Treasurer's Association

2013 Annual MeetingSaturday, 21 September 2013

Agenda (9:00 – 10:30) 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

Reunions, Dartmouth & Class Treasuries – Conor

Tax Deductibility of Class Dues – Joe

Tax Preparation Update –Rachel Williamson, Dartmouth College

One Year After: A Discussion of Class Treasuries Post DAM? – Shervyn von Hoerl '96 and Yelena Blackwell '02

Treasurer Recognition - Conor

Presentation of Treasurers of the Year – Joe and Conor

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

Overview of the Past Year

FY09 FY10 FY11 FY12 FY13

Highest DuesParticipation

73% / ’59 74% / ’59 73% / ’5965% avg

(‘59, ‘62, ‘54)66% avg

(‘53, ‘59, ‘62)

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

Class Dues Metrics as of September 2013

Alumni Council Report

Mike Gonnerman ’65

May 2013 Meeting

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

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

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

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

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

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

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, CPARachel.L.Williamson@Dartmouth.eduTax@Dartmouth.eduJoined Dartmouth College in June

Tax Update Agenda

Maintaining Tax Exempt Status New in Fiscal 2013 Filing Requirements Filing Tips IRS Notices Financial Best Practices Questions

Maintain Tax Exempt Status 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

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

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

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 RequirementsGross 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 filingo Publicly Disclosedo 990-T requirement for unrelated

business income of $1,000 or greater

990-N

Simplified filing available to classes Requirements

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

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

Information Required 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

Schedules required in addition to core form 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

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

Failure to file Missing or incomplete information

Missing Schedule A or E Required boxes not checked

Contact Alumni Office or Controller’s Office (Tax@dartmouth.edu) for assistance if needed.

Financial Best Practices

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

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 '96Yelena Blackwell '02

Then and Now – Average Dues On average, class dues amounts stopped their

climb after the DAM bill was reduced…

DAM policy change

Source: History of Class Dues Amounts 2013

Then and Now – Dues Amounts … 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

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

Number of classes that…

Source: History of Class Dues Amounts 2013

Then and Now - Participation But… participation rates continue to decline

Even among classes that decreased dues, statistical analysis shows no meaningful improvement

DAM policy Change

Source: History of Participation Rates FY01 to FY13

Discussion

Since DAM expenses are no longer in your class budget…Have you raised or lowered your dues? Why or why not?Have you been saving or spending that money?

If spending, on what?

If saving, for what?

Treasurer Recognition

Conor Frantzen

Treasurer Recognition

68 classes have treasurers 40 (59%) have served fewer than five

years 30 years of service

Ralph L. Sautter, 1955 (33 years!) William L. Russell, III, 1963

25 years of service Andrew M. Carstensen, 1972

Treasurer Recognition

20 years of service John S. Neff, 1973 Ivar A. Jozus , 1961 Melanie Fisher Matte, 1976 David F. Noyes, 1970

15 years of service Thomas R. Beecher III, 1989 Charles A. Balch, 1962

Treasurers of Year

Conor FrantzenJoe Mannes

Questions