Transcript Document

Professionals Finance Zone
Functional
Kevin Broadnax &
Jacquelynn Pressey
Agenda
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Icebreaker Activity
National & Regional Focus Areas
Zone Overview
Zone Breakdown
Finance Zone Duties & Roles
Goals
Questions
National & Regional Focus Areas
NSBE Professionals Long Range Vision
•NSBE is to be the premier career access organization for Black technical professionals
•Our vision is to develop and impact our active NSBE professional members to succeed as
future corporate leaders, technical experts in industry, and strong stewards in their
communities
National Focus Areas
•Organizational Excellence
•Chapter Empowerment
•Professional Success
Regional Directives
•Academic Excellence
•Chapter Empowerment
•Community Impact
Zone Overview
• Handles all things related to Money
• Be budget Administrators and empower Chapter board to be
budget Owners
• Create and publish professional financial related
documentation
• Develop productive relationship with business
• Share best practices
Zone Breakdown
Kevin Broadnax
RPEB Treasurer
[email protected]
Jacquelynn Pressey
RPEB Finance Chair
[email protected]
Finance Zone Duties & Roles
Rules of Thumb to be a
Good Chapter Treasurer
Chapter Treasurer Duties
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Develop and maintain Chapter Budget
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Monitor chapter income and expenses
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Report pertinent financial information to the CEB
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Prepare recurring detailed Financial Reports
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Develop and enforce guidelines for allocation and disbursement of funds
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Maintain the accounting system for all financial transactions
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Develop, implement, and maintain an effective chapter financial plan and
management system
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Prepare a transition report at least a month prior to chapter elections
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Oversee activities of the Chapter Finance Zone/Committee
Financial Management
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Keep Excellent and Organized Records
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Use Financial Management tools
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Quicken, Microsoft Money
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Spreadsheets (Microsoft Excel)
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Delineate how things are paid for:
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Track expenditures by activity and by account used.
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Petty Cash, Chapter Checking, Credit Card, etc.
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Manage Receipts
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Scan Receipts into electronic form for tracking
Have Mechanism for tracking budget changes (e.g., Budget
Modification request forms. )
Financial Management Policy
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Establish Reimbursement Policy
• Establish and communicate the process
• Establish required pre-approvals,
• Set amount limitations,
• Set deadlines for submitting requests
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Budgeting Events
• What expenses the chapter can/will cover
• Who/What qualifies for chapter sponsorship for participation
(Travel, Accommodations).
• Plan expenses ahead
Checks and Balances
• Require two signatures on the chapter accounts.
• Usually would be the Treasurer and President
• Treasurer and Secretary to keep record of money made/collected at
chapter events.
• Monthly Treasurer Reports
• Provide detailed written report at Executive Board Meeting
• Submit general written report for General Body Meeting minutes.
• President will perform regular checks of the account balances and
statements.
• Finance Committee perform annual financial audits.
Treasurer – Your Responsibility
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Set clear rules for spending and stick to them.
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Make sure the rules are known and understood by all board
members.
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Follow up with good record keeping.
Budgeting
Understanding a Budget
A Budget is…
• is a financial plan for future activities
• describes all the activities of your chapter in financial terms
• is a yardstick by which an your chapter’s financial performance is
measured
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Understanding a Budget (cont.)
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Why Budget?
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Demonstrate achievement of planned objectives
Illustrate financial responsibilities to groups
 Members
 Corporate Partners
 Other Stakeholders
Budget Needs?
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Planning
Co-ordination
Communication
Controls/Policy
Evaluation/Review
Budgeting Principles
The Cycle
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Preparing
Identify and clarify needs, requests, and priorities
Standardize the budget
Assess the system
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Writing
Preparing
Writing
Gather info (revenue/expenses, initial forecast)
Challenge & analyze amounts
Review your budgeting procedure
Document master budget
Monitoring
Analyze differences between actual and projected
Monitor discrepancies, errors, check for the unexpected
Reforecast and revise
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Monitoring
Ultimate goal should be to create a budget tailored to your
chapter that actively supports the mission and goals of NSBE
and your chapter.
