Transcript Document
Professionals Finance Zone Functional Kevin Broadnax & Jacquelynn Pressey Agenda • • • • • • • 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 • Develop and maintain Chapter Budget • Monitor chapter income and expenses • Report pertinent financial information to the CEB • Prepare recurring detailed Financial Reports • Develop and enforce guidelines for allocation and disbursement of funds • Maintain the accounting system for all financial transactions • Develop, implement, and maintain an effective chapter financial plan and management system • Prepare a transition report at least a month prior to chapter elections • Oversee activities of the Chapter Finance Zone/Committee Financial Management • • Keep Excellent and Organized Records • Use Financial Management tools • Quicken, Microsoft Money • Spreadsheets (Microsoft Excel) • Delineate how things are paid for: • Track expenditures by activity and by account used. • Petty Cash, Chapter Checking, Credit Card, etc. • Manage Receipts • Scan Receipts into electronic form for tracking Have Mechanism for tracking budget changes (e.g., Budget Modification request forms. ) Financial Management Policy • Establish Reimbursement Policy • Establish and communicate the process • Establish required pre-approvals, • Set amount limitations, • Set deadlines for submitting requests • 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 • Set clear rules for spending and stick to them. • Make sure the rules are known and understood by all board members. • 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 14 Understanding a Budget (cont.) • Why Budget? o o • Demonstrate achievement of planned objectives Illustrate financial responsibilities to groups Members Corporate Partners Other Stakeholders Budget Needs? o o o o o 15 Planning Co-ordination Communication Controls/Policy Evaluation/Review Budgeting Principles The Cycle • Preparing Identify and clarify needs, requests, and priorities Standardize the budget Assess the system o o o • o o o o • 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 o o o 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. 16 Preparing to Budget • • • • • • 17 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 • Anticipate Revenues o o o o • 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 o o o o 18 Review previous year’s expenses Allow for impact of inflation Timing Direct & Indirect Costs Writing a Budget (cont.) • 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 19 Managing the Budget • Track transactions in real time. • Develop forms for transactions (checks, credit card, petty cash, reimbursements and income) o o o o 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. • o o o 20 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 • • 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 • • • Consolidate Review figures Assess viability 21 Summary: Financing Chapter Programming • Plan Ahead, Plan Ahead, Plan Ahead • • 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. • • • Overspending does come at the expense of the chapter. Think broadly and diversify • • 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. 22 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 • • • • • 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 • • • • • 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: o o o o o o o 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 o Chapter contact information for securing sponsorship o 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 • • • • • 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 • • 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 • • • • 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. 36 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 • 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 • Additionally, the organization must be a corporation, community chest, fund or foundation. • In NSBE’s Article of Corporation (1976), the organization is described in Article Two as a “non-profit corporation” 40 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? • Unlike most collegiate chapters, Professional chapters cannot be tax-exempt under a university’s tax-exempt status. • This process can be seen as providing a legal umbrella for chapters so that they can conduct business and fulfill their goals and objectives. 42 Are NSBE Chapters Required to Pursue NSBE GEN? • 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 • Chapters who do pursue individual tax-exempt status are also responsible for all reporting. 43 Getting an Professional Chapter on Board with NSBE GEN • Any chartered NSBE Professional Chapter is eligible to request inclusion in the GEN program. • Chapters are added or removed annually per the IRS schedule (90 days prior to the end of the fiscal year) • Chapters must complete the required General Exemption Survey via IMPak – available August 2014 – March 31, 2015 44 Getting an Professional Chapter on Board with NSBE GEN (cont.) • 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. • The official confirmation letter allows the chapters to be covered under the NSBE federal tax-exempt status. • Each chapter is still required to handle its own state and local tax requirements. 45 Acquiring an Tax ID Number • 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. • NO chapter is authorized to use the NSBE National EIN. • 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. 46 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]