Temple Accounting
Presented by:
Matt Noell - Director of Temple Accounting
Deb Domini - Temple Auditor
4/13/2015
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Our Organization
The name of our central organization is “Shriners
International”. This was voted on and passed at
the 2010 Imperial Session. Your temple should
no longer be using A.A.O.N.M.S. anywhere. This
includes IRS Form 990, Tax Deposits with the
Federal Government, State Tax Deposits, Bank
Accounts, or Websites. If your temple needs
assistance with any documentation to make this
change, please contact our office.
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Agenda
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Section 1, Budget and Comparison Reports –
Operating Budget
Section 2, Accounting Policies & Procedures
Section 3, IRS Reporting
Section 5, Fundraising
Section 6, Special Purpose Funds / Hospital
Patient Transportation Fund
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Section 1 - Temple Budget and Comparison
Reports
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Section 2 – Accounting Policies &
Procedures
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Shriners International Chart of Accounts.
Shriners International Bylaws Section 334.6.
Sample financial statements, schedules and footnotes
(auditor’s report).
Financial reports checklist.
Report of Shrine Clubs and Temple Units.
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Units and Clubs
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Definition of Units: Units are considered part of the working
corps of the temple and typically reside on temple property.
Units use the Temple’s Tax ID Number and should never
have their own Tax ID Number.
Unit bank accounts should be set up under the temple’s
name with the Treasurer of the temple as one of the
authorized signers on the account. Example of naming
convention: Shriners International, XYZ Shriners, Oriental
Band.
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Units and Clubs – continued
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Definition of Clubs: Clubs are typically several miles
from the temple. Clubs have their own Tax ID Number
that are obtained via an IRS SS-4 form. They should
never use the Temple’s Tax ID Number.
Club bank accounts should be set up under the club’s
name and Tax ID Number. Example of naming
convention: Shriners International, XYZ Shrine Club, c/o
XYZ Shriners.
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Section 3 - IRS Reporting
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Units and Clubs
Automatic Revocations
Group Exemption 0229
501(c)(2) Holding Corporations
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Units and Clubs IRS Reporting
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Unit Form 990 Reporting: Because units are part of the
working corps of the temple, units are included on the
Temple’s Annual IRS Form 990. The financial information of
every unit must be included regardless of the gross revenues
or assets of the unit.
All units are required to complete the Report of Shrine Clubs
and Temple Units Form per Shriners International Bylaw
Section 336.3. It is this report that your external auditor will
use to complete the temple’s Form 990 return. If a unit
refuses to supply this information, they are in violation of the
bylaws.
Units are under the control of the potentate of the temple per
Section 336.1 of the bylaws.
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Units and Clubs IRS Reporting – cont’d
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Club Form 990 Reporting: All clubs are reported on the
Temple’s Annual IRS Form 990 Group Return. Any club
whose gross revenue is greater than or equal to $50,000,
must have their financial information included on the Group
Return. Clubs should never generate their own Form 990
returns.
A listing of all clubs, whether their financial information is
included in the return or not, must be attached to the Group
Return. Failure to include this complete listing for three
consecutive years may result in automatic revocation of the
club’s tax exempt status.
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Units and Clubs IRS Reporting – cont’d
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All clubs are required to complete the Report of Shrine Clubs and
Temple Units Form per Section 336.3 of the bylaws. It is this
report that your external auditor will use to complete the temple’s
group Form 990 return. If a club refuses to supply this
information, they are in violation of the bylaws.
Clubs are under the control of the potentate of the authorizing
temple per Section 337.3 of the bylaws.
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Automatic Revocation Notices
The IRS publishes a listing monthly of organizations that have
had their federal tax-exempt status automatically revoked. This
Non-filer Revocation List provides, the name of the organization,
Employer Identification Number (EIN), organization type
(subsection code), last known address provided to the IRS by
the organization and the effective date of revocation. The
effective date of revocation is the original filing due date, without
regard to extensions. Our department monitors this listing on a
monthly basis and has been communicating with any affected
temples and associations. Remember if you are member of an
association that associations also lose their tax exempt status if
they have not filed tax returns for three consecutive years.