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Preparing to Budget
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Consider which functions are most
important to your chapter
Review past activities
Include and make room for new initiatives
Remember that the budgeting process is a
means to an end not the end itself
Budgets are not set in stone
Key is to establish the current plan and
adjust as events happen
Writing the Budget
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Anticipate Revenues
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Solicitation
 Local Companies
 Foundations
Events
Other Gifts (e.g., in kind donations in lieu of revenue)
Budget Projections/ Actuals
 Membership Dues
 Sponsorship
 Other Revenue
Estimate Expenses
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Review previous year’s expenses
Allow for impact of inflation
Timing
Direct & Indirect Costs
Writing a Budget (cont.)
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Producing the Figures
o Output/Input Method
 Assess what your chapter produces (output)
 Scholarships
 Programs
 Operating Costs
 Decide what resources are needed to achieve
(input)
Budgeting Correctly
What we have• What we’ll do with it• What you can have
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Managing the Budget
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Track transactions in real time.
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Develop forms for transactions (checks, credit
card, petty cash, reimbursements and income)
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Agree to how much to spend and what to spend it on
Document and Track chapter revenue and expenses
Keep records to use to develop future budgets
Contact your Regional Alumni Treasurer for examples
Document all agreements and discussions that
have financial impact.
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Corporate interactions
Negotiations for event services
Include the Org Name, Address, and Contact Name – if you want
to work with them again, you have the information. (This is
where spreadsheets really help)
Managing A Budget
Variances
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Differences between actual and projected
expenses/revenues
Identify and analyzing variances can be a tool to
control spending, update projections, pin-point
discrepancies, and make decisions on reallocation.
Finalizing a Budget
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Consolidate
Review figures
Assess viability
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Summary:
Financing Chapter Programming
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Plan Ahead, Plan Ahead, Plan Ahead
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Have a schedule with milestones for due dates.
Spend what you need, not necessarily all that you
have.
Raise funds to match the spending needs.
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Overspending does come at the expense of the chapter.
Think broadly and diversify
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Can you budget to pay for your event off of one revenue stream? What if
that stream doesn’t come through?
Be prepared to adjust to realities.
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Fundraising & Funding
Sources
Chapter Finance Chair Roles
• Be the face of the chapter in the eyes of local corporate entities
• Develop and foster positive, productive relationship with business in
your area
• Implement creative ways of fundraising to support chapter events
• Assist Chapter Treasurer when possible by staying updated on chapter
financial needs
• You are the engine that PROPELS your chapter’s growth!
Chapter Finance Strategies
Corporate
Solicitation
Donations/
Gifts
Fundraising
Grants
Chapter
Revenue
Chapter
Dues
Chapter Fundraising Ideas
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Sponsored Meetings w/ guest speakers
Host a professional networking mixer
Professional Workshop or Seminar
Industry Symposium or Mini-Conference
Membership Drive or Social
• Partnership with local establishments
• Scholarship Banquet
• Pools and fundraising programs
• Contests, baked good sales, raffles, etc.
• Sell NSBE Chapter branded products (e.g. cups, pens,
shirts, keychains, etc.)
Chapter Donations
• Individual
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Chapter members
NSBE members across your region
NSBE members across the world
Local Community Members (city, region, state)
General Public (nationwide and worldwide)
• Corporate/Group
• Employee Donations (some Companies will match
donations)
• In-Kind Donations of products and services
• Corporate donations/sponsorship via solicitation
Chapter Partnership Packet
Create a Chapter Partnership Packet to include:
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Professional appearance throughout with appropriate photos that
capture essence of chapter activities.
Introduction Letter from President/Chapter Representative
General NSBE History
General Chapter History and Current E-Board
Highlights of previous year’s accomplishments
Listing of current corporate partners
Short Descriptions of Chapter Goals, Major Events, and Programs
List of Sponsorship Opportunities
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Chapter contact information for securing sponsorship
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 Include Partnership Levels(e.g. Gold, Silver, Bronze, etc.) with
sponsorship amount and all associated corporate benefits
 Should be your chapter’s finance chair or treasurer if you do not have
a finance or fundraising chair.
