Slide 1

Report
Lions Club Treasurer
May 30, 2009
Virginia Lions State Convention
Committee Members
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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 Responsible
Ethically 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
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Active
Member-at-Large
Life Member
Privileged
Associate
Affiliate
Honorary
Dreamsville Lions Club
Administrative Budget
Lion Year 2009-2010
Receipts
Dues
Amount
Active Members(20)
Affiliate Members(2)
Life Members(4)
Privileged
Members(1)
Guest Meals(20)
Comments
$ 8,800 20 Members @ $440/yr
200 2 members @ $100/yr
1,723 4 Members @ $430.80/yr
100 1 Member @ $100/yr
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 Club
Administrative Budget
Lion Year 2009-2010
Expenses
Items
Club Supplies
International Dues
Meals
Amount
Comments
$ 600 Stationary, Stamps, etc
900 27 members @ $16.60
Semi-Annually
5,460 20 Members for 21
meetings @ $13.00/yr
Membership
Programs
273 21 Meals for 21 Meetings
@ $13
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 Club
Activity Budget
Lion Year 2009-2010
Receipts
Fund Raiser
Bingo
White Cane
Pumpkin
Sales
Bank Interest
TOTAL
Income
Expense
Net Income
Remarks
$ 17,500
$ 4,150
700
50
650 Estimate on
2008-2009
21,800
15,300
6,500 Estimate on
2008-2009
100
$ 40,100
$ 13,500 Best Estimate
100 Estimate on
2008-2009
$20,600
Dreamsville Lions Club
Activity Budget
Lion Year 2009-2010
Expenses
Category
Hearing
Amount
Comments
$ 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
Virginia Retail Sales and Use Tax
Exempt Certification
• Renewed till 7-1-2013
• Can be obtained from MD 24
Secretary/Treasurer
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Lion Tammy Brightwell
5004 Colonial Ave, SW
Roanoke, VA 24018-3916
(540) 989-5225
[email protected]
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
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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
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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
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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
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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!

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