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Affiliate Finance: ACNM Affiliate Finance: ACNM WebinarWebinar
Lorrie K. Kaplan, CAELorrie K. Kaplan, CAEACNM Executive DirectorACNM Executive Director
George Hamilton George Hamilton ACNM Director-MembershipACNM Director-Membership
Meredith Graham, MBAMeredith Graham, MBAACNM Director-FinanceACNM Director-Finance
Welcome and IntroductionsWelcome and Introductions
November 16 November 16 Webinar/TeleconferenceWebinar/Teleconference Q&A follow-up to this webinarQ&A follow-up to this webinar Any other agenda items requestedAny other agenda items requested Update on process of finalizing affiliatesUpdate on process of finalizing affiliates https://www1.gotomeeting.com/register/https://www1.gotomeeting.com/register/
256768353256768353
AGENDA AGENDA
Whose Money is it?Whose Money is it? The Financial Requirements of a The Financial Requirements of a
State AffiliateState Affiliate Dues Processing CycleDues Processing Cycle Federal/State TaxesFederal/State Taxes Cash FlowCash Flow BudgetsBudgets
WHOSE MONEY IS IT?WHOSE MONEY IS IT?
Affiliate has the right to charge dues for Affiliate has the right to charge dues for affiliate members, collected and affiliate members, collected and administered by the ACNM national administered by the ACNM national office.office.
All monies raised by the Affiliate and All monies raised by the Affiliate and collected from dues are the sole property collected from dues are the sole property of the Affiliate.of the Affiliate.
Affiliates will keep any assets they Affiliates will keep any assets they currently have and will retain control of currently have and will retain control of their assets.their assets.
Affiliate Financial Affiliate Financial RequirementsRequirements1.1. Maintain an accounting tracking of asset, Maintain an accounting tracking of asset,
liabilities, revenue, & expensesliabilities, revenue, & expenses
2.2. Maintain the same fiscal year as ACNM Maintain the same fiscal year as ACNM National (Jan-Dec)National (Jan-Dec)
3.3. Provide a brief annual financial report to Provide a brief annual financial report to ACNM nationalACNM national
4.4. Disclose annually to ACNM national Disclose annually to ACNM national whether you have filed the IRS 990 or 990-whether you have filed the IRS 990 or 990-N postcard N postcard
5.5. Comply with applicable state & federal lawsComply with applicable state & federal laws
Dues Processing CycleDues Processing Cycle
Affiliate Dues BillingAffiliate Dues Billing
All ACNM members are billed All ACNM members are billed for their national dues based on for their national dues based on the anniversary of their join datethe anniversary of their join date
Beginning with membership Beginning with membership renewals billed in January 2011, renewals billed in January 2011, all members will be billed for all members will be billed for affiliate dues at the same time affiliate dues at the same time as their national duesas their national dues
Setting Up Affiliate DuesSetting Up Affiliate Dues
Each affiliate must set and submit their Each affiliate must set and submit their complete dues structure to the national office complete dues structure to the national office by December 13, 2010by December 13, 2010
The dues structure for each affiliate will be The dues structure for each affiliate will be maintained in the ACNM national databasemaintained in the ACNM national database
Each affiliate dues category will be aligned Each affiliate dues category will be aligned with national dues categories. The main with national dues categories. The main categories are the following:categories are the following: Active, Associate, and StudentActive, Associate, and Student
Affiliate Dues ProcessingAffiliate Dues Processing
Members will pay their affiliate Members will pay their affiliate dues along with national dues– dues along with national dues– both will be sent to a lockbox both will be sent to a lockbox and processed into ACNM’s and processed into ACNM’s bank account bank account
Copies of dues notices and Copies of dues notices and supporting documentation are supporting documentation are forwarded daily from the lockbox forwarded daily from the lockbox to the national officeto the national office
Dues Reporting Dues Reporting
The ACNM database will track all The ACNM database will track all affiliate dues received affiliate dues received
The authorized affiliate leader can The authorized affiliate leader can run reports at any timerun reports at any time
Dues RemittanceDues Remittance
On the15On the15thth of each month, ACNM will finalize of each month, ACNM will finalize processing and reporting for the previous month.processing and reporting for the previous month.
