Rotary Club Treasurer

transcript

Discussion of the role and its responsibilities

Webinar: 7:00 pm May 15, 2013

Conducted by Charles D. Ladd, CPA District 5960 Treasurer 2010-2013

Opening comment:

Opening comment:• an opportunity for vocational service

Opening comment:• an opportunity for vocational service• by a qualified individual

Opening comment:• an opportunity for vocational service• by a qualified individual• who will make the commitment

Please, no Treasurers in Name Only (TINOs)

Summary

Treasurer’s charge is to help the club management meet their fiduciary responsibilities

Summary

Treasurer’s charge is to help the club management meet their fiduciary responsibilities, which are to:

– Plan financial goals/needs and define funding sources • Annual operating budget , annual giving schedule• Annual and ad hoc cash flow projections

Summary

– Control cash flow (using a bank account)• Obtain timely receipts of dues, donations and fees• Meet obligations with timely payments

Summary

– Safeguard assets • Limit access and establish accountability• Provide proper controls, especially for fundraisers

Summary

– Safeguard assets • Limit access and establish accountability• Provide proper controls, especially for fundraisers

– Report performance (and provide necessary oversight)• To the club board and club membership• To the Internal Revenue Service

Some specifics• Timely payment of dues

– Rotary International• July 1 and January 1 Semi-Annual Report

One member four months

One member one month

All members next six months

RI semiannual and prorated Dues July 1 and Jan

1Prorated dues Semiannual dues

(SAR)– District 5960

• July 1 annual dues assessment• January 1 and July 1 “prorated” dues

All members next twelve months

District 5960 annual Dues

July 1

Annual dues

One member twelve months

District 5960 prorated Dues Jan 1

Prorated dues

July 1 July 1

Prorated dues

One member six months

Some specifics• Timely payment of dues and fees

• July 1 annual dues assessment• January 1 and July 1 prorated dues• Annual training fees

Invoiced in July, covers costs of all district-sponsored training events (except President Elect Training Seminar or PETS).

• July 1 annual dues assessment• January 1 and July 1 prorated dues• Annual training fees

• Annual report to the IRS– Form 990, 990-EZ or 990-N (most likely)

• See http://www.irs.gov/pub/irs-pdf/i990.pdf– Due 15th of 5th month following year end,

specifically November 15 (can be extended).

– Failure to file may result in loss of the club’s nonprofit status

Nonprofit statusRotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service.

– “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable.

– Payments/Donations to RI, its clubs and districts are not deductible as charitable donations, as Rotary is not a 501(c)(3) nonprofit. Dues and meals might be deductible in a specific case, but only as business expenses (discuss with your tax advisor).

– No part of fundraiser receipts (for raffle tickets, product sales, auction items) are charitable donations.

Nonprofit status

Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service.

– The Rotary Foundation is a 501(c)(3), so donations to TRF are tax deductible if properly designated.

Discussion

• Questions and clarifications

• Resource needs

• Suggested “best practices”

Discussion

• Resource needs– Form 990 instructions from IRS

• http://www.irs.gov/pub/irs-pdf/i990.pdf– RI Club Treasurer’s Manual

• http://www.rotary.org/RIdocuments/en_pdf/220en.pdf

Discussion

• Resource needs

Discussion

• Resource needs

• The District 5960 Treasurer starting July 1, 2013, will be Robert Murphey of the Anoka Rotary Club: – rmurphey@murpheycpa.com

FOR THE GOOD OF ROTARY

“Thanks for participating.”

Rotary Club Treasurer

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