Eastern Area Leadership Forum
Money! Money! Money
Links Finance
Agenda
• Presenters
Ethelyn S. Bowers, Area Treasurer
esbowers@comcast.net 862-926-9333
Valerie Lancaster Beal, Area Financial
Secretary
vlancaster@mrbeal.com 917-576-8302
Agenda
• DUTIES
Treasurer & Financial Secretary
• BUDGET & FINANCES
• BANK ACCOUNTS
• ACCOUNTING PRACTICES
• LIABILITY & BONDING INSURANCE
• FUNDRAISING IN LINKDOM
Agenda
• 503c(3) vs. 503c(4) – WHY & SO WHAT?
• MOVING TOWARD TRANSPARENCY
IN THE EASTERN AREA
DUTIES
• Treasurer
Receive monies collected by Financial Sec.
Deposit money promptly in all accounts
Pay all accounts, approved by chapter
(all checks to be co-signed by President)
Checks should be documented with a voucher
DUTIES
• Treasurer
Checks should be printed with “Void after 90
days”
Reconciles book balances with monthly bank
Statements
Prepares complete financial report at each
chapter meeting
DUTIES
• Treasurer
Presents annual report at May chapter meeting
Submits books to internal audit committee
with 40 days of April 30th
Engages professional external auditor
biennially ; when officers and/or treasurer
change
DUTIES
• Financial Secretary
Receives all money from whatever source;
provides receipts in triplicate (1 for payee, 1
for treasurer and 1 for Financial Secretary)
Reconciles funds to total received, purpose of
funds and turns over to treasurer
Keeps record of individual member
obligations
BUDGET & FINANCES
• Budget is a “plan of action”
Budget should be approved by chapter at least
2 months prior to the end of fiscal year
Budget should be presented NO LATER than
Feb. 1st
Financial Officers: Treasurer, Financial
Secretary, President, VP
BUDGET & FINANCE
• Finance Committee is appointed by the
Chapter president; chaired by the Treasurer
and includes the Financial Secretary
ACCOUNTING PRACTICES
• Fiscal Year (May 1 through April 30)
Payment of chapter & National dues must be
submitted through local chapter (exception is
Affiliate members)
Chapter President or designee, shall sign all
contracts
Monthly financial report reveals complete
financial status of chapter
ACCOUNTING PRACTICES
• Restricted Funds
Funds received or solicited for Program
Facets
Grant in aid contributions
Funds derived from public, individuals/corp.
by special events, grants or solicitations
ACCOUNTING PRACTICES
• Restricted Funds
Received for “Benefit –The Links
Foundation” and/or grants written by chapters
and funded by Links Foundation
TAX DEDUCTIBLE for contributors
Allowable expenditures (up to 10% of net
income; cost of delegate to National/Area
meeting
ACCOUNTING PRACTICES
• Unrestricted Funds
Chapter dues, assessments for social events ,
amount permitted from restricted funds (up to
10%)
Chapter Assessments – are due & payable
prior to leave of absence being granted
Financial obligations & service hours must be
met prior to National dues being paid
ACCOUNTING PRACTICES
• Group Exemption Number is 1520
All chapters must file Form 990, 990EZ or
990N regardless of income level
Forms submitted to IRS and National HQ
LIABILITY/BONDING
• Liability Insurance
Has been automated – information is online;
coverage is mandatory; chapter shall be
covered for all activities/events
Chapter is assessed $5/member for umbrella
liability insurance
Chapter is permitted to secure a rider for
additional coverage at a reduced rate
BONDING INSURANCE
• Process has been automated – forms online
Chapter officers who handle funds must have
bonding insurance; all signatories on chapter
checks must be bonded
Payment due September 15th
$500 penalty for failure to meet deadline
FUNDRAISING
• The Links, Incorporated
501c(4) – Exempt from paying Federal
Income tax; contributions NOT tax deductible
The Links Foundation, Inc
501c(3) – Exempt from paying Federal
Income tax; contributions ARE tax deductible
Chapter establishes separate account
FUNDRAISING
• Chapter Fundraiser
Establish separate checking account
All funds, less expenses, raised from public
must be used for charitable purposes
Tickets must contain -Contributions to this
organization are not tax deductible as
charitable contributions for Federal Income
tax purposes
FUNDRAISING
• Fundraising using The Links Foundation
501c(3) tax deduction
Ticket must include –For the Benefit of The
Links Foundation, Inc.
Ticket must state tax deductible portion of
price
Net balance of funds sent to Foundation with
report
501c(3) vs 501c(4)
• Tax advantages
National vs local fundraising
MOVING TOWARD
TRANSPARENCY
• Standardization of accounting
• Use of technology
• Skill set of those with fiscal responsibility