Affiliate Finance: ACNM Webinar Lorrie K. Kaplan, CAE ACNM Executive Director George Hamilton ACNM Director-Membership Meredith Graham, MBA ACNM Director-Finance

Welcome and Introductions November 16 Webinar/Teleconference November 16 Webinar/Teleconference Q&A follow-up to this webinar Q&A follow-up to this webinar Any other agenda items requested Any other agenda items requested Update on process of finalizing affiliates Update on process of finalizing affiliates

AGENDA Whose Money is it? Whose Money is it? The Financial Requirements of a State Affiliate The Financial Requirements of a State Affiliate Dues Processing Cycle Dues Processing Cycle Federal/State Taxes Federal/State Taxes Cash Flow Cash Flow Budgets Budgets

WHOSE MONEY IS IT? WHOSE MONEY IS IT? Affiliate has the right to charge dues for affiliate members, collected and administered by the ACNM national office. Affiliate has the right to charge dues for affiliate members, collected and administered by the ACNM national office. All monies raised by the Affiliate and collected from dues are the sole property of the Affiliate. All monies raised by the Affiliate and collected from dues are the sole property of the Affiliate. Affiliates will keep any assets they currently have and will retain control of their assets. Affiliates will keep any assets they currently have and will retain control of their assets.

Affiliate Financial Requirements 1. Maintain an accounting tracking of asset, liabilities, revenue, & expenses 2. Maintain the same fiscal year as ACNM National (Jan-Dec) 3. Provide a brief annual financial report to ACNM national 4. Disclose annually to ACNM national whether you have filed the IRS 990 or 990-N postcard 5. Comply with applicable state & federal laws

Dues Processing Cycle

Affiliate Dues Billing All ACNM members are billed for their national dues based on the anniversary of their join date All ACNM members are billed for their national dues based on the anniversary of their join date Beginning with membership renewals billed in January 2011, all members will be billed for affiliate dues at the same time as their national dues Beginning with membership renewals billed in January 2011, all members will be billed for affiliate dues at the same time as their national dues

Setting Up Affiliate Dues Each affiliate must set and submit their complete dues structure to the national office by December 13, 2010 Each affiliate must set and submit their complete dues structure to the national office by December 13, 2010 The dues structure for each affiliate will be maintained in the ACNM national database The dues structure for each affiliate will be maintained in the ACNM national database Each affiliate dues category will be aligned with national dues categories. The main categories are the following: Each affiliate dues category will be aligned with national dues categories. The main categories are the following: Active, Associate, and Student Active, Associate, and Student

Affiliate Dues Processing Members will pay their affiliate dues along with national dues– both will be sent to a lockbox and processed into ACNM’s bank account Members will pay their affiliate dues along with national dues– both will be sent to a lockbox and processed into ACNM’s bank account Copies of dues notices and supporting documentation are forwarded daily from the lockbox to the national office Copies of dues notices and supporting documentation are forwarded daily from the lockbox to the national office

Dues Reporting The ACNM database will track all affiliate dues received The ACNM database will track all affiliate dues received The authorized affiliate leader can run reports at any time The authorized affiliate leader can run reports at any time

Dues Remittance On the15 th of each month, ACNM will finalize processing and reporting for the previous month. On the15 th of each month, ACNM will finalize processing and reporting for the previous month. All affiliate dues will be remitted electronically to the authorized affiliate bank account by the 20th of each month. If the 20th falls on a weekend, dues will be remitted on the next business day. All affiliate dues will be remitted electronically to the authorized affiliate bank account by the 20th of each month. If the 20th falls on a weekend, dues will be remitted on the next business day. Checks are also an option Checks are also an option Affiliate treasurers and/or authorized users will be able to view their own remittance reports online in a secure area of the ACNM website. Affiliate treasurers and/or authorized users will be able to view their own remittance reports online in a secure area of the ACNM website.

Federal Tax Status

Affiliates and ACNM national are classified as IRS 501(c)6 membership associations Affiliates and ACNM national are classified as IRS 501(c)6 membership associations This means that we are a not-for-profit (vs. a charitable) organization This means that we are a not-for-profit (vs. a charitable) organization Dues, donations, and other monies received by ACNM and/or affiliates may not be classified by individuals or organizations as charitable or non-taxable contributions but may be classified as a normal business expense. Dues, donations, and other monies received by ACNM and/or affiliates may not be classified by individuals or organizations as charitable or non-taxable contributions but may be classified as a normal business expense.

