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THE CLUB TREASURER
Study Unit Objectives
Club Treasurer Manual Cover Is Blue
After completing this study unit, you should be able to:
1. Exemplify the Spirit of Civitan;
2. Understand your job responsibilities as club treasurer;
3. Prepare monthly financial statements for the board of directors;
4. Send statements and collect all dues owed by members;
5. Assist in preparation of the club’s budget;
6. Understand International Quarterly Statements and Invoices;
7. Participate on the club’s board of directors; and
8. Understand the significant role of the club treasurer.
1. Exemplify the Spirit of Civitan
It takes a commitment of your time and energy to be an effective treasurer of your Civitan club. To be sure that you are using that time and energy most effectively, keep the following points in mind and refer to them during your year as treasurer.
Effective treasurers demonstrate their leadership by….
knowing where their time goes and managing it for increased productivity.
building on their own strengths and those of other members in the club.
listening to and weighing the views of other club leaders and members. … recognizing the responsibility of handling club finances is an important part the club’s future success.
2. Job Responsibilities
As club treasurer, you are responsible for successfully managing the basic financial procedures of your club by:
1. Presenting reports to the club and board of directors regarding the financial position of all club accounts;
2. Monitoring balances of accounts to ensure that the club is not exceeding the budget;
3.Ensuring that payments and deposits are made from and into the correct accounts;
4.Banking all monies promptly;
5. Paying all accounts promptly;
6. Reconciling your books every month, or even before (or after) each meeting;
7. Recording details of all receipts, deposits, and payments in the appropriate club records; Filing the appropriate local, state, or federal tax forms (as may be required); and,
8. Making suggestions regarding changes to the standing orders of your club, which will make the financial operations of the club more effective.
3. Prepare Monthly Financial Statements
Many treasurers fail to prepare monthly financial statements providing the club with information as to its financial status. As club treasurer, the suggested accounting system involves the following nine steps:
1. The club president and Finance Committee should work closely with you on preparation for the club’s budget. Prepare the budget by projecting anticipated administrative revenues and project revenues; disbursement for administrative purposes; and project disbursements. Remember that total receipts must equal total disbursements.
2. Assign account numbers to each line item: 100s for administrative receipts, 200s for project receipts, 300s for admin. disbursements, and 400s for project disbursements.
3. When receiving funds from any source, always issue a receipt and enter the appropriate revenue account number on the receipt. (The Civitan International Supply Department has a receipt book available).
4. When writing checks, always enter the appropriate expense amount in the check register or on the check stub.
5. At the end of each month, list all receipt amounts for each account on a separate ledger sheet for that account; do likewise for disbursements.
6. Add monthly totals for each account and enter results on lines in "Current Month" column on Budget and Financial Report form.
7. Add new monthly totals to totals from previous month and enter results in " Year-to-Date" (YTD column).
8. Calculate the percentage of budgeted amounts received or disbursed by dividing the budgeted amount into the YTD total for each item.
9. Prepare a cash summary at the bottom of the sheet.
Review the financial statement "sample" on the following page. This will give you an idea of how some clubs prepare their budgets.
Sample Budget
4. Send Statements and Collect All Dues
It is usually the duty of the club treasurer to send invoices to each member for dues, in accordance with the rules adopted by the club. These dues should be billed regularly and payment is a matter of mutual agreement between the member and the club.
As treasurer, you should work closely with the club Secretary to insure the club membership records are correct. It is the duty of the secretary to keep accurate records of any changes, additions, or corrections. This information should be turned over to the treasurer promptly for billing the members. Also, discuss with the secretary prior to billing about any additional obligations incurred by members – these might include guests at meetings, special charges for certain parties, etc.
Let’s briefly review the different types of dues structures:
1. Club Dues
Cost of club dues are determined by the club and should be collected quarterly, semi-Annually, or annually in advance. Every club should adopt a definite plan of billing for club dues and adhere to it faithfully, as to time and regularity. Make sure that every member, at the time the invitation to membership is extended, is thoroughly familiar with the financial obligations involved.
2. Initiation Fee
An initiation fee will be collected from each member of an existing club, $15.00 of that amount will be sent to Civitan International as an initiatory membership fee.
3. Liability Insurance
Civitan Liability insurance cover Civitan clubs for acts committed by members engaged in club activities. The plan provides up to $1,000,000 for each occurrence, up to $2,000,000 aggregate coverage annually. Each member, in clubs in the United States and Canada, pays US$1.25 annually for liability insurance.
4. International Dues
Each club is required to pay international dues quarterly, in advance, at the rate of $9.00 per member to cover per capita dues and magazine subscription. Your club will be billed for international dues by Civitan International by the first day of the following calendar quarters: January, April, July and October.
5. International Transfer Fee
A Civitan member may transfer membership to another club by completion of transfer requirements; no fee is charge.
6. International Reinstatement Fee
A Civitan member who resigns from a club may be reinstated into that club upon request and payment of a US$6.25 reinstatement fee per member.
