1. Effective management for club treasurers

2. Congratulations! you have been elected Club Treasurer!
What are your responsibilities?

3. Stays up-to-date on records and reports
Club Treasurer
Stays up-to-date on records and reports
Manage club finances
Collect funds due to the club
Deposit collected funds
Disburse funds as directed by board of directors
Keep complete, accurate records of all financial transactions
Present report of finances at board meetings
Prepare tax returns as required by IRS
Obtain an annual audit or review
The club treasurer collects all funds due to the club, and deposits and disburses the funds. The treasurer also keeps complete and accurate records of all financial transactions.
Additionally the club treasurer should make an annual report of the clubs financial condition upon request, assist the board of directors in preparing and monitoring the budget.

4. Club Treasurer Club’s Finances
Clubs should follow standard financial support and control guidelines. Dues should be sufficient to meet overhead and operating costs.
Quarterly dues of $19.00 are pre billed by the National Exchange Club.
For Example: The NEC bills for the first quarter of the Exchange fiscal year (July, August September) on July 1st.

5. Make it easy for members!
Collecting dues from members
Make it easy for members!
Authorize.net Payment Gateway
PayPal Here, Intuit Go Payment, Square
ACH payments
Find forms and info on exchange’s website
Be straight forward in asking for payment. Members should not go 30 days without payment. Give advanced notice in writing via and verbally ask at meetings.

6. Structure dues to support club
Your Membership Dues
Structure dues to support club
Club dues
Amount must be calculated to support obligations to district, national, meeting place, and other financial responsibilities
must produce income needs to offset expenses
Make sure you are covering your costs! This will eliminate a deficit at the end of the year.

7. National Exchange Club Cost Breakdown
Your Membership Dues
National Exchange Club Cost Breakdown
Annual Dues
Active Member/Active-Honorary/At-Large/Business Membership Dues: $76/year
Joining Fee
New/Transfer/Reinstated Member: $20
Annual Convention Fee: $100/club
Before the beginning of each month or quarter, the treasurer sends dues statements to each member. It is imperative that the treasurer be punctual in billing members.
Quarterly dues of $19.00 are pre billed by the National Exchange Club.
For Example: The NEC bills for the first quarter of the Exchange fiscal year (July, August September) on July 1st.

8. National Exchange Club Umbrella Insurance Policy Club Cost
Liability Insurance Breakdown
                        Active Membership                Annual Premium
                                     1-24                                                  $100
                                     25-54                                                  $130
                                     55-74                                                  $165
                                     75-89                                                  $195
                                                                                   $230
                                    110+                                                   $260
Crime Insurance Breakdown
Active Membership                  Annual Premium        
                                    1-24                                                     $85
                                    25-54                                                   $100
                                    55-74                                                   $115
                                    75-89                                                   $130
                                                                                     $145
                                    110+ over                                            $160
To insure that adequate insurance is secured for any activity which could result in liability to the club and its members, the National Board of Directors has approved a comprehensive general liability insurance program which provides $2 million for bodily injury, property damage and personal injury suits that may be brought up against local clubs.
The cost of the insurance is shared by each Exchange Club based on its active membership on file.
Additionally, every club has Crime insurance (Bond protection) coverage for the club and every club member under an umbrella policy through Travelers Insurance Company. The policy provides a $100K limit for Dishonesty and a $5000 limit for money.

9. “Leading a Successful Club” Guide And Club Bylaws
Get a Copy of …
“Leading a Successful Club” Guide
And Club Bylaws
Available 24/7 on Exchange’s website
via your computer, smartphone, and tablet.

10. Two pages that give an overview of Club Treasurer’s responsibilities
What’s in the
Leading a Successful Club Guide?
Two pages that give an overview of
Club Treasurer’s responsibilities
A copy of the Club Leader Planner is available on the National Exchange Club calendar on the website, which can be downloaded & printed.

11. Stay current with Club Information
Check out Club info on the website. Make sure secretary or any officer drops members off the roster if they are no longer members. The club is billed for the amount of members on the roster from the website.
Make sure club mailing address is correct for national and district billing.
Make sure member contact information is correct for billing. Verify mailing address, primary address and primary phone number.
Update address to verify billing is being sent to proper location: Click on Club Info Tab :
- Click on Edit Club Info button
- Go down to Club Address
- Update required fields - Submit

12. Here are your first steps:
1. Obtain copy of the minutes showing that you have been elected to the office.
2. Make a trip to the bank.
a. Coordinate with other signers
b. Take the minutes – complete appropriate forms
c. Give change-of-address, if needed
d. Debit or credit card?

