1. Treasurer’s Tools Session 2 Overview Session 2 Budgets Financial Reporting 1

2. Session 3- Added Session Scheduled for May 16 th Will cover the Permanent File, Records Retention and Duties of Treasurer that we did not get to in Session 1 Call will be Chapter size- please look for your invitation early next week 2

3. Acknowledgements Donors appreciate acknowledgements IRS only requires if donation is $250 or more Acknowledgement can be a letter, postcard or email On acknowledgement list donor as shown on check- can show otherwise on reports 3

4. Required Information Donor’s name The amount of money or description of item A statement whether any goods or services were provided in return for the gift A good faith estimate of the value of the goods or services provided 4

5. Non-cash Contributions If you are keeping books you probably should be recording your non-cash contributions if your annual income is over $50,000. You estimate the value of the donated diapers and record it as an Layette Expense $XXX Contribution (In Kind) $XXX 5

6. Why would we do this? If you receive significant donations of items you will be collecting meaningful information by booking the donations 6

7. Invitations If the event costs $75 or more the IRS has rules Must provide a statement indicating what part of the ticket price is deductible Only portion over value received is deductible Ticket $75 minus $25 dinner = $50 donation Statement can either be on invitation or send something when payment is received 7

8. Sales Tax Christ Child and its Chapters are recognized as nonprofit 501(c)3 organizations that are not required to pay federal income tax. Our 501(c)3 status has nothing to do with paying sales tax. Sales tax is collected at the state and local level. Each taxing authority has different rules so you will need to check with them but here are some questions to ask. 8

9. Raffles Be Careful!! Learn your State and local laws. Purchase of raffle tickets is not deductible – do not give a receipt Never mail raffle tickets Raffle winnings are taxable events Raffles will have reporting requirements 9

10. Audit Anyone? Compilation Most basic level of service provided with respect to financial statements Another set of eyes, but no assurances given as to accuracy of the financial statements or adequacy of internal controls Least expensive option Review Limited assurance there are no material changes that need to be made to the financial statements No review of internal controls More costly than a Compilation, but less than an Audit 10

11. Audit Anyone? Audit High level of assurance that financial statements are properly stated Auditor obtains understanding of internal controls and assesses fraud risk Often cost prohibitive and unnecessary if not required - likely to cost $10,000+ Benefits Donor/Community Confidence Some Protection Against Fraud 11

12. IRS Form 990 Every Chapter must file an IRS Form 990 annually (unless they know their Diocese has included them as an integrated auxiliary- unlikely) As Treasurer you should have a file of all the 990s ever filed (at least know where they are) 12

13. Which 990? There are 3 versions of the 990 Form 990-N e Postcard is used if your gross receipts are under $50,000 and your assets are under $500,000. Form 990-EZ is used if your gross receipts are between $50,000 and $200,000 and your assets are under $500,000. Form 990 is used if your gross receipts are over $200,000 or your assets are equal to or over $500,000. 13

14. Which 990- the sequel The prior page shows the Federal requirements but some states require Form 990 at dollar levels related to your fundraising so please check with your state too. 14