1. Lions Club Treasurer May 30, 2009 Virginia Lions State Convention

2. Committee Members 24-C Greg Hart 24-D Barbara Senecal, PDG 24-F Nyoka Cook 24-A Phil Schrack, PCC

3. Agenda Lions Club Financial Accounting –Budgets –Bookkeeping –Taxes –Foundations –Corporations

4. Overview Generation of Budgets Methods to track money Who has to file taxes –Sales Tax –Tax Forms The take on Foundations Our intent is to tie all this information together

5. Vocabulary Banking Institution Banking Accounts (Activity & Administrative) Payment Authorization Petty Cash Bond Audit Taxes Federal & State) Records (Disbursements & Receipts) Reconciliation Finance Committee Board of Directors

6. The Club Board is Responsible Ethically and Legally Clubs are chartered by Lions Recognized by U.S. Government as Tax Exempt (IRS Pub 557) Remember, we are managing other people’s money, given to us for a purpose Individuals may wish to carry personal liability insurance and/or be bonded

7. Treasurer Takes oath at the Club Installation of club officers Custodian of all Club funds. Will deposit monies received in banks as designated by the Board of Directors. Assist Finance Committee to develop a budget and provide financial statements. Disburse funds as directed by the Board of Directors. We give bond for faithful performance of our duties, this is for your protection and in keeping with recognized and accepted business procedures

8. Planning Meet with President (Plan the Year) –Generator Budget Administrative Activity

9. Duties Collect, record and expense money for the Club Report to the Board of Directors and Members Pay Per Capita Tax –State ($16.00/Year) Billed based on October 31 membership Pay by December 31 –International $19.50 semi-annually Billed June and December Pay by July 31 & January 31 Report delinquent Lions to Board of Directors

10. Duties Meet with immediate past Treasurer –Transition meeting with Past Treasurer –Obtain Password from Lions Club International –Audits –Bond –Arrange for Banking Institution –Approval of Banking Institution @ first Board Meeting

11. Keep a good filing system Be familiar with Constitution & By-Laws International Standard form for Lions Club Provide Treasurer’s Report for Board Meetings & Attach to Secretary’s minutes. Budget

12. Club Finances Committee appointed by President of Club Made up of Chairperson & Finance Committee Members Produce a preliminary Activity & Administrative Budgets Present to Board of Directors for Approval Presented to the Club Members for Approval

13. Tools your use

14. Bookkeeping Manual Software –Quicken –Microsoft Money –Peachtree –Microsoft Excel –Quick Books

15. Membership Categories Active Member-at-Large Life Member Privileged Associate Affiliate Honorary

16. Dreamsville Lions Club Administrative Budget Lion Year 2009-2010 Receipts DuesAmountComments Active Members(20) $ 8,80020 Members @ $440/yr Affiliate Members(2) 2002 members @ $100/yr Life Members(4) 1,7234 Members @ $430.80/yr Privileged Members(1) 1001 Member @ $100/yr Guest Meals(20) 26020 Lions &/or Guests @ $13.00/meal Fines11022 meetings @ $5.00/meeting 50/5019822 meetings @ $9.00/meeting Al Cans125Based on Actual TOTAL$11,516

17. Dreamsville Lions Club Administrative Budget Lion Year 2009-2010 Expenses ItemsAmountComments Club Supplies$ 600Stationary, Stamps, etc International Dues90027 members @ $16.60 Semi-Annually Meals5,46020 Members for 21 meetings @ $13.00/yr Membership27321 Meals for 21 Meetings @ $13 Programs3,500Charter Night, Installation, etc Scrapbook150Supplies Sickness & Distress100Flowers, Cards State Dues43227 members @ $16 Misc101 TOTAL11,516

18. Dreamsville Lions Club Activity Budget Lion Year 2009-2010 Receipts Fund RaiserIncomeExpenseNet IncomeRemarks Bingo$ 17,500$ 4,150$ 13,500Best Estimate White Cane70050650Estimate on 2008-2009 Pumpkin Sales 21,80015,3006,500Estimate on 2008-2009 Bank Interest100 Estimate on 2008-2009 TOTAL$ 40,100$20,600

19. Dreamsville Lions Club Activity Budget Lion Year 2009-2010 Expenses CategoryAmountComments Hearing$ 1,200Based on 2008-2009 Actuals Miscellaneous2,800 Other Services2,000Based on 2008-2009 Actuals Sight6,000Based on 2008-2009 Actuals Social Services3,500Based on 2008-2009 Actuals Youth Services5,100Based on 2008-2009 Actuals TOTAL$20,600

20. Bingo and Raffles Need a Gaming Permit from the Virginia Department of Charitable Gaming Illegal gambling is Illegal ! Information is available from the website: VDACS.dcg.virginia.gov

21. Renewed till 7-1-2013 Can be obtained from MD 24 Secretary/Treasurer –Lion Tammy Brightwell –5004 Colonial Ave, SW –Roanoke, VA 24018-3916 –(540) 989-5225 –lionva@verizon.net Virginia Retail Sales and Use Tax Exempt Certification

22. Club Incorporation Recommendation –Each club be Incorporated –Why? –If the club is incorporated the members are not liable law suites –Use LCI Club Standard constitution & By-laws –Cost $75 –Annual Fee $25 Unincorporated –Members could be liable

23. 501( c )3 Foundations Disadvantages Lions Club needs to Incorporate Must apply for tax classification Separate books, separate board Costs: –Fees for Incorporating –Annual renewal fees

24. 501c3 Organizations –Foundations LOVF, LCIF, ODEF, Bland Exempt from Federal Income Tax Exempt from some States Taxes Tax-deductible Contributions Organized & Operated for Exempt Purpose IRS Info

25. 501c4 Organizations –Lions Club International –Lions Clubs –Promote Social welfare

26. IRS Info –Obtain IRS EIN Number Must be Incorporated –Obtain from the Commonwealth of Virginia Than Apply for EIN on line at the IRS –www.gov-tax.com

27. IRS 990 Tax Return Forms Based on Gross Receipts Less than $25,000 –IRS 990 N –Electronic Filing $25,001-$100,000 –IRS 990 EZ –Paper Form Greater than $100,000 –IRS 990 –Paper Form

28. IRS 990 N Form Secretary or Treasurer received letter from IRS Organizations legal name Mailing address Website if applicable EIN Name & Addresses of Principle Officers Annual Tax Period (July 1-June 30) Verify Annual gross receipts are less than $25,000

29. IRS 990 N Form When must you file –Tax periods beginning after 12/31/2006 –Starting Tax period July 1, 2007- June 30, 2008 –Must be filed by November 15 th 2008 Every year by November 15. IRS WebPage http://www.irs.gov/charities

30. IRS 990 N Form Why must you file –Legislative Changes –Pension Protection Act of 2006

31. IRS Info Fail to file –3 Consecutive years –Tax-exempt status is revoked –On the filing due date of the 3 rd year Yes you can be reinstated

32. IRS 990EZ & 990 Forms When must you file –Tax period July 1, 2008- June 30, 2009 –Must be filed by December 15 th 2008

33. –If a % of clubs fail to file Lions International could lose their 501c4 status Why do we need to file?

34. SUMMARY Admin and Activity funds are never mixed Use checks and keep receipts Treasurer is an agent of the Board Conflict of Interest Accuracy Pay on time!

35. Questions?

36. Resources www.lionsclubs.org Click on resources, publications, legal, board policy manual or Click on resources, publications, district and club administration, and select the manual of choice

37. Thank You Good Luck as a Club Treasurer My time is up and I thank you for yours!