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Discussion of the role and its responsibilities Rotary Club Treasurer Webinar: 7:00 pm May 15, 2013 Conducted by Charles D. Ladd, CPA District 5960 Treasurer 2010-2013
Discussion of the role and its responsibilities
Rotary Club Treasurer
Webinar: 7:00 pm May 15, 2013
Conducted by Charles D. Ladd, CPA District 5960 Treasurer 2010-2013
Discussion of the role and its responsibilities
Opening comment:
Rotary Club Treasurer
Discussion of the role and its responsibilities
Opening comment:• an opportunity for vocational service
Rotary Club Treasurer
Discussion of the role and its responsibilities
Opening comment:• an opportunity for vocational service• by a qualified individual
Rotary Club Treasurer
Discussion of the role and its responsibilities
Opening comment:• an opportunity for vocational service• by a qualified individual• who will make the commitment
Rotary Club Treasurer
Discussion of the role and its responsibilities
Opening comment:• an opportunity for vocational service• by a qualified individual• who will make the commitment
Please, no Treasurers in Name Only (TINOs)
Rotary Club Treasurer
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
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
– Control cash flow (using a bank account)• Obtain timely receipts of dues, donations and fees• Meet obligations with timely payments
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
– Control cash flow (using a bank account)• Obtain timely receipts of dues, donations and fees• Meet obligations with timely payments
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
– Control cash flow (using a bank account)• Obtain timely receipts of dues, donations and fees• Meet obligations with timely payments
– Safeguard assets • Limit access and establish accountability• Provide proper controls, especially for fundraisers
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
– Control cash flow (using a bank account)• Obtain timely receipts of dues, donations and fees• Meet obligations with timely payments
– 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
(SAR)
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
Some specifics• Timely payment of dues
– Rotary International• July 1 and January 1 Semi-Annual Report
(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
One member twelve months
District 5960 prorated Dues Jan 1
Prorated dues
July 1 July 1
Prorated dues
One member six months
One member six months
Some specifics• Timely payment of dues and fees
– Rotary International• July 1 and January 1 Semi-Annual Report
(SAR)– District 5960
• 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).
Some specifics• Timely payment of dues
– Rotary International• July 1 and January 1 Semi-Annual Report
(SAR)– District 5960
• 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 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.
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).
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).
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.
– “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 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.
– 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
• Questions and clarifications
Discussion
• Questions and clarifications
• 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
• Questions and clarifications
• Resource needs
• Suggested “best practices”
Discussion
• Questions and clarifications
• Resource needs
• Suggested “best practices”
• The District 5960 Treasurer starting July 1, 2013, will be Robert Murphey of the Anoka Rotary Club: – [email protected]
FOR THE GOOD OF ROTARY
“Thanks for participating.”
