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Accounting 101 Patrick Scholl 2011 Alumni Leadership Connections June 11, 2011.

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Presentation on theme: "Accounting 101 Patrick Scholl 2011 Alumni Leadership Connections June 11, 2011."— Presentation transcript:

1 Accounting 101 Patrick Scholl 2011 Alumni Leadership Connections June 11, 2011

2 Course Objective Provide answers to the list of most frequently-asked financial questions and Test to see if you are Smarter than a 5 th Grader

3 List of Questions 1. What is an EIN and how do I obtain one? 2. How does my organization become recognized as a non-profit? 3. What are the benefits of 501(c)(3)? 4. What are the requirements of 501(c)(3)? 5. Is my organization exempt from paying sales tax?

4 List of Questions 6. Can my organization conduct games of chance to raise money? 7. How do I obtain a certificate of insurance for an upcoming event? 8. What insurance coverage is provided?

5 1. What is an EIN and how do I obtain one?  Employee Identification Number  Nine-digit number assigned to entities for tax filing and reporting purposes  Necessary to open an account at a bank  Obtained by filing Form SS-4 with IRS  Download form at Click on Employer ID Numbers

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7 2. How does my organization become recognized as a non-profit?  Must have exempt purpose  Apply for exemption under 501(c)(3) of the Internal Revenue Code  Chapter and AIGs can sent written request to be included under the group exemption of the Penn State Alumni Association.

8 Send written request including EIN Name and Address of Principal Officer to: Patrick Scholl Director of Business and Finance Penn State Alumni Association Hintz Family Alumni Center University Park, PA

9 3. What are the benefits of 501(c)(3)?  Most revenue not subject to Federal Income Tax  Revenue not subject to State Income Tax  Able to offer tax deduction to donors  May be eligible for special postage rates

10 4. What are the requirements of 501(c)(3)?  Must engage primarily in activities that accomplish exempt purpose  No earnings may inure to a private individual  Certain revenue is taxable – first $1,000 is exempt  Fiscal year must end on June 30  Requirements for donations  Filing requirements for tax forms

11 4a. Requirement for Charitable Contributions  Written disclosure required for donation of $250 or more  Name  Date  If cash - Amount of contribution. If non-cash - description of contribution.  Description and estimated value of any goods or services organization provided to donor must be included.

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13 4b. Filing requirements for 501(c)(3)?  If Total Revenue is $50,000 or less – File Form 990-N  If Total Revenue is greater than $50,000 but less than $200,000; and Total Assets are less than $500,000 – File Form 990-EZ  Otherwise – File Form 990  Due by November 15 following close of fiscal year

14 5. Is my organization exempt from paying sales tax?  Organizations based in Pennsylvania are NOT exempt from paying Pennsylvania sales tax  Some states do provide exemptions – check with your state’s department of revenue

15 6. Can my organization conduct games of chance to raise money?  Each state’s requirement differ – check with your own state’s department of revenue  Pennsylvania permits charitable organizations to conduct certain Small Games of Chance of games such as Daily Drawings; Weekly Drawings; and Raffles

16 6. Can my organization conduct games of chance to raise money? (continued)  In Pennsylvania - Contact your County Treasurer for a license to conduct small games of chance  Persons under 18 years of age are not permitted to operate or play any games of chance  Individuals may not receive compensation for conducting any games of chance  Other restrictions – amount of prizes and total prizes awarded in a year

17 7. How do I obtain a certificate of insurance for an upcoming event? Send request to your Regional Director or Cris Boob Office of Risk Management

18 8. What insurance coverage is provided?  $1 Million General Liability  $1 Million Auto  $1 Million excess for each occurrence  $5 Million aggregate  Not Directors and Officers ¥¥

19 Are You Smarter than a 5 th Grader? International Currency Symbols ¥

20 Are You Smarter than a 5 th Grader? What Currency symbol is $ ¥

21 Are You Smarter than a 5 th Grader? What Currency symbol is $ American Dollar ¥

22 Are You Smarter than a 5 th Grader? What Currency symbol is €

23 Are You Smarter than a 5 th Grader? What Currency symbol is € Euro

24 Are You Smarter than a 5 th Grader? What Currency symbol is ¥

25 Are You Smarter than a 5 th Grader? What Currency symbol is ¥ Japan - Yen

26 Are You Smarter than a 5 th Grader? What Currency symbol is CHF

27 Are You Smarter than a 5 th Grader? What Currency symbol is CHF Switzerland - Franc

28 Questions? Patrick Scholl Director of Business and Finance Penn State Alumni Association Hintz Family Alumni Center University Park, PA


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