Please fax a copy of any IRS notices that you receive to your
External Auditor and myself, as there may be instances where
we can work with my contacts at the IRS to resolve the issue.
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Group Exemption Number 0229
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What entities are included under the above Shriners
International Group Exemption?
 U.S. Temples and Clubs
 Shrine Associations
 Imperial Sessions
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What entities are not included under this group exemption?
 Temple 501(c)(2) Holding Corporations
 Club 501(c)(2) Holding Corporations
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Holding Corporations
501(c)(2) Entities
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We regularly receive questions regarding whether temples or
Shrine clubs are required by Shriners International to have the
title to their property held in the name of a holding
corporation?
Shriners International does not require that temple or club
property be held in the name of a holding corporation.
We would suggest that you consult with your temple attorney
and temple CPA to see if this type of arrangement would
benefit your temple or Shrine club.
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Holding Corporations - continued
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Once a decision has been made to establish a holding
corporation, your temple should communicate with Shriners
International General Counsel and the Chairman of
Jurisprudence and Laws Committee.
The establishment of holding corporations for both the temple
and shrine clubs require the completion of Forms 16 and 17 in
the Shriners International Bylaws pertaining to the Articles of
Incorporation.
Once the holding corporation has been established, both the
temple and shrine club holding corporations are controlled by
the temple and the completion of all tax reporting
requirements are the responsibility of the temple and not
Shriners International.
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Common Forms
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SS-4 (Application for Employer Identification Number): This form
must be submitted to the IRS in order to obtain an EIN number.
This would be used for new shrine clubs.
W-9 (Request for Taxpayer Identification Number &
Certification): This form may be requested by any organization
that owes the temple money prior to issuing any payment to your
temple. The temple may not complete a W-9 under the name of
Shriners Hospitals for Children. All W-9 requests pertaining to
the hospitals must be referred to Shriners Hospitals for Children
Accounting Department.
Our office can assist you with the completion of both of these
documents for the temple. Please do not attempt to complete
these forms unless you are familiar with them.
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Section 5 – Fundraising
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501(c)(10) versus 501(c)(3)
Fraternal Fundraising
Charitable Fundraising
Third-Party Fundraisers
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501(c)(10) Versus 501(c)(3)
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Shrine temples are 501(c)(10) fraternal organizations under the
IRS code. Donations to Shrine temples for fraternal purposes
are not tax-deductible.
Your temple may accept tax-deductible contributions if they are
made payable to the temple’s hospital patient transportation
fund. The IRS allows this under 170(c)(4) of the Code as long
as these funds are used exclusively for charitable purposes.
Under Shrine law, the charitable purpose is approved patient
transportation expenditures as outlined in General Order No. 1.
Shriners Hospitals for Children is a 501(c)(3) fully qualified Tax
Exempt Charitable Organization under the IRS code. Donations
made in the name of the hospital are tax deductible as provided
by law.
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Fundraising Activities
General Order No. 1.
It is natural to associate the fez with Shriners Hospitals for Children. Because
of this, meticulous attention must be given to all fundraising activities, including
circuses, to make certain that such activities comply with the law of the land
and that a contributor is not led to believe that his money will be used for the
Hospitals when all or a portion thereof will be used otherwise. The integrity of
our charity and of our fraternity must remain above reproach.
Your specific attention is called to the following fraternal and charitable bylaws:
§335.3 USE OF NAME “SHRINERS HOSPITALS FOR CHILDREN.” The use
of the name “Shriners Hospitals for Children” or reference to the Hospitals in
connection with any fundraising activity by a temple or Noble without the written
consent of the Imperial Potentate and the chairman of the board of trustees of
the Hospitals is prohibited.
§503.11 COMMERCIAL USE OF NAME. The use of the name “Shriners
Hospitals for Children” or reference to the hospitals in connection with any
commercial product or business enterprise is prohibited unless the written
consent of the boards of directors and trustees has been first obtained.
