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Presidents-elect Webinar!Part Two: Finance and
Foundation!
!November 15, 2016!
1!
The Buck Stops Here!
Club President’s Financial Responsibility
2
THREE BIG FINANCIAL RESPONSIBILITIES
KEEP THE I.R.S. HAPPY
PROTECT THE DONOR’S MONEY AND THE MEMBER’S MONEY PROTECT YOUR CLUB’S INTEGRITY AND PUBLIC IMAGE
3
KEEP YOUR CLUB LEGAL
TO KEEP THE I.R.S. HAPPYFile annual tax returns!
Ø 990 series, some just postcards Ø Fiscal year (July-‐June) or some are filed in the calendar year, check with IRS
What’s a 501 (c) (4)?What’s a 501 (c) (3)?
4
“OPERATING” CLUBS, 501 (c) 4
Under the RI umbrella in the U.S. YOUR CLUB MUST file a tax return each year *Club has a tax ID number (EIN) *May be a “postcard return” 990-‐N *May be 990-‐EZ, 990-‐T or other forms
5
“OPERATING” CLUBS, 501 (c) 4
Questions to ask your accountant:Is all income tax-‐exempt?
Are payments made to an opera5ng club deduc5ble by the donor?
Does my club have to pay taxes? Does my club have to file state returns and/
or pay sales taxes? Ask about 1099s or payroll returns if
applicable 6
“CHARITABLE” ENTITIES (Club Founda`ons)
Authorized tax-‐exempt chari`es under IRS code 501 (c) 3, have a “tax lecer” defining that status. The Rotary Founda`on is also a 501(c)3, but not the one we’re talking about here. Contribu`ons may be tax-‐deduc`ble for the donor. More comprehensive rules, repor`ng Annual 990 and the return is public
7
SOME CLUBS HAVE BOTH!
Club Dues and opera`ons go through the opera`ng account, the 501 (c) (4) while Charitable events’ income, expense go through the charitable 501 (c) (3) Two sets of books, separate bank accounts, separate tax returns Even if you don’t have separate tax en`ty—DON’T comingle opera`ng and charitable funds. It is a safe prac`ce to have separate checking accounts.
8
THE PRESIDENT……
KEEPS THE I.R.S. HAPPY!
• Make sure the returns are accurate and on `me (oken November 15).
• Don’t leave this to the treasurer and/or finance commicee.
• Ask many ques`ons, you may be signing the return as an officer.
• Consult the accountant yourself if needed.
9
THE PRESIDENT……
PROTECTS THE DONORS’ MONEY and the member’s money
Checks and balances Separa`on of du`es Financial controls
Match bank statements to financials Finance commicee roles Review sample transac`ons
Con`nuity year aker year (policy)
10
PRESIDENT’S TOOLS TO USE
PROTECT THE DONOR’S MONEY and the member’s money by:
*Using QuickBooks online (read only) *Checking duplicate bank statements
*Monthly board review of financials with on record votes
*Annual budget, wricen procedures for spending *Asking many ques`ons!
*Smaller club? Consider “swapping books” to double-‐check them with another club
11
REMEMBER…….
It does not “insult” the treasurer to have these systems, it protects her. The four way test isn’t 100% foolproof,
there have been Rotary Clubs where misappropria`on occurred. Don’t be one of them!
12
THREE BIG FINANCIAL RESPONSIBILITIES
KEEP THE I.R.S. HAPPY
PROTECT THE DONOR’S MONEY and the member’s money PROTECT YOUR CLUB’S INTEGRITY and public image
13
IF SOMETHING GOES WRONG
CALL YOUR DISTRICT GOVERNOR!Trained Officer of RI, resources, experience, no surprises please! Don’t “go it alone.” THINK “TRANSPARENCY”Get professional help, fix the problem, make it right, report it to board and membership. GET PUBLIC IMAGE SUPPORT for media inquiries, newslecers, statements that might become public.
14
Resources
This is a general brief overview, not accoun`ng or legal advice, nor is it “comprehensive.” Your club accountant is a trusted resource, as well as your treasurer and finance commicee (if appropriate).
