1. Finances / Budgeting Convention 2009

2.  Filing requirements changing annually until the 2010 tax year (Filed in 2011 and later)  Filing due on the 15 th day of the 5 th month after the end of your organization’s accounting period  For more information, visit www.irs.gov or speak to a tax accountant IRS – FORM 990 FILING

3. 2008 Tax Year (Filed in 2009 or 2010)Form to File Gross receipts normally ≤ $25,000990-N Gross receipts > $25,000 and < $1 million, and total assets < $2.5 million 990-EZ or 990 Gross receipts ≥ $1 million or total assets ≥ $2.5 million990 2009 Tax Year (Filed in 2010 or 2011)Form to File Gross receipts normally ≤ $25,000990-N Gross receipts > $25,000 and < $500,000, and total assets < $1.25 million 990-EZ or 990 Gross receipts ≥ $500,000 or total assets ≥ $1.25 million990 Which 990 Form to file?

4. Be sure to file!!  Failure to file for three consecutive years = LOSS OF TAX EXEMPT STATUS  IRS threatening for ALL of Pi Lam to lose tax status if chapters fail to file  IRS: $20 penalty PER DAY for each day failure to file continues (same penalty if you fail to give correct and complete information)  Committee being formed to help ensure compliance

5.  Use software – Quicken / Microsoft Money  Monitor actuals vs budget – adjust as needed (individual budget “swapping”)  Hold chairs to budgeted amounts – any fluctuations need Exec approval General Tips for the KOE

6.  Checks over $XX should require two signatures (Rex and KOE)  Rex and KOE to have bank access (online, signature authority, etc).  Alumni chapter/faculty advisor to have “review” authority (possibly signature authority as well) Tips continued…

7. Tips Continued…  Collect EARLY – more money to start the semester  Include note with payments to IHQ detailing what payment covers  **Bank Reconciliations / Do not use ATM balance or “current” online balance to determine amount of cash available**

8. Payments to IHQ  Payments to IHQ Consist of:  Per Caps ($x per man)  Insurance ($y per man)  Convention Assessment ($z per chapter)  Colony payment structure slightly different  if you are a Colony and you have questions, please ask me or Gary

9.  Went into effect with the 07-08 school year. A few changes this year, but bulk remains the same  For FY09 – a good number of chapters were placed on probation and/or suspension based on policy. We WILL be enforcing again this year Current IHQ Collection Policy

10.  There will be four payment options available to each Chapter/Colony: 1.Full YEAR payment by September 15 2.Full SEMESTER payment by September 15 (February 15) 3.Quarterly Payments: due September 15, November 15, February 15, and April 1 4.4 payments per semester: due September 15, October 15, November 15, December 15 (February 1*, March 1, April 1, May 1) Collection Policy Continued…

11.  Pay entire year by September 15  8% discount  Pay semester in full by first payment due date  5% discount  Two equal payments during semester  No discount / no premium  4 Monthly payments during semester  2% premium  Chapter Dues Agreement form must be submitted to IHQ  First payment spring semester due sooner than other options Pros/Cons of Payment Options

12.  Payment not received within 5 days of due date: ◦ Probation with SOCIAL SUSPENSION ◦ School and alumni association notified of social suspension ◦ Probation lifted if payment received within 30 days of due date  Payment not received within 30 days of due date: ◦ Chapter placed on FINANCIAL SUSPENSION ◦ School and alumni association notified ◦ Remain on Financial Suspension until payment made or payment plan presented to and agreed upon by IEC Treasurer and Executive Director Disciplinary Actions

13. What is Financial Suspension?  Financial Suspension Proposed  Suspension of Charter - Pursuant to Article V Government, Section 5 (c) of the Pi Lambda Phi Constitution, the International Executive Council may suspend the Charter of any Chartered group.  Financial Suspension of Charter means that the Chapter must take all actions necessary to: –Remain a member of the respective University/College, IFC and/or similar governing bodies or constituency –The Chapter will not hold itself out as a Chapter of Pi Lambda Phi Fraternity. This includes, but is not limited to the following: Prohibition of participation in events where any individual(s) and/or group(s) would associate a chapter of Pi Lambda Phi Fraternity being associated with; The Chapter may not orally, in writing, or by symbol represent itself as a Chapter of Pi Lambda Phi Fraternity in any campus activities. Campus activities include, but are not limited to the following: –Greek Week/Greek Games –Intramural sports/events; and/or –Social events

