finances / collections. new irs requirements for tax years ending 12/31/07 or later gross receipts...
TRANSCRIPT
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Finances / Collections
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New IRS Requirements for tax years ending 12/31/07 or later
Gross receipts normally $25,000 or less - file form 990-N: an electronic filing done online
Gross receipts $100,000 or less and total assets below $250,000: may file either a form 990EZ or form 990.
Gross receipts more than $100,000 and total assets greater than $250,000: must file form 990 (990EZ not an option)
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Copy of form or confirmation to be sent to IHQ after filing
Failure to file for three consecutive years = LOSS OF TAX EXEMPT STATUS
For more information, visit www.irs.gov or speak to a tax accountant
These may continue to change over the next couple of years – make sure you comply
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How to budget◦ Master budget (spreadsheet review)◦ Sub-budgets by committee to feed master budget
TIP: be conservative…overestimate costs, underestimate any variable income
Be sure to include an “allowance”
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Use software – Quicken / Microsoft Money
Monitor actuals vs budget – adjust as needed (individual budget “swapping”)
Hold chairs to budgeted amounts – any fluctuations need Exec approval
Checks over $XX should require two signatures (Rex and KOE)
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Rex and KOE to have bank access (online, signature authority, etc).
Alumni chapter/faculty advisor to have “review” authority (possibly signature authority as well)
Collect EARLY – more money to start the semester
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Contracts◦ Brother agreement
◦ Brother agreement / payment plan Only if legitimately “needed” Brother must present reason why it is needed to
Exec Board
Don’t be afraid to ENFORCE contracts
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Examples from audience on how they handle late payments and payment plans currently
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Unable to attend New Member events Unable to attend initiation Unable to attend various brother
nights/activities Unable to participate in chapter athletics Added “work shifts” at parties or functions Added DD duty Loss of voting privilege at meetings
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Hit ‘em where it hurts the most. The previous list contained plenty of incentive to pay dues. But how about SOCIAL PROBATION? Who wants to miss out on social events?
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Can’t attend closed parties Can’t attend sorority socials Can’t participate in sorority events around
campus Can’t attend “band parties” Extra “sober crew” assignments at
“regular” parties
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If nothing else works and they are not living up to their commitment:
Small Claims Court Low costs (if any) Simple procedures If you have the contract and signatures,
easy to prevail
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Went into effect with the 07-08 school year but not strictly enforced since it was new
For 08-09, it WILL BE enforced
“Chapter Dues Payment Agreement” due to IHQ by September 15 (Fall) and February 1 (Spring)
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If NOT paying full year or full semester, you must include the following with your agreement:◦ Current semester budget◦ Roster of all undergrad brothers (init fees paid or not)◦ Copies of signed contracts from any brothers who
have not paid their semester dues in full, including a summary AR report
◦ A brief plan summarizing how the chapter plans to meet their obligations
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Pay entire year by September 15◦ 8% discount
Pay semester in full by September 15◦ 5% discount
Two equal payments during semester (September 15 / November 15)
◦ No discount / no premium
4 Monthly payments (Sept/Oct/Nov/Dec 15)◦ 2% premium (annual bill, divided by 8, multiply by 1.02)
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Payment not received within 5 days of due date: ◦ Probation with SOCIAL SUSPENSION◦ School notified of social suspension◦ Probation lifted if payment received within 30 days of due
date
Payment not received within 30 days of due date:◦ Chapter SUSPENDED◦ School notified◦ Remain on suspension until payment made or payment
plan made and agreed upon by IHQ◦ Once payment or plan accepted, chapter is on probation
with social suspension for remainder of semester
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• if less than one month left in semester, probation with social suspension will be in effect for first four weeks of following semester
• Chapters on suspension for two semesters will be given notice of charter revocation
• Colonies on suspension for two semesters will be given notice of termination of colony recognition
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New member fees to be paid within two weeks of pinning
Request for Permission to Initiate form and appropriate fees are due AT LEAST TWO WEEKS BEFORE initiation◦ Any “rush” request on pin shipment will be at
chapter’s expense◦ Initiations submitted late will incur a $100 late fee
due from the chapter
New member program may NOT begin until previous periods paid
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The following items will be available on the Pi Lam website in the members’ section:
Budget Template (Excel) Collection Policy IHQ Dues Payment Agreement – Fall IHQ Dues Payment Agreement – Spring Chapter Brotherhood Agreement Template Chapter Brotherhood Payment Plan Agreement
Template
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