All affiliate dues will be remitted electronically to the All affiliate dues will be remitted electronically to the authorized affiliate bank account by the 20th of each authorized affiliate bank account by the 20th of each month. If the 20th falls on a weekend, dues will be month. If the 20th falls on a weekend, dues will be remitted on the next business day.remitted on the next business day.
Checks are also an optionChecks are also an option
Affiliate treasurers and/or authorized users will be Affiliate treasurers and/or authorized users will be able to view their own remittance reports online in a able to view their own remittance reports online in a secure area of the ACNM website.secure area of the ACNM website.
Federal Tax StatusFederal Tax Status
Federal Tax StatusFederal Tax Status
Affiliates and ACNM national are classified as Affiliates and ACNM national are classified as IRS 501(c)6 membership associationsIRS 501(c)6 membership associations
This means that we are a not-for-profit (vs. a This means that we are a not-for-profit (vs. a charitable) organizationcharitable) organization
Dues, donations, and other monies received Dues, donations, and other monies received by ACNM and/or affiliates may not be by ACNM and/or affiliates may not be classified by individuals or organizations as classified by individuals or organizations as charitable or non-taxable contributions but charitable or non-taxable contributions but may be classified as a normal business may be classified as a normal business expense.expense.
Federal Tax StatusFederal Tax Status
Form 990 is an annual reporting return that certain Form 990 is an annual reporting return that certain federally tax-exempt organizations must file with federally tax-exempt organizations must file with the IRS. the IRS.
It provides information on the filing organization's It provides information on the filing organization's mission, programs, and finances. mission, programs, and finances.
Effective FY 2010, any tax-exempt organization with Effective FY 2010, any tax-exempt organization with gross receipts less than $200K or total assets less gross receipts less than $200K or total assets less than $500K must file the 990 or 990 EZ than $500K must file the 990 or 990 EZ
Any small organization with gross receipts of $25K Any small organization with gross receipts of $25K or less must file a form 990-N, an Electronic notice or less must file a form 990-N, an Electronic notice (postcard) to the IRS, (postcard) to the IRS,
STATE TAXESSTATE TAXES
Federal tax exemptions do not Federal tax exemptions do not carry over into state jurisdictionscarry over into state jurisdictions
Each affiliate should contact its Each affiliate should contact its state department of revenue to state department of revenue to determine state tax statusdetermine state tax status
IRS GROUP EXEMPTION IRS GROUP EXEMPTION Requirements for both OrganizationsRequirements for both Organizations
National National Requirements:Requirements:
Submit annual report to IRS annually on behalf of the group
Develop standard governing documents
Provide each affiliate an annual financial report template
Affiliate Affiliate Requirements:Requirements:
Implement governing documents for affiliates
Annual filing of 990 or 990-N postcard
Submit to national a completed annual financial report (template will be provided)
Cash FlowCash Flow
CASH FLOWCASH FLOW
Because ACNM collects dues, Because ACNM collects dues, based on a member’s anniversary based on a member’s anniversary date, Affiliate cash flow will be date, Affiliate cash flow will be different than Chapter cash flow. different than Chapter cash flow.
Develop a transition plan for the Develop a transition plan for the first year. first year.
