1. 2015 – Washington, DC by Donna Garlock, CST Advisory Team
TREASURERS’ WORKSHOP
2015 – Washington, DC by
Donna Garlock, CST Advisory Team

2. Notes This workshop is being recorded for use as a tutorial
It will be included in the complete conference CD and DVD sets
It will also be available for purchase as a separate item
This PowerPoint presentation (without audio or video) will be posted on the Magnificat Intranet
Index cards are provided to write your contact information and questions if they were not answered as part of the workshop presentation. After the conference, answers will be posted on the Magnificat Intranet in a “Frequently Asked Questions” section.

3. REPORTING

4. REPORTING ® Chapter is a legal entity
YOU are responsible for being a Good Steward
Why is keeping the books so important…?
To learn from the past to help manage the future
To help your chapter keep money in the bank for the future
To help your chapter plan for dues, donations, conference fees, etc.
To meet legal and tax requirements
Keeping ALL chapter documents in chapter files
Critical
For past & future reference
To be handed from Treasurer to Treasurer

5. Annual reporting ® July 31 yearend for all chapters
Reports To CST ---- Due by August 31st each year
Detailed Chapter Financial Report (DCFR) and
Dues Report
Chapter dues and your chapter members’ personal donations to the CST are very important
One major reason –To help your sister chapters in formation
By their dues, established chapters helped your chapter through the formation process

6. Annual reporting ® DCFR - Detailed Chapter Financial Report
Updated each year – Try to use latest version, sent out each spring
Two versions -US and International
Use the Excel file if possible, allows CST to summarize more easily
If there is a line description in the Excel DCFR and there is no room, please add a note to “See attached” and give details in an attachment
DCFR is used for your tax return if a long form filing is needed

7. Keeping your Books – Method
Manual vs. computer
Fashion your bookkeeping after the DCFR lines you are reporting – will be easier to prepare your DCFR at year end
Quicken, Quickbooks, paper ledger
If you want to use Quicken or QuickBooks, let me know. I might be able to get your chapter a good price

8. Keeping your Books – Method
Keeping your Books – Method
Reconciling bank statements – very important!
Online banking can be very helpful with this. You can set up online banking through your bank
Expenses for reimbursement to your team members should be turned in to you very soon after your meal
Can use vouchers for approval & coding, if you like, but not necessary. There are samples in the Treasurer’s packet

9. Audit Committee Reports
Audit Committee Reports
Annually, these are required financial reports to be reviewed by members of the chapter’s Advisory Team
They are to sign their approval in a specific format
This approval is to be put in the chapter’s meeting minutes each year
The DCFR can be used for the financial reports
More information in the Handbook

10. Budgets
Wise to prepare one each year with estimates of income & expenses
Use DCFR as a format

11. TAXES

12. Tax Exempt status ® Chapters are LEGAL CORPORATIONS
Chapters MUST file tax returns every year!

13. Tax Exempt status
Background - Catholic Church is a Non Profit legal entity
Under the IRS, since 1946, the Catholic Church has had what is called a “Group Exemption”
Held in the name of the US Conference of Catholic Bishops, the “USCCB”

14. Tax Exempt status
For a Magnificat chapter to be included in the Group Exemption, they need their local Bishop’s permission.
Permission is documented by including the chapter in the national Official Catholic Directory, the “OCD”
Each year, the USCCB sends the OCD to the IRS to show which organizations are included under the Catholic Church’s Group Exemption

15. Tax Exempt status
If a chapter is not included in the OCD, it must file for Non Profit Status separately as a 501c3
Very costly and difficult
If not under the Church’s group exemption … or exempt on its own, chapter is technically a “for profit” corporation
Must PAY taxes
Cannot accept tax exempt donations

16. Filing annual tax returns with the IRS
Filing annual tax returns with the IRS
As Non-Profit, Form 990 is required annually
There are versions of Form 990…small, medium and large
The Form 990 can be filed any time starting July 31
Recommend filing the Form 990 when you prepare your DCFR which should be before August 31

