Lions Club Treasurer

Lions Club Treasurer May 30, 2009 Virginia Lions State Convention

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

Agenda • Lions Club Financial Accounting • Budgets • Bookkeeping • Taxes • Foundations • Corporations

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

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

The Club Board is ResponsibleEthically 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

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

Planning • Meet with President (Plan the Year) • Generator Budget • Administrative • Activity

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

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

Budget • 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.

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

Tools your use

Bookkeeping • Manual • Software • Quicken • Microsoft Money • Peachtree • Microsoft Excel • Quick Books

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

Dreamsville Lions ClubAdministrative BudgetLion Year 2009-2010

Dreamsville Lions ClubActivity BudgetLion Year 2009-2010

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

Virginia Retail Sales and Use Tax Exempt Certification • 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

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

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

IRS Info • 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 • 501c4 Organizations • Lions Club International • Lions Clubs • Promote Social welfare

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

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

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

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 15th 2008 • Every year by November 15. • IRS WebPage • http://www.irs.gov/charities

IRS 990 N Form • Why must you file • Legislative Changes • Pension Protection Act of 2006

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

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

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

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!

Questions?

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

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

Lions Club Treasurer