TREASURERS RESPONSIBILITIES

  • Attend all club and board meetings
  • Preparing club budgets
  • Setting annual members’ dues
  • Making payments on behalf of the club 
  • Maintaining club financial records
  • Filing club taxers

Budgets:

Preparation of the club’s budgets is one of the treasurer’s major responsibilities. 

  1. Done in conjunction with the Finance Committee and president, the budget should be presented for approval at the first board meeting each year.
  2. Each club should have two budgets:
  3. - Administrative and Activities -
  4. For a budget to balance, the total income would equal the expenses for each individual fund.
  5. The two funds must balance independently of each other.

Administrative Budget

  • Used for the internal running of the club
  • Income from dues, tail-twisting and money raised directly from members
  • Expenses for international dues, printing, postage and other costs related to club operations

Activities Budget

  • Used to fulfill the exempt purposes and goals of the club
  • Income from public fundraising projects
  • Expenses for the direct costs of the fundraising, as well as donations and charitable activities of the club

With advice from the Finance Committee and approval of the board of directors:

  • The treasurer sets annual club members’ dues at an amount sufficient to effectively operate the club and maintain its financial health
  • The treasurer or secretary sends out invoices for total member dues (LCI, MD, DISTRICT  and CLUB) to members approximately ten days before the start of the dues-paying period 
  • Dues should be collected in advance: annually or semiannually
  • Credits for membership drops will NOT be issued after the release of the semi-annual billings on July 1 and January first!
  • Remind club officers to update their membership rosters using MyLCI prior to COB June 30 and Dec 31.
  • Encourage club officers to submit their membership report to LCI prior to June 30, CDT and December 31 CDT.
  • State and District dues will be assessed to Clubs based on the number of members on the Membership Register Report. 
  • Each month in which transactions occur or that the club maintains a balance, an itemized statement of charges and credits will be sent from International Headquarters.  You may pay by check or online.

These charges and credits may include:

  • Semi-annual international member dues (Posted at midnight on June 30th and Dec 31.)
  • Entrance fees
  • Prorated dues for new members
  • Fees from reinstated members
  • Dues for transfer and life members
  • Club supplies
  • STATE AND DISTRICT DUES

The District Treasurer will issue an invoice for district and state dues on approximately January 5, and July 5, of each year.  Invoices will be sent to the club treasurer and president via E-Mail.  Please watch for these invoices.  They are similar to those issued by LCI for Lions Clubs International Membership Dues.

Your club will be accessed for the number of members reported as of COB December 31 and June 30.

Each member will be assessed as follows:

  • State Dues                   $7.00/member semi-annually
  • District Dues                $2.00/member semi-annually
  • Please pay State and District Dues by July 31 and January 31. 
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Let’s look at some important financial policies

  • The board of directors shall formally approve all club bank accounts.
  • All financial records should be audited annually.
  • The treasurer pays out all monies only on the authority of the board.
  • The club may not create any indebtedness beyond the current income of the club.
  • Now let’s review some important information on recording financial transactions.
  • All monies, regardless of source, must be deposited, as received, in the board approved bank account.
  • Payments should not be made from cash received by the club but drawn from one of the club’s bank accounts through customary banking procedure.
  • Receipts for all payments should be maintained in a file that is open to the audit committee and club members. 
  • To qualify properly as a nonprofit, businesses must secure a nonprofit, or tax exempt, status from the Internal Revenue Service. The IRS provides the nonprofit organization with a Federal Determination letter, showing the exemption from federal tax.
  • If the organization has unrelated business income of more than $1,000, it must also complete a Nonprofit Organization Unrelated Business Income Tax form (Form IT-20NP).
  • Indiana Department of Revenue (DOR) also requires a nonprofit to register through INBiz,

 

INDIANA FILINGS

Indiana nonprofit organizations making tax-exempt qualified purchases, but not making retail sales,also must register with the Nonprofit Section of the Indiana Department of Revenue and receive a taxpayer identification number. A nonprofit organization must register for a sales tax exemption by filing Form NP-20A, available online htttp://www.in.gov/dor/3506.htm.

The taxpayer identification number obtained can be used on sales tax exemption certificates (Form ST-105 or Streamlined Sales Tax Governing Board Form F0003) when making qualified purchases.

Recognition of Nonprofit Organizations

An organization will not be considered exempt from tax until it applies to and is approved by the Indiana Department of Revenue to file as a nonprofit organization. Application should be made on Form NP-20A, Nonprofit Application for Sales Tax Exemption, and must be made within one hundred twenty (120) days after the organization’s formation. If federal nonprofit status has been granted by the Internal Revenue Service, a copy of the determination letter should accompany the NP-20A. For Indiana adjusted gross income tax purposes, the department will accept the exempt status determination by the Internal Revenue Service.