Rules for tax filings: irs.gov Victoria Shiffman at RI ([email protected], club and
district support senior coordinator for our region. District 7780 resources: DGE Dave: [email protected], 603-‐706-‐3143 DGN John LoBosco: [email protected], 207-‐838-‐3554 District finance commicee chair, PDG Lawrence Furbish : [email protected], 207-‐490-‐6840.
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!US Rotary Club & District Liability Insurance!
!General Liability Insurance: The US Club Insurance Program covers third party Bodily Injury and Property Damage claims made against the US club or district (the insured)!• $7M aggregate limit (primary & excess)!• $250,000 self-insured retention (paid from assessments
collected from US Rotarian clubs)!• Coverage is subject policy terms and conditions!• Does NOT provide coverage to a first party (Rotarians &
volunteers)!• Includes Liquor Liability coverage!• Includes non-owned & rented auto liability coverage!
Contract Management: Avoid Contract Pitfalls (Carol Dietz & Jodi Steel- Ryla Workshop on Risk Management)!
• Read and understand all contracts!• If you do not understand a contract, have a legal professional
review and explain the details!• Identify the contracting parties properly!
• For events with multiple organizing entities, clearly spell out the responsibilities of each entity!
• No oral agreements!• Do not accept unreasonable contractual provisions. The club/
district should not agree to be responsible for another party’s negligence!
• Do not agree to insurance requirements you cannot meet!!
• Report any claim/incident ASAP to: [email protected]!
Why Do Clubs Need Insurance?!(Carol Dietz & Jodi Steele- RYLA Workshop on Risk Management)!
!*When a party alleges the actions of the Rotary Club or District, or its member caused an injury or damaged their property, the general liability insurer will defend the club and pay the damages, if it is a covered claim.!
*Annual assessments are charged to all insured US Rotary clubs through the July Cub Invoice to pay for the Insurance Program.!
Insurance Information Portal www.locktonportal.com/sites/rotary/resources!
Username: Rotarian!Password: Resources#1!
!
Rotary Foundation Grants Opportunities for Engagement
Marty Peak Helman
District Foundation Chair Boothbay Harbor Rotary Club
November 15, 2016
19
Objectives of this Module
q Learn how your Club “qualifies” to apply for a Rotary Foundation grant.!
q Discuss the two kinds of Rotary Grants!q Learn how to apply for District Grants and Global
Grants.!q Understand that this is an overview – the online
Grants Management Course, Grants Binder and District website offer more information.!
20!
Why Get Involved in Rotary Foundation Grants?
q The Rotary Foundation and Foundation grant-making is the backbone of Rotary. !
q Grants put a “face” on work of Rotary and The Rotary Foundation.!
q Service is why people join Rotary.!q Involvement in grants increases club participation and
feeds into increased Foundation giving.!
21!
Rotary Foundation Humanitarian Grants
The difference is in their size
1. Global Grants. Involve clubs in at least two countries. Start at $30,000 -- of which $10,000 is usually raised by the club(s) involved. Can be much larger and involve multiple clubs in
multiple districts!
2. District Grants. Are Club-based projects (more than one club can partner on a District grant), can be either local or
international, and usually involve $500 – $4000 in club cash and a similar amount in District grant funds.!
22!
* Must adhere to one of Rotary’s six Areas of Focus Disease prevention/treatment … water and sanitation …Maternal and child health … Basic education/literacy … economic and community
development … peace and conflict resolution
* Project must be sustainable. Must be able to positively answer the question: What happens when the Rotarians go away?
* Club must be “qualified” in order to participate • Club must follow Rotary’s reporting rules for all projects
(note: Both District and RI have Audit process at end of grants cycle!)
23!
What Do Both Grants Require?
Examples of Rotary Grants These grants are underway in this District:
§ Provide educational opportunities for Syrian refugees currently living in Jordan -- $185,000 Global Grant involving 12 clubs in 3 Districts
led by Biddeford Saco !§ Fit out oncology clinic and providing medical training in Uganda –
$100,000 Global Grant involving 6 clubs in this District led by York!§ Build universal access trail – District grant worth $4000 underway by
Yarmouth !§ Fund/staff local reading program – District grant worth $3500
underway by Kittery After-Hours!
24!
How to “Qualify” for a Rotary Grant Annually, your Club must do six things:
1. A minimum of two club members must take Grants Management Seminar available online beginning February 1 (learn.rotary.org)!
