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					   WASHINGTON STATE UNIVERSITY EXTENSION




WE’VE GOT                              Photo here
THE MONEY
   NOW
  WHAT?
 Club Bank Account

Small        Every club that handles funds is
photo here   required to have a club bank account.
or delete    Club monies should not go through a
line below
             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.
Opening a Bank Account


            • To open a bank account you will
              need certain documents. The first
              being an IRS employer identification
              number (EIN).
            • The Form SS-4 application can be
              found on the IRS website at
               http://www.irs.gov/

                 A list of other useful websites is at the end
                           of this slide presentation.
Application for Employer Identification Number

                         • When filling in the name of our
                           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 checked YES,
                           as you will have no employees.
After Receiving EIN

                       • Once the Form SS-4 is submitted to
 91 – 54345 – 432 -0


                         the IRS, they will notify you of your
                         assigned EIN.
                       • Once you have this number, notify
                         your county 4-H Extension office with
                         a letter asking to be included under
                         the National 4-H GEN number.
                       • They will submit a list to the state
                         4-H office, which then sends a
                         master list to National 4-H.
4-H Club Charter


                   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.
Tax Exempt Status



                    The third item that is
                    helpful to have is a
                    copy of the tax
                    exempt status from
                    National 4-H.
Club Bylaws and Minutes

                          It is also helpful if you take a
                          copy of your club bylaws
                          and a copy of the minutes
                          showing when officers were
                          elected.
Bank Requirements

            • 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.
Signing Checks


                 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.
Yearly Budget


            Your club will need to prepare a budget
            for the year that is voted on by the
            membership. 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.


                            Sample budget on next slide >>
Sample Budget
Treasurer’s Report

                 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.
                 Electronic bookkeeping is also
                 acceptable.
                           Sample monthly record on next slide >>
Sample Monthly Record
Receiving Funds


            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.
Reimbursements


           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.
Annual Financial Report




                          At the end of the 4-H year,
                          an annual financial report will
                          need to be presented to the
                          club for approval.
Yearly Budget


                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.
     Peer Review of Books

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 slide >>
Peer Review Committee Report
Form 990-N

             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.
             NOTE: 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


              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.
Raffles
          Keep in mind that raffles are considered gambling.
          Here are some very specific rules about conducting a
          raffle:
          • 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.
          • Prizes must be listed.
          It is recommended that clubs not conduct licensed
          raffles.

            The next slide shows rules governing Washington State Raffles >>
Websites
           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/

				
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posted:11/30/2011
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