking account

All funds, less expenses, raised from public must be used for charitable purposes

Tickets must contain -Contributions to this organization are not tax deductible as charitable contributions for Federal Income tax purposes

FUNDRAISING

• Fundraising using The Links Foundation

501c(3) tax deduction

Ticket must include –For the Benefit of The Links Foundation, Inc.

Ticket must state tax deductible portion of price

Net balance of funds sent to Foundation with report

501c(3) vs 501c(4)

• Tax advantages

National vs local fundraising

MOVING TOWARD TRANSPARENCY

• Standardization of accounting

• Use of technology

• Skill set of those with fiscal responsibility