17. Filing annual tax returns with the IRS
Filing annual tax returns with the IRS
Form 990-N e-postcard – online & simple - if revenue generally under $50,000 for the last 3 years
When you file the Form 990-N e-postcard, you will receive a confirmation . Please FORWARD that to immediately
Form 990 (all versions) DUE no later than December 15

18. Filing annual tax returns with the IRS
Filing annual tax returns with the IRS
IF your chapter cannot file the online Form 990-N e- postcard for any reason, please notify me ASAP
The Form 990-N website will say to “Call the IRS”
PLEASE DO NOT CALL THE IRS. The agents will not be familiar with the USCCB group exemption and the OCD
Please contact me ASAP
I will prepare the Form 990-EZ for you to mail
The Form 990-EZ needs to be filed (mailed) by December 15th
We can extend until March 15th if absolutely necessary

19. IRS Letters, Inquiries ®
Please forward a copy to me ASAP. I will help draft an appropriate reply
DO NOT DELAY – The IRS expects a reply with 30 days

20. State Taxes
Income Taxes - Applying for Non-Profit status and annual returns – differs by State
Will need to contact your Secretary of State for information & instructions
Very important – you may lose your Corporation if not doing State filings timely & correctly
California annual filings are required

21. Sales Tax Exemption for Purchases
Sales Tax Exemption for Purchases
Varies widely by State
Your State’s Comptroller of Public Accounts will be very helpful

22. State Taxes ® Proof of Non Profit Status for State if needed
Will need current IRS Letter of Determination from the USCCB website AND,
Page from current OCD with your chapter listing

23. Form 1099’s for Payments Made
Form 1099’s for Payments Made
Due January 31st each year to anyone paid over $600, ie AV, music, speakers & priests
Copies to IRS on specific forms due by Feb 28th
Instructions and blank forms on the IRS website

24. Charitable Donation Letters
  Charitable Donation Letters
Due out by Jan 31st of calendar year for donations totaling over $250
Responsibility is on donor not chapter
However, as a nice “thank you” to bigger donors, we would suggest sending them

25. REFERENCE

26. Service Team Treasurer’s Module
Service Team Treasurers can access most information needed through the Magnificat Intranet. Available information includes:
Finance Package : Explains the CST Profit & Loss Statement, Budgets, 5 Star Campaign, and Tax Filing
Several Treasurer’s Report Forms are available on the Intranet under the “Magnificat Forms” category
Magnificat Handbook – See below “Summary for Treasurer’s”
Finance Garden Tools
Revenue Enhancing
Credit Card Selection
Cost Reducing
Printing/Office Supplies: Office Depot Corporate Contract
Travel – Concur
Hotel – Cvent
Mailing – Non profit stamp
Software – Microsoft Software

27. Central Service Team Fiscal Year Finance Reports
Plus Instructions for Tax Filing
Screen Shot of Intranet Menu
Magnificat Forms: Treasurer’s Report Forms
Screen Shot of Intranet Menu

28. Magnificat Handbook: Summary for Treasurer’s
The Service Team Treasurer should read the Magnificat Handbook in its entirety paying particular attention to the following sections
Constitution - All of the Constitution particularly Article V. D.
Guidelines - particularly sections XI License Renewals and XIII. Financial Responsibility and Accountability
Meal - All of the Meal document
Appendix particularly sections
A-5 Annual Dues
A-7 CST Finance Ministry
A-45 Finance Officer Responsibilities
A-47 Fundraising Activities
A-50 Ideas for Donation Appeal
A-61 Important Information about Filing Federal Income Tax
A Policy Regarding Salable Items Bearing Registrered Trademark
A Some Points Regarding Use of Funds by Non-Profit Organizations
Forms
F-1 Income Voucher
F-2 Disbursement Voucher
F-3 Budget/Quarterly Report
F-4 Detailed Chapter Financial Report
F-5 Magnificat Meal Report

29. Magnificat Handbook: Guidelines

30. Magnificat Handbook: Appendix

31. Magnificat Handbook: Appendix

32. Magnificat Garden Tools for Treasurers
Screen Shot of Intranet Menu

33. CONTACT INFORMATION
Donna Garlock
CST Advisory Team
700 Castle Creek Drive
Coppell, TX