Money Matters: Managing and Maximizing Your Resources

1
Money Matters Managing and Maximizing Your
Resources
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Purpose

• Introduce the basic standards and expectations of
  student organizations spending
• Help treasurers to better understand their role
• Provide information on Agency Accounts
• Other general information

3
The Role of Finances

• Financial health and stability are fundamental
• All operations are ultimately dependent upon
  financial resources and management
• The Business Approach
• You should view your role in your organization as
  a manager of a business
• Understand potential legal consequences of your
  role
• Fulfill your responsibility to pass good
• practices and training on to new officers

4
Treasurer Job Responsibilities

• As a Treasurer you are expected to deal with the
  following
• Dues
• Expenses
• Fundraising
• Develop budgets
• Record transactions
• Keep balances updated

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The Basics

• Do NOT use personal information to set up bank
  accounts
• Establish checks balances
• Demand approvals for all expenditures prior to
  spending
• Create event and/or activity budgets
• Underestimate revenues
• Overestimate expenditures

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The Basics

• Plan ahead
• Secure multiple bids or quotes
• Count your cash!
• Make your cash deposits in a timely manner!
• Keep ALL your receipts!
• Keep all financial records

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Getting Started

• What are the financial needs of your
  organization?
• Establish non-profit status
• Secure an EIN (Employer Identification number)
• Earn tax-exempt status
• Establish a bank account

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What Is A Budget?

• A financial plan for a definite period, or
  program, which is based on projected
  expenditures, needs, and income.
• A written guideline for your plan of action. It
  requires planning, coordinating and establishing
  a system of management controls for the
  administration of the organization.

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How Do I Develop My Budget?

• HELPFUL HINTS
• Expenses should be approximately the same from
  year to year.
• Be sure to check all figures for accuracy.
• Include rationale for any changes of 10 or more
  from the previous year.

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Budget Keys

• The key is
• Plan ahead!
• Stick to your budget!
• Keep an accurate budget log!
• Be creative and think outside of the box!

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Managing Your Budget

• Dont spend all of your funds in the first
  quarter
• Set your budget annually and maintain a budget
  log sheet for the year
• Review your budget monthly
• Detailed assessment each quarter
• Dont steal money from other sources or
  accounts to cover other expenses
• Once funds are allocated only use those funds for
  their appropriate purpose as submitted on a budget

12
Managing Your Budget
Needs vs. Wants

• Needs
• Operating Materials
• Event Supplies
• Insurance for Events
• Marketing Materials

• Wants
• Food
• Party Favors
• T-shirts
• Group Outings
• Transportation

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Sample Budget

• Income
• Balance as of prior year end
  113.94
• Revenue    
• Dues (70 members _at_ 2.00)
  140.00    
• Holiday Dinner (40 meals _at_ 2.25)
  112.50    
• Career Day (400 _at_ .25)
  100.00
• Picnic (65 _at_ 1.50) 97.50
• Total Anticipated Revenue 450.00
• Total Anticipated Income
  563.94
• Expenditures
• Awards
  35.00
• Conferences and Conventions
  25.00
• Meals 
•     Holiday Dinner (100 _at_ 2.25)
  225.00    
• Business Representatives at Career Day
  50.00    
• Picnic (80 _at_ 1.50) 120.00
• Programs 40.00
• National Dues
  20.00

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Budgeting For Your Events

• Plan, Plan, Plan! Always be sure to plan ahead to
  avoid over-expenditures or unexpected
  expenditures.
• Set a separate operating budget for each event
• Overestimate costs when planning
• Budget for unexpected expenses (reprinting
  flyers, ITS printing,etc.)
• One person oversees spending and reimbursements

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Financial Accounting Process

• Steps to include in your financial process
• Prior to expenditures
• Budgets should be submitted for approval
• Submitted budgets should be checked by
  Treasurer/Financial Officer
• Approval should be obtained from Executive
  Committee of organization
• Checks should require double signatures one from
  Treasurer, one from President

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Financial Accounting Process

• After expenditures
• All receipts should be submitted to
  Treasurer/Financial Officer
• A financial report should be submitted in writing
  to Treasurer/Financial Officer and Executive
  Committee of organization
• Recommendations should be made for
  future related expenditures
• Once youve reviewed or established a process,
  write it down!
• Pass the process on to new officers!