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Fundraising for Fraternal Purposes
(a) No Noble (in his capacity as a Shriner), club, unit, organization of Nobles or affiliated
or appendant corporations, shall engage in any fundraising activity without the express
written consent of the potentate of the temple having jurisdiction thereof.
(b) There can be no representation, express or implied, that the proceeds will be for the
benefit of Shriners Hospitals for Children.
(c) The temple potentate shall carefully examine all phases of the advertising, promotion
and solicitation to determine that it complies with §335.3 and §503.11 of the fraternal and
charitable bylaws and that there is no representation, expressed or implied, that would
lead a reasonably prudent person to believe that the proceeds will be for the benefit of
Shriners Hospitals for Children. If the potentate is in doubt, he must receive the opinion of
the Imperial Potentate who, after consultation with the Director of Temple Accounting,
shall make the final determination.
(d) The temple potentate must approve the terms and provisions of any contract for a
fundraising activity after receiving the advice of the temple attorney, and, additionally, as
may be required by the temple bylaws.
(e) A copy of the temple potentate’s written consent shall be mailed to the Executive Vice
President, Shriners International. Further, such written material pertaining to the
fundraising activity, as requested by the Executive Vice President, Shriners International,
shall be promptly mailed to him.
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Fraternal Fundraiser Statement of Purpose
and Disclosure
(a) Every fundraising activity must contain factual information on its
solicitation material, tickets, programs and documents, including all
electronically transmitted material, regarding the use of the proceeds.
Examples: “Proceeds are for the benefit of (_____ Shriners) (_____
Shrine club) activities.”
(b) Every fundraising activity which is not entirely for the benefit of
Shriners Hospitals for Children shall prominently state on all solicitation
material, including tickets, programs, documents and electronically
transmitted material, that “payments are not deductible as charitable
contributions.”
(c) There must be compliance with the Revenue Act of 1987 provision
of any general order by U.S. temples.
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Fundraising for Charitable Purposes
(a) No Noble (in his capacity as a Shriner), club, unit, organization of Nobles or affiliated
or appendant corporations shall engage in any charitable fundraising activity other than
for Shriners Hospitals for Children. Permission therefor must be first obtained in writing
from the temple potentate. The temple potentate must then obtain written permission
from the chairmen of the boards of directors and trustees. This request for written
permission shall be sent to the Executive Vice President, Shriners International, P.O. Box
31356, Tampa, FL 33631-3356. No charitable fundraising activity shall be held in the
jurisdiction of another temple without the written permission of the potentate of that
temple.
Your temple cannot host charitable fundraisers in the name of the temple’s Hospital
Patient Transportation Fund. It is not a registered charity with the IRS.
(1) A joint charitable fundraising activity with another 501(c)(3) charity may be authorized,
provided that a minimum of 50% of the net proceeds are for the benefit of Shriners
Hospitals for Children, and the chairmen of the boards of directors and trustees
determine, on a case by case basis, that it is in the best interest of Shriners Hospitals for
Children and they grant their written permission for the activity.
(2) A charitable fundraising activity conducted by a temple located outside of the U.S.A.
may be authorized for other charities, provided that the chairmen of the boards of
directors and trustees determine, on a case by case basis, that it is in the best interest of
Shriners Hospitals for Children and they grant their written permission for the activity.
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Fundraising for Charitable Purposes - continued
(b) 100% of net proceeds (as defined in the Charitable Fundraising—Approval And
Reporting provisions of this General Order) from charitable fundraising must be given to
Shriners Hospitals for Children except for such portion thereof as may be permitted to be
retained for the temple Shrine Hospital Patient Transportation Fund, pursuant to the
Special Purpose Funds provisions of any General Order. Provided, however, if the
chairmen of the boards of directors and trustees determine for good cause shown, that
the law of the land requires that a portion of the net proceeds must be distributed locally,
then they may, if they determine it to be in the best interest of Shriners Hospitals for
Children, grant their written permission for such distribution.
