Accounting Best Practices and Silent Auctions

Alumni Accounting
Best Practices
Jennifer Stephens
Tammie Hill
Rip Britton

Auburn Alumni Association
2016 Club Leadership Conference
Accounting 101
Topics To Be Covered
•Best Practices for Auburn Clubs’ Financial Activities
•Bank Accounts and Financial Transactions
•Financial Statements
•Special Events
•Petty Cash Form
•Rip Britton – Birmingham Club embezzlement
2

Club Accounting 101
General Internal Controls
•Address club risk of misappropriation of funds
• Establish internal controls
• Monitor club receipts and disbursements are properly
recorded
•Treasurer – CPA’s and Accountants
•Employer Identification Numbers (EIN)
• Bank account should be set up under the club’s EIN
• Apply for EIN at www.irs.gov
3

Club Accounting 101
Bank Accounts & Financial Transactions
•Dual signatures and/or dollar limits
• President and Treasurer
• Treasurer and Co-Treasurer
• Large clubs $500
• Small clubs $250
•Bank Reconciliations
• Prepared monthly by Treasurer
• Reviewed by President
4

Club Accounting 101
•Presidents should periodically open bank statements before the
Treasurer reconciles the bank account (review check images)
•Online Banking – President review transactions on a monthly
basis
•Club credit cards and debit cards are a risk and are not
recommended
5

Club Accounting 101
•Paypal account transactions should be periodically reviewed by
Treasurer and another club officer
•Bank deposits should be made the next business day after
receiving funds
•Detailed invoices should be submitted to the Treasurer for
payment processing (ex. Amazon)
6

Club Accounting 101
Financial Statements
•Recommend using QuickBooks Pro
• Process checks
• Prepare bank reconciliations
• Prepare financial statements
•Other option is to use excel spreadsheets to record financial
transactions
•Financial Statements
• Prepared quarterly by Treasurer
• Reviewed by President and club’s board of directors
7

Club Accounting 101
Special Events
•Petty cash log
• Use to track cash transactions
• Two or more people should count monies before leaving
events
• Documents confirming deposits should be presented at
the next board meeting
•Review state regulations before holding “Raffles” & “Game of
Skill”
8

Club Accounting 101
Forms
Petty cash log
Form can be found on the
Club Resource Page
Date: ____02/14/2014_______________________ EVENT: _________Silent Auction_________________________________________
Purchaser Name Item Description Price/each
Quantity
Sold Subtotal
Registration
Fee Total sale
JOHN H DOE Lawn Services 45 1 45 10 55
MARY A WESLEY 10 10
MARK G SMITH 10 10
75.00$
50.00$
125.00$
Before the event, count your cash box and write down the amount on the "beginning cash" line. Also write your event/date at the top of the form.
During the event record each sale and total the amount sold at the end of the event. Then add the two totals and this should match your
cash in the box. Please initial that you have completed this form and return with petty cash box to ___________________________.
Initial:
Total Incoming Money
Beginning Cash
Total Amount in Cash Box
9

Club Accounting 101
990 – Filing Reminder
• 990 IRS filing requirements:
• Gross receipts ≤ $50,000 – 990N(e-postcard)
• Gross receipts >$50,000 but <$ 200,000 and total assets
<$500,000 – 990EZ or 990
• Gross receipts ≥ $200,000 or total assets ≥ $500,000 –
990
• Returns must be filed by the 15th
of the fifth month
after the club’s fiscal year end. (Example
FYE12/31/2015; due 5/15/2016.)
10

Completing Club
Fundraising Forms –
Silent Auctions
Jennifer Stephens
Tammie Hill

Auctions
Topics To Be Covered
•Auctions
•AAAAuction Approval Process
•Auction Items
•Auction Forms
•After the Auction
•Summary
2

Auctions
Generally, the club conducts these activities,
collects and deposits the receipts, pays the
related costs and then sends the net proceeds to
the Auburn University Foundation (AUF) as a
contribution from the club.
Since clubs are a 501 ( c) 7 social club they can
not give a donor a tax deduction.
3

Auctions
The Auburn Alumni Association
(AAA) is a 501 ( c) 3 tax exempt entity
and can give donors a tax deduction.
AAA can administer your clubs
auctions so that donors can receive a
tax deduction if applicable.
4

Auctions
Pros and Cons of an AAA
Administered Auction
5

Auctions
Pros
•Donors may receive a tax deduction
for the portion paid above the fair
market value.
• AAA will issue tax receipts when
applicable.
Cons
•AAA is required to remit sales tax
on all auction items sold. This will
result in a decrease in your net
proceeds.
•Unless your auction items are sold
above the fair market value no tax
deduction will be given to the
purchaser.
6

Auctions
AAAAuction Approval Process
Auctions can be covered under the AAA 501 (c) 3 status if
approved by, AAA - contact Steve Inabinet, before the auction
is held (4 weeks).
The following information will need to be obtained for
each auction:
– The nature, timing, location of the event and any
solicitation materials
7

Auctions
AAAAuction Approval Process
If your club will be using solicitation materials, to promote your
silent auction your materials should contain the following:
1. A specific statement of the charitable use of the auction proceeds.
If for the endowment, it must specifically state this. If split
between the endowment and the spendable fund the division must
be specific, such as “divided equally between…” or “first $xx to
the spendable fund, with the balance to the Endowment…”
2. Instructions indicating that checks be made payable to the Auburn
Alumni Association or AAA.
8

Auctions
Auction Items
The IRS presumes that purchasers of auction items made a purchase,
not a gift. In order for a purchaser to be able to prove the intent to
make a gift, he/she must prove the purchase was knowingly made for
more than the value. This can be satisfied by:
– Providing a “catalog” listing and describing auction items and
their value
– For silent auctions, listing the value on the bid sheet
Often a “minimum bid” is established for silent auctions. This is not
the same as the fair value.
9

Auctions
Required Forms When AAAAdministers
Your Auction
Silent Auction Bid Sheet
This form is used during the auction, where purchasers record
their name and bid amount. Also listed on the top of the form you
will state the fair market value of the auction item.
All forms are available on the club resources page
10

Auctions
22

Auctions
Required Forms When AAAAdministers
Your Auction
Bid Summary Sheet
After the auction, you will complete the bid summary form. This
form identifies the purchaser, the purchase price, the item, and
the item’s value. All money submitted to AAA should balance to
this form.
All forms are available on the club resources page
12

Auctions
After the Auction
Silent Auction Bid Sheets
Bid Summary Sheet (with payments attached)
Submit to Steve Inabinet
within 2 weeks of the auction
14

Auctions
Summary
•Direct contributions to a club’s scholarship should be made payable to
Auburn University Foundation
•Silent auctions administered by AAA, checks should be made payable
to the Auburn Alumni Association
•Contact Steve Inabinet four weeks prior to the auction and an auction
packet will be emailed to you
•After the auction, paperwork and money is to be turned into Steve
Inabinet within two weeks of the auction
15

Accounting Best Practices and Silent Auctions

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