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

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.

Budget

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

Receipts

Dues Amount CommentsActive Members(20) $ 8,800 20 Members @ $440/yrAffiliate Members(2) 200 2 members @ $100/yr

Life Members(4) 1,723 4 Members @ $430.80/yrPrivileged

Members(1)100 1 Member @ $100/yr

Guest Meals(20) 260 20 Lions &/or Guests @ $13.00/meal

Fines 110 22 meetings @ $5.00/meeting

50/50 198 22 meetings @ $9.00/meeting

Al Cans 125 Based on Actual

TOTAL $11,516

Dreamsville Lions ClubAdministrative BudgetLion Year 2009-2010

Expenses

Items Amount Comments

Club Supplies $ 600 Stationary, Stamps, etc

International Dues 900 27 members @ $16.60 Semi-Annually

Meals 5,460 20 Members for 21 meetings @ $13.00/yr

Membership 273 21 Meals for 21 Meetings @ $13

Programs 3,500 Charter Night, Installation, etc

Scrapbook 150 Supplies

Sickness & Distress 100 Flowers, Cards

State Dues 432 27 members @ $16

Misc 101

TOTAL 11,516

Dreamsville Lions ClubActivity Budget

Lion Year 2009-2010

ReceiptsFund Raiser Income Expense Net Income Remarks

Bingo $ 17,500 $ 4,150 $ 13,500 Best Estimate

White Cane 700 50 650 Estimate on 2008-2009

Pumpkin Sales

21,800 15,300 6,500 Estimate on 2008-2009

Bank Interest 100 100 Estimate on 2008-2009

TOTAL $ 40,100 $20,600

Dreamsville Lions ClubActivity Budget

Lion Year 2009-2010

Expenses

Category Amount Comments

Hearing $ 1,200 Based on 2008-2009 Actuals

Miscellaneous 2,800

Other Services 2,000 Based on 2008-2009 Actuals

Sight 6,000 Based on 2008-2009 Actuals

Social Services 3,500 Based on 2008-2009 Actuals

Youth Services 5,100 Based on 2008-2009 Actuals

TOTAL $20,600

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

• 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

Virginia Retail Sales and Use Tax Exempt Certification

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

• 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

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

– If a % of clubs fail to file Lions International could lose their 501c4 status

Why do we need to file?

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!