WE”VE GOT THE MONEY NOW WHAT?
WE”VE GOT THE MONEY NOW WHAT?
Every club that handles funds is required to have a
club bank account. Club monies should not go through
a 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.
To open a bank account you will need certain
documents. The first being an IRS employer
identification number (EIN).
The fss4 application form can be found on the IRS
A list of useful websites is at the end of this slide
When filling in the name of your
club, be sure to include 4-H Club as
part of the name.
The GEN number should be listed
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 check yes as you
will have no employees.
Once this is submitted to the IRS,
they will notify you of your assigned
Once you have this number, notify
the 4-H Extension office with a letter
asking be included under the
National 4-H GEN number. They
will be submitting a list to the state
4-H office which then sends a
master list to National 4-H.
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. The third item that is helpful to
have is a copy of the tax exempt status from
National 4-H. (next two slides).
It is also helpful if you take a copy of your clubs
bylaws and a copy of the minutes where officers
were elected. 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.
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
Your club will need to prepare a budget for the year that is voted on by the
membership. (See sample on next slide) 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.
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. (See sample monthly record on following second
slide) Electronic bookkeeping is also acceptable.
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.
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
At the end of the 4-H year, an annual financial report will
need to be presented to the club for approval .
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. (see next slide)
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 second and third
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. ( 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 AND RAFFLES
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, see slide # 10.
It is a good idea to keep in mind that raffles are considered
gambling and here are some very specific rules about conducting a
The next two slides are a very good outline on the rules governing
Washington State Raffles. Some basics to remember; 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, and prizes must be
listed. It is recommended that clubs not conduct licensed raffles.
(see rules for specifics).
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
Tax Exempt Status
Policies and Regulations (National 4-H Headquarters)
EIN IRS application