Transcript Slide 1

Treasurer's Association
2013 Annual Meeting
Saturday, 21 September 2013
Agenda (9:00 – 10:30)
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Welcome and Introductions –Joe Mannes '80– President, Class Treasurers' Association
Overview of the Past Year –Conor Frantzen '08– Vice President, Class Treasurers'
Association
Alumni Council: What do Treasurers Want Council to Know? – Mike Gonnerman '65 –
Alumni Council Representative for the Class Treasurers Association
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Reunions, Dartmouth & Class Treasuries – Conor
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Tax Deductibility of Class Dues – Joe
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Tax Preparation Update –Rachel Williamson, Dartmouth College
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One Year After: A Discussion of Class Treasuries Post DAM? – Shervyn von Hoerl '96
and Yelena Blackwell '02
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Treasurer Recognition - Conor
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Presentation of Treasurers of the Year – Joe and Conor
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Open Forum for Questions
Introductions
Jennifer Casey’66a
Director, Class Activities
Ann Harvey
Class Dues Administrator
Joe Mannes ‘80
President, Treasurer’s Association
Conor Frantzen ‘08 Vice-President, Treasurer’s Association
Tom Beecher ‘82
Treasurer Representative to Dartmouth
Alumni Magazine
Mike Gonnerman
‘65
(2011-2014)
Treasurer Representative to Alumni Council
Class Dues Metrics as of September 2013
Overview of the Past Year
FY09
FY10
FY11
FY12
FY13
Highest Dues
Participation
73% / ’59
74% / ’59
73% / ’59
Lowest Dues
Participation
12.1%
9.5%
6.7%
5.7% avg
5.9% avg
Average Dues
Participation
39.6%
38.6%
36.2%
33.8%
33.5%
Total Funds
Raised –
includes
Projects
$1,212,624
$1,135,596
$1,105,839
$1,136,347
$1,140,909
Highest Funds
Raised by
Class
$56,615/’82
$33,990/’80
$31,366/’59
$37,255/’87
$35,583/’53
$31,648/’78
$30,412/’58
65% avg
66% avg
(‘59, ‘62, ‘54) (‘53, ‘59, ‘62)
Alumni Council Report
Mike Gonnerman ’65
May 2013 Meeting
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Transition period for administration
Student life focus – Cleary report
Significant presentations
 Interim President Carol Folt
 Dean Charlotte Johnson
 Trustee Annette Gordon-Reed ‘81
 Dean of admissions Maria Laskaris ‘84
November 2012 Meeting
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Nominated Mitchell Kurz ‘73 for BOT
Student life focus -- Rolling Stone article
Significant presentations
 AD Harry Sheehy
 Sr VP David Spaulding ‘76
 Dean Charlotte Johnson
 Trustee Chair Steve Mandel ‘78
Next Meeting -- November
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New administration in place
Significant presentations
 Chief investment officer, Pam Peedin ‘89
 Director of advancement, Bob Lasher ‘88
Chair honorary degrees committee
Reunions, Dartmouth & Class
Treasuries
Conor Frantzen
Reunions, Dartmouth & Class
Treasuries
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Classes must add major reunion
revenues and expenses to Annual
Financial Report and report to IRS
Class treasurers and reunion
treasurers should be in contact early
and often before a major reunion
We have created a one-page
document on the website with a
suggested timeline and advice for
reunion treasurers.
Tax Deductibility of Class Dues
Joe Mannes
Tax Deductibility
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Each class may or may not choose to
assert tax deductibility of dues
Questionnaire is part of the annual
report
Not a guarantee—ask your tax
advisor
Tax Deductibility Questions
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Have you filed Form 990/990EZ/990-N under the
College's group exemption number?
Are you using your funds for the following purpose:
To enhance alumni interest, and support Dartmouth
College?
Can you confirm there are no unrelated business
activities (unrelated to the charitable purpose) or
political contributions conducted by the class?
Can you confirm that non-dues paying classmates
are eligible for the same benefits and participation in
Class Activities and Reunions as dues paying
classmates (or those supporting class projects)?
Tax Deductibility
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If you answered NO to any questions, your dues
may not be tax deductible and there may be
additional filing requirements.
Form 990 or 990EZ, if you answered YES to the last
question, you should classify your dues payments
(as well as project gifts above the dues amount) as
gifts in Part 1, Line 1 of the form 990EZ or Part VIII,
Line 1f of the form 990.
Disclaimer: While we believe that the information
provided here is reliable and correct, we cannot
guarantee that your class dues are tax deductible.
You should reach out to your tax services provider
to confirm the tax deductibility of your class dues.
Tax Update for Alumni Classes
Rachel L. Williamson, CPA
[email protected]
[email protected]
Joined Dartmouth College in June
Tax Update Agenda
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Maintaining Tax Exempt Status
New in Fiscal 2013
Filing Requirements
Filing Tips
IRS Notices
Financial Best Practices
Questions
Maintain Tax Exempt Status
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Tax Exempt Status is generally
granted through membership in
Dartmouth’s group exemption
Timely File Annual Return
Read & respond to any IRS notices
promptly
Do not support or oppose political
candidates
Provide copy of return if one is
requested
New in Fiscal Year 2013
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The IRS is reminding filers not to
include Social Security Numbers on
Forms 990 or 990-EZ, since these
are publicly available documents.
990-EZ filers no longer list addresses
of Officers, Directors, Trustees and
Key Employees.
Clarifications to instructions
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990-N (e-postcard) filings are
available when the class’ average
gross receipts are less than $50,000.
“Average gross receipts” are
calculated using the current year and
two prior years gross receipts.
The State of New Hampshire does
not required an annual filing as long
as contributions are solicited only
from the class members.
