RESOLVE TO IMPROVE YOUR GROUP'S FINANCES
As the New Year begins, it’s time to reassess your group’s financial health. The list below provides practical tips to make the most of your treasury.
Getting fit
● Document all of your expenses and income sources.
● Make sure your group adheres to financial guidelines by applying for an FEIN, never use the Alumni Association’s number.
● Complete the Association’s financial filing forms each January. Your group saves money by taking advantage of group filing.
● Remember that most alumni clubs and societies are 501(c)(4) organizations. In Ohio 501(c)(4)’s are not tax-exempt; check with your state to determine if your group is tax-exempt.
Finding that special someone
● Select a treasurer with a background in finance or math when possible.
● Appoint a second officer to sign off on expenditures by marking the receipt or invoice as “OK to pay” and initialing.
● Ask your treasurer to train another officer to be his or her backup.
● Require an annual treasurer’s report including all cash receipts and disbursements, even if small amounts. This should be reviewed by all officers and the final copy shared with your members at the annual meeting, in your newsletter, or through another mailing.
● Hold a formal transfer of paperwork and banking items when a new treasurer is elected. This should be witnessed by another officer.
Balancing the checkbook
● Do not mix group and personal finances. Open a checking account no matter how small your group. The account should be in the group’s name under the group’s FEIN.
● Pay by check whenever possible.
● Don’t reimburse for expenses with cash.
● Select a bank that provides copies of your cancelled checks with your monthly statement or one that provides these copies electronically. Many banks provide this service for no extra charge.
● Establish a signing procedure. There should be two signatures for checks of a significant amount, i.e. over $200.
● Check signers should be officers but should not be related to one another.
● Keep all invoices, receipts, check deposits, bank statements, and cancelled checks for five-to-seven years. This can be as simple as separating the items by year and storing in manila envelopes.
Cutting the fat
● Determine your group’s budget for the coming year. Make smart decisions when allocating funds.
● Look at your income sources. Determine what you can do to increase them. If most of your funding comes from membership, consider adding more benefits to recruit more members and/or justify a dues increase.
● Solicit sponsorship for your events. Contact Kathy Bickel at bickel@ohiostatealumni.org for ideas.
● Don’t lose money on your events; find an admission charge that will cover food, facility, and promotional costs.
● Improving your group’s financial outlook can be easy if you resolve to make the right choices.
