1. Planning for Excellence
2012 Treasurer
Planning for Excellence
Budget & Finance
Jo Ann Stevens
1996 Texas President
Sharon Morton
2012 Texas Treasurer
Mission Statement:
We are a network of successful REALTORS® empowering women to exercise their potential as entrepreneurs and industry leaders.

2. Planning For

3. Planning For Excellence Dollars & Sense
Treasurer Duties
Chapter Budgets
Audits and Reserve Accounts
Legal Issues (IRS/Insurance)
Ways & Means 3

4. So…now YOU are the Treasurer
Work with Governing Board to develop annual budget
Use 2011 Budget & YTD info as guide
Use LPPM as a guide (pages 31, 41-43, and )
Have your Budget in place by Jan 1st 2012!
Cannot make 2012 payments until you have an APPROVED BUDGET!
PARTICIPATE on your Chapter’s Budget Committee
Participate on your Chapter’s Ways & Means Committee, reviewing & monitoring Event Budgets

5. Duties of the Treasurer see page 31 LPPM
Treasurer is in charge of all funds and makes disbursements/reimbursements as directed by the President AND THE Governing Board.
Keeps all receipts and disbursement forms and provides reports at all regular meetings.
Coordinates with Finance & Budget Chair so that financial statements are reviewed monthly with officers & Governing Board.
Completes a mid-year review with Finance & Budget and makes recommendations to the Board if necessary to end the year BALANCED.

6. Duties of the Treasurer
Asks questions about any discrepancy between budgeted and actual expenses.
Submits the financial accounts of the chapter to a CPA or bookkeeper to file with IRS .
Gives receipts for collection of cash, keeps copy of transaction for Chapter’s permanent records.
Provides records to chapter Audit Committee for annual review. (Some Chapters do quarterly or mid- year as well… refer to Chapter Standing Rules)

7. Duties of the Treasurer
Handling Reimbursements
Have a clearly defined Policy for reimbursable expenses in your Standing Rules (break it into separate categories)
Give reimbursement for budgeted/approved expenditures ONLY (stay within the budget)
Have a deadline for submitting receipts
Use an Expense Request Form
Keep ALL Records in case of an IRS audit

8. Duties of the Treasurer Fiduciary Obligation
The legal requirement to care for another’s assets as you would your own . . .
to provide meaningful oversight!

9. Duties of the Treasurer Meaningful Oversight
Meaningful oversight involves more than an occasional look at the budget. It means to constantly monitor
your Chapter’s financials to remain balanced!

10. What do all successful businesses have in common?
Question ? ? ?
What do all successful businesses have in common?

11. Answer A
Budget!!!

12. Chapter Budget What is It?
The Forecast of Financial Activity over a period of time.

13. Budget Planning Cycle (1) F & B Committee Researches History
& Future Needs
(2) F & B Develops
Budget for
Upcoming Year
(3) Governing Board
Approves for
(4) Approved Budget
Presented to
Chapter Members
(1) F & B Committee
Researches History
& Future Needs

14. hi Chapter Budget WHY have a budget at all?
Every Successful Business Plan is guided by a Budget Plan!
Gives Governing Board a roadmap to follow based on what has been budgeted for 2012
Puts your Chapter on the right track for planning and achieving a successful year

15. Budget ~ What’s Included?
Revenue
National Membership Dues Income (# of National Members x Local Dues)
Local Affiliate Membership Dues Income (# of Affiliates X Annual Affiliate Dues)
Strategic Partner Money (Annual and/or Monthly Partners)
Ways and Means Money (Money from Chapter Events)
Other Revenue: (i.e. Education Classes or Sale of Merchandise)

16. Budget ~ What’s Included?
Expenses
Monthly Programs (Breakfast/Luncheon Expense, Speaker Expense)
Education (MCE classes, PMN course)
Ways & Means Expenses
Newsletters (E-blast / Design Cost)
Leadership Development (Officer Travel to National/State/Regional/District)
Leadership Orientation (National LO for PE, State MO for officers & committee chairs)

