NAACP
UNIT FINANCIAL
AND
BOOKKEEPING
GUIDE
Modified January 2006
Finance Department
NAACP-National Office
TABLE OF CONTENTS
PAGE NO.
INTRODUCTION
1
Section 1: CONVENTION REMINDER
2
Section 2: ROLE OF THE FINANCE DEPARTMENT
4
Section 3: ACCOUNTING AND REPORTING PROCEDURES
5
Section 4: TAX STATUS OF NAACP UNITS
13
Section 5: FUND RAISING ACTIVITIES
14
Section 6: POLICIES
17
ATTACHMENTS
Attachment 1 – NAACP Monthly Financial
Attachment 2 –NAACP Membership Dues Sharing Formula
Attachment 3 – Determination of Employment Status
Attachment 4 – Filing Forms 1099
Attachment 5 –Annual Financial Report & Instructions
Attachment 6 – Letter from President & CEO
Attachment 7 – Advertising Versus Sponsorship
Attachment 8 – Duties of the Unit Treasurer
INTRODUCTION
Guide Objectives
The National Office of the NAACP is charged with the fiduciary responsibility of ensuring
that all NAACP Units conduct their activities in an efficient and effective manner. In
executing this responsibility, the National Office provides guidance to each Unit in the form
of consultation, memoranda and training. The National Office acknowledges its
responsibility to provide meaningful guidance to our Units in the area of financial
management. This guidance is a necessary element of proper governance by a parent
organization.
Recent legislation affecting governance, such as the American Competitiveness and
Corporate Accountability Act of 2002, commonly referred to as Sarbanes-Oxley Act,
imposes stiff penalties for certain violations to the act. As a result the importance of sound
financial management cannot be overlooked. This guide outlines established financial and
accounting policies to be followed by each unit. Non-compliance with these policies and
procedures jeopardizes the fiscal integrity of the Unit as well as the National Office taxexempt status
This manual focuses on several areas that are critical to sound management practices and
to the successful continuance of our organization.
This manual and the resulting manual were developed to proactively control five risk factors:
1. The need to minimize our audit risk by being in total voluntary compliance with all
regulatory agencies, including the IRS, state and local government agencies.
2. The need to limit our liability exposure by controlling the events that might impact the
organization negatively, such as an absence of proper due diligence.
3. The need to maintain pertinent records in accordance with an established record
retention and destruction policy.
4. The need to maintain fiscal integrity through the establishment of accounting
procedures that comply with generally accepted accounting principles and income tax
accounting rules.
5. The need for vital information with which management can effectively, efficiently and
strategically allocate scarce resources in the ever-changing environment in which the
NAACP conducts business.
Note: The term “NAACP Unit or Units” consist of duly organized State/State-Area
Conferences, Branches, Prison Branches, Young Adult Councils, College Chapters, Youth
Councils, Junior Youth Councils, High School Chapters, and Authorized Committees of the
Association.
1
SECTION 1: CONVENTION REMINDER
2006 National Convention
Washington, D.C.
July 15-20, 2006
Pursuant to Article III, Section 4 of the Constitution and By-Laws for Units, Units must
remit to the National Office twenty-five percent (25%) of the net proceeds from
contribution, entertainment or fundraising efforts within forty-five (45) days following the
date of the event. If the Unit did not host a contribution, entertainment or fundraising
effort for the year, a minimum assessment is due to the National Office based upon the
membership status of the Unit as of December 31, 2005. If the division of funds from
the total contribution, entertainment or fundraising efforts is less than the minimum
assessment, the Unit must submit the difference. Unit Freedom Fund and other
assessments for the support of the Association must be remitted to the National Office
ninety (90) days before the Annual Convention (April 16, 2006) for delegates to be
eligible to vote. In addition, Unit Annual Financial Reports for 2005 must also be
submitted to the National Office for delegates to be eligible to vote at the Annual
Convention.
