1. Best Practices for Clubs and Classes Webinar Presentation October 30, 2012

2. Welcome  Thanks for your service to your club, class and college!  Today’s presenters: Jennifer Evans Casey, Director, Class Activities – Alumni Relations, jennifer.casey@dartmouth.edujennifer.casey@dartmouth.edu Sue Young, Senior Associate Director, Club Affairs – Alumni Relations, Suzanne.W.Young@dartmouth.eduSuzanne.W.Young@dartmouth.edu Hugh O’Reilly ’86, hugh@agincourtgroup.comhugh@agincourtgroup.com Joe Mannes ‘80, joe@mannes.comjoe@mannes.com

3. Topics Covered  Examples  Responsibilities  Best Practices

4.  Fraud Alpha Theta Class and Club examples  Theft (use for personal expenses)  Improper use of funds (overnight loans to personal business)  Failure to file Loss of tax status  Other Single signature example Fraud, Inattention: Not Just Theoretical Issues

5.  Classes File with the College by August 31 Fiscal Year End: June 30 Prepare/distribute an Annual Class Financial Statement What it is: two page report in Excel  Summary headcounts/financials/other  Forms the basis for tax filing  Clubs Aim to deliver at August or September meeting Fiscal year ends June 30 Prepare/distribute Financial Report to Club’s Board or ExecCom Annual Financial Reports

6. Best Practices: Annual Financial Reports  Clubs Does not need formality of a CPA’s financial statements, but should present:  Profit/Loss data by category  Cash balances and any other assets or liabilities Essential to tool for preparing and presenting upcoming year’s Budget If Club files “full” tax returns, align by tax category  Classes Know the due date Review with treasurer

7. Taxes  Due annually, 11/15  Know your form (990-N, EZ or the Full Monty) Depends on gross income, avg. over 3 yrs. Reunion years can push a class up to a longer form, so don’t wait until the last minute to determine!  Bad habit to rely on extensions, but better to file for extension than to miss a deadline  Failure to file for three years? Loss of tax status Difficult to restore

8. Best Practices: Taxes  Know the deadline: 11/15  Confirm filing Get a copy of the filing confirmation (990-N) Get a copy of the statement (990-EZ, etc.)  Concerned about resources? College sends instructions (on website)website Use software/online service Outside filing help available. (For ex.: One CPA in Hanover offers fixed-fee tax service for Classes and Clubs)

9. State Filings  Clubs and Classes that are separate legal entities may have annual State filings also Financial filings – may be state DOR, or another regulator (e.g. Atty. General) Corporate filings with Secretary of State Which officer is responsible varies among clubs/classes

10. Budgets  Prepare an annual Budget Typically Treasurer prepares draft; presents to Board or ExecCom for comments / revisions / adoption  Consider categories rather than specific events/costs as line items  Regularly compare results against budget to improve planning  Note unusual liabilities/payments  Projects/Scholarships/etc.

11. Balance the Books, and Access to Information  Recording income and expenses Income is more than just dues Accurate Tracking by event/project - essential to evaluating outcomes and planning for the next time  Maintain an accurate ledger of all financial transactions Reconcile against bank accounts  Options: paper, Excel, accounting packages (box, online), Quickbase

12. Best Practices: Balancing the Books  Transparency Second signer (not dual signer) on all accounts Make bank statements available to President – many mechanisms available:  Paper copies  Online Banking with shared logon  Cloud storage of documents  Give “Bus List” to President with acct #s, online passwords, PINs, etc. ( Bank, PayPal,…) Share bank reconciliations

13. Interim Reports on Finances  Provide regular updates Verbal In writing  Provide financial statements Income statement Balance sheet Descriptions of assets held

14. Best Practices: Interim Reports on Finances  Periodically report in writing – quarterly or mid-year interim report is preferred. To President and ExecCom To entire club/class  Know your assets Bank accounts? Other holdings? Investment policy statement

15. Transactions: Collecting Revenue and Paying Financial Liabilities  Pay obligations on a timely basis Newsletters Gifts/Projects Scholarship Fund contributions  College closes its books on 6/30 Event costs Other costs  Prompt payment to college, etc. <30 days

16.  Collecting the Cash Timely deposits of Checks  Stale checks (now often 90 days)  Handoffs can cause delays Electronic Payment mechanisms  Many available today  Can be more difficult to track and identify payers Transactions: Collecting Revenue and Paying Liabilities

17. Special Class Topic: Reunions  Significant cash flows  May have separate treasurer  Reunions are class business Must be reflected in class finances Must be included in class tax filings

18. Best Practices: Special Class Topic: Reunions  Prepare, manage and share budget  Second signatures on reunion accounts  Regular treasurer should have access to financial information  Transparency on reunion expenses  Timely final reporting required for tax filings

19. And in Conclusion...

20. Be Informed  Responsibility to your club/class is fundamental. Ask yourself: “Do we know what and where all our assets are?” “If we had to do a transition today—for any reason—are we prepared?”  Know your: Primary Tasks Key Deadlines Master Checklist provided