13. 3. Obtain financial records: Checkbooks Deposit slips/deposit stamps
Past year’s financial reports
Tax ID #
Method of financial recording
Bank and accounting websites
Passwords and user IDs
Policies and procedures
Club Bylaws
The secretary is the custodian of the records of the club. Past years’ finances should be kept by the secretary, but it is wise to keep the previous fiscal year handy while you are learning and getting familiar with the accounts.

14. Download it, AND access the Google Calendar!
PLANNING CALENDAR!
Download it, AND access the Google Calendar!
A full printable calendar of events is available on the National Exchange Club calendar on the website.
Be sure to check this calendar regularly as it will guide your club through the year and bring events to your attention that will assist your club in accomplishing its goals.

15. Exchange Club fiscal (tax) year is
Important dates!
NOVEMBER 15 – IRS TAX FORM 990, 990 EZ, or 990-N DUE WITH COPY TO NATIONAL
MAY – BOARD SELECTS A COMMITTEE TO PERFORM AUDIT OR REVIEW OF FINANCIAL RECORDS AND PREPARE NEXT YEAR’S BUDGET
JULY – AUDIT FINDINGS MUST BE REPORTED TO BOARD OF DIRECTORS BY TREASURER
Exchange Club fiscal (tax) year is
July 1 – June 30

16. Bylaws make your job easier!
Two bank accounts
May be 2 accounts in Quicken or QuickBooks
2. Dues are to be paid in advance
3. Membership classifications defined
4. Transfer and re-instatement rules
5. Audit or review no less than annually and report at first board meeting each year
The club bylaws require that an Exchange Club establish two separate bank accounts; one for club operations and one for club service activities and projects.
All revenue from member dues, fees and meal charges should be deposited in the clubs operating account.
The net proceeds from any fundraising activity are to be deposited in the clubs projects or activities account.

17. Now that you have your tools….
Let’s look at terminology:

18. 501(c)(4) Non- Profit Organization Does not pay taxes on income
Every new member must be approved by the club’s board of directors to insure they are exemplary of the clubs mission. The secretary is responsible for reporting new members to the National Exchange Club an should insure the clubs joining fee has been paid.
The new member will receive a new member kit from the National Exchange Club and will begin receiving Exchange Today magazine.
Information on the new member’s sponsor should be sent to the National Exchange Club so the proper credit can be given.
The secretary should report new members promptly. The membership closeout deadline each month is at 12:00pm noon, Eastern Standard Time on the last business day of the month.

19. 501(c)(4)
Club has tax exempt status with IRS as a non-profit organization and is not required to pay taxes on income
Donors may NOT write-off donations to an Exchange Club
Clubs may not participate in or intervene with any political activity to promote any candidate or opposing candidate
Every new member must be approved by the club’s board of directors to insure they are exemplary of the clubs mission. The secretary is responsible for reporting new members to the National Exchange Club an should insure the clubs joining fee has been paid.
The new member will receive a new member kit from the National Exchange Club and will begin receiving Exchange Today magazine.
Information on the new member’s sponsor should be sent to the National Exchange Club so the proper credit can be given.
The secretary should report new members promptly. The membership closeout deadline each month is at 12:00pm noon, Eastern Standard Time on the last business day of the month.

20. 501(c)(3) Organization Charitable Foundations
Every new member must be approved by the club’s board of directors to insure they are exemplary of the clubs mission. The secretary is responsible for reporting new members to the National Exchange Club an should insure the clubs joining fee has been paid.
The new member will receive a new member kit from the National Exchange Club and will begin receiving Exchange Today magazine.
Information on the new member’s sponsor should be sent to the National Exchange Club so the proper credit can be given.
The secretary should report new members promptly. The membership closeout deadline each month is at 12:00pm noon, Eastern Standard Time on the last business day of the month.