(c) The temple shall report the result of each charitable fundraising activity within sixty
days of the activity, pursuant to the Charitable Fundraising—Approval And Reporting
provisions of any General Order.
(d) This section shall not apply to activities exempt under §335.4(b) of the bylaws of
Shriners International.
(e) Each independent corporation or entity that receives the permission of the chairmen
of the boards of directors and trustees to raise moneys for Shriners Hospitals for
Children, and which does not have its financial statements reviewed pursuant to §§334.6
& 337.8 of the bylaws of Shriners International, shall have its financial statements audited
by a certified, chartered or licensed public accountant and shall submit such audit report
to Shriners International within 120 days of the activity.
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Charitable Fundraiser Statement of Purpose
and Disclosure
(a) Every fundraising activity must contain factual information on its
solicitation material, tickets, programs and documents, including all
electronically transmitted material, regarding the use of the proceeds.
“Proceeds are for the benefit of Shriners Hospitals for Children.”
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Fundraising - continued
Compliance with Applicable Laws:
It is the responsibility of the temple potentate, after receiving the advice of the temple attorney,
to determine that there is compliance with all applicable laws in its jurisdiction for the temple’s
fundraising activities.
Financial Records:
(a) The temple shall maintain detailed financial records pertaining to all fundraising activities
involving Nobles, clubs, units, organizations of Nobles and affiliated and appendant
corporations. Details of all revenues and expenditures shall be maintained in such financial
records.
(b) The temple must retain such detailed financial records for a period of seven (7) years.
(c) There must be compliance with Financial Reporting on Charitable Funds and Activities
provision of any general order.
Notification to Nobility:
A copy of the Fundraising Activities provisions of this General Order shall be printed in the
temple publication at least once every calendar year. If there is no temple publication, then a
copy shall be mailed to each Noble in the temple not later than the last day in March of each
calendar year.
Discipline:
Any officer, Noble or temple which violates a provision of Fundraising Activities is subject to
discipline pursuant to the bylaws of Shriners International.
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5-6 – Fraternal and Charitable Fundraising
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5-3 – Shrine Charity Activity Form
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Third-Party Fundraising
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Third-Party Fundraisers are charitable
fundraisers conducted by anyone other than a
Temple, Club or Unit.
Third-Party Fundraisers require the approval of
the Executive V.P. of Shriners International.
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Third-Party Fundraising Request
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Section 6 –
Special Purpose Funds and
Shrine Hospital Patient Transportation Fund
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General Order No. 1.
Restricted Fund - Separate bank account or accounts designated Shrine
Hospital Patient Transportation Fund.
Custody and administration of all charitable funds and assets, including
units and clubs, shall be the responsibility of the board of directors.
New form sent from my office at the beginning of each year beginning with
reporting year 2011 requiring detail of all receipts into and expenditures
from the temple’s Shrine Hospital Patient Transportation Fund.
Expenditures section revised in 2010-2011 for further clarification.
Request to retain for temple HPTF, undue hardship and 2x rule.
Transfer of Funds Between Temples & to the Headquarters Emergent
Transportation Fund – Standing Resolution adopted January 13, 1999 and
amended April 17, 2007.
Use of Hospital Patient Vans – Joint Boards Resolution adopted November
6, 1990.
IRC 170(c)(4) - permits an individual to deduct a contribution or gift to a
domestic fraternal organization if such contribution or gift is to be used
exclusively for religious, charitable, scientific, literary, or educational
purposes or for the prevention of cruelty to children or animals.
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Temple’s Report of HPTF Receipts and
Expenditures
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Transfer of Funds Between Temples
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Hospital Vans Resolution
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Additional Resources
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On-line Temple Financial Manual – www.shrinersvillage.com
www.shrinersinternational.org
Matt Noell (813)281-7169 [email protected]
Deb Domini (813)281-8102 [email protected]
Temple external auditor / CPA
www.irs.gov
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Questions?
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Download

Fundraising Activities - Shrine Treasurers Association of North