NOTE: Any of NSBE’s National Corporate Partnership Packets may
be used as References or examples
Chapter Partnership Packet (cont.)
• Be realistic when preparing your Partnership Levels and associated
costs should be relevant to your Chapter Budget projections.
• All stated Partnership Benefits are “Deliverables” for your Chapter and
they must be achievable.
• “Under Promise & Over Deliver”
• Be creative with your benefits.
• Bundle your programs and events.
• Think “Partnership”, not “Transaction”
• Opportunity to foster an ongoing relationship
Keys to Successful Solicitation
• Needs:
• Quality Programming consistent with the mission.
• Focused on Career Development, Technical Training, Networking,
Pre-College Youth Support, etc.
• Industry forums, symposiums, and conferences with credentialed
keynote speakers and presenters
• Effective planning and marketing of Chapter Programming
• Development and Nurturing of Relationships with professionals from
local industry, professional organizations, and government
• Professional quality solicitation materials
Implementing Partnership Plan
• Create a Target Company List
• Research and compile email/phone contact info for HR Recruiters,
Diversity Leads, Community Relations, and Corporate Executives.
• Rank companies by relevance to NSBE mission.
• Solicitation Process (steps 1-5)
1. Introductory Email
2. Phone Call (refer to introductory email)
3. Email & Phone Follow up (Discussions)
4. Confirmation of Partnership commitment
5. Thank you and Partnership feedback
6. Keep documentation of all exchanges
Return On Investment (ROI)
• Sponsor Return on Investment is a must!
• Travel, Accommodations, and Meals are the least appealing and
most difficult items to have sponsored. These have least return to
the sponsor.
• Focus on obtaining sponsorship to provide direct support to
chapter programs, events, services, products and the
reinforcement of the NSBE mission.
• Sponsor Benefits and Chapter Deliverables must be clearly defined
so that relationship is a “Win-Win” for all parties.
Grants
• External Sources of Financial Assistance
• Federal & State Agencies
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National Science Foundation (NSF)
National Aeronautics and Space Administration (NASA)
Department of Education
Small Business Administration (SBA)
Private Foundations (primarily funded by investment earnings)
• Bill & Melinda Gates Foundation
• William and Flora Hewlett Foundation
• Ford Foundation
• W.K. Kellogg Foundation
• Corporate Grants
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• Wal-Mart Foundation, GE Foundation, ExxonMobil Foundation
• Verizon Foundation, AT&T Foundation, BP Foundation
Public Charities (primarily funded by public support)
• United Way, Goodwill Industries, Boys & Girls Clubs
• Habitat for Humanity, UNICEF
Pursuing Grants
• Research and Planning
• Compile listing of Grant Awarding entities with areas of support
that are most relevant to NSBE mission.
• Education, Youth, Technology, STEM, etc.
• Pursue support for Established programs and events
• Be prepared to show metrics of program’s track record of
community/membership impact
• Grant Submission must align to target support areas
• Execution
• Identify an experienced grant writer or member with excellent
writing skills
• Prepare accurate and realistic program/event budget
• Make sure to capture photos, comments, any press/media, and
other positive feedback to include in your report back to grant
awarding entity
Resources for Grants
• Grant Station – www.grantstation.com
• Grants.gov – www.grants.gov
• Hewlett Foundation – www.hewlett.org/grants/
• U.S. Department of Education – www.ed.gov/fund/
• Foundation Center – www.foundationcenter.org
• Fundsnet Services – www.fundsnetservices.com
• Afterschool Alliance – www.afterschoolalliance.org
• Packard Foundation –
http://www.packard.org/grants/grants-database/
Internal NSBE Resources (Grants)
• Chapter Relief
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Facilitated by Region
Intended to Support Conference Participation
There is limited funding available for Chapter Relief
Influenced by regional participation (past and present)
• National Programs Fund
• NSBE has budgeted money for NSBE chapters to implement
programming that supports the NSBE mission on the local level.
• Applications and Selections Process determined by National
Programs Zone.
• Work with Regional Professionals Treasurer on process.