Federal Tax Status Form 990 is an annual reporting return that certain federally tax-exempt organizations must file with the IRS. Form 990 is an annual reporting return that certain federally tax-exempt organizations must file with the IRS. It provides information on the filing organization's mission, programs, and finances. It provides information on the filing organization's mission, programs, and finances. Effective FY 2010, any tax-exempt organization with gross receipts less than $200K or total assets less than $500K must file the 990 or 990 EZ Effective FY 2010, any tax-exempt organization with gross receipts less than $200K or total assets less than $500K must file the 990 or 990 EZ Any small organization with gross receipts of $25K or less must file a form 990-N, an Electronic notice (postcard) to the IRS, Any small organization with gross receipts of $25K or less must file a form 990-N, an Electronic notice (postcard) to the IRS,

STATE TAXES Federal tax exemptions do not carry over into state jurisdictions Federal tax exemptions do not carry over into state jurisdictions Each affiliate should contact its state department of revenue to determine state tax status Each affiliate should contact its state department of revenue to determine state tax status

IRS GROUP EXEMPTION Requirements for both Organizations National Requirements: Submit annual report to IRS annually on behalf of the group Develop standard governing documents Provide each affiliate an annual financial report template Affiliate Requirements: Implement governing documents for affiliates Annual filing of 990 or 990- N postcard Submit to national a completed annual financial report (template will be provided)

Cash Flow

CASH FLOW Because ACNM collects dues, based on a member’s anniversary date, Affiliate cash flow will be different than Chapter cash flow. Because ACNM collects dues, based on a member’s anniversary date, Affiliate cash flow will be different than Chapter cash flow. Develop a transition plan for the first year. Develop a transition plan for the first year.

CASH FLOW SCENARIOS Suggestions to handle cash flow concerns: Suggestions to handle cash flow concerns: Obtain a roster of members and their anniversary dates from ACNM national. Obtain a roster of members and their anniversary dates from ACNM national. For the first year, project your cash flow based on anniversary dates. This projection will allow you to properly plan for highs and low of the cash flow cycle For the first year, project your cash flow based on anniversary dates. This projection will allow you to properly plan for highs and low of the cash flow cycle Identify expenses in two categories: the necessities and discretionary Identify expenses in two categories: the necessities and discretionary Plan expenditures based on cash flow projection Plan expenditures based on cash flow projection Put discretionary spending on hold until you meet necessary obligations Put discretionary spending on hold until you meet necessary obligations Ask current members to pay additional dues/ donations if needed Ask current members to pay additional dues/ donations if needed Follow-up on cancellations and past due affiliate members Follow-up on cancellations and past due affiliate members Use reserves/savings and replenish based on cash flow projections Use reserves/savings and replenish based on cash flow projections

CASH FLOW EXAMPLE Member Name/ID Dues Category Paid DateNational Dues/ Affiliate Dues June 2011 July 2011Aug 2011 Kennedy Landon-299 Student5/30/ / Steven Erin Martin-213 Active6/15/2011$350/ Daniel Miranda Active6/16/2011$350/ Lilly Miranda-985Active5/1/2011$350/ Camaria Greenfield Student7/10/2011$135/ Audrey Bush-777Associate7/11/2011$135/

AFFILIATE BUDGETS

Simply: A budget is an organization’s plan of action expressed in terms of dollars and cents. Simply: A budget is an organization’s plan of action expressed in terms of dollars and cents. First steps to the budget: First steps to the budget: Identify your activities for the fiscal year (who & what) Identify your activities for the fiscal year (who & what) Determine when the activities will take place (when) Determine when the activities will take place (when) Determine how much it will cost to run the state affiliate (how) Determine how much it will cost to run the state affiliate (how) Implement, monitor and evaluate budget over time Implement, monitor and evaluate budget over time

AFFILIATE BUDGET TEMPLATE We have designed a simple budget template that will allow you to track all revenue and expense over 12 months We have designed a simple budget template that will allow you to track all revenue and expense over 12 months The template is designed to allow you to track actual to budget revenue and expenses by project/activity The template is designed to allow you to track actual to budget revenue and expenses by project/activity

KEY DATES TO REMEMBER Dues structure and officer names and contact info to ACNM national office by Dec 13, 2010 Dues structure and officer names and contact info to ACNM national office by Dec 13, 2010 ACNM dues remittance to affiliates by 20 th of each month ACNM dues remittance to affiliates by 20 th of each month First ACNM dues remittance to affiliates = Feb 20 First ACNM dues remittance to affiliates = Feb or 990-N due May 15, or 990-N due May 15, 2012

IMPORTANT LINKS State Affiliate Webinarshttp://midwife.org/aff_devsup.cfm State Affiliate Webinarshttp://midwife.org/aff_devsup.cfmhttp://midwife.org/aff_devsup.cfm Governance Policies- fm Governance Policies- fm fm fm Informational Tax Return Instructions for (990,990-N etc) 37,00.html Informational Tax Return Instructions for (990,990-N etc) 37,00.html 37,00.html 37,00.html

Next Steps Register for Nov 16, 8-9:30pm EST webinar/teleconference Register for Nov 16, 8-9:30pm EST webinar/teleconference egister/ egister/ egister/ egister/