14. Financial Suspension Continued  Recruitment Recruitment will not be permitted unless approval is obtained from the Disciplinary Committee Each group under Financial Suspension must submit a written proposal stating how continuing recruitment will help to meet their financial obligations  New Member Education New Member Education will not be permitted unless approval is obtained From the Disciplinary Committee Each suspended group must submit a written proposal stating how continuing the new member education period will help to meet their financial obligations –Approval will only be given if new member fees are paid as detailed in the new member and initiation policy

15.  Chapters on Financial Suspension for two semesters will be given notice of charter revocation  Colonies on Financial Suspension for two semesters will be given notice of termination of colony recognition Discipline - continued

16.  New member fees to be paid within two weeks of pinning. New member fees remaining at $55 per man. New Member cards to be sent with payment  Request for Permission to Initiate form and appropriate fees are due AT LEAST TWO WEEKS BEFORE initiation. Initiation fees remaining at $175 per man  Any “rush” request on pin shipment will be at chapter’s expense  Beginning with Fall 2009, any Chapter that fails to report and/or pay for New Member and/or initiation fees in a timely manner will be placed on probation with social suspension until payment has been made.  Penalty for late reporting/payment of initiation fees: $25 per man per semester New Member Fees / Initiation

17. New Member Fees / Initiation Continued  New member program may NOT begin until previous periods are paid, unless given permission by Executive Director

18. Roster Adjustments  For 2009-2010 school year, roster adjustments due to IHQ by September 4, 2009. Once verified through the school, these will dictate billings  Email current Officer contact info to Laura NOW  No other adjustments during the year  Equal billings throughout year

19.  Contracts  Brother agreement  Brother agreement / payment plan Only if legitimately “needed” Brother must present reason why it is needed to Exec Board  Don’t be afraid to ENFORCE contracts Collections

20.  Unable to attend New Member events  Unable to attend initiation  Unable to attend various brother nights/activities  Unable to participate in chapter athletics  Added “work shifts” at parties or functions  Added DD duty  Loss of voting privilege at meetings “Punishments” for Non-Payment

21.  Hit ‘em where it hurts the most. The previous list contained plenty of incentive to pay dues. But how about SOCIAL PROBATION? Who wants to miss out on social events? More “Punishments”

22.  Can’t attend closed parties  Can’t attend sorority socials  Can’t participate in sorority events around campus  Can’t attend “band parties”  Extra “sober crew” assignments at “regular” parties Social Probation

23.  If nothing else works and they are not living up to their commitment: Small Claims Court  Low costs (if any)  Simple procedures  If you have the contract and signatures, easy to prevail Final Attempts

24. Omega Financial  Online chapter financial services including billing, statements, budget tracking, various payment options with direct transfer to chapter accounts as well as to IHQ, etc  System accepts credit cards, debit cards, and online checks  7 chapters have been actively using Omega – some beginning as early as 1998  We have 7-8 (or more by now) chapters/colonies planning to start using Omega during the 2009-2010 school year

25. Omega continued… OO mega will help increase collection percentages in your chapter. They also offer plenty of other services, reporting options, etc. OO mega may be in use by all chapters within 1-3 years FF or more information, please talk to David Ly or Gary Sanders and check out www.omegafi.com

26.  Examples from audience on how they handle late payments and payment plans currently Chapter Examples

27.  How to budget  Master budget (spreadsheet review)  Sub-budgets by committee to feed master budget  Budget “backwards”  TIP: be conservative…overestimate costs, underestimate any variable income  Be sure to include an “allowance” Budgeting

28.  The following items will be available on the Pi Lam website in the members’ section:  Budget Template (Excel)  Collection Policy  IHQ Dues Payment Agreement – Fall  IHQ Dues Payment Agreement – Spring  Chapter Brotherhood Agreement Template  Chapter Brotherhood Payment Plan Agreement Template PI LAM WEBSITE

29. How to reach me…  Marc Weppner - IEC Treasurer  treasurer@pilambdaphi.org  marc.weppner@pilambdaphi.org  Cell: 703-400-4670

30. Q&A