1. Business Matters Jerry Sigler & Brenda Herman June 2, 2007

2.  Club Operations  Articles of Association and Bylaws  Tax-exempt Status  Insurance Considerations  Sales Tax Exemptions  Raffles  Sponsorships  Logos

3. Club Operations  Operating Funds  Used to cover communications, events and other activities that engage alumni  Should be held in separate checking account – never co-mingled with an officer’s individual funds  Consider requiring two signors for larger amounts  Scholarship Funds  Generally held at U-M – to maximize earnings and minimize risk  Should not use AAUM annual funding to club for scholarships. Club funding is to underwrite alumni engagement activities

4. Club Operations  Reporting  Expectation is that club board meets regularly, i.e., a minimum of four meetings per year  Annual budget approved by board  Treasurer’s report (in writing) at every meeting  Minutes prepared for every meeting

5. Articles of Association and Bylaws  Articles of Association – the instrument under which the club is organized  Bylaws – the regulations that provide the basic rules for the conduct of the club’s business and affairs

6. Why have bylaws?  Conveys to volunteers what their responsibilities are and the length of their terms  Legitimizes that volunteers are working in an official capacity for the club  Provides clubs with a road map for conducting business

7. Model Articles of Association and Bylaws  How we developed them  Used existing club bylaws  Input from Clubs Council  Input from Regional Relations staff

8. Where do we start?  Form a committee to review the model articles of association and bylaws and prepare a draft document  Clubs that have a separate 501c3 status should have them reviewed by someone knowledgeable about their state’s laws, rules and regulations governing non-profit organizations  Consult with AAUM staff  Submit proposed articles and bylaws to the club’s board for a vote of approval  Review on a regular basis and amend as necessary

9. Tax-exempt Status  Recognized clubs benefit from AAUM’s tax- exempt status, but are not themselves 501(c)(3) – cannot separately accept tax deductible contributions  Discourage clubs from applying for separate tax- exempt status (some have been turned down; if approved, record-keeping and reporting is onerous and some have lost exempt status due to failure to submit reports)  Cannot participate in or contribute to political campaign activities or attempt to influence the outcome of an election

10. Insurance Considerations-Events  U-M’s insurance extends to official activities of AAUM’s recognized clubs  Events requiring “proof of insurance” – contact Regional Relations staff, allow sufficient time for U-M Risk Management to review contract  Co-sponsored events – depends on documented level of U-M club’s involvement  Get participants to sign Liability Waiver for strenuous or risky activities

11. Insurance Considerations-Individuals  Coverage for club officers and directors, while acting within the scope of their duties (bylaws should define officer’s roles)  Alumni volunteers are covered—but only to extent it is clear they are acting within the scope of their duties, so board minutes or other documents should define expectations  Does not cover losses from bank accounts not controlled by U-M (e.g., club checking accounts or separate scholarship accounts)

12. Sales Tax Exemption  Sales tax exemptions varies from state to state  Many (like Michigan) accept proof of Association’s Federal tax-exempt status…but others (like California, Florida and New York) do not  Do not assume – verify with a local expert

13. Raffles  Persons purchasing a raffle ticket must not be led to believe that the cost is tax- deductible. To the contrary, the purchaser has received something of value in return-- the opportunity to win a prize (regardless of whether he/she actually wins.) Thus, the cost of the ticket is not tax-deductible.  Postal regulations prohibit the sale and delivery of raffle tickets via US Mail.  State of Michigan requires a license for each raffle, there are specific requirements and the state is very strict about compliance

14. Raffles continued  Clubs must maintain detailed financial records of all activity and submit a financial report at the end of the raffle.  An unauthorized or improperly administered raffle could affect the ability of other U of M clubs (or even the Alumni Association) to obtain a license in the future, so please contact the Alumni Association prior to preparing to conduct a raffle.  Outside of Michigan—please a consult with local expert

15. Sponsorship  Specify in writing what the benefits are to the sponsor, i.e., mention on club’s website, an information table at the event, an opportunity to give a commercial pitch at the event, etc.  Specify in writing what the costs are to the sponsor  Cannot give sponsors alumni contact information

16. Sponsorship continued  Prohibited from securing sponsorships from the following companies that have exclusive partnerships with the Alumni Association  Bank/financial institutions (currently La Salle Bank)  Credit card/affinity card (Bank of America)  Insurance (Liberty Mutual, American Insurance Administrators)  Moving/relocation company (Stevens Worldwide)  Check with Dave Schuler, AAUM Advertising and Sponsorship Manager, at 734.763.9754

17. Use of UM and AAUM logos  Clubs can use the Block M and U-M seal, logo and name on their Web sites, in listserv messages and on club fliers  Printing of these items on merchandise for sale or distribution is strictly prohibited  If you have questions or would like additional information, visit the University Identity Guidelines Web site at http://www.logos.umich.edu/about/quickref.html

18. Use of UM and AAUM logos continued  Alumni Association logos and images are available on the Club Leader Web site at http://umclubs.com/clubleaders/index.php?p age=club-graphics http://umclubs.com/clubleaders/index.php?p age=club-graphics These cannot be used on club merchandise, but can be used on club business cards, event programs, event signage, club Web site and on club listserv