The following are the minimum Unit assessments for the current year. The assessment
formula, which is based upon membership status of Units as of December 31, 2005, as
recorded by the National Office is as follows:
ANNUAL UNIT ASSESSMENTS
Branches with less than 100 members
Branches with 101-500 members
Branches with 501-1,000 members
Branches with 1,001-2,000 members
Branches with 2,001- 3,000 members
Branches with 3,001-3,500 members
Branches with 3,501-4,000 members
Branches with more than 4,000 members
$300.00
$500.00
$750.00
$1,000.00
$1,500.00
$2,000.00
$3,000.00
$5,000.00
All Youth Units
$75.00
2
CONVENTION ASSESSMENTS
State Conferences (Youth and Adult)
$100.00
Branches with…
50
101
501
1,001
2,501
5,001
Over
to
to
to
to
to
to
100 members
500 members
1,000 members
2,500 members
5,000 members
7,500 members
7,501 members
$50.00
$75.00
$125.00
$175.00
$200.00
$250.00
$300.00
Youth and Young Adult Councils
College Chapters
$25.00
$25.00
VOTING STRENGTH
Representation of Branches, Youth Councils, Young Adult Councils and College and
High School Chapters at the Annual Convention shall be on the following basis:
Voting
Members
Youth Units of From
Branches and Youth Units Members
25 to 49
50 to 100
101 to 500
501 to 1,000
1,001 to 2,500
2,501 to 5,000
5,001 to 10,000
10,001 to 20,000
20,001 to 25,000
Over 25,000 – 1 additional vote for every 2,500 members
3
Delegates
2
4
6
8
10
12
14
16
18
SECTION 2: ROLE OF THE FINANCE DEPARTMENT
Processing of Daily Transactions
• Cash receipts
• Cash disbursements
Annual Reporting
• NAACP
• NAACP-Special Contribution Fund
• CRISIS Publishing Company
• Information tax return (IRS Form 990) for both NAACP and SCF and corporate tax
return (IRS Form 1120) for Crisis
• Group Tax Return (Form 990 – filed on behalf of all NAACP Units)
Advising NAACP Units
• Accepting our responsibility to provide timely service and proper guidance to the
NAACP Units
-
We must continue to improve our ability to deliver high quality services to
NAACP Units.
•
Development / evaluation of policies and procedures
•
Appropriate references
- Internet websites:
www.genie.org - provides information and resources for the nonprofit
community, including publications, links to other nonprofit resources, answers
to frequently asked questions and provocative opinions
www.guidestar.org – provides information on informational returns - IRS Form
990 – for all non-profit organizations that filed such a return.
Monitoring and Reporting
•
Year end Financial Reports
- Acknowledging the critical role of proper financial management and reporting on
the overall operations of NAACP Units.
•
The Finance Department mandates strict compliance with regulations set forth by
the IRS and state and local government regulatory agencies
4
SECTION 3: ACCOUNTING AND REPORTING PROCEDURES
Books and Records
•
Manual v. computerized record keeping systems
NAACP Units must maintain a general ledger system to record activities.
Ideally, the NAACP Unit accounting system should be computerized. There are
several adequate, inexpensive accounting software packages available (i.e.
Quicken, Quick Books, etc.) In order to standardize reporting across all Units,
Quick Books is the recommended software. Proper utilization of a computerized
system would reduce the probability of recording errors and simplify the reporting
process.
If the NAACP Unit does not possess a computer, a manual record keeping
system, should be utilized. The Finance Department has designed a monthly
bookkeeping format that could be utilized by the NAACP Unit for summarizing its
monthly activities (See Attachment 1). Please note, that if this format is utilized,
it easily computes balances that are to be reflected in the Annual Financial
Report of the Unit. NAACP Units should not remit copies of the monthly or
quarterly format to the National Office.
Cash
Each NAACP Unit is required to maintain a bank account in the name of the NAACP
Unit. The Taxpayer Identification Number (“TIN”) on the bank account is to be
that of the NAACP Unit and not the National Office or Group Tax Return. The
improper use of the Group Tax Return and National Office’s tax identification number is
a clear violation of IRS regulations as well as NAACP‘s policies and procedures
governing Unit operations. This violation is taken quite seriously by the IRS and could
result in substantial fines to both the Unit and the National Office. In addition, the
improper use of the National Office’s TIN number could result in the revocation of the
National Office 501(c) (3) status. Please contact the National Office if the Unit needs a
taxpayer identification number.
•
All disbursements are to be made by check (NAACP Unit Bylaws, Article VII, Section
4 paragraph 1)
Cash payments to vendors are not permitted.
5
Checks should never be made payable to “cash”. NAACP Units may establish a
Petty Cash account for minor purchases and other incidentals if conditions
warrant the existence of such an account. If a petty cash fund is established,
adequate records of each transaction, including receipts, must be retained.
•
Funds may not be withdrawn in any manner other than by check.
ATM cards of the Unit should not be used to withdraw funds.
Charges should not be made to credit cards in the Unit’s name and subsequently
paid by check.
Counter checks and payments to vendors via telephone are also not permitted.
Automatic payments from Unit account(s) are not permitted.
•
Two signatures are required on each check
Treasurer and President
-
The First Vice President may countersign in the absence of the President
Checks must not be pre-signed, i.e., authorized signer should not sign blank
checks.
