Finances / Collections

New IRS Requirements for tax years ending 12/31/07 or later

Gross receipts normally $25,000 or less - file form 990-N: an electronic filing done online

Gross receipts $100,000 or less and total assets below $250,000: may file either a form 990EZ or form 990.

Gross receipts more than $100,000 and total assets greater than $250,000: must file form 990 (990EZ not an option)

Copy of form or confirmation to be sent to IHQ after filing

Failure to file for three consecutive years = LOSS OF TAX EXEMPT STATUS

For more information, visit www.irs.gov or speak to a tax accountant

These may continue to change over the next couple of years – make sure you comply

How to budget◦ Master budget (spreadsheet review)◦ Sub-budgets by committee to feed master budget

TIP: be conservative…overestimate costs, underestimate any variable income

Be sure to include an “allowance”

Use software – Quicken / Microsoft Money

Monitor actuals vs budget – adjust as needed (individual budget “swapping”)

Hold chairs to budgeted amounts – any fluctuations need Exec approval

Checks over $XX should require two signatures (Rex and KOE)

Rex and KOE to have bank access (online, signature authority, etc).

Alumni chapter/faculty advisor to have “review” authority (possibly signature authority as well)

Collect EARLY – more money to start the semester

Contracts◦ Brother agreement

◦ Brother agreement / payment plan Only if legitimately “needed” Brother must present reason why it is needed to

Exec Board

Don’t be afraid to ENFORCE contracts

Examples from audience on how they handle late payments and payment plans currently

Unable to attend New Member events Unable to attend initiation Unable to attend various brother

nights/activities Unable to participate in chapter athletics Added “work shifts” at parties or functions Added DD duty Loss of voting privilege at meetings

Hit ‘em where it hurts the most. The previous list contained plenty of incentive to pay dues. But how about SOCIAL PROBATION? Who wants to miss out on social events?

Can’t attend closed parties Can’t attend sorority socials Can’t participate in sorority events around

campus Can’t attend “band parties” Extra “sober crew” assignments at

“regular” parties

If nothing else works and they are not living up to their commitment:

Small Claims Court Low costs (if any) Simple procedures If you have the contract and signatures,

easy to prevail

Went into effect with the 07-08 school year but not strictly enforced since it was new

For 08-09, it WILL BE enforced

“Chapter Dues Payment Agreement” due to IHQ by September 15 (Fall) and February 1 (Spring)

If NOT paying full year or full semester, you must include the following with your agreement:◦ Current semester budget◦ Roster of all undergrad brothers (init fees paid or not)◦ Copies of signed contracts from any brothers who

have not paid their semester dues in full, including a summary AR report

◦ A brief plan summarizing how the chapter plans to meet their obligations

Pay entire year by September 15◦ 8% discount

Pay semester in full by September 15◦ 5% discount

Two equal payments during semester (September 15 / November 15)

◦ No discount / no premium

4 Monthly payments (Sept/Oct/Nov/Dec 15)◦ 2% premium (annual bill, divided by 8, multiply by 1.02)

Payment not received within 5 days of due date: ◦ Probation with SOCIAL SUSPENSION◦ School notified of social suspension◦ Probation lifted if payment received within 30 days of due

date

Payment not received within 30 days of due date:◦ Chapter SUSPENDED◦ School notified◦ Remain on suspension until payment made or payment

plan made and agreed upon by IHQ◦ Once payment or plan accepted, chapter is on probation

with social suspension for remainder of semester

• if less than one month left in semester, probation with social suspension will be in effect for first four weeks of following semester

• Chapters on suspension for two semesters will be given notice of charter revocation

• Colonies on suspension for two semesters will be given notice of termination of colony recognition

New member fees to be paid within two weeks of pinning

Request for Permission to Initiate form and appropriate fees are due AT LEAST TWO WEEKS BEFORE initiation◦ Any “rush” request on pin shipment will be at

chapter’s expense◦ Initiations submitted late will incur a $100 late fee

due from the chapter

New member program may NOT begin until previous periods paid

The following items will be available on the Pi Lam website in the members’ section:

Budget Template (Excel) Collection Policy IHQ Dues Payment Agreement – Fall IHQ Dues Payment Agreement – Spring Chapter Brotherhood Agreement Template Chapter Brotherhood Payment Plan Agreement

Template