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Fund Raising for Your Group

• Is it worth the time and investment?
• Does it follow policy and procedure?

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Fundraising
What does the university consider as
fundraising? Anytime money is exchanged on
campus. The only exception not requiring CSI
approval is collecting member dues at a club
meeting, working Sodexho concessions, ARC
Pavilion Hall Stage Hands, and solicitation and
sponsorship from off-campus donors. Who can
fundraise on campus? Fundraising is available to
currently registered groups in good standing.
When a group wants to fund raise they must
complete a fund raising form. What does a
student organization need to fundraise? Need to
have a bank account (off campus or agency
account). Agency accounts expire every June
30th. The 2 people authorized must be part of
the 5 officers listed on the registration
forms. Someone in the RSO must serve as a
Treasurer (CSI is available to train). Fundraising
event must be consistent with the purpose of
your group. A CES reservation form is required
when fundraising at an event.
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Special Fundraising Requirements

• Dont wait until the last minute to submit your
  request to raise funds!
• Schedule an appointment with a CSI Advisor to
  ensure it is in compliance with University policy
  and a profitable endeavor.
• No Commercial Activity (sales or advertisement)
• The following are the only sales allowed
• Dues
• Admission Charges/Entry fee
• Donations
• Sale of non-commercial items related to student
  organization purpose or scheduled event
• Baked Goods
• Raffles
• Items handcrafted by members of student
  organization
• Limited commercial items may be sold with a
  Value Added component
• For example Flowers delivered as a Singing
  Telegram, candy wrapped in a bag with school
  supplies such as pencil and bluebook. If
  unsure, please consult with a CSI Advisor.

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Special Fundraising Requirements

• Raffles
• Tickets and publicity material must clearly
  indicate that no purchase is required.
• If a dollar amount is specified, the word
  Donation must appear.
• Anyone requesting a free raffle ticket must be
  provided one.
• Baked Sale Guidelines
• Groups must follow the General Guidelines for
  Bake Sales, including having a list of
  ingredients posted at sale.
• Can be commercial and/or group-prepared.
• Food that requires no special handling
• Donuts (not cream filled), muffins, cakes,
  brownies, cookies
• Commercially baked goods must be removed from
  their original packaging, be individually wrapped
  
• Other Food Sales are limited. Orientations for
  these food sales occur
• several times a year.
• More information may be found http//spac.ucdavis.
  edu/sos/fundraising.cfm

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Use of University Logos and Trademark

• Sale of printed materials (t-shirts,
  sweatshirts, caps, buttons, bumper stickers,
  etc.) must have design approval and comply with
  UC Davis Trademark and Logos policy.
• You can only use UC Davis as a location-- ABC
  Club at UC Davis.
• If you are using UC Trademark and/or Logo, you
  need to go through a licensed vendor and the
  trademark sign must be by the UC Davis.
• A complete list of UC Davis licensed vendors may
  be found at  http//software.trademarxonline.
  com/forms/LicensedManufacturerList.aspx
• Sponsor ads must be less significant than your
  organization (a good Rule of Thumb 80-20
  Rule- No more than 20 of the sponsor should
  take up the total space. 80 should be your
  organization.

