Best Practices for Clubs and Classes

1. Best Practices for Clubs and Classes Webinar Presentation October 30, 2012

2. Welcome • Thanks for your service to your club, class and college! • Today’s presenters: • Jennifer Evans Casey, Director, Class Activities – Alumni Relations, jennifer.casey@dartmouth.edu • Sue Young, Senior Associate Director, Club Affairs – Alumni Relations, Suzanne.W.Young@dartmouth.edu • Hugh O’Reilly ’86, hugh@agincourtgroup.com • Joe Mannes ‘80, joe@mannes.com

3. Topics Covered • Examples • Responsibilities • Best Practices

4. Fraud, Inattention: Not Just Theoretical Issues • Fraud • Alpha Theta • Class and Club examples • Theft (use for personal expenses) • Improper use of funds (overnight loans to personal business) • Failure to file • Loss of tax status • Other • Single signature example

5. Annual Financial Reports • Classes • File with the College by August 31 • Fiscal Year End: June 30 • Prepare/distribute an Annual Class Financial Statement • What it is: two page report in Excel • Summary headcounts/financials/other • Forms the basis for tax filing • Clubs • Aim to deliver at August or September meeting • Fiscal year ends June 30 • Prepare/distribute Financial Report to Club’s Board or ExecCom

6. Best Practices:Annual Financial Reports • Clubs • Does not need formality of a CPA’s financial statements, but should present: • Profit/Loss data by category • Cash balances and any other assets or liabilities • Essential to tool for preparing and presenting upcoming year’s Budget • If Club files “full” tax returns, align by tax category • Classes • Know the due date • Review with treasurer

7. Taxes • Due annually, 11/15 • Know your form (990-N, EZ or the Full Monty) • Depends on gross income, avg. over 3 yrs. • Reunion years can push a class up to a longer form, so don’t wait until the last minute to determine! • Bad habit to rely on extensions, but better to file for extension than to miss a deadline • Failure to file for three years? • Loss of tax status • Difficult to restore

8. Best Practices:Taxes • Know the deadline: 11/15 • Confirm filing • Get a copy of the filing confirmation (990-N) • Get a copy of the statement (990-EZ, etc.) • Concerned about resources? • College sends instructions (on website) • Use software/online service • Outside filing help available. (For ex.: One CPA in Hanover offers fixed-fee tax service for Classes and Clubs)

9. State Filings • Clubs and Classes that are separate legal entities may have annual State filings also • Financial filings – may be state DOR, or another regulator (e.g. Atty. General) • Corporate filings with Secretary of State • Which officer is responsible varies among clubs/classes

10. Budgets • Prepare an annual Budget • Typically Treasurer prepares draft; presents to Board or ExecCom for comments / revisions / adoption • Consider categories rather than specific events/costs as line items • Regularly compare results against budget to improve planning • Note unusual liabilities/payments • Projects/Scholarships/etc.

11. Balance the Books, and Access to Information • Recording income and expenses • Income is more than just dues • Accurate Tracking by event/project - essential to evaluating outcomes and planning for the next time • Maintain an accurate ledger of all financial transactions • Reconcile against bank accounts • Options: paper, Excel, accounting packages (box, online), Quickbase

12. Best Practices:Balancing the Books • Transparency • Second signer (not dual signer) on all accounts • Make bank statements available to President – many mechanisms available: • Paper copies • Online Banking with shared logon • Cloud storage of documents • Give “Bus List” to President with acct #s, online passwords, PINs, etc. (Bank, PayPal,…) • Share bank reconciliations

13. Interim Reports on Finances • Provide regular updates • Verbal • In writing • Provide financial statements • Income statement • Balance sheet • Descriptions of assets held

14. Best Practices:Interim Reports on Finances • Periodically report in writing – quarterly or mid-year interim report is preferred. • To President and ExecCom • To entire club/class • Know your assets • Bank accounts? Other holdings? • Investment policy statement

15. Transactions: Collecting Revenue and Paying Financial Liabilities • Pay obligations on a timely basis • Newsletters • Gifts/Projects • Scholarship Fund contributions • College closes its books on 6/30 • Event costs • Other costs • Prompt payment to college, etc. • <30 days

16. Transactions: Collecting Revenue and Paying Liabilities • Collecting the Cash • Timely deposits of Checks • Stale checks (now often 90 days) • Handoffs can cause delays • Electronic Payment mechanisms • Many available today • Can be more difficult to track and identify payers

17. Special Class Topic: Reunions • Significant cash flows • May have separate treasurer • Reunions are class business • Must be reflected in class finances • Must be included in class tax filings

18. Best Practices:Special Class Topic: Reunions • Prepare, manage and share budget • Second signatures on reunion accounts • Regular treasurer should have access to financial information • Transparency on reunion expenses • Timely final reporting required for tax filings

19. And in Conclusion. . .

20. Be Informed • Responsibility to your club/class is fundamental. Ask yourself: • “Do we know what and where all our assets are?” • “If we had to do a transition today—for any reason—are we prepared?” • Know your: • Primary Tasks • Key Deadlines • Master Checklist provided