eastern area leadership forum money! money! money links finance
TRANSCRIPT
Eastern Area Leadership Forum
Money! Money! Money
Links Finance
Agenda
• Presenters
Ethelyn S. Bowers, Area Treasurer
[email protected] 862-926-9333
Valerie Lancaster Beal, Area Financial
Secretary
[email protected] 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