2. Club must appoint a club Foundation chair and provide his/her name to the Governor-elect!
3. Club must establish a goal to support the Annual Fund on rotary.org’s Rotary Club Central (you will receive training on this)!
4. Club President-elect and either Vice President or Club Foundation Chair must sign and take responsibility for the MOU!
5. Club must be current with all District and RI dues!6. Club must be current with all previous Rotary Foundation grant
reporting!
25!
District Grants Basic rules of engagement:
1. The Club (and any partner 7780 club) must be “qualified.”!2. Project must adhere to the Terms and Conditions for Rotary
Foundation Grants (available on Foundation microsite)!3. Project must be consistent with one of Rotary’s six Areas of Focus.!4. Projects must demonstrate active Rotary involvement and must be
Rotary led.!5. Club must contribute $500 in club cash to the project (“small club”
special grant requires $100 contribution)!6. Each club may submit only ONE District Grant application per year!
26!
District Grants Your application will be evaluated on:
1. The quality of the project, its positive impact on a local or international community, and the number of people benefiting
from the project must be effectively demonstrated.!2. Project must be new to the club, lead to sustainability, and be
meaningful to the community that it is intended to benefit.!3. Application must include a detailed promotional/PR plan and a
balanced budget in sufficient detail that the committee can understand it.!
27!
District Grants Who makes the funding decisions?
1. The applications are judged by a Screening Committee comprising Club Foundation Chairs and chaired by Betty
Hughes, District Grants Coordinator.!2. The District Foundation Committee reviews to ensure that the
Screening Committee followed proper protocol.!!
28!
District Grants Deadlines and Calendar
1. Application must be complete, signed, and received by the District Grants Coordinator no later than the deadline of June 1,
2017.!2. Clubs will be notified of decision of the screening committee by
mid-July; checks will be forthcoming by Labor Day.!3. A report on monies expended is due to the District by February
1, 2018. (Note: Save all receipts!)!4. Final report on project must be received by the District on or
before the end of 2017-18 Rotary year.!
29!
District Grants Stewardship and Closeout
Stewardship is the responsible management and oversight of Foundation funds, including:!
1. Supervision of Rotarians involved with handling of funds!2. Review of financial records and oversight of funds!
Reports on progress and closeout of the Grant are required!!1. Progress report is due February 1, 2018.!
2. Final report including all receipts must be received by the District on or before the end of the 2017-18 Rotary year.!
30!
* Develop a solid relationship with a Rotary Club in the target region/country. * Start with a community assessment. * Sustainability is key! Need to answer the question: What will
happen to the project when the Rotarians go away? Answer usually involves: Local sourcing of materials … ongoing income source … knowledge transfer
31!
Global Grants Basic rules of engagement
* There is no specific timeline for application. Applications are done online, and the Rotary Foundation processes applications on a rolling basis. * Once approved, a Report is due to The Rotary Foundation every 12 months until the final report is filed. * Note: The Rotary Foundation has an audit process!
32!
Global Grants Timeline, Calendar and Stewardship
* Clubs pledge cash. * District “matches” club cash as follows: * One District 7780 club involved: Dollar for dollar up to $10,000 * Two District 7780 clubs involved: Dollar for dollar up to
$15,000 * Three or more District 7780 clubs involved: Dollar for dollar up
to $20,000 * The Rotary Foundation “matches” contributions as follows: * Club cash: 50 cents for every dollar contributed * District DDF: $1 for every dollar contributed
33!
Global Grants How are They Financed?
* All gifts to The Rotary Foundation are voluntary – no District or International dues go to support The Rotary Foundation. * The amount of money your club gives to The Rotary Foundation through Annual Giving is what makes these grants possible.
34!
Global and District Grants What Makes these Matches Possible?
Resources and Q&A Marty Peak Helman, District Foundation Chair,
[email protected]!Mae Bradshaw, District Global Grants
Coordinator, [email protected]!Betty Hughes, District Grants Coordinator,!
2017 Online Course: available on Rotary’s Learning Center (learn.rotary.org) starting
February 1!!
2017 Grants Binder: Will be mailed to everyone who successfully completes Online Course!
!District Foundation microsite: Drop-down tab
“Foundation and Grants” on www.rotary7780.org!35!
