Subject: Club and trust budget Faculty Rtn. Ajay Agrawal (PE RC Mumbai Borivli East)) Rtn. Sunil Kumar (PE RC Bombay Kandivli) Guidance AG. Rtn. Rattanchand Murarka

Importance of Managing Club Finance A Healthy and Strong Financial Wing is must Club Finance is divided in two parts-: Administrative Administrative A/c for administration of club (Regular meeting expenses, Printing & Stationary , Courier Charges , Special Day Celebration etc) b) Charitable or Trust A/c Charitable or Trust A/c are the money of public for Projects

Process to be adopted Prime responsibility of ‘Club Treasurer’ Review club’s financial history Incoming officers to give their plan for the year Income and expenses to be divided into club’s operation and charitable funds Final budget must be approved by the Board

Lets talk about Club Budget Assumptions: No. of members: Gents : 33; Ladies: 3 Fees amount : Rs.15,000 (annual) (incl. of RI and District dues) No. of meetings 47 including Installation ,OCV, Chartered Night No. of Bulletin Printed 6 and -e- Bulletin 3 Addition of New Members 10-15% equal to 4 members No. of meetings and expenses With dinner: 10 meetings; With snacks/ breakfast: 20 meetings; Others (BD/WA/Diwali/New Year/chartered Night): 15 meetings; OCV and Installation: 2 meetings Inflation and contingency reserve for expenses 8 to 10%

Club A/c: Statutory Expenses Particulars Per unit Amount (INR) RI dues (US$56 p.a @ Rs. 66) * 40 members 1,47,840 COL dues (US$ 1.5 @ Rs. 66) per member 3,960 R I magazine (The Rotarian) (semi annually) US$ 24 * 2 members 3,168 Service Tax (on RI dues) @14.5% 21,437 District dues (40 members) Rs. 500 per member 20,000 Rotary News (magazine) (38 members) (Refer Note) Rs. 420 per member 15,960 TOTAL (A) 2,12,365 Note: If member subscribes to e-magazine cost is Rs. 240 per member

Club A/c: Meeting and Administration Expenses Particulars Per unit Amount (INR) Meetings: Dinner meetings (10 meetings) Rs. 5,000 50,000 Breakfast/ snack meetings (20 meetings) Rs. 3,000 60,000 BD/ WA celebration meetings (12 meetings) Rs. 4,000 48,000 OCV (1 meeting) Rs. 50,000 Installation (1 meeting) Diwali/ New Year / Charter Night (3 meetings) Rs. 25,000 75,000 TOTAL (B) 3,33,000

Club A/c: Meeting and Administration Expenses Particulars Per unit Amount (INR) Administration Expenses: Gifts, awards, mementos to speakers 20,000 Courier Charges 2,000 Bulletin Expenses (6 bulletin) Rs.1,000 6,000 Club Roaster Printing 10,000 New Members Induction (4 members) Rs. 500 District Donation 1,100 Co-hosting contribution 7,500 Miscellaneous/ Unforseen expenses 1,000 TOTAL (C) 49,600

Club A/c: Incomes Membership fees Admission fees (4 new members) Particulars Per unit Amount Membership fees 33 regular members 15000 4,95,000 3 spouse members 7500 22,500 4 new members 60,000 Admission fees (4 new members) 1000 4,000 Bank Interest 5,500 Sunshine Box collection 8,000 Club Bulletin Advertisement (10 advertisements) 1000 (P.A. per Advt.) 10,000 TOTAL 6,05,000

Club A/c: Summary Expense Amount Income Statutory Expenses (A) 2,12,365 Total Receipts 6,05,000 Meeting Expenses (B) 3,33,000 Administrative charges (C) 49,600 Transfer to Trust A/c for projects 30,000 Shortfall (Contribution from Members) 19,965 TOTAL 6,18,919 To open Club Budget use link (Right click – Open Hyperlink)

IMPORTANCE OF CHARTIABLE TRUST CHARITY OR TRUST A/C Clubs must have Charitable Trust A/c Trusts are registered under Bombay Charitable Trust Act. IMPORTANCE OF CHARTIABLE TRUST It brings confidence amongst the donor community. Trust should be Registered under Income Tax Act. Donor Gets 50% Deduction U/s 80G Income Tax Act. A timely and regular submission of audited accounts to charity commissioner will help in procuring FCRA registration.

Trust A/c (Rotary Charitable Trust) (Incomes: Donations) Particulars Amount (INR) Donation from members & Others 9,00,000 Donation from CSR activity 5,00,000 Donation for Education purpose 2,00,000 Donation for Mid-day meal 1,80,000 RI Grant (Global Grant) 30,00,000 District Grant 1,25,000 TOTAL (A) 44,05,000

Trust A/c (Rotary Charitable Trust) (Incomes: Other sources) Particulars Amount (INR) Collection from medical centre 15,00,000 Bank Interest on FD 4,00,000 Bank Interest on Savings A/c 15,000 Transfer from Club A/c 30,000 Collections during fund raising programme 20,00,000 TOTAL (B) 39,45,000 TOTAL (A + B) 83,50,000

Trust A/c (Rotary Charitable Trust) Expenses for Objects of Trust Particulars Amount (INR) Mid day meal 1,80,000 Education purpose 2,40,000 Medical Centre expenses 14,00,000 Medical Camp 50,000 TB Project 25,000 Contribution towards global grant 4,00,000 Expenses for Global grant 15,00,000 TOTAL (A) 37,95,000

Trust A/c (Rotary Charitable Trust) Other appropriation Particulars Amount (INR) Service -16 expenses 25,000 Expenses for district grant project 2,00,000 Expenses for other projects 6,00,000 Expenses towards fund raising 4,50,000 Other Administrative expenses: Salary 48,000 Audit Fees 6,000 Depreciation 15,000 Bank Charges 2,000 TOTAL (B) 13,46,000

Trust A/c (Rotary Charitable Trust) Expenses for Other projects (for Community services) Particulars Amount (INR) Amount reserved for Global Grant Project for next years 11,00,000 Amount reserved for future Community Service/ projects 18,00,000 TOTAL (C) 29,00,000 TOTAL EXPENSE (A+B+C) 80,41,000 TOTAL INCOME 83,50,000 SURPLUS 3,09,000 Less: Transfer to Corpus (3,00,000) Balance Surplus 9,000 To open Trust Budget use link (Right click – Open Hyperlink)

DO’S AND DONT’S OF CLUB FINANCE Set Limit For Petty Cash System Of Reimbursement Regular updation of Bank Passbook Regular passing entries in Books of Accounts All Cash Receipts to be deposited within 24/48 Hours to Bank No Delay in settlement of Meeting Expenses and Other Bills General Practice to make payment of expenses through Bank.

Do’s All bills must be paid by the treasurer, or other authorized officer, only after approval by two other officers or directors. A qualified accountant or other qualified person must make an independent review of all the club’s financial transactions each year. Dont’s Avoid Cash Transactions No internal transfers Do not avoid tax (for bills)

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