1. Finances / Collections Convention 2011 Philadelphia, PA

2. THANK YOU! FY11: overall, a fantastic year financially Please continue the efforts into FY12 and beyond Until we reach 100% - always room to improve

3.  Filing due on the 15 th day of the 5 th month after the end of your organization’s accounting period  For more information, visit www.irs.gov/eo or speak to a tax accountant  If needed, ask alumni for advice – chances are you have a CPA that would be willing to help IRS – FORM 990 FILING

4. 2010 Tax Year and later (Filed in 2011 and later)Form to File Gross receipts normally ≤ $50,000990-N Gross receipts < $200,000, and total assets < $500,000 990-EZ or 990 Gross receipts ≥ $200,000 or total assets ≥ $500,000990 Which 990 Form to file?

5. Be sure to file!!  Failure to file for three consecutive years = LOSS OF TAX EXEMPT STATUS This happened to SIX chapters so far this summer.  IRS threatening for ALL of Pi Lam to lose tax status if chapters fail to file  IRS: $20 penalty PER DAY for each day failure to file continues (same penalty if you fail to give correct and complete information)  Committee has been formed to help ensure compliance (Brandon Taylor, Chris Rakunas, Pat Daley)

6.  Use software – Quicken / Microsoft Money  Monitor actuals vs budget – adjust as needed (individual budget “swapping”)  Hold chairs to budgeted amounts – any fluctuations need Exec approval General Tips for the KOE

7.  Rex and KOE to have bank access (online, signature authority, etc).  Checks over $XX should require two signatures (Rex and KOE)  Alumni chapter/faculty advisor to have “review” authority (possibly signature authority as well) Tips continued…

8. Tips Continued…  Collect EARLY – more money to start the semester  **Bank Reconciliations / Do not use ATM balance or “current” online balance to determine amount of cash available**  Include note with payments to IHQ detailing what payment covers

9. Payments to IHQ  Payments to IHQ Consist of:  Per Caps ($325 per man)  Insurance ($85 per man)  Convention Assessment ($700 per chapter/colony)  Colony payment structure slightly different  if you are a Colony and you have questions, please ask me or Ian

10.  New policy in effect beginning with Fall 2010.  For FY11 – a good number of chapters were placed on probation and/or suspension based on policy. We WILL be enforcing again this year Current IHQ Collection Policy

11.  There will be three payment options available to each Chapter/Colony: 1.Full YEAR payment by September 30 2.Full SEMESTER payment by September 30 (February 15) 3.Two payments in the Fall (Sept 30 & Nov 15) and one payment in the spring (Feb 15) Collection Policy Continued…

12.  Payments consist of the following:  Full year: 100% per caps/insurance, Convention assessment  Fall full semester payment: 60% of annual per caps/insurance plus 100% of Convention assessment  Two Fall default payments: each one will be 30% of annual per caps/insurance and 50% of Convention assessment  Spring full semester payment: 40% of annual per caps/insurance  Spring default payment: 40% annual per caps/insurance Collection Policy Continued…

13.  Pay entire year by September 30  8% discount  Pay semester in full by respective semesterly due date  5% discount  Must do this BOTH semesters to receive Spring discount  Two Fall payments / One Spring payment  Default payment option  No discount / no premium Pros/Cons of Payment Options

14. NOTE: you will only receive the 5% discount on the full Spring semester payment if you paid the Fall semester in full by September 30. As you can see, the Spring full semester payment and the Spring default payment are identical. Therefore, the benefit is only given to those chapters who take advantage of the Fall full semester discount. Collection Policy Continued…

15.  Payment not received within 5 days of due date: ◦ Probation with SOCIAL SUSPENSION ◦ School and alumni association notified of social suspension ◦ Probation lifted if payment received within 30 days of due date  Payment not received within 30 days of due date: ◦ Chapter placed on FINANCIAL SUSPENSION ◦ School and alumni association notified ◦ Remain on Financial Suspension until payment made or payment plan presented to and agreed upon by IEC Treasurer and Executive Director and/or Director of Chapter Operations Disciplinary Actions

16. What is Financial Suspension?  Suspension of Charter - Pursuant to Article V Government, Section 5 (c) of the Pi Lambda Phi Constitution, the International Executive Council may suspend the Charter of any Chartered group.  Financial Suspension of Charter means that the Chapter must take all actions necessary to: –Remain a member of the respective University/College, IFC and/or similar governing bodies or constituency –The Chapter will not hold itself out as a Chapter of Pi Lambda Phi Fraternity. This includes, but is not limited to the following: Prohibition of participation in events where any individual(s) and/or group(s) would associate a chapter of Pi Lambda Phi Fraternity being associated with; The Chapter may not orally, in writing, or by symbol represent itself as a Chapter of Pi Lambda Phi Fraternity in any campus activities. Campus activities include, but are not limited to the following: –Greek Week/Greek Games –Intramural sports/events; and/or –Social events

