finances / collections convention 2011 philadelphia, pa
TRANSCRIPT
Finances / Collections
Convention 2011Philadelphia, PA
THANK YOU!• FY11: overall, a fantastic year financially
• Please continue the efforts into FY12 and beyond
• Until we reach 100% - always room to improve
Filing due on the 15th day of the 5th month after the end of your organization’s accounting period
For more information, visit www.irs.gov/eo or speak to a tax accountant
If needed, ask alumni for advice – chances are you have a CPA that would be willing to help
IRS – FORM 990 FILING
2010 Tax Year and later (Filed in 2011 and later) Form to File
Gross receipts normally ≤ $50,000 990-N
Gross receipts < $200,000, and total assets < $500,000990-EZ or 990
Gross receipts ≥ $200,000 or total assets ≥ $500,000 990
Which 990 Form to file?
Be sure to file!! Failure to file for three consecutive years = LOSS OF
TAX EXEMPT STATUS This happened to SIX chapters so far this summer.
IRS threatening for ALL of Pi Lam to lose tax status if chapters fail to file
IRS: $20 penalty PER DAY for each day failure to file continues (same penalty if you fail to give correct and complete information)
Committee has been formed to help ensure compliance (Brandon Taylor, Chris Rakunas, Pat Daley)
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
General Tips for the KOE
Rex and KOE to have bank access (online, signature authority, etc).
Checks over $XX should require two signatures (Rex and KOE)
Alumni chapter/faculty advisor to have “review” authority (possibly signature authority as well)
Tips continued…
Tips Continued… Collect EARLY – more money to start the
semester
**Bank Reconciliations / Do not use ATM balance or “current” online balance to determine amount of cash available**
Include note with payments to IHQ detailing what payment covers
Payments to IHQ
Payments to IHQ Consist of:Per Caps ($325 per man)Insurance ($85 per man)Convention Assessment ($700 per
chapter/colony)
Colony payment structure slightly differentif you are a Colony and you have questions,
please ask me or Ian
New policy in effect beginning with Fall 2010.
For FY11 – a good number of chapters were placed on probation and/or suspension based on policy. We WILL be enforcing again this year
Current IHQ Collection Policy
There will be three payment options available to each Chapter/Colony:
1. Full YEAR payment by September 30
2. Full SEMESTER payment by September 30 (February 15)
3. Two payments in the Fall (Sept 30 & Nov 15) and one payment in the spring (Feb 15)
Collection Policy Continued…
Payments consist of the following: Full year: 100% per caps/insurance, Convention
assessment Fall full semester payment: 60% of annual per
caps/insurance plus 100% of Convention assessment Two Fall default payments: each one will be 30% of
annual per caps/insurance and 50% of Convention assessment
Spring full semester payment: 40% of annual per caps/insurance
Spring default payment: 40% annual per caps/insurance
Collection Policy Continued…
Pay entire year by September 30 8% discount
Pay semester in full by respective semesterly due date 5% discount Must do this BOTH semesters to receive Spring
discount
Two Fall payments / One Spring payment Default payment option No discount / no premium
Pros/Cons of Payment Options
NOTE: you will only receive the 5% discount on the full Spring semester payment if you paid the Fall semester in full by September 30. As you can see, the Spring full semester payment and the Spring default payment are identical. Therefore, the benefit is only given to those chapters who take advantage of the Fall full semester discount.
Collection Policy Continued…
Payment not received within 5 days of due date: ◦ Probation with SOCIAL SUSPENSION◦ School and alumni association 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 placed on FINANCIAL SUSPENSION◦ School and alumni association notified◦ Remain on Financial Suspension until payment made or payment
plan presented to and agreed upon by IEC Treasurer and Executive Director and/or Director of Chapter Operations
Disciplinary Actions
What is Financial Suspension? Suspension of Charter - Pursuant to Article V Government, Section 5 (c) of the Pi
Lambda Phi Constitution, the International Executive Council may suspend the Charter of any Chartered group.
