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“Money! Money! Money!” Handling 4-H Finances

“Money! Money! Money!” Handling 4-H Finances. What’s it All About?. A 4-H Charter is the only document that officially recognizes a 4-H Club or Affiliated 4-H Organization and authorizes its use of the 4-H Name and Emblem for the conduct of 4-H Youth Development programs.

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“Money! Money! Money!” Handling 4-H Finances

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  1. “Money! Money! Money!”Handling 4-H Finances

  2. What’s it All About? • A 4-H Charter is the only document that officially recognizes a 4-H Club or Affiliated 4-H Organization and authorizes its use of the 4-H Name and Emblem for the conduct of 4-H Youth Development programs. • Federal regulations governing the continued use of the 4-H name and emblem require annual financial reporting and accountability.

  3. What’s it All About? • 4-H Money = Public FundsAll money received by a 4-H entity is public money since 4-H is a public organization. • Funds raised in the name of 4-H must be publicly accountable and must be used for 4-H purposes.

  4. What’s it All About? • All moneys received from 4-H fund raising programs, except those necessary to pay reasonable expenses, must be expended to further the 4-H educational program. • The 4-H treasurer is responsible to all members, leaders, 4-H Youth Development Staff, and the public.

  5. Managing 4-H Money • 4-H funds must be deposited in a public financial institution in an account bearing the 4-H name.

  6. Managing 4-H Money • An Employer Identification Number (EIN) is needed to open a checking or savings account. • Do not use personal social security number.

  7. Managing 4-H Money • Ideally, checks should require 2 signatures. Clubs: The club treasurer and an adult leader signing (avoid having a parent-child as both signatories). County: youth-adult and/or 2 adults.

  8. Wisconsin State Tax Facts • 4-H entities are eligible to receive and use a sales tax exempt number. • When a tax exempt number is used, you do not need to pay sale tax on purchases. • 4-H entities do not charge sales tax on fund raisers as long as they meet state sale tax requirements.

  9. Wisconsin Dissolution Clause All 4-H entities need to include the following dissolution clause in their bylaws similar to the following: “Upon dissolution of the 4-H club, any assets must be turned over to a recognized 4-H club or group, with the approval of the 4-H Leaders Association and the County 4-H Youth Development Staff.” • Wisconsin 4-H Policy

  10. Handling 4-H Finances in Action!

  11. Best Practices • The treasurer position in a 4-H club is a youth position. • Use good money handling practices: • Writing a receipt for all monies received. • Depositing all monies into the bank account promptly.

  12. Best Practices • Members need to approve payments. • A payment approval form should be used and the receipt from the purchase should be attached.

  13. Best Practices • Financial records should be kept up-to-date and reported at each 4-H meeting. • 4-H Annual Financial Report MUST be submitted on time each year to the 4-H Youth Development Staff to continue to use the 4-H Name and Emblem.

  14. Handling 4-H Finances in Action!

  15. Fund Raising Guidelines • Money raised in the name of 4-H must be used for specific educational 4-H purposes. • Fund raising should only be conducted to meet an approved goal. There must be a definite plan to account for funds raised prior to authorization.

  16. Fund Raising Guidelines • Generally, money raised during the year should be spent that same year. • Discuss fund raising plans with 4-H Youth Development Staff. • Check with 4-H Youth Development Staff before putting the 4-H name or emblem on any item you intend to sell for profit.

  17. Fund Raising Guidelines • In connection with 4-H fundraising purposes, the following disclaimer statement must be used on products or services offered for sale: “A portion of the sales price of this product or service will be used to promote 4-H educational programs. No endorsement of the product or service by 4-H is implied or intended.”

  18. 4-H groups that plan to conduct raffles or bingo, must comply with state regulations and obtain licenses.

  19. Discuss Money With Membership • Members should vote on dues annually. • Members should decide if fund raising is needed to have funds for their planned activities. • Members should approve a budget.

  20. New Regulations to Know • Formally authorized 4-H groups are exempt from paying federal income tax on funds raised on behalf of 4-H, or to support educational programs. • Donors may deduct contributions to 4-H clubs and affiliate 4-H organizations such as bequests, legacies, devises, transfers, or gifts as applicable under the IRS Code when the 4-H entity is included under the national General Exemption Number.

  21. New Electronic Filing Requirements • Starting in 2008, small tax-exempt 4-H organizations (including clubs) that previously were not required to file federal tax returns because they earned less than $25,000 will be required to file an annual electronic notice called an e-Postcard.

  22. What Does this Mean? If the 4-H Club or affiliated 4-H organization raises: • More than $25,000 – required to file Form 990 or Form 990-EZ • Less than $25,000, but more than $0 – required to file Form 990-N (Electronic Notice e-Postcard for Tax Exempt Organizations not Required to File Form 990 or 990-EZ

  23. $0 – but plan to raise funds in the future and wish to retain inclusion under the National 4-H Group Exemption Number – required to file Form 990-N.

  24. There are resources to help!

  25. Resources to Help • National 4-H Headquarters Policies and Regulations including “Using the 4-H Name and Emblem” and “Electronic Filing Requirements for 4-H Groups” www.national4-hheadquarters.gov/library/4h_polregs.htm • Tools and information to help clubs answer financial questions www.uwex.edu/ces/4h/clubs/money.cfm

  26. Resources to Help • 4-H Club Teaching Materialswww.uwex.edu/ces/4h/clubs/meetings.cfm www.uwex.edu/ces/4h/clubs/volunteers.cfm • State Financial Publications • 4-H Youth Development Staff

  27. Contact the4-H Youth Development Staff with any questions regarding 4-H financial accountability.

  28. Presentation Developed By: René L. Mehlberg, Winnebago County 4-H Youth Development Educator, February 2005, updated October 2007. Information adapted from: • National 4-H Headquarters Policies and Regulations documents retrieved from www.national4-hheadquarters.gov/library/4h_polregs.htm. • Wisconsin 4-H Club Financial Handbook for Leaders; 1998. • “Wisconsin 4-H Financial Polices” power point presentation by Carolyn Belczyk, Walworth County Department Head/4-H Youth Development Educator; February 4, 2004. • An EEO/AA employer, University of Wisconsin Extension provides equal opportunities in employment and programming, including Title IX and American with Disabilities (ADA) requirements.

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