Treasurer's Association

1. Treasurer's Association 2013 Annual Meeting Saturday, 21 September 2013

2. 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

3. Introductions

4. Class Dues Metrics as of September 2013 Overview of the Past Year

5. Alumni Council Report Mike Gonnerman ’65

6. 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

7. 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

8. 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

9. Reunions, Dartmouth & Class Treasuries Conor Frantzen

10. 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.

11. Tax Deductibility of Class Dues Joe Mannes

12. 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

13. 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)?

14. 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.

15. Tax Update for Alumni Classes Rachel L. Williamson, CPA Rachel.L.Williamson@Dartmouth.edu Tax@Dartmouth.edu Joined Dartmouth College in June

16. Tax Update Agenda • Maintaining Tax Exempt Status • New in Fiscal 2013 • Filing Requirements • Filing Tips • IRS Notices • Financial Best Practices • Questions

17. 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

18. 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.

19. 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.

20. 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.

21. Filing Requirements

22. Informational Returns • No Tax • 990-N has no penalties for late filing • 990 EZ and 990 are subject to fines and penalties for late filing • Publicly Disclosed • 990-T requirement for unrelated business income of $1,000 or greater

23. 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

24. 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

25. 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)

26. 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

27. 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.

28. 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 (Tax@dartmouth.edu) for assistance if needed.

29. 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.

30. 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

31. Questions ?

32. One Year After: A Discussion of Class Treasuries Post DAM Shervyn von Hoerl '96 Yelena Blackwell '02

33. 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

34. 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 Number of classes that… Source: History of Class Dues Amounts 2013

35. 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

36. 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?

37. Treasurer Recognition Conor Frantzen

38. 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

39. 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

40. Treasurers of Year Conor Frantzen Joe Mannes

41. Questions