Rotary Club Treasurer

1. Rotary Club Treasurer Discussion of the role and its responsibilities Webinar: 7:00 pm May 15, 2013 Conducted by Charles D. Ladd, CPA District 5960 Treasurer 2010-2013

2. Rotary Club Treasurer Discussion of the role and its responsibilities Opening comment:

3. Rotary Club Treasurer Discussion of the role and its responsibilities Opening comment: an opportunity for vocational service

4. Rotary Club Treasurer Discussion of the role and its responsibilities Opening comment: an opportunity for vocational service by a qualified individual

5. Rotary Club Treasurer Discussion of the role and its responsibilities Opening comment: an opportunity for vocational service by a qualified individual who will make the commitment

6. Rotary Club Treasurer Discussion of the role and its responsibilities Opening comment: an opportunity for vocational service by a qualified individual who will make the commitment Please, no Treasurers in Name Only (TINOs)

7. Summary Treasurer’s charge is to help the club management meet their fiduciary responsibilities

8. Summary Treasurer’s charge is to help the club management meet their fiduciary responsibilities, which are to: • Plan financial goals/needs and define funding sources • Annual operating budget , annual giving schedule • Annual and ad hoc cash flow projections

9. Summary Treasurer’s charge is to help the club management meet their fiduciary responsibilities, which are to: • Plan financial goals/needs and define funding sources • Annual operating budget , annual giving schedule • Annual and ad hoc cash flow projections • Control cash flow (using a bank account) • Obtain timely receipts of dues, donations and fees • Meet obligations with timely payments

10. Summary Treasurer’s charge is to help the club management meet their fiduciary responsibilities, which are to: • Plan financial goals/needs and define funding sources • Annual operating budget , annual giving schedule • Annual and ad hoc cash flow projections • Control cash flow (using a bank account) • Obtain timely receipts of dues, donations and fees • Meet obligations with timely payments

11. Summary Treasurer’s charge is to help the club management meet their fiduciary responsibilities, which are to: • Plan financial goals/needs and define funding sources • Annual operating budget , annual giving schedule • Annual and ad hoc cash flow projections • Control cash flow (using a bank account) • Obtain timely receipts of dues, donations and fees • Meet obligations with timely payments • Safeguard assets • Limit access and establish accountability • Provide proper controls, especially for fundraisers

12. Summary Treasurer’s charge is to help the club management meet their fiduciary responsibilities, which are to: • Plan financial goals/needs and define funding sources • Annual operating budget , annual giving schedule • Annual and ad hoc cash flow projections • Control cash flow (using a bank account) • Obtain timely receipts of dues, donations and fees • Meet obligations with timely payments • Safeguard assets • Limit access and establish accountability • Provide proper controls, especially for fundraisers • Report performance (and provide necessary oversight) • To the club board and club membership • To the Internal Revenue Service

13. Some specifics • Timely payment of dues • Rotary International • July 1 and January 1 Semi-Annual Report (SAR)

14. RI semiannual and prorated Dues July 1 and Jan 1 Prorated dues Semiannual dues One member four months One member one month All members next six months

16. Some specifics • Timely payment of dues • Rotary International • July 1 and January 1 Semi-Annual Report (SAR) • District 5960 • July 1 annual dues assessment • January 1 and July 1 “prorated” dues

17. District 5960 annual Dues July 1 Annual dues All members next twelve months

18. District 5960 prorated Dues Jan 1 July 1 July 1 Prorated dues Prorated dues One member twelve months One member six months One member twelve months One member six months

19. Some specifics • Timely payment of dues and fees • Rotary International • July 1 and January 1 Semi-Annual Report (SAR) • District 5960 • July 1 annual dues assessment • January 1 and July 1 prorated dues • Annual training fees Invoiced in July, covers costs of all district-sponsored training events (except President Elect Training Seminar or PETS).

20. Some specifics • Timely payment of dues • Rotary International • July 1 and January 1 Semi-Annual Report (SAR) • District 5960 • July 1 annual dues assessment • January 1 and July 1 prorated dues • Annual training fees • Annual report to the IRS • Form 990, 990-EZ or 990-N (most likely) • See http://www.irs.gov/pub/irs-pdf/i990.pdf • Due 15th of 5th month following year end, specifically November 15 (can be extended). • Failure to file may result in loss of the club’s nonprofit status

21. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service.

22. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service. • “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable.

23. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service. • “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable. • Payments/Donations to RI, its clubs and districts are not deductible as charitable donations, as Rotary is not a 501(c)(3) nonprofit. Dues and meals might be deductible in a specific case, but only as business expenses (discuss with your tax advisor).

24. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service. • “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable. • Payments/Donations to RI, its clubs and districts are not deductible as charitable donations, as Rotary is not a 501(c)(3) nonprofit. Dues and meals might be deductible in a specific case, but only as business expenses (discuss with your tax advisor).

25. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service. • “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable. • Payments/Donations to RI, its clubs and districts are not deductible as charitable donations, as Rotary is not a 501(c)(3) nonprofit. Dues and meals might be deductible in a specific case, but only as business expenses (discuss with your tax advisor). • No part of fundraiser receipts (for raffle tickets, product sales, auction items) are charitable donations.

26. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service. • “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable. • Payments/Donations to RI, its clubs and districts are not deductible as charitable donations, as Rotary is not a 501(c)(3) nonprofit. Dues and meals might be deductible in a specific case, but only as business expenses (discuss with your tax advisor). • No part of fundraiser receipts (for raffle tickets, product sales, auction items) are charitable donations.

27. Nonprofit status Rotary International and its subordinate units (clubs and districts) are designated 501(c)(4) nonprofits by the U.S. Internal Revenue Service. • “Nonprofit” means receipts equal expenditures over time, not financially benefiting any individual(s), consequently “income” is not taxable. • Payments/Donations to RI, its clubs and districts are not deductible as charitable donations, as Rotary is not a 501(c)(3) nonprofit. Dues and meals might be deductible in a specific case, but only as business expenses (discuss with your tax advisor). • No part of fundraiser receipts (for raffle tickets, product sales, auction items) are charitable donations. • The Rotary Foundation is a 501(c)(3), so donations to TRF are tax deductible if properly designated.

28. Discussion • Questions and clarifications • Resource needs • Suggested “best practices”

29. Discussion • Questions and clarifications

30. Discussion • Questions and clarifications • Resource needs • Form 990 instructions from IRS • http://www.irs.gov/pub/irs-pdf/i990.pdf • RI Club Treasurer’s Manual • http://www.rotary.org/RIdocuments/en_pdf/220en.pdf

31. Discussion • Questions and clarifications • Resource needs • Suggested “best practices”

32. Discussion • Questions and clarifications • Resource needs • Suggested “best practices” • The District 5960 Treasurer starting July 1, 2013, will be Robert Murphey of the Anoka Rotary Club: • rmurphey@murpheycpa.com

33. FOR THE GOOD OF ROTARY “Thanks for participating.”