Finance Zone Functional

1
Finance Zone Functional
www.nsbe.org

• Denice Young, Region 2 AE Treasurer
• Dr. Cecelia Wright-Brown, Region 2 AE Finance
  Chair
• Ray Perez/Carlton Russell, Region 2 AE Conference
  Managers

2
Roll Call of Participants
www.nsbe.org
3
Overview
www.nsbe.org

• Duties and Responsibilities
• Budget Ownership
• Understanding Budgeting
• Compiling a Budget
• Managing a Budget
• Chapter Solicitation Guidelines
• Solicitation Packet
• General NSBE rules for Solicitation
• Financial Status
• GEN
• Event Planning

4
Chapter Treasurer Duties and Responsibilities
www.nsbe.org

• Develop and maintain Chapter Budget
• Monitor chapter income and expenses
• Report pertinent financial information to the CEB
  and prepare detailed Financial Reports
• Submit Treasurers reports to the Chair on a
  monthly basis
• 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
• Prepare a transition report at least a month
  prior to chapter elections
• Chair the Finance Zone/Committee

5
Finance Chair Duties and Responsibilities
www.nsbe.org

• Develop and maintain the strategy to ensure the
  financial needs of the Alumni are met.
• Shall serve as the point of contact for
  recruiters and companies attempting to fill
  technical positions
• Develop chapter solicitation packet for obtaining
  corporate sponsorship
• Prepare a transition report at least a month
  prior to chapter elections

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Suggested Financial Policies
www.nsbe.org

• Some suggestions to promote financial management
• 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.
• Reimbursement Policy
• Required approvals
• Amount limitations
• Timeline for processing
• Conference Accommodations
• What expenses the chapter can/will cover
• Who qualifies for chapter sponsorship

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Alumni Checks and Balances
www.nsbe.org

• Require two signatures on the chapter accounts.
  Include a requirement for Chapter checks to be
  signed by two or more people (usually the
  Treasurer and President)?
• 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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References
www.nsbe.org

• The Alumni Arsenal
• Volume 2, Issue 4 - December 1, 2004
• Creating Financial Checks and Balances within
  your Chapter
• available at National AE website
  (https//alumni.nsbe.org)?

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10 Commandments for an Effective Treasurer
www.nsbe.org

• Plan and Document
• Set financial goals for the chapter
• Mind the Mission in your spending
• Communicate effectively
• Dont be afraid to say NO
• Consider ANY and ALL resources
• Think before you spend
• Be knowledgeable about what is going on
• Know your limitations
• Be accessible

10
BUDGET OWNERSHIP
www.nsbe.org

• Understanding Budgeting
• Compiling a Budget
• Managing a Budget

11
Understanding a Budget
www.nsbe.org

• What is a Budget?
• A budget is a plan for future activities. It
  describes all of a business in financial terms.
  It is a yardstick by which an organizations
  performance is measured.

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Understanding Budgeting
www.nsbe.org

• Why Budget?
• Achieve of planned objectives
• Illustrate financial responsibilities to group
• Suppliers
• Employees
• Customers
• Owners

• Why Budget?
• Planning
• Co-ordination
• Communication
• Motivation
• Control
• Evaluation
• Business Tactic

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Understanding Budgeting
www.nsbe.org
Writing
Preparing
Monitoring
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Understanding Budgeting
www.nsbe.org

• Preparing
• Clarify corporate
• Standardize the budget
• Assess the system
• Writing
• Gather info (revenue/expenses, initial forecast)?
• Challenge analyze amounts
• Review your budgeting procedure
• Prepare master budget
• Monitoring
• Analyze differences between actual and projected
• Monitor discrepancies, errors, check for the
  unexpected
• Reforecast and revise

15
Compiling a Budget
www.nsbe.org

• Ultimate goal should be to create a budget
  tailored to your chapter that actively supports
  the ambitions of NSBE and your chapter

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Preparing to Budget
www.nsbe.org

• Consider which functions are most important to
  your chapter
• Review past activities
• Remember that the budgeting process is a means to
  an end not the end itself

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Preparing to Budget
www.nsbe.org

• Budget continuously
• Take your time (start early)?
• Involve everyone
• Be realistic
• Look ahead
• Be aware of politics
• Monitor events
• Allow flexibility

18
Writing a Budget
www.nsbe.org

• To write a budget you must gather information,
  estimate figures for income and expenditure, and
  bring everything together in one agreed overall
  document

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Writing a Budget
www.nsbe.org

• Anticipate Revenues
• Solicitation
• Local Companies
• Donation
• Fundraising
• Budget Projections/Actuals
• Membership Dues
• Sponsorship
• Other Revenue

• Estimate Expenses
• Check previous years expenses
• Allow for impact of inflation
• Timing
• Direct Indirect Costs

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Writing a Budget
www.nsbe.org

• Producing the Figures
• Output/Input Method
• Assess what your chapter produces (output)?
• Scholarships
• Programs
• Operating Costs
• Decide what resources are needed to achieve
  (input)?

