Treasurer’s Responsibility

The Treasurer plays a strategic role in the success or failure of a Regional Club. Whether the treasurer is an elected or appointed official of the club, their job is to give the membership good financial information. The treasurer is also responsible for reporting the club’s operation to the government. If the club is incorporated, and a member asks once for the club’s financial information, by federal law, it must be shown or provided to the requestor within 90 days.
Before filling the office of club treasurer, all officers should understand what a large responsibility the office entails. Simple trust in the integrity of the treasurer should never have to be an issue. Instead, a system of checks and balances should be set up to ensure the security of the club treasury. Additionally, the club should consider requiring all persons in the club who handle club funds to be bonded.
Bank Accounts

  • The location of the club bank account(s) should be a mutually agreed-upon location.
  • Each account set up should be in the name of the Regional Club.
  • There should always be at least two signatures on file with the bank.
  • Monthly statements should be sent to at least two officers, if not all four.
  • Deposit and withdrawal authorization should be mandatory for any account established for the club. Additionally, the treasurer should bring the books to every meeting, and they should be available for inspection on request.
  • Two signatures should be required for checks or other withdrawals from the account for more than $100.00.
  • A receipt book is a necessity for the treasurer. A receipt should be written for any money taken in by the club. Receipt books provide copies in triplicate.
  • Copies of cash receipts should always be provided to customers.
  • For security reasons, money should be counted and recorded on a ledger before at least two witnesses, and the balance should also be reflected on deposit slips.
  • Certificates of deposit or other valuable documents are sometimes stored by Regional Clubs. These documents should be set up in the name of the club only. A bank deposit box is recommended for these items. Signatures of at least two officers should be required to open the deposit box. The location of these documents should always be on record with the club secretary.
  • If money is involved, every financial statement should reflect the existence of these documents.

With proper bookkeeping and fiscal responsibility on the part of the club officers, answers will be easy to find if they are ever called into question with regards to the club’s finances.
Financial Reports
A financial statement is a good management tool for the club. It is also a historical document. It can give the club a road to track. The Regional Club is a business and needs to be treated that way. What makes up a good financial sheet?

  • Balance Sheet. This gives the club a snapshot of its finances on a given day
  • Assets/Liabilities. Assets and liabilities list what items are owed, and items not yet paid for (i.e., Paint-O-Rama fees to APHA). When the liabilities are subtracted from the assets, the balance lists what the club is worth.
  • Cash Flow Statement. This is a reconciliation of the club’s cash from one year to the next. There are two basic methods of keeping club books. Either system is okay, but it is important to be consistent from year to year. Club officers should decide whether their club will operate on a cash or accrual basis and stay with it.
  • Cash Basis System. This is a type of financial statement. When it is received, it is counted as income.
  • Accrual system. This is a better match for Regional Clubs. (i.e., If membership money is received in January, it is deposited in the bank, but not counted as income until June.)
  • Financial Report (Sample)

To apply for status as a not-for-profit organization, you will need to fill out IRS form #1024. This form cannot be completed over the telephone. Requirements for a 1024:

  1. EIN # (employee identification number). This is the club’s tax ID number, SS4, and it can be acquired over the telephone by calling the Internal Revenue Service in your state capital.
  2. Articles of Incorporation. This is the organization document, or constitution. A certified copy is required.
  3. By-Laws. A certified copy is required.
  4. Description of the club’s activities and events.
  5. Financial statements for the past 3 years. If the club has only been in business for 2 years, they should send what they have. The IRS will want 2 years of proposed budget if the club is new. The IRS will send the club a ruling and determination notice, and will most likely ask for more information. It is common to receive an adverse ruling letter the first time, so the club should not be discouraged. If this happens, they will need to get the name of an agent, and may want to get an attorney and/or CPA to help them.

Tax Returns
Gross receipts in excess of $5,000 require filing of a tax return. Common forms are the 990, 990EZ, and the 990T. When gross receipts reach $25,000, the club will need to file a 990 form, or possibly a 990EZ (short form) if gross receipts are not more than $100,000 and the club assets are less than $250,000.
The 990T is for unrelated business income. If the club has an activity that wasn’t part of their original statements for the way they’re doing business, a 990T should be filed. Income from events such as a raffle need to be reported as unrelated income. Returns are to be filed on the 15th day of the 5th month after the club’s year-end.
The club will need to provide a completed form #1099 by January 31 for everyone paid $600 or more in the previous year (unless they’re incorporated). Copies must be sent to the individuals as well as the IRS. 1099s will also need to be completed for any prizes awarded by the club.
For more information concerning your club’s taxes please visit www.IRS.gov . The IRS website offers information for charities and non profit organizations.  To find out more about your specific state regulations you will want to contact your local tax advisor or CPA.