21. 501(c)(3) Organization
Donations are tax deductible to the donor in most cases
Must provide donor with a receipt for the amount of donation or a receipt for the value of the donation if $250
Must be a corporation, fund, foundation, or community chest and follow rules of these types of organizations
Every new member must be approved by the club’s board of directors to insure they are exemplary of the clubs mission. The secretary is responsible for reporting new members to the National Exchange Club an should insure the clubs joining fee has been paid.
The new member will receive a new member kit from the National Exchange Club and will begin receiving Exchange Today magazine.
Information on the new member’s sponsor should be sent to the National Exchange Club so the proper credit can be given.
The secretary should report new members promptly. The membership closeout deadline each month is at 12:00pm noon, Eastern Standard Time on the last business day of the month.

22. Other terms:
Invoice - A non-negotiable bill issued to give a detailed list of services with an account of all costs, and provides the dates of service and due date for payment.
Statement – A periodic summary of account with a beginning date and an ending date. Usually provided monthly, showing the balance owing. This is not a bill.
Assets and Liabilities – An asset is anything of economic value owned by an entity and a liability is a debt or an obligation that legally binds an entity which it must pay.
Chart of Accounts – A list of account names and sub-accounts arranged in the order in which they customarily appear in the financial statements.
Balance Sheet – A financial statement that summarizes at a specific period in time an entity’s assets, liabilities and net worth. It is sometimes called the Statement of Financial Condition.

23. Profit and Loss Statement (P&L) – A statement showing earnings (income), expenses, and net profit. The P & L statement shows transactions over a given period of time, whereas the Balance Sheet gives a snapshot on a specific date.
Budget – An itemized summary of estimated or intended expenditures for a given period of time along with proposals for financing them.
Accounts Receivable – The Money that is owed the entity by others. Accounts receivable are current assets that are expected to be paid within a short amount of time.
A/R Aging Report – A report that groups accounts receivable balances according to how long they have been outstanding, usually reported with current, 30 days, 60 days, 90 days, and over 120 days.

24. DUTIES TO PERFORM EACH MONTH:
Pay bills in timely manner
Reconcile bank accounts
Make deposits at least 2x /month
Prepare financial statements before board meeting
Profit & loss statement
Balance sheet
Budget vs. actuals
Aging report on dues
Make a formal copy to give to secretary to file with minutes
5. Prepare Statements and send to members who still owe dues on the first of the month

25. DUTIES TO PERFORM QUARTERLY: CLUB QUARTERS
Prepare dues invoices to send to club membership
Send invoices 15 days prior to the first day of each quarter (unlike invoices, statements are sent monthly beginning on the first day of the quarter and on the first day of each month until paid)
Contact members with unpaid dues to find out why?
Many times, unpaid dues are a sign of something else going on
– you can help keep members involved and engaged.
JULY 1
OCTOBER 1
JANUARY 1
APRIL 1
CLUB QUARTERS

26. QUIZ TIME: To which account would you post various expenses?
Your club wants to devote a portion of its fundraising to development of leadership and education. Is that doable?
What is the maximum percentage your board should elect to go toward education from your fundraiser funds?
Should you write a check if instructed by the president for funds that were not budgeted or not approved by the board of directors?

27. IRS FORM 990
Due by November 15 of each year – if the 15th falls on a Saturday, Sunday, or legal holiday, it is due the next business day
Most clubs can file a 990-N (e-Postcard), provided Annual Gross Receipts are normally $50,000 or less
A club may choose to file form 990 or 990-EZ
A club that fails to file 990-N for three consecutive years may lose its tax exempt status

28. TO FILE YOUR CLUB’S 990-N, VISIT:
To file the 990-N you will need …
Tax ID #
Tax year ending date June 30, 20##
Club’s legal name and mailing address
Name and address of a club officer
Website address (if applicable)
TO FILE YOUR CLUB’S 990-N, VISIT:

29. 501(c)(3) & 501(c)(4)
501(c)(3) and 501(c)(4) by law must have open books. As a non-profit organization, your books are up for review by IRS, other members, other clubs, the district, National Headquarters, and non-members.
Non-profits need
transparency

30. FORMS YOU MAY USE
PASS THRU
GRANT FORM
SALES TAX
EXEMPT FORM

31. CLUB Chart of Accounts Gives you an example of various line items
Grows with club as needs arise
Can add accounts mid-year when needed
Club should have a income expense accounts for projects and programs
Each club will have a different set of accounts, because each club has different programs and expenses

32. FINANCIAL REPORTS Profit and Loss Statement How much did the club make and spend? Also called the Income Statement. It summarizes your income and expenses for each income or expense account on your chart of accounts, so you can tell if club is operating at a profit or a loss.

