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Session 1: Club Treasurer Role and Responsibilities.

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1 Session 1: Club Treasurer Role and Responsibilities

2 Learning Objectives Understand the role of the club treasurer. Identify ways to work with other club leaders. District Assembly | 2

3 Responsibilities Record incoming/outgoing funds. Collect and submit dues and fees. Report to your club board. Help members submit contributions. Adhere to the budget. Establish financial controls. Comply with local laws. District Assembly | 3

4 Article 12 of the Recommended Rotary Club By- Laws Article 10 of the Standard Rotary Club Constitution Club Budgets District and RI Dues Contributions to The Rotary Foundation Rotary Clubs and the I.R.S. Club Treasurer

5 Your Duties as Club Treasurer (Club Secretary’s Manual) Manage all club funds and maintain accounts of them Receive and disburse funds … including dues Prepare regular reports on the club’s financial condition (once per is year is required but more frequent is better!) Assist in preparing the club’s budget And ….. Perform other fiscal duties “normally” associated with the office of Treasurer … Prepare and mail statements of club dues Follow-up statements and/or phone calls for slow payers Report significant delinquencies to the board

6 Article 12 – Finances Section 1 – Prior to the beginning of each fiscal year, the board shall prepare a budget of estimated income and expenditures for the year, which shall stand as the limit of expenditures for these purposes, unless otherwise ordered by action of the board. The budget shall be broken into two separate parts: one in respect of club operations and one in respect of charitable/service operations. Section 2 – The treasurer shall deposit all club funds in a bank, named by the board. The club funds shall be divided into two separate parts: club operations and service projects. Section 3 – All bills shall be paid by the treasurer or other authorized officer only when approved by two other officers or directors. Recommended Rotary Club By-Laws

7 Article 12 – Finances (Cont’d) Section 4 – A thorough review of all financial transactions by a qualified person shall be made once each year. Section 5 – Officers having charge or control of club funds shall give bond as required by the board for the safe custody of the funds of the club, cost of bond to be borne by the club. Section 6 – The fiscal year of this club shall extend from 1 July to 30 June, and for the collection of members' dues shall be divided into two (2) semiannual periods extending from 1 July to 31 December, and from 1 January to 30 June. The payment of per capita dues and RI official magazine subscriptions shall be made on 1 July and 1 January of each year on the basis of the membership of the club on those dates. Recommended Rotary Club By-Laws

8 Article 11 – Fees and Dues Every member shall pay an admission fee and annual dues as prescribed in the bylaws, except that any transferring or former member of another club who is accepted into membership of this club pursuant to article 7, section 4 (Transferring or Former Rotarians) shall not be required to pay a second admission fee. Standard Rotary Club Constitution

9 Managing Funds Establish separate accounts for operational and charitable funds. Document incoming and outgoing funds. Consult a local expert to review club finances annually and determine any tax or other liabilities. Require board approval for expenses over a set amount. Appoint a finance committee. Require two signatures for disbursing funds. Deposit funds in a bank selected by the club’s board. District Assembly | 9

10 Resources District Assembly | 10

11 Learning Objectives Understand the role of the club treasurer. Identify ways to work with other club leaders. District Assembly | 11

12 Session 3: District and RI Dues

13 District Dues $25 per capita based on 1 July SAR Sent to District Treasurer along with form $5 goes to conference of clubs District Assembly | 13

14 Annual Per Capita Dues To Rotary International

15 Reminder notices to clubs with unpaid financial obligations in excess of $250 will be sent 90 days from the due date. Termination of clubs with unpaid financial obligations in excess of $250 will occur 180 days from the due date. Any terminated club that has fully paid its financial obligations, which will include a $10 per member reinstatement fee, within 270 days from the due date will be reinstated. Unpaid financial obligations of $50 or less will be written off after 270 days from the due date. Clubs in Arrears

16 Rotary Clubs and the I.R.S. Rotary Clubs come under Section 501(c)4 of the Internal Revenue Code – RI’s Group Exemption Number (GEN) is 0573 Every Rotary Club is required to have its own Employer Identification Number (EIN) – this nine-digit number is really a tax ID number and has nothing to do with whether there are employees. Donations to a Rotary Club are NOT tax deductible as a charitable contribution. However, for some Rotarians, membership dues may be deductible as a business expense. You may be filing obligations in regard to prizes or awards …including scholarships… presented to individuals by your club.

17 Rotary Clubs and the I.R.S. (Cont’d) Rotary Clubs do not have to pay federal income tax except on unrelated business taxable income (UBTI). – Clubs with gross income under $25,000 are required to file an annual information on Form 990-N on or before November 15 – Form 990N is an electronic e-Postcard report. Failure to meet the annual filing requirement for three consecutive years will result in revocation of the tax-exempt status of the club. – Rotary Clubs having an annual gross income of $25,000 or more are required to file an annual information on Form 990 on or before November 15. Failure to file may subject the club to a fine for each day late.

18 Rotary Clubs and the I.R.S. (Cont’d) Unrelated Taxable Business Income (UBTI): – Clubs with UBTI are required to file Form 990-T on or before November 15. – UBTI is defined as net income derived from activities regularly carried on by the club that are NOT substantially related to the club’s tax exempt purpose. – UBTI is subject to tax to the extent it is NOT specifically set aside for the club’s tax exempt purpose. – Includes: Advertising and Sponsorships for bulletins, newsletters, websites and other similar items (i.e. placemats). – Excludes: Dividends and Interest accrued on the club’s savings/investments.

19 Learning Objective Identify challenges and solve problems that your club may face. District Assembly | 19


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