treasurer's association 2013 annual meeting saturday, 21 september 2013
TRANSCRIPT
Treasurer's Association
2013 Annual MeetingSaturday, 21 September 2013
Agenda (9:00 – 10:30) Welcome and Introductions –Joe Mannes '80– President, Class Treasurers' Association
Overview of the Past Year –Conor Frantzen '08– Vice President, Class Treasurers' Association
Alumni Council: What do Treasurers Want Council to Know? – Mike Gonnerman '65 – Alumni Council Representative for the Class Treasurers Association
Reunions, Dartmouth & Class Treasuries – Conor
Tax Deductibility of Class Dues – Joe
Tax Preparation Update –Rachel Williamson, Dartmouth College
One Year After: A Discussion of Class Treasuries Post DAM? – Shervyn von Hoerl '96 and Yelena Blackwell '02
Treasurer Recognition - Conor
Presentation of Treasurers of the Year – Joe and Conor
Open Forum for Questions
Introductions
Jennifer Casey’66a Director, Class Activities
Ann Harvey Class Dues Administrator
Joe Mannes ‘80 President, Treasurer’s Association
Conor Frantzen ‘08 Vice-President, Treasurer’s Association
Tom Beecher ‘82 Treasurer Representative to Dartmouth Alumni Magazine
Mike Gonnerman ‘65(2011-2014)
Treasurer Representative to Alumni Council
Overview of the Past Year
FY09 FY10 FY11 FY12 FY13
Highest DuesParticipation
73% / ’59 74% / ’59 73% / ’5965% avg
(‘59, ‘62, ‘54)66% avg
(‘53, ‘59, ‘62)
Lowest Dues Participation
12.1% 9.5% 6.7% 5.7% avg 5.9% avg
Average Dues Participation
39.6% 38.6% 36.2% 33.8% 33.5%
Total Funds Raised – includes Projects
$1,212,624 $1,135,596 $1,105,839 $1,136,347 $1,140,909
Highest Funds Raised by
Class$56,615/’82 $33,990/’80 $31,366/’59
$37,255/’87$35,583/’53
$31,648/’78$30,412/’58
Class Dues Metrics as of September 2013
Alumni Council Report
Mike Gonnerman ’65
May 2013 Meeting
Transition period for administration Student life focus – Cleary report Significant presentations
Interim President Carol Folt Dean Charlotte Johnson Trustee Annette Gordon-Reed ‘81 Dean of admissions Maria Laskaris ‘84
November 2012 Meeting
Nominated Mitchell Kurz ‘73 for BOT Student life focus -- Rolling Stone article Significant presentations
AD Harry Sheehy Sr VP David Spaulding ‘76 Dean Charlotte Johnson Trustee Chair Steve Mandel ‘78
Next Meeting -- November
New administration in place Significant presentations
Chief investment officer, Pam Peedin ‘89 Director of advancement, Bob Lasher ‘88
Chair honorary degrees committee
Reunions, Dartmouth & Class Treasuries
Conor Frantzen
Reunions, Dartmouth & Class Treasuries
Classes must add major reunion revenues and expenses to Annual Financial Report and report to IRS
Class treasurers and reunion treasurers should be in contact early and often before a major reunion
We have created a one-page document on the website with a suggested timeline and advice for reunion treasurers.
Tax Deductibility of Class Dues
Joe Mannes
Tax Deductibility
Each class may or may not choose to assert tax deductibility of dues
Questionnaire is part of the annual report
Not a guarantee—ask your tax advisor
Tax Deductibility Questions
Have you filed Form 990/990EZ/990-N under the College's group exemption number?
Are you using your funds for the following purpose: To enhance alumni interest, and support Dartmouth College?
Can you confirm there are no unrelated business activities (unrelated to the charitable purpose) or political contributions conducted by the class?
Can you confirm that non-dues paying classmates are eligible for the same benefits and participation in Class Activities and Reunions as dues paying classmates (or those supporting class projects)?
Tax Deductibility
If you answered NO to any questions, your dues may not be tax deductible and there may be additional filing requirements.
Form 990 or 990EZ, if you answered YES to the last question, you should classify your dues payments (as well as project gifts above the dues amount) as gifts in Part 1, Line 1 of the form 990EZ or Part VIII, Line 1f of the form 990.
Disclaimer: While we believe that the information provided here is reliable and correct, we cannot guarantee that your class dues are tax deductible. You should reach out to your tax services provider to confirm the tax deductibility of your class dues.
Tax Update for Alumni Classes
Rachel L. Williamson, [email protected]@Dartmouth.eduJoined Dartmouth College in June
Tax Update Agenda
Maintaining Tax Exempt Status New in Fiscal 2013 Filing Requirements Filing Tips IRS Notices Financial Best Practices Questions
Maintain Tax Exempt Status Tax Exempt Status is generally
granted through membership in Dartmouth’s group exemption
Timely File Annual Return Read & respond to any IRS notices
promptly Do not support or oppose political
candidates Provide copy of return if one is
requested
New in Fiscal Year 2013
The IRS is reminding filers not to include Social Security Numbers on Forms 990 or 990-EZ, since these are publicly available documents.
