finances / budgeting convention 2009. filing requirements changing annually until the 2010 tax year...
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Finances / Budgeting
Convention 2009
Filing requirements changing annually until the 2010 tax year (Filed in 2011 and later)
Filing due on the 15th day of the 5th month after the end of your organization’s accounting period
For more information, visit www.irs.gov or speak to a tax accountant
IRS – FORM 990 FILING
2008 Tax Year (Filed in 2009 or 2010) Form to File
Gross receipts normally ≤ $25,000 990-N
Gross receipts > $25,000 and < $1 million, and total assets < $2.5 million
990-EZ or 990
Gross receipts ≥ $1 million or total assets ≥ $2.5 million 990
2009 Tax Year (Filed in 2010 or 2011) Form to File
Gross receipts normally ≤ $25,000 990-N
Gross receipts > $25,000 and < $500,000, and total assets < $1.25 million
990-EZ or 990
Gross receipts ≥ $500,000 or total assets ≥ $1.25 million 990
Which 990 Form to file?
Be sure to file!! Failure to file for three consecutive years = LOSS OF
TAX EXEMPT STATUS
IRS threatening for ALL of Pi Lam to lose tax status if chapters fail to file
IRS: $20 penalty PER DAY for each day failure to file continues (same penalty if you fail to give correct and complete information)
Committee being formed to help ensure compliance
Use software – Quicken / Microsoft Money
Monitor actuals vs budget – adjust as needed (individual budget “swapping”)
Hold chairs to budgeted amounts – any fluctuations need Exec approval
General Tips for the KOE
Checks over $XX should require two signatures (Rex and KOE)
Rex and KOE to have bank access (online, signature authority, etc).
Alumni chapter/faculty advisor to have “review” authority (possibly signature authority as well)
Tips continued…
Tips Continued… Collect EARLY – more money to start the
semester
Include note with payments to IHQ detailing what payment covers
**Bank Reconciliations / Do not use ATM balance or “current” online balance to determine amount of cash available**
Payments to IHQ
Payments to IHQ Consist of:Per Caps ($x per man)Insurance ($y per man)Convention Assessment ($z per chapter)
Colony payment structure slightly differentif you are a Colony and you have questions,
please ask me or Gary
Went into effect with the 07-08 school year. A few changes this year, but bulk remains the same
For FY09 – a good number of chapters were placed on probation and/or suspension based on policy. We WILL be enforcing again this year
Current IHQ Collection Policy
There will be four payment options available to each Chapter/Colony:
1. Full YEAR payment by September 15
2. Full SEMESTER payment by September 15 (February 15)
3. Quarterly Payments: due September 15, November 15, February 15, and April 1
4. 4 payments per semester: due September 15, October 15, November 15, December 15 (February 1*, March 1, April 1, May 1)
Collection Policy Continued…
Pay entire year by September 15 8% discount
Pay semester in full by first payment due date 5% discount
Two equal payments during semester No discount / no premium
4 Monthly payments during semester 2% premium Chapter Dues Agreement form must be submitted to IHQ First payment spring semester due sooner than other options
Pros/Cons of Payment Options
Payment not received within 5 days of due date: ◦ Probation with SOCIAL SUSPENSION◦ School and alumni association notified of social suspension◦ Probation lifted if payment received within 30 days of due date
Payment not received within 30 days of due date:◦ Chapter placed on FINANCIAL SUSPENSION◦ School and alumni association notified◦ Remain on Financial Suspension until payment made or payment
plan presented to and agreed upon by IEC Treasurer and Executive Director
Disciplinary Actions
What is Financial Suspension? Financial Suspension Proposed Suspension of Charter - Pursuant to Article V Government, Section 5 (c) of the Pi
Lambda Phi Constitution, the International Executive Council may suspend the Charter of any Chartered group.
