1. Leading the Way to Financial Accountability
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

2. Why is this Information so Important
4-H wants to protect the reputation of its members, volunteers, staff and the organization as a whole! Good financial records protect all of us.
4-H is a public entity. Therefore, 4-H money is “owned” by the entire group, not by any one individual in the group.
4-H funds are public funds. The public expects a higher standard of financial accountability for 4-H funds than they do for a private individual.
The U.S. Department of Agriculture and Michigan State University require that 4-H staff have oversight of 4-H financial business.
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

3. Why NOW?
Because . . .
Michigan 4-H is now under Michigan State University’s General Exemption Number with the IRS; therefore, 4-H must follow MSU’s financial policies and protocols.
The last 4-H financial resources was created in 1997; it was time for an update! For ease of use, the content has been broken into a manual for 4-H volunteers and a manual for 4-H treasurers. It is important that volunteers are familiar with the contents of both documents.
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

4. Helpful Terms
Group = Any entity that is authorized to use the 4-H Name and Emblem. This includes clubs, councils, committees, boards and incorporated 4-H groups.
4-H Staff = MSU Extension 4-H Program Coordinators are you local connection
Meeting Minutes = Legal, auditable record of decisions made and expenditures approved at a 4-H business meeting. Meeting minutes are one key piece in creating a paper trail.
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

5. 4-H Group Treasury
Michigan 4-H members pay an annual $20 participation fee / $60 max for a family
A 4-H group with more than $100 in its treasury for more than 30 days (not including 4-H participation fees) is required to keep their funds in a savings or checking account at a credit union or bank
All signers on the account must be registered 4-H volunteers or members. Signers should not be related. Dual signatures are recommended
The account address must be the county MSUE office
The 4-H treasurer must present a Treasurer’s report at each group meeting
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

6. When Raising Funds for 4-H
Complete the 4-H Fundraising Application to get signed approval from 4-H staff at least 10 days before the activity begins
All income (cash & non-cash) must be documented on a pre- numbered written receipt. The original goes to the customer; the carbon receipt should stay securely in the receipt book. This provides you with a crucial paper trail
Complete the Fundraising Report form and submit to 4-H staff within 10 days after the activity. This is required by the U.S. Department of Agriculture.
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

7. When Raising Funds for 4-H (cont.)
4-H groups are required to pay state sales tax on the sale (or resale) of tangible personal property.
Sales tax is also due on food sold at concession stands (like a restaurant).
Tax must be included in the selling price.
Sales tax is also due on silent and live auctions; the amount of the tax due is calculated on the final bid
The collected tax is remitted to the MSUE office with the Annual Financial Summary Report in the fall.
Sales tax is not due on services like a car wash & babysitting nor on bake sales (like a grocery store) or pizza kits.
Animal sales fall under different laws & are not taxed.
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

8. 4-H Fundraising No Go’s
The use of raffles, bingo and other games of chance (e.g. Millionaire Parties, Texas Hold ‘Em tournaments, etc.) is prohibited as a means of 4-H fundraising.
4-H groups are restricted from using online fundraising sites like GoFundMe, DonorsChoose, etc.
4-H groups may not use online payment sites or tools like PayPal or Square for fund collection or payment.
No fundraising activities conducted by 4-H can involve the consumption or distribution of alcohol.
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

9. Appropriate Use of 4-H Funds
All money raised using the 4-H name or emblem must be used only for 4-H unless explicitly noted otherwise
4-H funds may not be given to other organizations or used to enrich individuals
To prevent complications, 4-H groups are strongly advised to have a written procedure for using and distributing funds. A paper trail helps ensure transparency
4-H funds may be used to pay for educational programs, activities, workshops or 4-H group supplies
The source of the funds determines how the funds can be used
When in doubt, contact your county 4-H staff
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

10. Michigan State University (MSU) maintains a very high standard of fiscal security.
Current MSU policy does not allow 4-H clubs, councils, boards, committees and incorporated groups to use an ATM card or a debit card
MSU policy also does not allow any 4-H group to have or use a credit card in the group’s name
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.

11. Annual Financial Summary Report (AFSR)
The AFSR lists a group’s financial activities during the previous 4-H program year (September 1 to August 31)
Why is it important?
Completes a federal requirement for financial accounting and fulfills the audit concerns of MSU
Creates an open, auditable, public record
Provides a paper trail and is wise fiscal practice; it helps protect the 4-H group’s treasurer and leaders
4-H staff need this information to complete the annual IRS tax paperwork
Submission of the AFSR is required of each 4-H group every year (even if the group does not handle funds)
The AFSR is due to county 4-H staff each fall
MSU is an affirmative-action, equal-opportunity employer. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status.