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Tax Exemption
Becoming Tax-Exempt
• Professional Chapters have two options for gaining federal tax-exempt
status:
• Pursue their own independent chapter federal tax-exempt status, or
• File under NSBE’s General Exemption (GEN)Program.
Advantages of NSBE GEN
• Pursue Tax Exemption on your
own:
• Acquire Employee ID
Number (EIN)
• Charter Chapter
• Complete Form 1023
• 26 page application
• Pay $400 Application Fee
• Submit Form 990 on
December 15th
• File under GEN as “NSBE
Subordinate”
• Acquire Employee ID
Number (EIN)
• Charter Chapter
• Complete NSBE GEN
Questionnaire
• 12 Question Survey
• Pay No Fee
• Submit Form 990 on
December 15th
NSBE’s Tax Exempt Status
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An organization such as NSBE may qualify for exemption
from FEDERAL income tax if it is organized and operated
exclusively for one or more of the following purposes:
• Charitable, Religious, Educational, Scientific, Literary, Testing for Public
Safety, Prevention of cruelty to children and animals, or fostering
national or international amateur sports competition
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Additionally, the organization must be a corporation,
community chest, fund or foundation.
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In NSBE’s Article of Corporation (1976), the organization is
described in Article Two as a “non-profit corporation”
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Advantages of being tax-exempt
• Donations to tax-exempt organizations such as NSBE are deductible
on the donor’s Federal Income Tax return.
• Whether we like it or not, many contributions are given solely for
deductions on income taxes and many companies and foundations
only donate to tax-exempt organizations.
Why GEN?
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Unlike most collegiate chapters, Professional
chapters cannot be tax-exempt under a university’s
tax-exempt status.
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This process can be seen as providing a legal
umbrella for chapters so that they can conduct
business and fulfill their goals and objectives.
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Are NSBE Chapters Required to Pursue NSBE GEN?
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NO! Chapters have the option to pursue individual
chapter tax-exempt status. To check on applying for
individual status, go to the IRS website
http://www.irs.gov/charities/article/0,,id=96590,00.html
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Chapters who do pursue individual tax-exempt status are
also responsible for all reporting.
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Getting an Professional Chapter on Board with
NSBE GEN
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Any chartered NSBE Professional Chapter is eligible to
request inclusion in the GEN program.
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Chapters are added or removed annually per the IRS
schedule (90 days prior to the end of the fiscal year)
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Chapters must complete the required General Exemption
Survey via IMPak – available August 2014 – March 31,
2015
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Getting an Professional Chapter on Board with NSBE
GEN (cont.)
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Once you complete the questionnaire, your chapter
president and/or chapter treasurer will receive an official
confirmation letter approving or declining your chapter’s
inclusion in the 2014-2015 Group Exemption within 2-4
weeks.
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The official confirmation letter allows the chapters to be
covered under the NSBE federal tax-exempt status.
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Each chapter is still required to handle its own state and
local tax requirements.
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Acquiring an Tax ID Number
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One portion of the tax exemption process is acquiring an
EIN/TIN (Employee Identification Number/Tax Identification
Number). Each chapter MUST have their own EIN/TIN.
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NO chapter is authorized to use the NSBE National EIN.
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Applies to ALL NSBE chapters. Any questions regarding the
validity of the EIN number that your chapter is using may be
directed to the National Professional Treasurer.
• Note: Any chapter that uses the NSBE National EIN is subject
to disciplinary action by NSBE and/or the IRS.
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Summary: GEN Process
• Process for pursuing GEN (Optional)
• Acquire Federal Tax ID Number (onetime only)
• Ensure chapter charter is active
• All Chapter Executive Officers
designated in IMPak
• 10 (Ten) Registered and Paid
Professional Members
• Chapter President or Treasurer fills out
GEN Questionnaire on IMPak
• Await Letter from NSBE WHQ affirming
GEN Status.
• Letter covers the entire program
year.
• Please consult Professionals Tax
Exemption Playbook for detailed
guidance.
Open Discussion
Questions
Contact:
Kevin Broadnax –
[email protected]
Jacquelynn Pressey –
[email protected]