Financial Suspension of Charter means that the Chapter must take all actions necessary to:
– Remain a member of the respective University/College, IFC and/or similar governing bodies or constituency
– The Chapter will not hold itself out as a Chapter of Pi Lambda Phi Fraternity. This includes, but is not limited to the following:
• Prohibition of participation in events where any individual(s) and/or group(s) would associate a chapter of Pi Lambda Phi Fraternity being associated with;
• The Chapter may not orally, in writing, or by symbol represent itself as a Chapter of Pi Lambda Phi Fraternity in any campus activities. Campus activities include, but are not limited to the following:
– Greek Week/Greek Games
– Intramural sports/events; and/or
– Social events
Financial Suspension Continued
Recruitment
• Recruitment will not be permitted unless approval is obtained from the Executive Director, or the Director of Chapter Operations, or the President of the International Executive Council
New Member Education
• New Member Education will not be permitted unless approval is obtained from the Executive Director, or the Director of Chapter Operations, or the President of the International Executive Council
• Each suspended group must submit a written proposal stating how continuing the new member education period will help to meet their financial obligations
– Approval will only be given if new member fees are paid as detailed in the new member and initiation policy
Chapters on Financial Suspension for two semesters will be given notice of charter revocation
Colonies on Financial Suspension for two semesters will be given notice of termination of colony recognition
Discipline - continued
New member fees to be paid within two weeks of pinning. New member fees remaining at $55 per man. New Member cards to be sent with payment
Request for Permission to Initiate form and appropriate fees are due AT LEAST TWO WEEKS BEFORE initiation. Initiation fees remaining at $175 per man
Any “rush” request on pin shipment will be at chapter’s expense
Penalty for late reporting/payment of initiation fees: $25 per man per semester
New Member Fees / Initiation
New Member Fees / Initiation Continued
Beginning with Fall 2010, any Chapter/Colony that fails to report and/or pay for New Member and/or initiation fees in a timely manner may be placed on probation with social suspension until payment has been made. The decision will be made on a case-by-base basis by the Executive Director, Director of Chapter Operations, IEC President, and/or IEC Treasurer
New member program may NOT begin until previous periods are paid, unless given permission by Executive Director and/or the Director of Chapter Operations
FY11 Collection Rates(as of June 30)
• 97.880% of Fall dues collected
• 85.183% of Spring dues collected
• 93.725% combined full year collected
• 100% paid Fall new member fees
• 100% paid Fall initiation fees
• 35 of 38 groups paid full Spring new member fees
• 33 of 38 groups paid full Spring initiation fees
• 98.73% / 94.59% - full year NM/Init collected respectively
Roster Adjustments For 2011-2012 school year, roster adjustments due
to IHQ by August 31, 2011. Once verified through the school, these updated rosters will dictate billings.
This only happens ONE TIME each year.
Email current Officer contact info to Laura [email protected]
Contracts Brother agreement (get completed/signed at
time budget is approved) 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
Collections
Unable to attend New Member events Ineligible to be big brother 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
“Punishments” for Non-Payment
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?
More “Punishments”
Can’t attend closed partiesCan’t attend sorority socialsCan’t participate in sorority events around
campusCan’t attend “band parties”Extra “sober crew” assignments at “regular”
parties
Social Probation
If nothing else works and they are not living up to their commitment:
Small Claims CourtLow costs (if any)Simple proceduresIf you have the contract and signatures,
easy to prevail
Final Attempts
Omega Financial
Online chapter financial services including billing, statements, budget tracking, various payment options with direct transfer to chapter accounts as well as to IHQ, etc
System accepts credit cards, debit cards, and online checks
7 chapters have been actively using Omega – some beginning as early as 1998. A handful of others are considering implementing it this coming school year or at least researching it a bit further.
Examples from Brothers on how they handle late payments and payment plans currently
Chapter Examples
How to budget Master budget (spreadsheet review) Sub-budgets by committee to feed master budget
Budget “backwards”
TIP: be conservative…overestimate costs, underestimate any variable income
Be sure to include an “allowance”
Budgeting
The following items will be available on the Pi Lam website in the members’ section within the next few weeks:
Budget Template for you to use (Excel) Collection Policy Chapter Brotherhood Agreement Template Chapter Brotherhood Payment Plan Agreement
Template This presentation Our international budget with explanations
PI LAM WEBSITE
How to reach me…Marc Weppner - IEC Treasurer
Cell: 703-400-4670
Q&A