Affiliate Finance: ACNM
Webinar
Lorrie K. Kaplan, CAE
ACNM Executive Director
George Hamilton
ACNM Director-Membership
Meredith Graham, MBA
ACNM Director-Finance
Welcome and Introductions
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November 16
Webinar/Teleconference
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Q&A follow-up to this webinar
Any other agenda items requested
Update on process of finalizing affiliates
https://www1.gotomeeting.com/register/
256768353
AGENDA
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Whose Money is it?
The Financial Requirements of a
State Affiliate
Dues Processing Cycle
Federal/State Taxes
Cash Flow
Budgets
WHOSE MONEY IS IT?
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Affiliate has the right to charge dues for
affiliate members, collected and
administered by the ACNM national
office.
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All monies raised by the Affiliate and
collected from dues are the sole property
of the Affiliate.
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Affiliates will keep any assets they
currently have and will retain control of
their assets.
Affiliate Financial
Requirements
1.
Maintain an accounting tracking of asset,
liabilities, revenue, & expenses
2.
Maintain the same fiscal year as ACNM
National (Jan-Dec)
3.
Provide a brief annual financial report to
ACNM national
4.
Disclose annually to ACNM national
whether you have filed the IRS 990 or
990-N postcard
5.
Comply with applicable state & federal
laws
Dues Processing Cycle
Affiliate Dues Billing
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All ACNM members are billed
for their national dues based on
the anniversary of their join date
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Beginning with membership
renewals billed in January 2011,
all members will be billed for
affiliate dues at the same time
as their national dues
Setting Up Affiliate Dues
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Each affiliate must set and submit their
complete dues structure to the national office
by December 13, 2010
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The dues structure for each affiliate will be
maintained in the ACNM national database
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Each affiliate dues category will be aligned
with national dues categories. The main
categories are the following:
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Active, Associate, and Student
Affiliate Dues Processing
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Members will pay their affiliate
dues along with national dues–
both will be sent to a lockbox
and processed into ACNM’s
bank account
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Copies of dues notices and
supporting documentation are
forwarded daily from the lockbox
to the national office
Dues Reporting
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The ACNM database will track all
affiliate dues received
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The authorized affiliate leader can
run reports at any time
Dues Remittance
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On the15th of each month, ACNM will finalize
processing and reporting for the previous month.
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All affiliate dues will be remitted electronically to the
authorized affiliate bank account by the 20th of each
month. If the 20th falls on a weekend, dues will be
remitted on the next business day.
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Checks are also an option
Affiliate treasurers and/or authorized users will be
able to view their own remittance reports online in a
secure area of the ACNM website.
Federal Tax Status
Federal Tax Status
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Affiliates and ACNM national are classified as
IRS 501(c)6 membership associations
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This means that we are a not-for-profit (vs. a
charitable) organization
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Dues, donations, and other monies received
by ACNM and/or affiliates may not be
classified by individuals or organizations as
charitable or non-taxable contributions but
may be classified as a normal business
expense.
Federal Tax Status
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Form 990 is an annual reporting return that certain
federally tax-exempt organizations must file with
the IRS.
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It provides information on the filing organization's
mission, programs, and finances.
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Effective FY 2010, any tax-exempt organization with
gross receipts less than $200K or total assets less
than $500K must file the 990 or 990 EZ
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Any small organization with gross receipts of $25K
or less must file a form 990-N, an Electronic notice
(postcard) to the IRS,
STATE TAXES
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Federal tax exemptions do not
carry over into state jurisdictions
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Each affiliate should contact its
state department of revenue to
determine state tax status
IRS GROUP EXEMPTION
Requirements for both Organizations
National
Affiliate
Requirements:
Requirements:
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Submit annual report to
IRS annually on behalf of
the group
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Implement governing
documents for affiliates
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Annual filing of 990 or 990N postcard
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Submit to national a
completed annual financial
report (template will be
provided)
Develop standard
governing documents
Provide each affiliate an
annual financial report
template
Cash Flow
CASH FLOW
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Because ACNM collects dues,
based on a member’s anniversary
date, Affiliate cash flow will be
different than Chapter cash flow.
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Develop a transition plan for the
first year.
CASH FLOW SCENARIOS
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Suggestions to handle cash flow concerns:
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Obtain a roster of members and their anniversary
dates from ACNM national.
For the first year, project your cash flow based on
anniversary dates. This projection will allow you to
properly plan for highs and low of the cash flow
cycle
Identify expenses in two categories: the necessities
and discretionary
Plan expenditures based on cash flow projection
Put discretionary spending on hold until you meet
necessary obligations
Ask current members to pay additional dues/
donations if needed
Follow-up on cancellations and past due affiliate
members
Use reserves/savings and replenish based on cash
flow projections
CASH FLOW EXAMPLE
Member
Name/ID
Dues
Category
Paid Date
National
Dues/
Affiliate
Dues
June
2011
July 2011
Aug 2011
Kennedy
Landon-299
Student
5/30/2011
135/13.50
13.50
Steven Erin
Martin-213
Active
6/15/2011
$350/35.00
35.00
Daniel Miranda20483
Active
6/16/2011
$350/35.00
35.00
Lilly Miranda-985
Active
5/1/2011
$350/35.00
Camaria
Student
Greenfield-18835
7/10/2011
$135/13.50
13.50
Audrey Bush-777 Associate
7/11/2011
$135/13.50
13.50
35.00
AFFILIATE
BUDGETS
AFFILIATE
BUDGETS
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Simply: A budget is an organization’s
plan of action expressed in terms of
dollars and cents.
First steps to the budget:
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Identify your activities for the fiscal year
(who & what)
Determine when the activities will take
place (when)
Determine how much it will cost to run the
state affiliate (how)
Implement, monitor and evaluate budget
over time
AFFILIATE
BUDGET TEMPLATE
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We have designed a simple
budget template that will allow
you to track all revenue and
expense over 12 months
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The template is designed to allow
you to track actual to budget
revenue and expenses by
project/activity
KEY DATES TO REMEMBER
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Dues structure and officer names
and contact info to ACNM national
office by Dec 13, 2010
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ACNM dues remittance to affiliates
by 20th of each month
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First ACNM dues remittance to affiliates
= Feb 20
990 or 990-N due May 15, 2012
IMPORTANT LINKS
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State Affiliate
Webinarshttp://midwife.org/aff_devsup.cfm
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Governance Policieshttp://www.midwife.org/governance_policies.c
fm
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Informational Tax Return Instructions for
(990,990-N etc)
http://www.irs.gov/charities/article/0,,id=1766
37,00.html
Next Steps
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Register for Nov 16, 8-9:30pm
EST webinar/teleconference
https://www1.gotomeeting.com/r
egister/256768353