 

NP20 – Filed Annually

Filing Requirements In addition to filing a Form NP-20A, the organization also must file an annual report, Form NP-20, with the department on or before the fifteenth (15th) day of the fifth (5th) month following the close of the taxable year. If the organization fails to file the annual report, the department will notify the organization of such failure. If within sixty (60) days after receiving such notice, the organization does not file the annual report, the organization’s exempt status will be canceled. The department may reinstate the organization’s exempt status if the organization shows by petition that the failure was due to excusable neglect. Extensions of time to file are available and must be filed with the return if it is filed after the due date.

BIENNIAL BUSINESS ENITY REPORT

The biennial business entity report due dates are set when you form or register your company in Indiana. The reports are due every other year at the end of the month in which your originally formed or registered your company. ... Indiana nonprofit reports cost $20 to file by mail, $22 to file online.  These reports must be filed every two years for both nonprofit and for-profit businesses. The filings are due during the anniversary month of your business's formation or the anniversary month in which you were granted authority to do business in the state. As a courtesy, the Secretary of State will send a reminder notice the month your report is due.

 

 

FEDERAL TAX RETURN:

Please file a  990-N  every year by the 15th day of the 5th month after the close of your tax yearYou cannot file the e-Postcard until after your tax year ends.  For most clubs July – November 15.

https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard

 

INTERNAL AUDIT

An audit is a formal check of financial accounts of an individual, business or organization. An internal audit is conducted by members of the same organization or business, and an external audit may be conducted by a regulatory agency or governmental agency.

.  Ask for an Internal Audit before opening books for your term of office.  This protects the outgoing treasurer as well as you.

  1. Request an annual internal audit after each fiscal year is completed
  2. Audit Committee may be composed of 2 or 3 club members.
  3. Accept any suggestions the committee may provide. 

Items to review:

  • Beginning Balance as of ______
  • Ending Balance as of  ________
  • Review sources of income and review
  • Review expenditures and review
  • Check balance of each account
  • Review listing by check
  • Review invoices  (3 random months)
  • Review documents for receipts, match to deposit ticket
  • Review assets per account
  • Review accounts payable
  • Review tax returns and filings
  • Develop recommendations for better bookkeeping
  • Write report

 

UNDERSTANDING INSURANCE:

The International Association of Lions Clubs has a program of Commercial General Liability Insurance that covers Lions on a worldwide basis.

  • All Clubs and Districts are automatically insured.
  • Through the link provided on the LCI website you can produce your own Certificates of Insurance which provide evidence of the automatic coverage provided.
  • You can also view the General Liability Program Summary which describes the automatic coverage afforded, including who is insured by this coverage as well as some coverage basics and exclusions.
  • You can also access a Self-Inspection Checklist which is available for your use when conducting various fundraising activities.

In addition to the automatic coverage, Lions Clubs International now offers Supplemental Insurance Coverage for Clubs at a fee:

  •  Directors & Officers Liability, Crime / Fidelity
  •  Additional Liability Insurance
  •  Accident Insurance. 

You can get more information about this program and apply for coverage through the following link:

Lions Club and District Supplemental Insurance Program (United States/English only)

For questions please contact DSP Insurance Services, Inc. at (847) 934-6100 or (800) 316-6705.

HOUSEKEEPING HINTS:

            In your documents file make a folder for each member of your club. 

           

  • Copy or scan every check received and place in the member’s file folder
  • Copy every check written (attach invoice or payment voucher to the copy of the check and file by check number for easy access for audit.
  • Keep an accurate check register, including any voided checks
  • Prepare a cash transfer receipt.  If your club secretary receives all revenue (common practice in Lions Clubs) be sure any cash received is accompanied by a detailed accounting of who it is from and what it is for.  Attach this to the Bank Deposit receipt and the deposit package.
  • KEEP ACTIVITIES AND ADMINISTRATIVE FUNDS SEPARATE
  • Balance your bank account monthly
  • All cash received (including 50/50 raffle MUST pass through the books.  Do not disburse cash
  • Petty Cash – Set up a petty cash account in your software.  Charge that account if petty cash is needed for fundraising funds.  When receipts are recorded from fundraiser perform a transaction to zero out the petty cash account.  USE PETTY CASH FOR FUNDRAISING CASH BOXES ONLY. 
  • Credit cards and debit cards can only be a headache for you.  It is not recommended.  If they are used prepare a form that the person making the purchase completes and returns to you along with the receipt received from the vendor.
  • Reimbursement for items purchased by members should also have adequate documentation so that you can post the expense properly and verify the purchase.
  • Do not authorize the expenditure for administrative purposes, any net funds raised from the public.
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