Finances / Collections
Convention 2012
Richmond, VA
THANK YOU!
• FY12: another fantastic year for finances
• Please continue the efforts into FY13 and
beyond
• Until we reach 100% - always room to
improve
FY12 Collection Rates
(as of June 30)
• 98.260% of Fall dues collected
• 89.822% of Spring dues collected
• 95.473% combined full year collected
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100% paid Fall new member fees
100% paid Fall initiation fees
100% paid Spring new member fees
All but two chapters have paid full Spring initiation fees
100% / 97.79% - full year NM/Init collected respectively
New IEC Treasurer
• Chris Rakunas – outgoing IEC Secretary /
incoming IEC Treasurer
• Cal Tau alum
• Successful business career serving as the
CEO of a hospital
• Accomplished Author
• Committed to continued improvements
IRS – FORM 990 FILING
Filing due on the 15th day of the 5th month after
the end of your organization’s accounting period
For more information, visit www.irs.gov/eo or
speak to a tax accountant
If needed, ask alumni for advice – chances are
you have a CPA that would be willing to help
Which 990 Form to file?
2010 Tax Year and later (Filed in 2011 and later)
Gross receipts normally ≤ $50,000
Gross receipts < $200,000, and total assets < $500,000
Gross receipts ≥ $200,000 or total assets ≥ $500,000
Form to File
990-N
990-EZ or 990
990
Be sure to file!!
 Failure to file for three consecutive years = LOSS OF
TAX EXEMPT STATUS This happened to two
chapters in June of 2011
 IRS threatening for ALL of Pi Lam to lose tax status if
chapters fail to file
 IRS: $20 penalty PER DAY for each day failure to file
continues (same penalty if you fail to give correct and
complete information)
 Committee has been formed to help ensure compliance
(Brandon Taylor, Chris Rakunas, Pat Daley)
General Tips for the KOE
Use software – Quicken / Microsoft Money
Monitor actuals vs budget – adjust as
needed (individual budget “swapping”)
Hold chairs to budgeted amounts – any
fluctuations need Exec approval
Tips continued…
 Rex and KOE to have bank access (online,
signature authority, etc).
 Checks over $XX should require two signatures
(Rex and KOE)
 Alumni chapter/faculty advisor to have “review”
authority (possibly signature authority as well)
Tips Continued…
 Collect EARLY – more money to start the
semester
 **Bank Reconciliations / Do not use ATM
balance or “current” online balance to determine
amount of cash available**
 Include note with payments to IHQ detailing what
payment covers
Payments to IHQ
Payments to IHQ Consist of:
Per Caps ($325 per man)
Insurance ($95 per man)
Programming Assessment ($1500 per
chapter/colony)
Colony payment structure slightly different
if you are a Colony and you have questions,
please ask me or Ian
Current IHQ Collection Policy
 New overall policy in effect beginning with Fall
2010. Changes being made starting with 20122013 school year.
 FY12 was fantastic – however, some probations
and suspensions were handed down. This will
continue to be enforced.
Collection Policy Continued…
 There will be three payment options available to each
Chapter/Colony:
1. Full YEAR payment by September 30
2. Full SEMESTER payment by September 30 and
February 15
3. Two payments in the Fall (Sept 30 & Nov 15) and
one payment in the spring (Feb 15)
Collection Policy Continued…
 Payments consist of the following:
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

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Full year: 100% Per Caps/Risk Management and
Educational Programming Assessment
OR
Fall full semester payment: 60% of annual per
caps/insurance plus 75 % of Educational Programming
Assessment
Spring full semester payment: 40% of annual per
caps/insurance and 25% of Educational Programming
Assessment.
OR
Two Fall default payments: each at 30% of annual per
caps/insurance and 75% of Convention assessment
Spring default payment: 40% annual per caps/insurance plus
25% of Educational Programming Assessment.
Pros/Cons of Payment Options
Pay entire year by September 30
 8% discount
Pay semester in full by respective semesterly due date
 5% discount
 Fall Semester payment must be postmarked by 9/30 to
be eligible for Spring discount.
Two Fall payments / One Spring payment
 Default payment option
 No discount / no premium
Collection Policy Continued…
NOTE: you will only receive the 5% discount on the full
Spring semester payment if you paid the Fall semester
was postmarked by September 30.
As you can see, the Spring full semester payment and
the Spring default payment are identical. Therefore,
the benefit is only given to those chapters who take
advantage of the Fall full semester discount.
Disciplinary Actions
Payment not postmarked within 5 days of due date:
◦ Probation with SOCIAL SUSPENSION
◦ School and alumni association notified of social suspension
◦ Probation lifted if payment received within 30 days of due date
Payment not postmarked within 30 days of due date:
◦ Chapter placed on FINANCIAL SUSPENSION
◦ School and alumni association notified
◦ Remain on Financial Suspension until payment made or payment
plan presented to and agreed upon by IEC Treasurer and Executive
Director and/or Director of Chapter Operations
What is Financial Suspension?
 Suspension of Charter - Pursuant to Article V Government, Section 5 (c) of the Pi
Lambda Phi Constitution, the International Executive Council may suspend the Charter
of any Chartered group.