990-EZ filers no longer list addresses of Officers, Directors, Trustees and Key Employees.
Clarifications to instructions
990-N (e-postcard) filings are available when the class’ average gross receipts are less than $50,000. “Average gross receipts” are calculated using the current year and two prior years gross receipts.
The State of New Hampshire does not required an annual filing as long as contributions are solicited only from the class members.
Filing Requirements
Annual Federal Tax Filing is required to maintain tax exempt status
Failure to file Form 990-EZ or Form 990 may result in fines of $20 per day past the due date to maximum of 5% of gross receipts.
Failure to file for 3 consecutive years will result in loss of tax exempt status.
Forms are due November 15, 2013. Extension can be filed on Form 8868 for 990 or 990-EZ filing.
It is important to maintain accurate record of revenue and expenses to fulfill your fiduciary duty, document requirements for filing, and provide accurate reporting.
Filing RequirementsGross Receipts and Assets IRS Form
Average gross receipts under $50,000. 990-N
Gross receipts less than $200,000 and total assets less than $500,000.
990-EZ
Gross receipts $200,000 or greater. 990
Total assets $500,000 or greater 990
Informational Returns
No Tax 990-N has no penalties for late filing 990 EZ and 990 are subject to fines
and penalties for late filingo Publicly Disclosedo 990-T requirement for unrelated
business income of $1,000 or greater
990-N
Simplified filing available to classes Requirements
Average 3 year gross receipts $50,000 or less
All receipts, including proceeds from sales of securities
For groups in existence less than 3 years, different rules apply
Maintain a copy of gross receipts calculation
990-N Details
IRS filing administered by The Urban Institute
Computer based Link to the filing available on the IRS
website After setting up profile, you will receive a
confirmation email Check spam folder if confirmation not
received quickly If notified of rejection, file Form 990-EZ
990-N Details
Information Required Organization’s DBA name (Dartmouth
Class of XXXX) Mailing address (Blunt Hall) Website (if any) EIN Name & address of principal officer Organization’s Tax Year (June 30, 2013)
990-EZ
Schedules required in addition to core form Schedule A (Public Charity Status) Schedule E (Schools) Schedule O (Other information) Schedule B (Contributions) if one or more
contributors gave $5,000 or more Schedule G (Fundraising) if special
events revenue exceeded $15,000
990
Required schedules are the same as for 990-EZ
Form 990 is complex and unique to each group
If required to file, we recommend consultation with a tax adviser.
IRS Notices
Failure to file Missing or incomplete information
Missing Schedule A or E Required boxes not checked
Contact Alumni Office or Controller’s Office ([email protected]) for assistance if needed.
Financial Best Practices
Annual review of by-laws to make sure the Class is complying with the by-laws, including formal documented meetings
Keep accurate records of all revenues, expenses, and assets
Bank accounts should use the class EIN and have at least 2 officers listed as signors for all accounts
Reconcile all bank accounts, investment accounts, and cash funds at least annually
If the class has a substantial amount of activity in the treasury, it may be advisable to arrange for an audit of the books periodically.
Financial Best Practices
Treasurer’s Report The Treasurer should give a financial status
update at every board meeting and, ideally, provide quarterly reports.
At the end of the fiscal year, a final report should be generated and presented to the Board.
Copies of the final report should be sent to Alumni Relations to maintain historical records.
Merchant Accounts If you accept credit cards, make sure you have
procedures in place that are PCI compliant
Questions
?
One Year After: A Discussion of Class Treasuries Post DAM
Shervyn von Hoerl '96Yelena Blackwell '02
Then and Now – Average Dues On average, class dues amounts stopped their
climb after the DAM bill was reduced…
DAM policy change
Source: History of Class Dues Amounts 2013
Then and Now – Dues Amounts … And on a class-by-class basis, many more classes lowered their dues
last year than ever in the past
In fact, in 2013 we saw dues amounts below $30 – for the first time ever
Increased dues Decreased dues Kept the same
DAM change (FY12 to FY13)
10.0 14.0 44.0
Previously (FY86 to FY12,
average)
11.3 1.4 42.2
Number of classes that…
Source: History of Class Dues Amounts 2013
Then and Now - Participation But… participation rates continue to decline
Even among classes that decreased dues, statistical analysis shows no meaningful improvement
DAM policy Change
Source: History of Participation Rates FY01 to FY13
Discussion
Since DAM expenses are no longer in your class budget…Have you raised or lowered your dues? Why or why not?Have you been saving or spending that money?
If spending, on what?
If saving, for what?
Treasurer Recognition
Conor Frantzen
Treasurer Recognition
68 classes have treasurers 40 (59%) have served fewer than five
years 30 years of service
Ralph L. Sautter, 1955 (33 years!) William L. Russell, III, 1963
25 years of service Andrew M. Carstensen, 1972
Treasurer Recognition
20 years of service John S. Neff, 1973 Ivar A. Jozus , 1961 Melanie Fisher Matte, 1976 David F. Noyes, 1970
15 years of service Thomas R. Beecher III, 1989 Charles A. Balch, 1962
Treasurers of Year
Conor FrantzenJoe Mannes
Questions