Alumni AccountingBest Practices
Jennifer StephensTammie HillRip Britton
Auburn Alumni Association2016 Club Leadership Conference
Accounting 101Topics To Be Covered
•Best Practices for Auburn Clubs’ Financial Activities•Bank Accounts and Financial Transactions•Financial Statements•Special Events•Petty Cash Form•Rip Britton – Birmingham Club embezzlement
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101General Internal Controls
•Address club risk of misappropriation of funds
• Establish internal controls
• Monitor club receipts and disbursements are properly recorded
•Treasurer – CPA’s and Accountants
•Employer Identification Numbers (EIN)• Bank account should be set up under the club’s EIN• Apply for EIN at www.irs.gov
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101Bank Accounts & Financial Transactions
•Dual signatures and/or dollar limits • President and Treasurer• Treasurer and Co-Treasurer• Large clubs $500• Small clubs $250
•Bank Reconciliations
• Prepared monthly by Treasurer• Reviewed by President
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101Bank Accounts & Financial Transactions
•Presidents should periodically open bank statements before the Treasurer reconciles the bank account (review check images)
•Online Banking – President review transactions on a monthly basis
•Club credit cards and debit cards are a risk and are not recommended
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101Bank Accounts & Financial Transactions
•Paypal account transactions should be periodically reviewed by Treasurer and another club officer
•Bank deposits should be made the next business day after receiving funds
•Detailed invoices should be submitted to the Treasurer for payment processing (ex. Amazon)
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101Financial Statements
•Recommend using QuickBooks Pro • Process checks• Prepare bank reconciliations• Prepare financial statements
•Other option is to use excel spreadsheets to record financial transactions•Financial Statements
• Prepared quarterly by Treasurer• Reviewed by President and club’s board of directors
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101Special Events
•Petty cash log• Use to track cash transactions• Two or more people should count monies before leaving
events• Documents confirming deposits should be presented at
the next board meeting•Review state regulations before holding “Raffles” & “Game of Skill”
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101FormsPetty cash log
Form can be found on the Club Resource Page
Date: ____02/14/2014_______________________ EVENT: _________Silent Auction_________________________________________
Purchaser Name Item Description Price/eachQuantity
Sold SubtotalRegistration
Fee Total saleJOHN H DOE Lawn Services 45 1 45 10 55
MARY A WESLEY 10 10
MARK G SMITH 10 10
75.00$
50.00$
125.00$ Before the event, count your cash box and write down the amount on the "beginning cash" line. Also write your event/date at the top of the form.
During the event record each sale and total the amount sold at the end of the event. Then add the two totals and this should match yourcash in the box. Please initial that you have completed this form and return with petty cash box to ___________________________.
Initial:
Total Incoming Money
Beginning Cash
Total Amount in Cash Box
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Auburn Alumni Association2016 Club Leadership Conference
Club Accounting 101990 – Filing Reminder
• 990 IRS filing requirements:• Gross receipts ≤ $50,000 – 990N(e-postcard)• Gross receipts >$50,000 but <$ 200,000 and total assets
<$500,000 – 990EZ or 990• Gross receipts ≥ $200,000 or total assets ≥ $500,000 –
990• Returns must be filed by the 15th of the fifth month
after the club’s fiscal year end. (Example FYE12/31/2015; due 5/15/2016.)
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Auburn Alumni Association2016 Club Leadership Conference
Completing Club Fundraising Forms –
Silent Auctions
Jennifer StephensTammie Hill
Auburn Alumni Association2016 Club Leadership Conference
AuctionsTopics To Be Covered
•Auctions•AAA Auction Approval Process•Auction Items•Auction Forms•After the Auction•Summary
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsGenerally, the club conducts these activities, collects and deposits the receipts, pays the
related costs and then sends the net proceeds to the Auburn University Foundation (AUF) as a
contribution from the club.
Since clubs are a 501 ( c) 7 social club they can not give a donor a tax deduction.
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsThe Auburn Alumni Association
(AAA) is a 501 ( c) 3 tax exempt entity and can give donors a tax deduction.
AAA can administer your clubs auctions so that donors can receive a
tax deduction if applicable. 4
Auburn Alumni Association2016 Club Leadership Conference
Auctions
Pros and Cons of an AAA Administered Auction
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Auburn Alumni Association2013 Club Leadership Conference
AuctionsPros
•Donors may receive a tax deduction for the portion paid above the fair market value.• AAA will issue tax receipts when
applicable.
Cons•AAA is required to remit sales tax on all auction items sold. This will result in a decrease in your net proceeds.•Unless your auction items are sold above the fair market value no tax deduction will be given to the purchaser.
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsAAA Auction Approval Process
Auctions can be covered under the AAA 501 (c) 3 status if approved by, AAA - contact Steve Inabinet, before the auction is held (4 weeks).
The following information will need to be obtained for each auction:
– The nature, timing, location of the event and any solicitation materials
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsAAA Auction Approval Process
If your club will be using solicitation materials, to promote your silent auction your materials should contain the following:
1. A specific statement of the charitable use of the auction proceeds. If for the endowment, it must specifically state this. If split between the endowment and the spendable fund the division must be specific, such as “divided equally between…” or “first $xx to the spendable fund, with the balance to the Endowment…”
2. Instructions indicating that checks be made payable to the Auburn Alumni Association or AAA.
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsAuction Items
The IRS presumes that purchasers of auction items made a purchase, not a gift. In order for a purchaser to be able to prove the intent to make a gift, he/she must prove the purchase was knowingly made for more than the value. This can be satisfied by:
– Providing a “catalog” listing and describing auction items and their value
– For silent auctions, listing the value on the bid sheet
Often a “minimum bid” is established for silent auctions. This is not the same as the fair value.
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsRequired Forms When AAA Administers
Your Auction
Silent Auction Bid Sheet
This form is used during the auction, where purchasers record their name and bid amount. Also listed on the top of the form you
will state the fair market value of the auction item.
All forms are available on the club resources page
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Auburn Alumni Association2016 Club Leadership Conference
Auctions
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsRequired Forms When AAA Administers
Your Auction
Bid Summary Sheet
After the auction, you will complete the bid summary form. This form identifies the purchaser, the purchase price, the item, and
the item’s value. All money submitted to AAA should balance to this form.
All forms are available on the club resources page
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Auburn Alumni Association2016 Club Leadership Conference
Auburn Alumni Association2016 Club Leadership Conference
AuctionsAfter the Auction
Silent Auction Bid SheetsBid Summary Sheet (with payments attached)
Submit to Steve Inabinetwithin 2 weeks of the auction
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Auburn Alumni Association2016 Club Leadership Conference
AuctionsSummary
•Direct contributions to a club’s scholarship should be made payable to Auburn University Foundation•Silent auctions administered by AAA, checks should be made payable to the Auburn Alumni Association•Contact Steve Inabinet four weeks prior to the auction and an auction packet will be emailed to you•After the auction, paperwork and money is to be turned into Steve Inabinet within two weeks of the auction
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