 Financial Suspension of Charter means that the Chapter must take all actions necessary
to:
– Remain a member of the respective University/College, IFC and/or similar
governing bodies or constituency
– The Chapter will not hold itself out as a Chapter of Pi Lambda Phi Fraternity. This
includes, but is not limited to the following:
• Prohibition of participation in events where any individual(s) and/or group(s)
would associate a chapter of Pi Lambda Phi Fraternity being associated with;
• The Chapter may not orally, in writing, or by symbol represent itself as a
Chapter of Pi Lambda Phi Fraternity in any campus activities. Campus
activities include, but are not limited to the following:
– Greek Week/Greek Games
– Intramural sports/events; and/or
– Social events
Financial Suspension Continued
 Recruitment
• Recruitment will not be permitted unless approval is obtained from
the Executive Director, or the Director of Chapter Operations, or the
President of the International Executive Council
 New Member Education
• New Member Education will not be permitted unless approval is
obtained from the Executive Director, or the Director of Chapter
Operations, or the President of the International Executive Council
• Each suspended group must submit a written proposal stating how
continuing the new member education period will help to meet their
financial obligations
– Approval will only be given if new member fees are paid as
detailed in the new member and initiation policy
Discipline - continued
 Chapters on Financial Suspension for two
semesters will be given notice of charter
revocation
 Colonies on Financial Suspension for two
semesters will be given notice of termination of
colony recognition
New Member Fees / Initiation
 New member fees to be paid within two weeks of pinning or by the
new standardized semester due dates (10/10 and 2/20) New Member
Fees are $65 per man. New Member Payment and Cards are sent to
IHQ.
 Request for Permission to Initiate form and appropriate fees are due
AT LEAST TWO WEEKS BEFORE or by the new standardized
semester due dates of (11/20 or 4/10). Initiation Fees at $175 per man.
Fees and Permission to Initiate Forms are sent to IHQ.
 Any “rush” request on pin /badge shipments will be at chapter’s
expense
 Penalty for late reporting/payment of initiation fees: $25 per man per
semester
New Member Fees / Initiation
Continued
 Beginning with Fall 2010, any Chapter/Colony that fails to
report and/or pay for New Member and/or initiation fees in a
timely manner may be placed on probation with social
suspension until payment has been made. The decision will be
made on a case-by-base basis by the Executive Director,
Director of Chapter Operations, IEC President, and/or IEC
Treasurer
 New member program may NOT begin until previous periods
are paid, unless given permission by Executive Director and/or
the Director of Chapter Operations
Roster Adjustments
 For 2012-2013 school year, roster adjustments due
to IHQ by August 31, 2012. Once verified
through the school, these updated rosters will
dictate billings.
 This only happens ONE TIME each year.
 Email current Officer contact info to Laura NOW
laura.patricio@pilambdaphi.org
Collections
Contracts
 Brother agreement (get completed/signed at
time budget is approved)
 Brother agreement / payment plan
• Only if legitimately “needed”
• Brother must present reason why it is needed to
Exec Board
Don’t be afraid to ENFORCE contracts
More “Consequences”
Hit ‘em where it hurts the most. The
previous list contained plenty of incentive
to pay dues. But how about SOCIAL
PROBATION? Who wants to miss out on
social events?
“Consequences” for NonPayment
 Unable to attend New Member events
 Ineligible to be big brother
 Unable to attend initiation
 Unable to attend various brother nights/activities
 Unable to participate in chapter athletics
 Added “work shifts” at parties or functions
 Added DD duty
 Loss of voting privilege at meetings
Social Probation
Can’t attend closed parties
Can’t attend sorority socials
Can’t participate in sorority events around
campus
Can’t attend “band parties”
Extra “sober crew” assignments at “regular”
parties
Final Attempts
If nothing else works and they are not living
up to their commitment:
Small Claims Court
Low costs (if any)
Simple procedures
If you have the contract and signatures, easy
to prevail
Omega Financial
 Online chapter financial services including billing,
statements, budget tracking, various payment options with
direct transfer to chapter accounts as well as to IHQ, etc
 System accepts credit cards, debit cards, and online checks
 7 chapters have been actively using Omega – some
beginning as early as 1998. A handful of others are
considering implementing it this coming school year or at
least researching it a bit further.
Chapter Examples
Examples from Brothers on how they
handle late payments and payment plans
currently. (This is the part where you talk)
Budgeting
 How to budget
 Master budget (spreadsheet review)
 Sub-budgets by committee to feed master budget
 Budget “backwards”
 TIP: be conservative…overestimate costs, underestimate
any variable income
 Be sure to include an “allowance”
PI LAM WEBSITE
 The following items will be available on the Pi Lam
website in the members’ section within the next few
weeks:
 Budget Template for you to use (Excel)
 Collection Policy
 Chapter Brotherhood Agreement Template
 Chapter Brotherhood Payment Plan Agreement
Template
 This presentation
 Our international budget with explanations
If you slept through everything
else…
• Do a 990 for the IRS
• Pay bills
• Communicate, communicate, communicate
How to reach me…
Chris Rakunas - IEC Treasurer
treasurer@pilambdaphi.org
crakunas@hotmail.com
Cell: 310-871-4466
Facebook.com/crakunas
Q&A