South Dakota American Legion Auxiliary

 

Finance

2016-2017

Kathy Evenson, Chairman

47594 257th St.  Sioux Falls, SD  57104

605 357-8349

605 941-4699

paevenson@aol.com

 

HOW TO SET GOALS THROUGH ANNUAL BUDGETING

Objective

Provide for financial stability by setting goals through the annual budget process.

Step-by-Step Instructions:

Create a three-member Finance Committee for your unit.

Conduct a budget planning meeting of the Finance Committee prior to the start of your fiscal year; make sure to invite unit officers at which time the agenda should include, but not limited to the following:

  • Review your current financials in comparison to the IRS and nonprofit watchdog

          organizations benchmarks outlined in the Plan of Action.

  • Review your progress status of your long-range goals (i.e., fundraising for new building).
  • Review your annual ALA obligations (VA&R, poppy promotion, ALA Girls State, etc.).
  • Review your annual operating expenses (i.e., rent, heat, bank fees and conference registrations, etc.).
  • Review your membership numbers and the related dues income.
  • Review other sources of revenue (donations, events, bequests, etc.).
  • On a 12-month calendar, plot out when you anticipate your revenue and expenditures will occur.
  • Compare your total estimated revenue versus your total estimated expenses.
  • Determine what areas need further consideration to accomplish your long-range goals and meet the IRS and nonprofit watchdog organizations expense benchmarks:

 

  • Program Services (expenditures related to the organizatiomission’s primary n and purpose): the target should be 65-75 percent.
  • Management and General Administrative (expenditures spent on managing the operations of the organization): the target should be 5-10 percent.
  • Fundraising (expenditures spent on raising additional funds for the organization’s purpose and mission expenses—i.e. grants, planned giving, endowments, direct mail campaigns, etc.): the target should be 10-20 percent.
  • Have unit membership vote on the adoption of the annual budget.
  • Try to create a positive bottom line. Remember: Budgets are just a guide.
  • Have the Finance Committee vote to approve the budget and forward on to unit membership.
  • Have unit membership vote on the adoption of the annual budget.

 

HOW TO COMPLETE THE 990 FILING PROCESS

 

Objective:

Provide for compliance with IRS regulations to maintain nonprofit tax-exempt status annually.

Step-by-Step Instructions:

  Create a three-member Finance Committee for your unit.

  Create a three-member Audit Committee, which may be the Finance Committee.

  Obtain the Form 990 or Form 990-EZ or Form 990-N from the IRS website at www.irs.gov.

  Have your unit treasurer attempt to complete as many forms as possible.

  Have the Finance Committee work with unit officers and outside accountant to finalize the tax         form.

  If you have an outside auditing firm, get their approval of the tax form.

  Have your Audit Committee (if different from your Finance Committee) review the completed tax form.

  Have the Finance/Audit Committee vote to approve the Form 990 or Form 990-EZ or Form 990-N and forward onto unit membership.

  Have unit membership vote on the adoption of the Form 990 or Form 990-EZ or Form 990-N.

  Submit the Form 990 or Form 990-EZ or Form 990-N prior to the annual deadline, which is based on the unit's fiscal year, not calendar year.  This can be completed online with the following:

 

Go to: https://www.irs.gov/Charities-&-Non-Profits/Annual-Electronic-Filing-Requirement-for-Small-Exempt-Organizations-Form-990-N-e-Postcard

Click “Form 990-N Electronic Filing System (e-Postcard)”

 

Please feel free to call me and I will walk you through the online process.  My number is on the front of the bulletin.  Below is the time table for the reports requested throughout the year.

 

                                                                 Mid Year Reports             Year End Reports

From Units to District Presidents              November 15, 2016           April 15, 2017

 

Mid year reports include activities from April 1 to November 1, year end reports include all activities from April 1 through March 31. 

 

Additional Resources You Can Use

1,Fundraising Success (Periodical): www.fundraisingsuccessmag.com

2. Grassroots Fundraising Journal (Magazine): www.grassrootsfundraising.org

3. Internal Revenue Service: www.irs.gov

4. American Legion Auxiliary: www.ALAforVeterans.org

5. American Legion Auxiliary Foundation: www.ALAFoundation.org

6.Committee Contact Information: finance@ALAforVeterans.org