National Society of Black Engineers

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2006 RLC Treasurers Functional
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Overview

• Introductions
• Duties and Responsibilities
• Developing and Maintaining Budget
• Chapter Relief Fund
• National Program Fund
• Chapter Responsibilities
• National Responsibilities
• Distribution of Dues
• Checks and Balances
• General Exemption Number (GEN)
• Contact Information

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Introduction

• Phillip Grant
• Mid Hudson Valley Alumni Chapter
• Region I Alumni Treasurer

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National AE Finance Zone

• Cassandra Johnson - National AE Treasurer
• Monitor organizations AE Finances, Manage the AE
  annual budget, Oversee chapter and regional
  General Exemption Number (GEN) policy.
• Treasurer_at_nsbe-ae.org
• Keisha Slaughter National AE Finance Chair
• Identify national funding source, prepare AE
  solicitation packets
• Finance_at_nsbe-ae.org

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Regional Alumni Finance Zone

• Alumni Treasurer
• Coordinates all regional treasurer duties for the
  Alumni Extension.
• R1ae_treasurer05_at_yahoo.com
• Conference Manager
• Kamona Ayres
• Coordinates Alumni and professional development
  conferences for RLC, FRC, and SRC.
• R1ae_confmanager_at_yahoo.com

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Duties and Responsibilities

• Develop and maintain the Chapter Budget
• Monitor chapter income and expenses
• Report pertinent financial information to the
  Chapter Executive Board (CEB)
• Develop guidelines for allocation and
  disbursement of funds
• Maintain an outstanding accounting system for all
  financial transactions
• Develop, implement, and maintain an effective
  chapter financial plan and management system
• Chair the Finance Zone

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Developing A Budget

• Look at previous years income and expenses
• Itemize each expense
• Set financial goals for your chapter
• Establish spending guidelines

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Maintaining The Budget

• Keep track of all deposits, allocations of funds
  and reimbursements
• Enforce reimbursement policy
• Analyze and assess the financial impact of
  executive decisions both prior to and subsequent
  to implementation
• MAKE COPIES OF EVERYTHING!!
• Its ok to say NO!

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Chapter Relief/Support

• PURPOSE
• Provide some financial assistances for those
  chapters that are in need and are upholding the
  NSBE Mission.
• TO QUALIFY
• A chapter must be chartered and active via NOL.
• A chapter must be active with their region
• All persons listed as chapter officers must
  submit at least 3 CONSECUTIVE MONTHLY
  REPORTS!!!!!!!!!!
• ALL MEMBERS ON THE CHAPTER EXECUTIVE BOARD MUST
  BE PAID AND ACTIVE NSBE MEMBERS VIA NOL!

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Chapter Relief/Support
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National Program Fund

• Provides financial assistance to chapters
  intending to implement Programs that fulfill the
  NSBE Vision, or directly impact the National Long
  Range Plan, National Directives, or National
  Program objectives

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National Program Fund

• Provides Partial Funding
• Completed on NOL
• 8 week process

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Chapter Responsibilities - Financial
Management/Reporting

• TREASURER
• Submit Treasurers reports to the Chair on a
  monthly basis
• Keep accurate and complete financial accounts
• Deposit Chapter organization funds promptly
• Prepare detailed Chapter-AE financial reports
• Establish/abide by chapter financial process
• Prepare a transition report within a month after
  chapter elections

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Chapter Responsibilities
- Financial Management

• Treasurer should institute a system for
  maintaining detailed account of all money
  received and spent by the chapter. Updates should
  be made to the budget monthly reflecting these
  incomes/expenditures.
• Some suggestions to promote financial management
  
• Financial reporting Utilize common personal
  accounting tool such as Quicken, Microsoft Money,
  etc.
• Check Request Forms to keep record of
  expenditures and record approval of expense
• Receipt Attachment Form to assist with
  preservation of expense receipts for record
  keeping purposes (GEN, 501c3, etc.)
• Budget Modification Form keep a record of
  changes to chapter budget when funds are moved
  between line items within the chapter budget.

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Chapter Responsibilities
- Financial Policies

• Treasurer should institute some financial
  policies to avoid conflicts or issues with
  financial operations.
• Reimbursement Policy
• Required approvals
• Amount limitations
• Timeline for processing
• Contracts/Agreements with Vendors
• Who can create contracts
• Preferred vendor list
• Preferred payment terms
• Conference Accommodations
• What expenses the chapter can/will cover
• Who qualifies for chapter sponsorship

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Chapter Responsibilities -
Financial Management

• FINANCE CHAIR
• Report expected receipt of funds based upon
  agreed sponsorship
• Report those funds yet to be received, considered
  outstanding
• Prepare a transition report within a month after
  chapter elections

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Chapter Responsibilities -
Financial Management

• Finance chairs should keep a detailed record of
  all solicited and received money. This will keep
  track of those funds that have been promised to
  the chapter and actually paid.
• In a situation where a sponsor has committed
  funds yet they have not been received, the
  finance chair and treasurer should send out a
  reminder to the company.
• Finance chair should maintain a record of all
  companies chapter contacted regarding sponsorship.

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Chapter Responsibilities -
Financial Management

• Finance Chairs should institute some policy
  around the agreement of sponsorship and receipt
  of funds.
• Establish a desired timeline for receipt of funds
• Create a sponsorship agreement
• Create a process for notification of late
  payments

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Regional Alumni Executive Board
Change in the distribution of National AE Dues.

• This change is new beginning in FY 04-05. In
  order to support the newly re-formed RAEBs, a
  portion of the national dues were re-allocated.
• This change was approved by the NEB for 3 years.
  After that point, the distribution should be
  re-evaluated.

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Checks and Balances

• Require two signatures on the chapter accounts.
  Include a requirement for Chapter checks to be
  signed by two or more people.
• Treasurer and Secretary to keep record of money
  made/collected at chapter events
• Treasurer to present detailed written report at
  Executive Board Meeting
• Treasurer to present general written report at
  General Body Meeting
• President will perform periodic checks of the
  account balance and review statements
• Create a Finance Committee to perform yearly
  financial audits

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Checks and Balances

• Selecting Position of Treasurer
• Term limits (Maximum of two years)
• Term limits are strongly suggested but are not
  required
• Require verifiable financial experience from
  nominees
• The Alumni Arsenal
• Volume 2, Issue 4 - December 01, 2004
• Creating Financial Checks and Balances within
  your chapter

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National ResponsibilitiesGeneral Exemption
Number (GEN)

• A Tax Exempt Organization - What Does it Mean?
• Chapter/Regional Record Keeping Requirements

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How can an organization become tax-exempt?

• An organization such as NSBE may qualify for
  exemption from FEDERAL income tax if it is
  organized and operated exclusively for one or
  more of the following purposes
• Charitable, Religious, Educational, Scientific,
  Literary, Testing for Public Safety, Prevention
  of cruelty to children and animals or fostering
  national or international amateur sports
  competition

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How can an organization become tax-exempt?

• Additionally, the organization must be a
  corporation, community chest, fund or foundation.
  
• In NSBEs Article of Corporation (1976), the
  organization is described in Article Two as a
  non-profit corporation.

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Advantages of being tax-exempt

• Donations to tax-exempt organizations such as
  NSBE are deductible as charitable contributions
  on the donators Federal Income Tax return.
• Whether we like it or not, many contributions are
  given solely for deductions on income taxes.
• Many companies and foundations only donate to
  tax-exempt organizations.

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Advantages of being tax-exempt

• If the donor receives something of value in
  return for the contribution, part or all the
  contribution may not be deductible. The
  deductible amount should be determined by the
  organization prior to the event.
• For example, if tickets are being sold for a
  fashion show and the proceeds are going towards a
  scholarship fund, the contributor can not claim
  the portion of the ticket price that pays for the
  dinner served at the show. Other examples are
  concerts, banquets, charity balls, and athletic
  events.

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Advantages of being tax-exempt

• Notably, a chapter that intends to be recognized
  as an exempt chapter but has not been done so is
  still not tax exempt until the paperwork has been
  completed and approval given. Therefore, a
  contributor can not deduct the contribution on
  his federal income taxes.
• The ability for a contributor to deduct a
  contribution made to a chapter is possible if the
  chapter is tax exempt.

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General Exemption Number (GEN)

• Unlike collegiate chapters, AE chapters cannot be
  tax-exempt under a universitys tax-exempt
  status.
• This process can be seen as providing a legal
  umbrella for chapters so that they can conduct
  business and fulfill their goals and objectives.
• The required annual reporting to the IRS (Form
  990) will be done by NSBE versus the individual
  chapter. However, chapters have the option to
  pursue the tax exemption individually if so
  desired.

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So what is the NSBE General Exemption(GE)
Program ?

• The process of how the alumni extension chapters
  tax exempt status is being done through a section
  of the Internal Revenue Code called a General
  Exemption Letter or as referred to in NSBE AE,
  the General Exemption (GE) process
• This code relieves individual chapters from the
  burden of filing its own application for tax
  exemption.
• The code allows the chapters to be covered under
  the NSBE tax-exempt status.
• In the code, the AE chapters are called
  subordinates.
• The required annual return ( Form 990) would
  include the GE chapters information. This is
  required for the public to reference.

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Are AE Chapters Required to Pursue GE?

• NO. AE Chapters have the option to pursue
  individual chapter tax-exempt status. To check
  on applying for individual status, go to the IRS
  website
• http//www.irs.gov/charities/article/0,,id96590
  ,00.html
• The GE process relieves each chapter
  (subordinate) from filing its own application for
  exemption. The time, money and effort saved makes
  this an attractive option for chapter.
• Chapters who do pursue individual tax-exempt
  status are also responsible for all record
  keeping and reporting. There are costs for
  renewing and updating the individual status.

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AE GE Process Resources

• The AE Treasurer and the NSBE WHQ Director of
  Accounting and Finance has direct responsibility
  of the General Exemption Process.
• Cassandra Johnson, AE Treasurer
• Email treasurer_at_nsbe-ae.org
• Sharon Southerland-Smith, NSBE WHQ Accounting
• 703-549-2207 ext. 216
• Email ssmith_at_nsbe.org

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Getting an AE Chapter on Board with GE

• GEN qualification is not automatic for any
  chapter (new or renewing). It is a continuous
  process!
• Remember NSBEs fiscal year is August 1 July
  31. Our quarters are
• Process is done on NOL

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Frequently Asked Questions

• Q What if a chapter is covered under the GE
  process one year but decides not to participate
  the next year?
• A Proper notifications to the IRS must be made
  to inform them of a chapters decision to no
  longer be covered under the GE process.
• Q What if a chapter has its own tax exempt
  status but wants to be covered under the GE
  process?
• A The chapter must inform the IRS of their
  decision to relinquish their 501(c)(3) status
  prior to the chapter being added to GE list.
• Q What if a chapter that has its own tax
  exemption status does not submit the required IRS
  Form 990 annually?
• A If a chapter is required to file the Form 990
  or Form 990 EZ then those persons responsible
  (officers) could face monetary penalties or
  worse. This is similar to a person not filing his
  individual income taxes.

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Frequently Asked Questions

• Q What happens to the Form 990 that is
  completed?
• A The IRS will make this information available
  for public viewing. The organization has an
  obligation to make the information available if
  someone asks.
• Q Are there other things a chapter should
  consider in relation to IRS reporting?
• A Each chapter covered under the GE process
  should also discuss with state and municipal
  government revenue agencies any additional
  reporting requirements.
• If there are requirements, information will be
  made available from NSBE. It is the chapters
  responsibility to ensure that they are within
  state and municipal code.

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Frequently Asked Questions

• Q My chapter does not to participate because
  they feel like too many people will be in their
  financial matters. How do you respond?
• A The GE process will bring more uniform
  financial recordkeeping across all levels of the
  organization.
• Chapter will be given greater flexibility to
  obtain grants, contributions, etc.
• The request for information is required so that
  there may be proper documentation for the annual
  reports to the IRS. A chapter that pursues a
  tax-exempt status is still required to submit the
  annual report to the IRS.

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Contact Information

• Treasurer
• R1AE_treasurer05_at_yahoo.com