Budgeting Correctly What I have What Ill do
with it What you can have
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Managing a Budget
www.nsbe.org
Record Actual Results
Set Budget/ Revise Budget
Take control action if necessary
Compare actual results with budget projections
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Managing A Budget
www.nsbe.org

• Variances
• Differences between actual and projected
  expenses/revenue
• Identify and analyzing variances can be a tool to
  control spending, update projections, pin-point
  discrepancies

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Managing A Budget
www.nsbe.org

• Finalizing a Budget
• Consolidate
• Review figures
• Assess viability

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Transactions
www.nsbe.org

• Develop forms for transactions (checks, credit
  card, petty cash, reimbursements)?
• Agreement on how much to spend and what to spend
  it on
• Track chapter expenses
• Keep a record to use to develop future budgets
• Include the Vendor Name and Address if you want
  to use them again you have the information
• Contact your Regional Alumni Treasurer for
  example of forms

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CHAPTER SOLICITATION
www.nsbe.org

• Solicitation Packets
• General NSBE Guidelines for Solicitation

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Corporate Solicitation
www.nsbe.org

• Contacting Companies
• Generate contact list
• Reach out to company to speak with College
  Recruiting Team, HR, etc.
• Send Formal Email to Introduce yourself and your
  region and purpose of your contact
• Follow-up ASAP with phone call
• KEEP SPREADSHEET OF YOUR COMMUNICATION WITH
  POTENTIAL SPONSORS!

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How to Interact w/ Companies
www.nsbe.org

• Find Key Player in Company
• Contacting Techniques
• Position Purpose
• State any Pertinent Information
• Use Confidence and Customer Friendliness
• Know Your Material
• Leave Meeting w/ an Action Item

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Contacting Companies
www.nsbe.org

• Timeline
• July Aug
• Follow-up emails/calls per company every 2-3
  weeks until you receive a definitive response
• Sept October
• Follow-up email/calls per company every 7-10 days
  until you receive a definitive response
• KEEP UP-TO-DATE NOTES
• Or company specifies a date to contact them.

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BCA Specific Communication Guidelines
www.nsbe.org

• Chapter can solicit BCA companies, but they need
  to call themselves upon contact City Chapter of
  NSBE
• Otherwise, communication must be routed through
  National Finance Chair and CSRs
• Regional Finance Chairs will have the opportunity
  to gain BCA contacts at Summer BCA Meeting
• The National AE Finance Chair, Strauder Patton,
  will be holding a Village Call for all AE
  chapters regarding this. Stay tuned for more info!

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Solicitation Packets
www.nsbe.org

• May include the following items
• Introduction Letter from President/Chapter
  Representative
• Chapter Goals, Programs, and Anticipated Events
• List of Sponsorship Opportunities
• Include sponsorship amount and any potential
  corporate benefits
• Chapter contact information for securing
  sponsorship.
• NOTE The Region 2 Corporate Partnership Packet
  may be used as a Reference
• http//national.nsbe.org/Sponsors/RegionalSponsors
  hip/tabid/102/Default.aspx

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Dos Donts
www.nsbe.org

• DOs
• Know your Chapter Solicitation Packet Inside/Out
• Know your Chapter Budget Goals
• Communicate together as a board/chapter
• Think of ways to improve looking towards
  2009-2010
• If you are unsure or uncertain about
  anythingASK!
• Utilize your Region 2 AE counterparts!
• DONTs
• Make promises you cannot keep
• Jeopardize your chapter finances with lackluster
  efforts.
• Use NSBEs name in vain.

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Planning a Great Chapter Event
www.nsbe.org

• Work closely with your treasurer (budget) and
  finance chair (sponsorships)?
• Yes, you have to spend money to make money but,
  just because your line item says 500 does not
  mean that you have to spend 500
• You have to raise the that you will be
  spending. Any overspending does come at the
  expense of the chapter.
• Can you budget to pay for your conference off of
  one revenue stream? (event cost vs
  solicitations)?

