Eastern Area Leadership Forum Money! Money! Money Links Finance

Agenda Presenters Ethelyn S. Bowers, Area Treasurer Valerie Lancaster Beal, Area Financial Secretary

Agenda DUTIES Treasurer & Financial Secretary BUDGET & FINANCES BANK ACCOUNTS ACCOUNTING PRACTICES LIABILITY & BONDING INSURANCE FUNDRAISING IN LINKDOM

Agenda 503c(3) vs. 503c(4) – WHY & SO WHAT? MOVING TOWARD TRANSPARENCY IN THE EASTERN AREA

DUTIES Treasurer Receive monies collected by Financial Sec. Deposit money promptly in all accounts Pay all accounts, approved by chapter (all checks to be co-signed by President) Checks should be documented with a voucher

DUTIES Treasurer Checks should be printed with “Void after 90 days” Reconciles book balances with monthly bank Statements Prepares complete financial report at each chapter meeting

DUTIES Treasurer Presents annual report at May chapter meeting Submits books to internal audit committee with 40 days of April 30 th Engages professional external auditor biennially ; when officers and/or treasurer change

DUTIES Financial Secretary Receives all money from whatever source; provides receipts in triplicate (1 for payee, 1 for treasurer and 1 for Financial Secretary) Reconciles funds to total received, purpose of funds and turns over to treasurer Keeps record of individual member obligations

BUDGET & FINANCES Budget is a “plan of action” Budget should be approved by chapter at least 2 months prior to the end of fiscal year Budget should be presented NO LATER than Feb. 1 st Financial Officers: Treasurer, Financial Secretary, President, VP

BUDGET & FINANCE Finance Committee is appointed by the Chapter president; chaired by the Treasurer and includes the Financial Secretary

ACCOUNTING PRACTICES Fiscal Year (May 1 through April 30) Payment of chapter & National dues must be submitted through local chapter (exception is Affiliate members) Chapter President or designee, shall sign all contracts Monthly financial report reveals complete financial status of chapter

ACCOUNTING PRACTICES Restricted Funds Funds received or solicited for Program Facets Grant in aid contributions Funds derived from public, individuals/corp. by special events, grants or solicitations

ACCOUNTING PRACTICES Restricted Funds Received for “Benefit –The Links Foundation” and/or grants written by chapters and funded by Links Foundation TAX DEDUCTIBLE for contributors Allowable expenditures (up to 10% of net income; cost of delegate to National/Area meeting

ACCOUNTING PRACTICES Unrestricted Funds Chapter dues, assessments for social events, amount permitted from restricted funds (up to 10%) Chapter Assessments – are due & payable prior to leave of absence being granted Financial obligations & service hours must be met prior to National dues being paid

ACCOUNTING PRACTICES Group Exemption Number is 1520 All chapters must file Form 990, 990EZ or 990N regardless of income level Forms submitted to IRS and National HQ

LIABILITY/BONDING Liability Insurance Has been automated – information is online; coverage is mandatory; chapter shall be covered for all activities/events Chapter is assessed $5/member for umbrella liability insurance Chapter is permitted to secure a rider for additional coverage at a reduced rate

BONDING INSURANCE Process has been automated – forms online Chapter officers who handle funds must have bonding insurance; all signatories on chapter checks must be bonded Payment due September 15 th $500 penalty for failure to meet deadline

FUNDRAISING The Links, Incorporated 501c(4) – Exempt from paying Federal Income tax; contributions NOT tax deductible The Links Foundation, Inc 501c(3) – Exempt from paying Federal Income tax; contributions ARE tax deductible Chapter establishes separate account

FUNDRAISING Chapter Fundraiser Establish separate checking account All funds, less expenses, raised from public must be used for charitable purposes Tickets must contain -Contributions to this organization are not tax deductible as charitable contributions for Federal Income tax purposes

FUNDRAISING Fundraising using The Links Foundation 501c(3) tax deduction Ticket must include –For the Benefit of The Links Foundation, Inc. Ticket must state tax deductible portion of price Net balance of funds sent to Foundation with report

501c(3) vs 501c(4) Tax advantages National vs local fundraising

MOVING TOWARD TRANSPARENCY Standardization of accounting Use of technology Skill set of those with fiscal responsibility