33. FINANCIAL REPORTS Balance Sheet What is my club worth
FINANCIAL REPORTS Balance Sheet What is my club worth? This report is a financial snapshot of your club. It lists the balances for each asset, liability, and equity account as of a specific date. It also calculates what your club is worth (the equity) by subtracting what your club owes (liabilities) from everything it owns (assets).

34. FINANCIAL REPORTS Member Accounts Receivable (A/R) Aging Report How much does each member owe and how much is overdue?

35. FINANCIAL REPORTS Budget vs
FINANCIAL REPORTS Budget vs. Actuals What are the variances against what is currently budgeted?

36. BUDGET
a guideline for how money is to be spent and the projections for how the money will be earned.
Budgets are not set in stone. They will change and evolve as needs arise, as determined by the board of directors.
Budget should be formulated in last quarter of the fiscal year for the following year and presented to the board of directors by the end of june.

37. Club Treasurer’s quarterly obligations
National Exchange Billing:
Dues: $ per Active, Active-Honorary, and At-Large Members*
2. Convention Fee: $25/club
3. Crime Insurance (based on membership)
4. General Liability Insurance (based on membership)
D&O Insurance (optional)
Special Event–Liquor Liability (optional)
Cyber Liability (optional)
(Excel clubs are billed in October & Collegiate Clubs
are billed semi-annually in October and January)
*See Bylaws for Business , Honorary, Collegiate, and Excel dues

38. District Billing:
Districts bill based on the number of club members reported by National Headquarters as of the last day of the quarter
Each District has it own billing procedures based on the Bylaws of that district.
KEEP YOUR MEMBERSHIP ROSTERS CURRENT AND UPDATED THE WEEK BEFORE THE END OF THE QUARTER

39. Distinguished Treasurer - You Rock!
Requirements:
application to National Headquarters by August 1
File IRS Form 990, 990EZ , or 990-N by November 15
Maintain current accounts with both district and National
Prepare formal annual budget
Maintain separate activities and operating accounts
Completed audit

40. Audits - they are a good thing!
Each year an informal audit or a review is required by the Bylaws The Committee/person(s) performing the audit will need the following: ∙ General ledger ∙ Opening and closing bank statements ∙ Any board minutes where a financial decision was made ∙ List of current officers

41. QuickBooks On-Line Plus
Advantages:
Gives transparency to the club’s finances
Easy-to-use – no accounting background necessary and FREE support
Officers, board of directors, accountants, and anyone the club desires can have access to financial information
Only designated persons can make changes (max of three in addition to account without additional charge)
Makes reports easy!

42. New Clubs national Headquarters:
will send you an IRS Letter of Determination and obtain federal identification number as part of NEC’s group exemption
will obtain an assumed name affidavit from the county in which club resides
Club
Fill out application for tax-exempt status with state’s Comptroller of Public Accounts

43. … New Clubs Determine where you want to bank
Determine who will be signers on accounts; will there be debit cards issued? To whom?
Get copy of minutes from board meeting establishing treasurer, name of bank, and signers on account
Schedule time to meet at bank and complete forms. Remember to take a copy of minutes, Bylaws, IRS Determination Letter, Assumed Name Affidavit, and IRS Employer Identification Number. You will be asked to fill out a W-9 for the bank.

44. Take the online course!
You will receive an to setup a login account shortly after taking office. This is based on the address and officer information that the club secretary entered in the database for the upcoming year

45. “Member Resources” tab
National Website:
NationalExchangeClub.org
“Member Resources” tab
Club Resources
Club Building
Bylaws and Policies
Forms
PR and Marketing
Exchange University
Currents
Exchange Today
and more!

46. Distinguished club treasurer award
application:
Distinguished club treasurer award
Successfully complete the Club Treasurer responsibilities and qualify for the Distinguished Club Treasurer Award.
Keep in mind this is an application based award that you must submit to National Headquarters. (next slide )….
To be completed by club president and returned to National Headquarters by August 1st

47. Distinguished club treasurer award
application:
Distinguished club treasurer award
This can be submitted via mail or ed to Member Services by August 1st --
To be completed by club president and returned to National Headquarters by August 1st

48. For additional information
Contact your district treasurer
Call National Headquarters: