Chapter Financial Awareness Jeff DeWalt, CPA, CGMA ONS Chief Financial Officer

What are we talking about? Chapter refresher Business League not Charity Unrelated Income Insurance State Taxes Hot Topics from National Other Item of Note Questions

Chapter Refresher Leaders have a fiduciary responsibility to the chapter members and to ONS Follow the path of what is right for the chapters and the members before what is right for yourself. A chapter is a business league not a charity – supporters cannot deduct chapter financial support as a charitable deduction.

Chapter Refresher Spend your financial resources on mission based activities The chapters’ mission is to promote excellence in oncology nursing and quality cancer care. Chapters are unincorporated associations This Photo by Unknown Author is licensed under CC BY

Sweet Charity Be AWARE of Non-charity Status A chapter is not-for-profit but it is not a charity. Chapter financial support is not deductible as a charitable contribution. Chapters must specifically inform a supporter or potential supporter that the financial support they provide is not deductible as a charitable contribution. Sweet Charity

Be AWARE of Non-charity Status Include language in your solicitations such as; The “Your Name Here” ONS Chapter is holding its annual vendor fair and we are seeking financial support. The chapter is not a 501(c)(3) charity and any support provided is not deductible as a charitable contribution. However, your support may be deductible under a different section of the IRS code, such as sponsorship. Please check with your tax advisor on the deductibility of your support.  Again, thank you for supporting oncology nurses.

Be AWARE of Unrelated Income Unrelated income is/maybe taxable Unrelated income is non-mission income Unrelated to the mission of the organization. Which is not like the other? Holding an oncology nurse education program? Collecting funds within the chapter to help disaster victims? Selling T-shirts or baskets of cheer to raise money for the chapter? Vendor fair - vendor pays for the right to set up a table and talk to oncology nurses about their oncology elated product? Option – for non-mission activities Do it individually not as a chapter

Be AWARE of Insurance General Liability General liability coverage provided through ONS  Protects chapter if it would cause bodily harm to public or damage public’s property – for example - something happens at a chapter program. Directors and Officers Liability (D&O) – New for 2018 If something happens and you are sued personally As unincorporated association – lawsuit will seek settlements which expose personal assets of chapter officers ONS has added D&O insurance to protect the officers Officer (Employee) Dishonesty Insurance Protects chapter if an officer would abscond with funds or merchandise. Limit $60,000 *

Be AWARE of State Taxes State income tax – depends on the state Sales Tax Paying sales tax: 501(c)(6) organizations generally required to pay sales tax. (ex., renting a room or buying supplies) Exception—purchasing items to sell as fundraisers – reseller exemption Collecting and remitting sales tax on sales: state by state determination May need register with state Department of Revenue to receive sales tax number and certificate of resale Charge and collect appropriate tax on product sales Know when sales tax returns and funds are due to the state Submit funds. Contact Department of Revenue for instructions/options

Hot Topics From National Be AWARE of Fraud Treasurer needs to protect checks and bank account information Complete monthly reconciliations If long period before Treasurer notices an issue – bank may not reimburse Credit/Debit Cards Protect card and number Check monthly statements Report it quickly Treasurer should reporting regularly to board Its not just a Treasurer issue it is fiduciary responsibility for the entire board

Hot Topics From National Be AWARE of Email Scam Email from President or other chapter member to Treasurer – need to send funds quickly to someone Establish a confirmation system before the scam hits your chapter Text Phone call Separate email address This Photo by Unknown Author is licensed under CC BY-ND

$ Other Item of Note Be AWARE of retaining to much money For chapters with a large treasury (more than 12 months operating expense) - develop a plan to spend down the excess funds Invest on your chapter and its members More or larger scholarships and awards, Reduced admission or meeting fees while maintaining expense, Free admission or meeting fees from first time attendees or attendees bringing someone to an event for the first time Pay for a non-pharma speaker and cover the event expenses  Contribute or increase your contribution to the ONS Foundation $

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