Filing Requirements
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Annual Federal Tax Filing is required to maintain tax
exempt status
Failure to file Form 990-EZ or Form 990 may result
in fines of $20 per day past the due date to
maximum of 5% of gross receipts.
Failure to file for 3 consecutive years will result in
loss of tax exempt status.
Forms are due November 15, 2013. Extension can
be filed on Form 8868 for 990 or 990-EZ filing.
It is important to maintain accurate record of
revenue and expenses to fulfill your fiduciary duty,
document requirements for filing, and provide
accurate reporting.
Filing Requirements
Gross Receipts and Assets
IRS Form
Average gross receipts under $50,000.
990-N
Gross receipts less than $200,000 and total assets
less than $500,000.
990-EZ
Gross receipts $200,000 or greater.
990
Total assets $500,000 or greater
990
Informational Returns
No Tax
 990-N has no penalties for late filing
 990 EZ and 990 are subject to fines
and penalties for late filing
o Publicly Disclosed
o 990-T requirement for unrelated
business income of $1,000 or greater
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990-N
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Simplified filing available to classes
Requirements
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Average 3 year gross receipts $50,000
or less
All receipts, including proceeds from
sales of securities
For groups in existence less than 3
years, different rules apply
Maintain a copy of gross receipts
calculation
990-N Details
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IRS filing administered by The Urban
Institute
Computer based
Link to the filing available on the IRS
website
After setting up profile, you will receive a
confirmation email
Check spam folder if confirmation not
received quickly
If notified of rejection, file Form 990-EZ
990-N Details
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Information Required
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Organization’s DBA name (Dartmouth
Class of XXXX)
Mailing address (Blunt Hall)
Website (if any)
EIN
Name & address of principal officer
Organization’s Tax Year (June 30, 2013)
990-EZ
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Schedules required in addition to
core form
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Schedule A (Public Charity Status)
Schedule E (Schools)
Schedule O (Other information)
Schedule B (Contributions) if one or
more contributors gave $5,000 or more
Schedule G (Fundraising) if special
events revenue exceeded $15,000
990
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Required schedules are the same as
for 990-EZ
Form 990 is complex and unique to
each group
If required to file, we recommend
consultation with a tax adviser.
IRS Notices
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Failure to file
Missing or incomplete information
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Missing Schedule A or E
Required boxes not checked
Contact Alumni Office or Controller’s
Office ([email protected]) for
assistance if needed.
Financial Best Practices
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Annual review of by-laws to make sure the Class is
complying with the by-laws, including formal
documented meetings
Keep accurate records of all revenues, expenses,
and assets
Bank accounts should use the class EIN and have at
least 2 officers listed as signors for all accounts
Reconcile all bank accounts, investment accounts,
and cash funds at least annually
If the class has a substantial amount of activity in
the treasury, it may be advisable to arrange for an
audit of the books periodically.
Financial Best Practices
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Treasurer’s Report
 The Treasurer should give a financial status
update at every board meeting and, ideally,
provide quarterly reports.
 At the end of the fiscal year, a final report should
be generated and presented to the Board.
 Copies of the final report should be sent to
Alumni Relations to maintain historical records.
Merchant Accounts
 If you accept credit cards, make sure you have
procedures in place that are PCI compliant
Questions
One Year After: A Discussion
of Class Treasuries Post DAM
Shervyn von Hoerl '96
Yelena Blackwell '02
Then and Now – Average Dues
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On average, class dues amounts stopped their climb
after the DAM bill was reduced…
DAM policy
change
Average Dues Amount by Fiscal Year
Average Dues Amount
$60
$50
$40
$34
$35
$37
2000
2001
2002
$40
$43
$43
$44
$44
$44
2004
2005
2006
2007
2008
$46
$47
$48
2009
2010
2011
$51
$50
2012
2013
$30
$20
$10
$2003
Fiscal Year
Source: History of Class Dues Amounts 2013
Then and Now – Dues Amounts
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… And on a class-by-class basis, many more classes
lowered their dues last year than ever in the past
In fact, in 2013 we saw dues amounts below $30 –
for the first time ever
Number of classes that…
Increased dues
Decreased dues
Kept the same
DAM change
(FY12 to FY13)
10.0
14.0
44.0
Previously
(FY86 to FY12,
average)
11.3
1.4
42.2
Source: History of Class Dues Amounts 2013
Then and Now - Participation
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But… participation rates continue to decline
Even among classes that decreased dues, statistical
analysis shows no meaningful improvement
DAM policy
Change
Average Dues Participation by Fiscal Year
60%
50%
48%
50%
50%
50%
48%
46%
42%
40%
40%
40%
38%
35%
34%
33%
FY11
FY12
FY13
30%
20%
10%
0%
FY01
FY02
FY03
FY04
FY05
Source: History of Participation Rates FY01 to FY13
FY06
FY07
FY08
FY09
FY10
Discussion
Since DAM expenses are no longer in your class
budget…
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Have you raised or lowered your dues? Why
or why not?
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Have you been saving or spending that
money?
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If spending, on what?
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If saving, for what?
Treasurer Recognition
Conor Frantzen
Treasurer Recognition
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68 classes have treasurers
40 (59%) have served fewer than
five years
30 years of service
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Ralph L. Sautter, 1955 (33 years!)
William L. Russell, III, 1963
25 years of service
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Andrew M. Carstensen, 1972
Treasurer Recognition
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20 years of service
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John S. Neff, 1973
Ivar A. Jozus, 1961
Melanie Fisher Matte, 1976
David F. Noyes, 1970
15 years of service
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Thomas R. Beecher III, 1989
Charles A. Balch, 1962
Treasurers of Year
Conor Frantzen
Joe Mannes
Questions