CASH FLOW SCENARIOSCASH FLOW SCENARIOS
Suggestions to handle cash flow concerns: Suggestions to handle cash flow concerns: Obtain a roster of members and their anniversary Obtain a roster of members and their anniversary
dates from ACNM national. dates from ACNM national. For the first year, project your cash flow based on For the first year, project your cash flow based on
anniversary dates. This projection will allow you to anniversary dates. This projection will allow you to properly plan for highs and low of the cash flow properly plan for highs and low of the cash flow cyclecycle
Identify expenses in two categories: the necessities Identify expenses in two categories: the necessities and discretionaryand discretionary
Plan expenditures based on cash flow projectionPlan expenditures based on cash flow projection Put discretionary spending on hold until you meet Put discretionary spending on hold until you meet
necessary obligations necessary obligations Ask current members to pay additional dues/ Ask current members to pay additional dues/
donations if needed donations if needed Follow-up on cancellations and past due affiliate Follow-up on cancellations and past due affiliate
membersmembers Use reserves/savings and replenish based on cash Use reserves/savings and replenish based on cash
flow projectionsflow projections
CASH FLOW EXAMPLEMember Name/ID
Dues Category
Paid Date National Dues/
Affiliate Dues
June 2011
July 2011 Aug 2011
Kennedy Landon-299
Student 5/30/2011 135/13.50 13.50
Steven Erin Martin-213
Active 6/15/2011 $350/35.00 35.00
Daniel Miranda-20483
Active 6/16/2011 $350/35.00 35.00
Lilly Miranda-985 Active 5/1/2011 $350/35.00 35.00
Camaria Greenfield-18835
Student 7/10/2011 $135/13.50 13.50
Audrey Bush-777 Associate 7/11/2011 $135/13.50 13.50
AFFILIATE AFFILIATE BUDGETSBUDGETS
AFFILIATE AFFILIATE BUDGETSBUDGETS
Simply: A budget is an organization’s Simply: A budget is an organization’s plan of action expressed in terms of plan of action expressed in terms of dollars and cents.dollars and cents.
First steps to the budget:First steps to the budget: Identify your activities for the fiscal year Identify your activities for the fiscal year
(who & what)(who & what) Determine when the activities will take Determine when the activities will take
place (when)place (when) Determine how much it will cost to run the Determine how much it will cost to run the
state affiliate (how)state affiliate (how) Implement, monitor and evaluate budget Implement, monitor and evaluate budget
over timeover time
AFFILIATE AFFILIATE BUDGET TEMPLATEBUDGET TEMPLATE
We have designed a simple We have designed a simple budget template that will allow budget template that will allow you to track all revenue and you to track all revenue and expense over 12 monthsexpense over 12 months
The template is designed to allow The template is designed to allow you to track actual to budget you to track actual to budget revenue and expenses by revenue and expenses by project/activityproject/activity
KEY DATES TO REMEMBERKEY DATES TO REMEMBER
Dues structure and officer names Dues structure and officer names and contact info to ACNM national and contact info to ACNM national office by Dec 13, 2010office by Dec 13, 2010
ACNM dues remittance to affiliates ACNM dues remittance to affiliates by 20by 20thth of each month of each month First ACNM dues remittance to affiliates First ACNM dues remittance to affiliates
= Feb 20= Feb 20
990 or 990-N due May 15, 2012990 or 990-N due May 15, 2012
IMPORTANT LINKSIMPORTANT LINKS
State Affiliate WebinarsState Affiliate Webinarshttp://midwife.org/aff_devsup.cfmhttp://midwife.org/aff_devsup.cfm
Governance Policies-Governance Policies-http://http://www.midwife.org/governance_policies.cfmwww.midwife.org/governance_policies.cfm
Informational Tax Return Instructions for Informational Tax Return Instructions for (990,990-N etc) (990,990-N etc) http://www.irs.gov/charities/article/0,,id=1766http://www.irs.gov/charities/article/0,,id=176637,00.html37,00.html
Next StepsNext Steps
Register for Nov 16, 8-9:30pm Register for Nov 16, 8-9:30pm EST webinar/teleconferenceEST webinar/teleconference
https://www1.gotomeeting.com/rhttps://www1.gotomeeting.com/register/256768353egister/256768353