7. International Dues for Students
As an exception to the standard dues structure for individual members in Civitan clubs, full-time college students, in undergraduate programs, will be required to pay one-half the standard dues to Civitan International. Further, Civitan International provides for a reduced international initiation fee of $5.00. Liability insurance remains at the standard rate. This policy is considered only for students in "senior" Civitan clubs.
8. International Dues for Persons with Developmental Disabilities
As an exception to the standard dues structure for individual members in Civitan clubs, Civitan International will grant persons with developmental disabilities the right to membership for one-half of standard dues. A request must be submitted for this concession, as well as the guidelines specified in International Policy 0806.1. Please review this policy for additional information.
9. Dues Exemption for Unemployed Civitans
As an exception to the standard dues structure for individual members in Civitan clubs, Civitan International will grant Civitan members, who may become unemployed while currently involved in a club, the ability to retain their membership at no charge for up to two years. The criteria for such an exception are specified in International policy 0810 for your review.
10. District Dues
Each club shall pay district dues for each active member in the amount, per annum, as fixed by district bylaws. District dues are paid in monthly, quarterly, or semi-annual payments.
There need be no hesitancy in sending a reminder of accounts unpaid to members; however, tact should be exercised in the handling of unpaid bills. For your guidance, incorporate the following when dealing with delinquencies:
1. If at all possible, avoid carrying indebtedness over into the next billing period.
2. Never publicize a member’s indebtedness. The report to the board of directors should list only the total of accounts receivable.
3. Confidential statement of individual accounts owed and by whom should be limited to the club president to use as he/she deems necessary.
4. Careful consideration of causes of delinquency and fairness in handling is essential in a close knit organization.
5. Long indebtedness may require the president to ask a selected member of the board (or a close member friend) to call on the member involved for the purpose of arranging a mutually satisfactory plan for payment.
As treasurer, you should insist on a regular audit of your books and on being bonded. These are necessary for your protection.
5. Assist in Preparation of the Club’s Budget
Why does your club need an annual budget? A good question with a good answer – so you will know what you have to spend during the year. The budget is one of the ways you and the leadership team can look at what the club is doing and make decisions about what to continue, what to change, and what to eliminate. The budget is a reflection of the club’s service, knowledge, and fellowship activities.
In many clubs it is the Finance Committee that will help you and the President prepare the budget. If your club does not have a Finance Committee, perhaps the Immediate Past President can assist in its preparation. In any case, the budget should be the link between the resources available to the club and its purpose for existing in the community.
Since you may have questions about preparing the annual budget, let’s look at an 8-step model of budget preparation:
1. With the club president, identify your club’s service areas and the goals for each area.
2. Determine the amount of money the club has available for all of its activities during the Civitan year.
3. Ask each of the standing committees to give the president and you a tentative committee budget for the year.
4. Compare the requests of each committee with the monies available.
5. If there is enough money, approve the budget of each committee. If the requests exceed the amount of money available, meet with each committee chairperson to discuss ways to reduce the budget request.
6. List the committees and their budgets, administrative expenses, etc., in preparing the final version of the annual budget.
7. The president should share the tentative budget with the Executive Committee for their input or approval.
8. After the Board has approved the budget, publish it in your club’s newsletter so the club members understand what it takes to achieve the goals of the club.
6. Understand International Quarterly Statements and Invoices
One of the most important pieces of mail you will receive from Civitan International is the "International Quarterly Dues" invoice and membership roster. This information is sent to the "Club Billing Contact" at the end of the third month of each quarter. The invoice
payment is due by the 20th of the first month of each new quarter.
Let’s look at the sample "International Quarterly Dues" invoice below and identify important information for your attention and action.
CIVITAN INTERNATIONAL
INTERNATIONAL QUARTERLY DUES
P. O. Box 130744, Birmingham, AL 35213-0744; (205) 591-8910
One Civitan Place, Birmingham, AL 35213-1903
DISTRICT 01 CLUB 9299 DATE 04/01
CLUB NAME COREL INC B’HAM AL INVOICE 6042
BILLABLE MEMBERS 25 @ $9.00
AMOUNT DUE $225.00
ALL INVOICES ARE BILLED AND PAYABLE IN U.S. CURRENCY.
CLUBS ARE BILLED FOR NUMBER OF MEMBERS ON RECORD AT WORLD HEADQUARTERS EACH QUARTER AND NO ADJUSTMENT OF AMOUNT BILLED IS ALLOWED.
DUES ARE PAYABLE QUARTERLY IN ADVANCE AND MUST BE PAID BY 4/20 CLUBS FAILING TO PAY WITHIN 20 DAYS ARE CONSIDERED DELINQUENT.
DO NOT RETURN ROSTER.
THIS INVOICE ALSO COVERS MAGAZINE SUBSCRIPTION.
REMITTANCE COPY
ADDRESS: This is the address for Civitan International and where you should send your dues payment.
DISTRICT #: This is the number of your district. The number is used on Supply House orders, club officer reports, member addition and deletion forms, etc.
DATE: The first day of the quarter for which the dues payment is required.
CLUB #: This is the number assigned to your club by International. The number is used on Supply House orders, club officer reports, member addition and deletion forms, etc.