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Fundraising/Funding Sources

• University Food Services (Sodexho) - 752-5052
• Hires student organizations to work at major
  campus events. Contact 752-5052 for more
  information. Fundraising approval by CSI not
  required.
• ARC Pavilion 752-3883
• Hires student organizations to set-up or
  take-down events. A notification will be sent out
  through the SPAC E-Bulletin. Fundraising approval
  by SPAC not required. An on-campus Agency Account
  is required you can obtain or update one at
  SPAC.
• Club Finance Council
• http//cfc.ucdavis.edu/

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Club Finance Council

• Provides funds to undergraduate student
  organizations only.
• Grants
• Approx. 75K each academic year
• Maximum of 2K per CFC fiscal year per
  organization
• Loans
• Interest free. Apply between 10/1 and 6/1 each
  academic year.
• Short Term LoanMaximum of 300 and must be
  repaid in 60 days.
• Long Term Loan Maximum 3K.
• Application Deadlines
• The CFC funding cycle is for any events from
  November 1st to October 31st of following year.
  There are five deadlines each year.

http//cfc.ucdavis.edu/
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Banking

• Student organizations should establish and
  maintain a financial account in the name of the
  organization.
• A financial account is required for any fund
  raising on campus.

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Banking

• Off Campus Banking
• If you would like to open an off-campus bank
  account, you will need an
• Employee Identification Number (EIN) which is
  used as a federal tax
• ID. Go to http//www.irs.gov/ and submit the
  SS-4 form with the IRS to
• receive an EIN
• Verification of your status
• CSI can provide a letter verifying your groups
  status as a Registered
• Student Organization to assist you in setting up
  a local bank account or
• updating your signatures on the account. Submit a
  request form at least 2
• days in advance.

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Agency Accounts/On Campus Banking

• CSI Business Office 6 Lower Freeborn
• Monday-Friday 900am-400pm
• BENEFITS OF AGENCY ACCOUNT
• Required to make campus facility reservations
  through CES.
• Required for certain on-campus fundraising.
• Provides access to banking service on-campus.
• Provides account number for campus department
  services.
• ALSO NOTE
• No checkbook. Request checks and deposit funds
  through CSI Business Office 35 fee each year.
• Agency Accounts expires each June 30th.
• If an organization fails to re-register for 2
  consecutive years any funds in the account will
  be forfeited and used for student organization
  support.

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Commonly Used Forms Transactions

• Check Request Form
• Deposit Forms
• Co-sponsorship Transfer of Funds

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Check Request Forms

• Pay bills, reimburse members, etc.
• Honorarium Payments for services require a Social
  Security Number of the Payee
• Generally takes about 7 business days
• Can not request check made payable to self

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Deposit Form

• Use this to deposit checks and cash (all checks
  should be out to UC Regents).
• Come to the CSI Business Office to carry out the
  transaction.
• Any cash will need to be brought to CSI BO to
  generate a Statement of Cash Collections and then
  taken to Cashiers Office, located in Dutton Hall.

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Co-sponsorship Transfer of Funds

• Co-sponsorship from other departments or Student
  Organizations an email will need to be sent to
  clovato_at_ucdavis.edu requesting the transfer. The
  following information is required account
  numbers, purpose and amount of sponsorship. Only
  one of the two who are listed on the Agency
  Account can request a transfer.

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Account Balances Updates

• The Business Office can provide the current
  balance and transaction statement for your
  Agency Account. This information will be
  provided only to the two representatives listed
  on the Agency Account form.

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Non Profit Status
Student organizations often assume that once they
have received their Tax ID that they are
non-profit/charitable organizations or have tax
exempt status. Student organizations are to
follow state and federal guidelines regarding tax
exemption. Tax donations to student organizations
are not tax deductible. If you wish to have a
tax exempt status, you need to fill out a 501
(c)(3) application with the IRS
(http//www.irs.gov).
34
Officer Transition

• Complete before Spring Quarter finals to avoid
  organization
• not having access to accounts after old Treasurer
  leaves!
• Notify CSI of new Treasurer
• Change authorized names on bank account(s)
• Go over detailed organization balance
• Give new Treasurer timeline of responsibilities
  and activities you had to do throughout year
• Give advice that you wish you would have known
  before getting the position

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Thank You!

• For additional assistance,
• please contact
• Clarisa Lovato [phone]
• clovato_at_ucdavis.edu
• Paul Cody [phone]
• pvcody_at_ucdavis.edu
• spac_at_ucdavis.edu