Financial Suspension of Charter means that the Chapter must take all actions necessary to:
– Remain a member of the respective University/College, IFC and/or similar governing bodies or constituency
– The Chapter will not hold itself out as a Chapter of Pi Lambda Phi Fraternity. This includes, but is not limited to the following:
• Prohibition of participation in events where any individual(s) and/or group(s) would associate a chapter of Pi Lambda Phi Fraternity being associated with;
• The Chapter may not orally, in writing, or by symbol represent itself as a Chapter of Pi Lambda Phi Fraternity in any campus activities. Campus activities include, but are not limited to the following:
– Greek Week/Greek Games
– Intramural sports/events; and/or
– Social events
Financial Suspension Continued
Recruitment
• Recruitment will not be permitted unless approval is obtained from the Disciplinary Committee
• Each group under Financial Suspension must submit a written proposal stating how continuing recruitment will help to meet their financial obligations
New Member Education
• New Member Education will not be permitted unless approval is obtained From the Disciplinary Committee
• Each suspended group must submit a written proposal stating how continuing the new member education period will help to meet their financial obligations
– Approval will only be given if new member fees are paid as detailed in the new member and initiation policy
Chapters on Financial Suspension for two semesters will be given notice of charter revocation
Colonies on Financial Suspension for two semesters will be given notice of termination of colony recognition
Discipline - continued
New member fees to be paid within two weeks of pinning. New member fees remaining at $55 per man. New Member cards to be sent with payment
Request for Permission to Initiate form and appropriate fees are due AT LEAST TWO WEEKS BEFORE initiation. Initiation fees remaining at $175 per man
Any “rush” request on pin shipment will be at chapter’s expense
Beginning with Fall 2009, any Chapter that fails to report and/or pay for New Member and/or initiation fees in a timely manner will be placed on probation with social suspension until payment has been made.
Penalty for late reporting/payment of initiation fees: $25 per man per semester
New Member Fees / Initiation
New Member Fees / Initiation Continued
New member program may NOT begin until previous periods are paid, unless given permission by Executive Director
Roster Adjustments For 2009-2010 school year, roster adjustments due
to IHQ by September 4, 2009. Once verified through the school, these will dictate billings
Email current Officer contact info to Laura NOW
No other adjustments during the year
Equal billings throughout year
Contracts Brother agreement Brother agreement / payment plan
• Only if legitimately “needed”
• Brother must present reason why it is needed to Exec Board
Don’t be afraid to ENFORCE contracts
Collections
Unable to attend New Member events Unable to attend initiation Unable to attend various brother nights/activities Unable to participate in chapter athletics Added “work shifts” at parties or functions Added DD duty Loss of voting privilege at meetings
“Punishments” for Non-Payment
Hit ‘em where it hurts the most. The previous list contained plenty of incentive to pay dues. But how about SOCIAL PROBATION? Who wants to miss out on social events?
More “Punishments”
Can’t attend closed partiesCan’t attend sorority socialsCan’t participate in sorority events around
campusCan’t attend “band parties”Extra “sober crew” assignments at “regular”
parties
Social Probation
If nothing else works and they are not living up to their commitment:
Small Claims CourtLow costs (if any)Simple proceduresIf you have the contract and signatures,
easy to prevail
Final Attempts
Omega Financial Online chapter financial services including billing,
statements, budget tracking, various payment options with direct transfer to chapter accounts as well as to IHQ, etc
System accepts credit cards, debit cards, and online checks
7 chapters have been actively using Omega – some beginning as early as 1998
We have 7-8 (or more by now) chapters/colonies planning to start using Omega during the 2009-2010 school year
Omega continued…
Omega will help increase collection percentages in your chapter. They also offer plenty of other services, reporting options, etc.
Omega may be in use by all chapters within 1-3 years
For more information, please talk to David Ly or Gary Sanders and check out www.omegafi.com
Examples from audience on how they handle late payments and payment plans currently
Chapter Examples
How to budget Master budget (spreadsheet review) Sub-budgets by committee to feed master budget
Budget “backwards”
TIP: be conservative…overestimate costs, underestimate any variable income
Be sure to include an “allowance”
Budgeting
The following items will be available on the Pi Lam website in the members’ section:
Budget Template (Excel) Collection Policy IHQ Dues Payment Agreement – Fall IHQ Dues Payment Agreement – Spring Chapter Brotherhood Agreement Template Chapter Brotherhood Payment Plan Agreement
Template
PI LAM WEBSITE
How to reach me…
Marc Weppner - IEC Treasurer
Cell: 703-400-4670
Q&A