17. Budget ~ What’s Included?
Expenses
Awards (Member of the Year, etc.)
Strategic Initiatives (Education Scholarships, Funds for non-officer members to attend State/National meetings
New Membership Orientation (Orientations, Pins, etc.)
Office Supplies (Postage, Printing)
Professional Services (Insurance, CPA, Legal)

18. Budget ~ What’s Included?
Expenses
Website (Set-up, Monthly Fees)
Rental Storage
Discretionary Fund (Flowers, Memorials)
Bank/Credit Card Service Charges
Miscellaneous or Other Expenses:

19. Stay within your Budget
Don’t spend this
If all you have
is this amount!

20. Audits and Reserves
President appoints Audit Committee at the next to the last meeting of the elective year.
Audit is the Check and Balance System that validates information and protects both Treasurer and Chapter.
Audit Committee presents report at the first meeting of the next year.
Each Chapter should seek to maximize financial resources to best advantage and generate systems to protect member funds.

21. Chapter Legal Issues page 127-134 LPPM
Tax ID Number (FEIN)
IRS Exempt Status- “501 (c) (6)”
Form 1024
IRS Information Return
Form 990 (gross income or assets $25,000 or more)
Form 990N (gross income or assets less than $25,000)
Filing deadline is May 15th
(Aug.15 w/1st extension; Nov. 15 w/ 2nd extension)

22. Federal Employer ID Number (FEIN)
Every local and state chapter should have one
Identifies companies and organizations, like a SSN does individuals
Banks require to open most banking accounts, especially when the account earns interest
Apply for a FEIN on line: index.jsp

23. Federal Employer ID Number (FEIN)
Your new number will be provided at the end of the process
Record this number in the Chapter Management Center for future officer reference

24. Reporting to the IRS and Tax-Exempt Status
Effective with the 2007 tax year, every Local Chapter must file an information return with the IRS
Chapters filing a regular 990 return should continue to do so; small Chapters may file on line at :
In order to file, the Local Chapter must be deemed exempt by the IRS. Use IRS Form available at: pdf/f1024.pdf

25. Reporting to the IRS and Tax-Exempt Status
Information form 990 is generally needed when annual Chapter gross income or assets are $25,000 or more
Even tax-exempt Chapters have to pay “Unrelated Business Income Tax”

26. Incorporation
Provides personal liability protection beyond that of the Chapter’s bylaws
Being incorporated as a not-for-profit association is not the same as being federally tax exempt
The common term “501 (c)(6)” refers to the section of the IRS Tax Code that covers real estate and other trade associations

27. Sales Tax
Generally speaking, Chapters WILL NOT be exempt from paying retail sales tax. Tax exempt status means there is no federal tax on revenue

28. Defense & Indemnification of Officers & Directors
WCR Chapters are covered under the NAR Professional Liability Insurance Policy
Claims for general liability, theft or bodily injury are NOT covered by this policy – Chapters should always get event insurance
The PL policy has a deductible for Local Chapters of $3,000

29. General Liability Insurances
Sometimes required when holding a Chapter event on public or private property
Chapter must arrange coverage, usually through a local insurance agent
Limit your liability when serving alcohol at your events

30. Ways & Means Committee
Page 33 LPPM
Assumes from Finance & Budget Committee the responsibility to conduct fundraising programs
Raises funds to enable the Chapter to fulfill the WCR Mission Statement

31. Ways & Means
Ways & Means Committee should plan events for the year and must submit Proposed Budget for Each Event to Governing Board for approval and inclusion in Chapter’s overall Budget
EACH Fundraising Event must have a Budget.
No money can be spent until Event Budget(s) is approved.
Only the Chapter President may sign a Vendor Contract, after Governing Board Approval.
Event Insurance is Required
Chapter Treasurer is member of Ways & Means Committee

32. For any questions or concerns contact
Sharon Morton
2012 Texas Treasurer
Together We Will
Work it! Work it! Work it!