17. Financial Suspension Continued  Recruitment Recruitment will not be permitted unless approval is obtained from the Executive Director, or the Director of Chapter Operations, or the President of the International Executive Council  New Member Education New Member Education will not be permitted unless approval is obtained from the Executive Director, or the Director of Chapter Operations, or the President of the International Executive Council Each suspended group must submit a written proposal stating how continuing the new member education period will help to meet their financial obligations –Approval will only be given if new member fees are paid as detailed in the new member and initiation policy

18.  Chapters on Financial Suspension for two semesters will be given notice of charter revocation  Colonies on Financial Suspension for two semesters will be given notice of termination of colony recognition Discipline - continued

19.  New member fees to be paid within two weeks of pinning. New member fees remaining at $55 per man. New Member cards to be sent with payment  Request for Permission to Initiate form and appropriate fees are due AT LEAST TWO WEEKS BEFORE initiation. Initiation fees remaining at $175 per man  Any “rush” request on pin shipment will be at chapter’s expense  Penalty for late reporting/payment of initiation fees: $25 per man per semester New Member Fees / Initiation

20. New Member Fees / Initiation Continued  Beginning with Fall 2010, any Chapter/Colony that fails to report and/or pay for New Member and/or initiation fees in a timely manner may be placed on probation with social suspension until payment has been made. The decision will be made on a case-by-base basis by the Executive Director, Director of Chapter Operations, IEC President, and/or IEC Treasurer  New member program may NOT begin until previous periods are paid, unless given permission by Executive Director and/or the Director of Chapter Operations

21. FY11 Collection Rates (as of June 30) 97.880% of Fall dues collected 85.183% of Spring dues collected 93.725% combined full year collected 100% paid Fall new member fees 100% paid Fall initiation fees 35 of 38 groups paid full Spring new member fees 33 of 38 groups paid full Spring initiation fees 98.73% / 94.59% - full year NM/Init collected respectively

22. Roster Adjustments  For 2011-2012 school year, roster adjustments due to IHQ by August 31, 2011. Once verified through the school, these updated rosters will dictate billings.  This only happens ONE TIME each year.  Email current Officer contact info to Laura NOW laura.patricio@pilambdaphi.org

23.  Contracts  Brother agreement (get completed/signed at time budget is approved)  Brother agreement / payment plan Only if legitimately “needed” Brother must present reason why it is needed to Exec Board  Don’t be afraid to ENFORCE contracts Collections

24.  Unable to attend New Member events  Ineligible to be big brother  Unable to attend initiation  Unable to attend various brother nights/activities  Unable to participate in chapter athletics  Added “work shifts” at parties or functions  Added DD duty  Loss of voting privilege at meetings “Punishments” for Non-Payment

25.  Hit ‘em where it hurts the most. The previous list contained plenty of incentive to pay dues. But how about SOCIAL PROBATION? Who wants to miss out on social events? More “Punishments”

26.  Can’t attend closed parties  Can’t attend sorority socials  Can’t participate in sorority events around campus  Can’t attend “band parties”  Extra “sober crew” assignments at “regular” parties Social Probation

27.  If nothing else works and they are not living up to their commitment: Small Claims Court  Low costs (if any)  Simple procedures  If you have the contract and signatures, easy to prevail Final Attempts

28. Omega Financial  Online chapter financial services including billing, statements, budget tracking, various payment options with direct transfer to chapter accounts as well as to IHQ, etc  System accepts credit cards, debit cards, and online checks  7 chapters have been actively using Omega – some beginning as early as 1998. A handful of others are considering implementing it this coming school year or at least researching it a bit further.

29.  Examples from Brothers on how they handle late payments and payment plans currently Chapter Examples

30.  How to budget  Master budget (spreadsheet review)  Sub-budgets by committee to feed master budget  Budget “backwards”  TIP: be conservative…overestimate costs, underestimate any variable income  Be sure to include an “allowance” Budgeting

31.  The following items will be available on the Pi Lam website in the members’ section within the next few weeks :  Budget Template for you to use (Excel)  Collection Policy  Chapter Brotherhood Agreement Template  Chapter Brotherhood Payment Plan Agreement Template  This presentation  Our international budget with explanations PI LAM WEBSITE

32. How to reach me…  Marc Weppner - IEC Treasurer  treasurer@pilambdaphi.org  marc.weppner@pilambdaphi.org  marcweppner@gmail.com  Cell: 703-400-4670

33. Q&A