Lions Club Treasurer May 30, 2009 Virginia Lions State Convention

Committee Members 24-C Greg Hart 24-D Barbara Senecal, PDG 24-F Nyoka Cook 24-A Phil Schrack, PCC

Agenda Lions Club Financial Accounting –Budgets –Bookkeeping –Taxes –Foundations –Corporations

Overview Generation of Budgets Methods to track money Who has to file taxes –Sales Tax –Tax Forms The take on Foundations Our intent is to tie all this information together

Vocabulary Banking Institution Banking Accounts (Activity & Administrative) Payment Authorization Petty Cash Bond Audit Taxes Federal & State) Records (Disbursements & Receipts) Reconciliation Finance Committee Board of Directors

The Club Board is Responsible Ethically and Legally Clubs are chartered by Lions Recognized by U.S. Government as Tax Exempt (IRS Pub 557) Remember, we are managing other people’s money, given to us for a purpose Individuals may wish to carry personal liability insurance and/or be bonded

Treasurer Takes oath at the Club Installation of club officers Custodian of all Club funds. Will deposit monies received in banks as designated by the Board of Directors. Assist Finance Committee to develop a budget and provide financial statements. Disburse funds as directed by the Board of Directors. We give bond for faithful performance of our duties, this is for your protection and in keeping with recognized and accepted business procedures

Planning Meet with President (Plan the Year) –Generator Budget Administrative Activity

Duties Collect, record and expense money for the Club Report to the Board of Directors and Members Pay Per Capita Tax –State ($16.00/Year) Billed based on October 31 membership Pay by December 31 –International $19.50 semi-annually Billed June and December Pay by July 31 & January 31 Report delinquent Lions to Board of Directors

Duties Meet with immediate past Treasurer –Transition meeting with Past Treasurer –Obtain Password from Lions Club International –Audits –Bond –Arrange for Banking Institution –Approval of Banking first Board Meeting

Keep a good filing system Be familiar with Constitution & By-Laws International Standard form for Lions Club Provide Treasurer’s Report for Board Meetings & Attach to Secretary’s minutes. Budget

Club Finances Committee appointed by President of Club Made up of Chairperson & Finance Committee Members Produce a preliminary Activity & Administrative Budgets Present to Board of Directors for Approval Presented to the Club Members for Approval

Tools your use

Bookkeeping Manual Software –Quicken –Microsoft Money –Peachtree –Microsoft Excel –Quick Books

Membership Categories Active Member-at-Large Life Member Privileged Associate Affiliate Honorary

Dreamsville Lions Club Administrative Budget Lion Year Receipts DuesAmountComments Active Members(20) $ 8,80020 $440/yr Affiliate Members(2) 2002 $100/yr Life Members(4) 1,7234 $430.80/yr Privileged Members(1) 1001 $100/yr Guest Meals(20) Lions &/or $13.00/meal Fines11022 $5.00/meeting 50/ $9.00/meeting Al Cans125Based on Actual TOTAL$11,516

Dreamsville Lions Club Administrative Budget Lion Year Expenses ItemsAmountComments Club Supplies$ 600Stationary, Stamps, etc International Dues90027 $16.60 Semi-Annually Meals5,46020 Members for 21 $13.00/yr Membership27321 Meals for 21 $13 Programs3,500Charter Night, Installation, etc Scrapbook150Supplies Sickness & Distress100Flowers, Cards State Dues43227 $16 Misc101 TOTAL11,516

Dreamsville Lions Club Activity Budget Lion Year Receipts Fund RaiserIncomeExpenseNet IncomeRemarks Bingo$ 17,500$ 4,150$ 13,500Best Estimate White Cane Estimate on Pumpkin Sales 21,80015,3006,500Estimate on Bank Interest100 Estimate on TOTAL$ 40,100$20,600

Dreamsville Lions Club Activity Budget Lion Year Expenses CategoryAmountComments Hearing$ 1,200Based on Actuals Miscellaneous2,800 Other Services2,000Based on Actuals Sight6,000Based on Actuals Social Services3,500Based on Actuals Youth Services5,100Based on Actuals TOTAL$20,600

Bingo and Raffles Need a Gaming Permit from the Virginia Department of Charitable Gaming Illegal gambling is Illegal ! Information is available from the website: VDACS.dcg.virginia.gov

Renewed till Can be obtained from MD 24 Secretary/Treasurer –Lion Tammy Brightwell –5004 Colonial Ave, SW –Roanoke, VA –(540) Virginia Retail Sales and Use Tax Exempt Certification

Club Incorporation Recommendation –Each club be Incorporated –Why? –If the club is incorporated the members are not liable law suites –Use LCI Club Standard constitution & By-laws –Cost $75 –Annual Fee $25 Unincorporated –Members could be liable

501( c )3 Foundations Disadvantages Lions Club needs to Incorporate Must apply for tax classification Separate books, separate board Costs: –Fees for Incorporating –Annual renewal fees

501c3 Organizations –Foundations LOVF, LCIF, ODEF, Bland Exempt from Federal Income Tax Exempt from some States Taxes Tax-deductible Contributions Organized & Operated for Exempt Purpose IRS Info

501c4 Organizations –Lions Club International –Lions Clubs –Promote Social welfare

IRS Info –Obtain IRS EIN Number Must be Incorporated –Obtain from the Commonwealth of Virginia Than Apply for EIN on line at the IRS –

IRS 990 Tax Return Forms Based on Gross Receipts Less than $25,000 –IRS 990 N –Electronic Filing $25,001-$100,000 –IRS 990 EZ –Paper Form Greater than $100,000 –IRS 990 –Paper Form

IRS 990 N Form Secretary or Treasurer received letter from IRS Organizations legal name Mailing address Website if applicable EIN Name & Addresses of Principle Officers Annual Tax Period (July 1-June 30) Verify Annual gross receipts are less than $25,000

IRS 990 N Form When must you file –Tax periods beginning after 12/31/2006 –Starting Tax period July 1, June 30, 2008 –Must be filed by November 15 th 2008 Every year by November 15. IRS WebPage

IRS 990 N Form Why must you file –Legislative Changes –Pension Protection Act of 2006

IRS Info Fail to file –3 Consecutive years –Tax-exempt status is revoked –On the filing due date of the 3 rd year Yes you can be reinstated

IRS 990EZ & 990 Forms When must you file –Tax period July 1, June 30, 2009 –Must be filed by December 15 th 2008

–If a % of clubs fail to file Lions International could lose their 501c4 status Why do we need to file?

SUMMARY Admin and Activity funds are never mixed Use checks and keep receipts Treasurer is an agent of the Board Conflict of Interest Accuracy Pay on time!

Questions?

Resources Click on resources, publications, legal, board policy manual or Click on resources, publications, district and club administration, and select the manual of choice

Thank You Good Luck as a Club Treasurer My time is up and I thank you for yours!