Every club that handles funds is required to have a club bank account. Club monies should not go through a personal account. If your club will not be handling any funds or you are a family unit, you will not be required to have a club account but you will still need to turn in an annual financial report. • To open a bank account you will need certain documents. The first being an IRS employer identification number (EIN). • The fss4 application form can be found on the IRS website. • A list of useful websites is at the end of this slide presentation.
When filling in the name of your club, be sure to include 4-H Club as part of the name. The GEN number should be listed as 2704. The numbers 9a and 16 should indicate 4-H youth development. The ending month for accounting (box 12) should state September. Box 14 should be check yes as you will have no employees. Once this is submitted to the IRS, they will notify you of your assigned EIN. Once you have this number, notify the 4-H Extension office with a letter asking be included under the National 4-H GEN number. They will be submitting a list to the state 4-H office which then sends a master list to National 4-H.
The second item you will need to take with you to the bank to open a business account is a charter for your 4-H Club. Your county 4-H office issues these charters to clubs that are in compliance with county policy. The third item that is helpful to have is a copy of the tax exempt status from National 4-H. (next two slides). • It is also helpful if you take a copy of your clubs bylaws and a copy of the minutes where officers were elected. Most banks will not allow youth signatories on business accounts and you may need to list a leader as a co-president. Only do so if they make it an issue. • If a bank is making it difficult to open an account, tell them no thank you and try another bank. Every branch , even within the same bank chain, operates a little differently.
Your treasurer will need to keep accurate records. First, each check should have two signatures, the treasurer and a leader. Even though the bank does not recognize the youth, they can be an extra signature below the leaders. Your club will need to prepare a budget for the year that is voted on by the membership. (See sample on next slide) Any funds that are spent outside of the approved budget must be voted on by the club and indicated in the minutes of that meeting. A treasurer’s report should be made at each business meeting of the club and approved by the club. The Treasurer’s Book provides instructions and it would be beneficial for the treasurer to also have the Leader’s Guide to the Treasurer’s Book. (See sample monthly record on following second slide) Electronic bookkeeping is also acceptable. When funds are received by the club, a receipt should be issued. In the case of funds from a raffle, bazaar, etc, one receipt in the file indicating the total amount is acceptable. When reimbursements are made, be sure to indicate what they are for and to cancel out any receipts submitted by indicating date paid and check number.
At the end of the 4-H year, an annual financial report will need to be presented to the club for approval . • There will also be a report that will be filled out and submitted to the county 4-H office by the indicated deadline. This is required even if the club should not be continuing next year. (see next slide) • The financial records for your club should be peer reviewed by two individuals (parents or one parent and one senior member) and their report filed along with the club report to the county office. (See the following second and third slides) • The last thing for the end of year will be to fill out a 990N form on the IRS website which is an electronic submission only. The form is simple and asks for your EIN and whether or not your club had less than $25,000.00 in gross revenue during the year. If by chance your club earned $25,000 or more during the year, then a 990EZ form must be filed with the IRS. If this should be the case, contact the state 4-H office for assistance.( Please wait to file a 990N until directed to do so by your county office as the IRS is still working on clarifying all the EIN with their records.)
FUNDRAISING AND RAFFLES • If your club plans to do fundraising, there must be a reason for why you are doing so. Funds should not be raised just “because”. Remember to give receipts for donations, see slide # 10. • It is a good idea to keep in mind that raffles are considered gambling and here are some very specific rules about conducting a raffle. • The next two slides are a very good outline on the rules governing Washington State Raffles.Some basics to remember; no more than two public raffles per entity per year, raise no more than $5000 a year, tickets must all be the same value (no $.50 each or 3 for $1), tickets are to be bought and sold by adults over 18 years of age, tickets must be consecutively numbered, and prizes must be listed. It is recommended that clubs not conduct licensed raffles. (see rules for specifics).
Finances • The following websites will help you find answers to questions in regards to your club’s financial activities. • Treasurer’s Book and Leader’s Guide to Handling Funds • http://www.4h.wsu.edu/EM2778CD/generalmaterials/index.htm • Tax Exempt Status • Policies and Regulations (National 4-H Headquarters) • http://www.national4-hheadquarters.gov/library/4h_polregs.htm • EIN IRS application • http://www.irs.gov/pub/irs-pdf/fss4.pdf • Raffles • http://www.national4-hheadquarters.gov/library/fs-raffles%2001-23-07.pdf • http://www.wsgc.wa.gov/gambling/raffles.asp • IRS 990-N • http://www.irs.gov/charities/article/0,,id=169250,00.html • http://epostcard.form990.org/