INVOICE #: This is a tracking number used by International.
BILLABLE MEMBERS: This is the number of members on record at International. If the number you have recorded differs from this number, you must still pay for this number of members. It’s a good idea to check your list of members against the roster accompanying the dues invoice each quarter. Send additions or deletions as needed to reconcile the rosters.
AMOUNT DUE: This figure is $9.00 times the number of members on the International roster. It’s always a good idea to check the arithmetic. Remember—dues are paid a quarter in advance for each member, making the timely collection of club dues important for the continuing fiscal health of your club.
Things to note:
1. You should always enclose a copy of the invoice when paying bills to Civitan International. This allows for quick resolution of disputes regarding payment of bills, since a copy of the paid invoice is retained permanently in your club file.
2. Always send separate checks when paying supply invoices, dues billings, Candy Box collections, or contributions to the Civitan International Foundation. This will ensure that payments are applied to the correct account.
3. Should you discover an error on an invoice from Civitan International or need a copy of an invoice that might have been misplaced, please contact the Accounting Department at Civitan International. In addition, if you don’t understand a charge or need assistance in paying an invoice or dues billing, contact the Accounting Department for clarification. This will ensure your club remains in good standing.
7. Participate on the Club’s Board of Directors
As an elected officer in your Civitan club, you are expected to attend the monthly meetings of the Board of Directors. This is the leadership team for your president and your club. Your presence at these meetings insures that the leadership is aware of the financial health of the club.
Knowing the financial status of the club enables the Board to make informed decisions on projects, grants, gifts, fund-raisers, etc. If you are not present, or if your information is not current, the Boards’ decisions may be delayed or faulty.
At each Board meeting you should distribute a current accounting of income, expenses, holds on funds, number of members, members who are behind in their dues payment, and other information the president or board members might request in advance of the meeting.
8. Understand the Significant Role of the Club Treasurer
The experience of being your club’s treasurer might be an opportunity for you to do some things you would not have an opportunity to do. The role you’re filling is a critical one for the health and well being of your club. Assume your responsibilities proudly, discharge them competently, and your time as treasurer will be a period of fiscal stability for your club.
ADMINISTRATIVE INFORMATION
AND FORMS
IRS Filing Requirements
[U.S. clubs only]
Who must file Form 990 with the Internal Revenue Service?
1. It is recommended that all clubs chartered during the 1997-98 administrative year file Form 990 with the IRS. If your gross receipts were under $25,000 and/or your club has Unrelated Business Income of under $1,001, you need only complete the top portion of the form. This will provide the IRS with information concerning the financial status of your club.
2. If your club has been in existence over one year and gross receipts are under $25,000 and/or Unrelated Business Income is under $1,001, it is not required that you complete Form 990. The only exception would be if your club receives Form 990 from the IRS—then you must complete and return the form. The form is simple to complete.
If your club has gross receipts of more than $25,000 and/or you had Unrelated Business Income over $1,001, you must file Form 990 annually.
What is the deadline for filing Form 990 with the IRS?
February 15.
What are the penalties for not filing Form 990?
It could result in a fine of $10 per day up to a total of $5,000.
Civitan International and your club have received a group exemption under Internal Revenue Code 501(c)(4).
Civitan International’s group exemption number is 0956.
Now, let’s talk about your club’s individual Employer Identification Number (IRS Number)
If you are unsure as to your club’s correct Employer Identification Number, contact Civitan world headquarters … and please use the number on Form 990 and for any other necessary correspondence requesting the number, e.g., your bank.
What to do when you cannot locate your IRS Number:
Call the World Headquarters. International keeps your number on the computer and in your club’s permanent file.
And, please never do the following:
Never use another club’s IRS number.
Never contact the IRS for your club’s number. The IRS will issue a new number for your club. The result will be that your club will have two IRS numbers.
If your club does not yet have an IRS number, DO NOT file for one through the IRS. Your world headquarters staff files for all club IRS numbers. When your club number is received, the information will be forwarded to you.
If your club does not have an IRS number, do not file Form 990 this year.
Never send Form 990 without your club’s IRS number listed. Again, IRS will issue another number to your club if this occurs/
Form 990 can be obtained by calling your local IRS Service Center.
Please contact your district treasurer for information about reporting to your local and state governments.
Computerized Accounting Options
Some of you may be more comfortable keeping your club’s records and accounts using a computer. If you do that, keep the following in mind (you probably know this, so it’s just a reminder)
1. Use a program that is easily available to others unless you want to be the treasurer forever.
2. Use a program that presents the financial data clearly and concisely.
3. Back-up your master copy. If you keep the club’s records on a computer hard drive, make sure you have updated copies on several different floppy disks.
4. Remember Murphy’s Law. It can happen to you!
You’re certainly free to choose an accounting program that suits your needs. Many Civitan club treasurers’ report using one of the following programs: Excel, Quicken, or Lotus 1-2-3.
Continuing Administration Sections Found in the Links Below:
General Ledger
Cash Receipts Journal
Cash Disbursement Journal
Membership Roster and EDate
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