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CHAPTER FINANCIAL IMPLICATIONS
www.nsbe.org

• A Tax Exempt Organization - What Does it Mean?
• Advantages of Being Tax Exempt
• What is General Exemption?

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How Can An Organization Become Tax Exempt?
www.nsbe.org

• 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
• Additionally, the organization must be a
  corporation, community chest, fund or foundation.

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Advantages of being tax-exempt
www.nsbe.org

• 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
www.nsbe.org

• 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.

37
General Exemption
www.nsbe.org

• Unlike most 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) must be completed individual chapter if
  their annual income received exceeds 25,000.
• Chapters have the option to pursue the tax
  exemption individually if so desired.

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So What is General Exemption?
www.nsbe.org

• The process of how the NSBE 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, the General
  Exemption (GENS) 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 NSBE chapters are called
  subordinates.

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Are NSBE Chapters Required to Pursue GE?
www.nsbe.org

• NO. 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,,id96590,0
  0.html
• The GENS 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 reporting.

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For GE Effectiveness.
www.nsbe.org

• NSBE must remain a 501(c)(3) organization
• NSBE must submit the required annual information
  to the Internal Revenue Service.
• NSBE must file Form 990 annually to the IRS.
• Chapters (subordinates) must follow the
  requirements and meet deadlines for submission as
  requested by the IRS.

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Getting an AE Chapter on Board with GE
www.nsbe.org

• Any chartered NSBE Chapter is eligible to request
  inclusion in the GENS program.
• Chapters are added or removed annually per the
  IRS schedule ( 90 days prior to the end of the
  fiscal year)?
• Chapters must complete the required General
  Exemption Survey via NOL available August 1,
  2008 April 1, 2009

42
Getting an AE Chapter on Board with GE
www.nsbe.org

• Once you complete the questionnaire, your chapter
  president and/or chapter treasurer will receive
  an official confirmation letter approving or
  declining your chapters inclusion in the
  2008-2009 Group Exemption within two weeks of
  submitting the questionnaire.
• The official confirmation letter allows the
  chapters to be covered under the NSBE tax-exempt
  status.
• Each chapter is required to complete and submit
  an annual return (Form 990) - (If applicable)

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Acquiring an Tax ID Number
www.nsbe.org

• One portion of the tax exemption process is
  acquiring an EIN/TIN (Employee Identification
  Number/Tax Identification Number). Each chapter
  MUST have their own EIN/TIN.
• NO chapter is authorized to use the NSBE National
  EIN. If your chapter is using the NSBE National
  EIN, you must immediately stop using this number.
  
• This applies to ALL NSBE chapters. Any questions
  regarding the validity of the EIN number that
  your chapter is using may be directed to the
  National AE Treasurer or NSBE WHQ Accounting
  Office.
• Any chapter that uses the NSBE National EIN is
  subject to disciplinary action by NSBE and/or the
  IRS.

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Initial Documentation...
www.nsbe.org

• Obtain an Employee Identification Number (EIN) or
  Tax ID Number.
• The IRS Form SS-4 is to be submitted directly to
  the IRS in order to obtain an EIN or complete the
  online application. If your chapter doesnt have
  an EIN number.
• SS-4 Form - http//www.irs.gov/pub/irs-pdf/fss4.pd
  f
• Online application - https//sa2.www4.irs.gov/sa_v
  ign/newFormSS4.do
• Complete General Exemption Survey via NOL.
  available August 1st

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Just a Reminder.
www.nsbe.org

• All GE Chapters should be knowledgeable about
  their respective states internal revenue code.
  There could be additional reporting requirements.
  It is the chapters responsibility to follow and
  maintain those requirements.

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General Exemption
www.nsbe.org

• NSBE WHQ submits an updated list of AE Chapters
  that are in compliance with the General Exemption
  reporting to the IRS on April 30th of each year.
• Remember that chapters are added and removed from
  the approved list once a year as per the IRS
  schedule.

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Finance Zone Contacts
www.nsbe.org

• Denice Young
• Region 2 AE Treasurer
• region2aetreasurer_at_gmail.com
• Dr. Cecelia Wright-Brown
• Region 2 AE Finance Chair
• region2aefinance_at_gmail.com
• Ray Perez/Carlton Russell
• Region 2 AE Conference Managers
• region2aeconferencemgr_at_gmail.com

Cassandra Johnson National Alumni
Treasurer treasurer_at_nsbe-ae.org Strauder Patton,
P.E. National Alumni Finance Chair finance_at_nsbe-ae
.org
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QUESTIONS???
www.nsbe.org