Tax Update for Alumni Classes Rachel L. Williamson, CPA Joined Dartmouth College in June

Tax Update Agenda  Maintaining Tax Exempt Status  New in Fiscal 2013  Filing Requirements  Filing Tips  IRS Notices  Financial Best Practices  Questions

Maintain Tax Exempt Status  Tax Exempt Status is generally granted through membership in Dartmouth’s group exemption  Timely File Annual Return  Read & respond to any IRS notices promptly  Do not support or oppose political candidates  Provide copy of return if one is requested

New in Fiscal Year 2013  The IRS is reminding filers not to include Social Security Numbers on Forms 990 or 990-EZ, since these are publicly available documents.  990-EZ filers no longer list addresses of Officers, Directors, Trustees and Key Employees.

Clarifications to instructions  990-N (e-postcard) filings are available when the class’ average gross receipts are less than $50,000. “Average gross receipts” are calculated using the current year and two prior years gross receipts.  The State of New Hampshire does not required an annual filing as long as contributions are solicited only from the class members.

Filing Requirements  Annual Federal Tax Filing is required to maintain tax exempt status  Failure to file Form 990-EZ or Form 990 may result in fines of $20 per day past the due date to maximum of 5% of gross receipts.  Failure to file for 3 consecutive years will result in loss of tax exempt status.  Forms are due November 15, Extension can be filed on Form 8868 for 990 or 990-EZ filing.  It is important to maintain accurate record of revenue and expenses to fulfill your fiduciary duty, document requirements for filing, and provide accurate reporting.

Filing Requirements Gross Receipts and AssetsIRS Form Average gross receipts under $50, N Gross receipts less than $200,000 and total assets less than $500, EZ Gross receipts $200,000 or greater.990 Total assets $500,000 or greater990

Informational Returns  No Tax  990-N has no penalties for late filing  990 EZ and 990 are subject to fines and penalties for late filing o Publicly Disclosed o 990-T requirement for unrelated business income of $1,000 or greater

990-N  Simplified filing available to classes  Requirements Average 3 year gross receipts $50,000 or less All receipts, including proceeds from sales of securities For groups in existence less than 3 years, different rules apply Maintain a copy of gross receipts calculation

990-N Details  IRS filing administered by The Urban Institute  Computer based  Link to the filing available on the IRS website  After setting up profile, you will receive a confirmation  Check spam folder if confirmation not received quickly  If notified of rejection, file Form 990-EZ

990-N Details  Information Required Organization’s DBA name (Dartmouth Class of XXXX) Mailing address (Blunt Hall) Website (if any) EIN Name & address of principal officer Organization’s Tax Year (June 30, 2013)

990-EZ  Schedules required in addition to core form Schedule A (Public Charity Status) Schedule E (Schools) Schedule O (Other information) Schedule B (Contributions) if one or more contributors gave $5,000 or more Schedule G (Fundraising) if special events revenue exceeded $15,000

990  Required schedules are the same as for 990-EZ  Form 990 is complex and unique to each group  If required to file, we recommend consultation with a tax adviser.

IRS Notices  Failure to file  Missing or incomplete information Missing Schedule A or E Required boxes not checked  Contact Alumni Office or Controller’s Office for assistance if

Financial Best Practices  Annual review of by-laws to make sure the Class is complying with the by-laws, including formal documented meetings  Keep accurate records of all revenues, expenses, and assets  Bank accounts should use the class EIN and have at least 2 officers listed as signors for all accounts  Reconcile all bank accounts, investment accounts, and cash funds at least annually  If the class has a substantial amount of activity in the treasury, it may be advisable to arrange for an audit of the books periodically.

Financial Best Practices  Treasurer’s Report The Treasurer should give a financial status update at every board meeting and, ideally, provide quarterly reports. At the end of the fiscal year, a final report should be generated and presented to the Board. Copies of the final report should be sent to Alumni Relations to maintain historical records.  Merchant Accounts If you accept credit cards, make sure you have procedures in place that are PCI compliant