•
The bank should be notified each time there is a change in authorized signatories
and previous signatories must be deleted immediately. The only authorized
signatures are the President, Treasurer and First Vice President. The Secretary is
not an authorized signatory on bank accounts. The Secretary signs vouchers only.
•
All transactions must be properly documented and recorded in the Unit’s book of
record.
Documentation, including vendor invoices, must be retained for a period of three
to five years. The absence of records puts the Unit at risk, since it will not be
able to justify and support disbursements if it were subject to an IRS audit. All
Unit records should be filed in a systematic and logical manner independent of
any Unit leadership/administration and should be kept in a secured location with
restricted access. The records must be transferred upon change in
administration. The transition period for the administrations should not exceed
sixty (60) days.
6
•
Monetary receipts (including checks) must be deposited into the account of the
NAACP Unit on a timely basis. The National Office recommends that NAACP Unit
funds be deposited no later than the end of the following business day.
Under no circumstance are NAACP Unit funds to be commingled with the
personal funds of NAACP Unit officers, members or other individuals or entities.
Adequate documentation should be maintained to support each item deposited
into the NAACP Unit accounts.
-
•
This documentation should provide the details pertaining to the source,
contact information, amount and purpose of the funds. Any restrictions by
the donor should also be identified.
NAACP Unit records, including recorded cash balances, are to be reconciled to the
bank statements on a monthly basis. Timely preparation and review of bank
reconciliations assists the Unit in identifying any suspicious or unauthorized
transactions. It also helps the Unit manage its cash flow by identifying current cash
balances.
It is recommended that NAACP Units limit the number of bank accounts they
maintain as follows:
Operating (checking)
Savings (interest bearing)
ACT-SO, BTS-SIS (restricted funds)
Accounts required b large donors (federal funds)
An excessive number of bank accounts increase the complexity of the
reconciliation process as well as overall cash management.
Someone who is not an authorized check signer should perform the
reconciliation of NAACP Unit bank accounts. The balance reported by the bank
should be compared to the balance maintained by the Unit and any differences
should be investigated and explained.
Investments and Marketable Securities
•
If the NAACP Unit maintains significant cash balances, excess funds should be
invested in an interest bearing account or other appropriate investment vehicle.
Investments are to be reasonable and made with an appropriate business purpose.
•
Investments should be short term (generally with a maturity of one year or less) so
that funds are easily accessible for Unit operations.
7
•
Investment vehicles should carry minimum risk.
•
Each investment must be approved in writing by the NAACP Unit Executive
Committee. (approval should be documented in Executive Committee meeting
minutes)
Accounts Receivable
•
The extension of credit to any individual or entity must be approved in advance and
in writing by the Executive Committee of the NAACP Unit.
•
Under no circumstances are NAACP Units permitted to extend loans.
•
To the extent funds are due to NAACP Units from third parties, collection efforts are
to be monitored and reported to the Executive Committee.
Fixed Assets
•
Adequate records must be maintained detailing all fixed assets owned by the
NAACP Unit. Records must include the original cost of each asset and any
accumulated depreciation.
Vendor invoices must be retained for all purchased assets.
The NAACP Unit should maintain an inventory list of its assets and include
original cost, date of purchase, serial number, model description and location.
The absence of a comprehensive list of property and equipment increases the
risk of assets being stolen, or in the event of a natural disaster, reduces the
likelihood that the Unit will be appropriately indemnified.
•
It is the responsibility of the Treasurer to determine if the NAACP Unit is required to
submit a Personal Property Tax return to the State.
•
In the case of donated assets, the Unit should obtain from the donor the fair market
value of the asset at the time of donation.
•
Since NAACP Units are 501(c) (4) organizations, donated assets for ACT-SO or
Back-to-School Stay–in-School must be processed through the National Office
if the donor intends to report the donation as a charitable contribution.
8
Other Assets
•
Prepaid expenses with a life of one year or less should be expensed as incurred.
•
Security deposits should be separately identified to facilitate proper tracking.
Liabilities
•
“Indebtedness exceeding $25.00 or $300.00 per month (Youth & College and Adult
Units respectively) in the aggregate shall not be incurred in the name of, or on behalf
of the NAACP Unit unless by vote of the Executive Committee”. (NAACP Unit
Bylaws, Article V Section 15b and 16d).
•
“No indebtedness or obligation shall be incurred by the NAACP unit or any of its
officers or agents in the name of National Association for the Advancement of
Colored People, and the National Office shall not be responsible for any
indebtedness or obligation incurred by the NAACP unit or any of its officers or
agents.” (NAACP Unit Bylaws, Article V Section 15a and 16c).
Revenue
•
All funds received by a NAACP Unit are to be identified as either “Restricted” or
“Unrestricted” as to their use.
Restricted funds generally include:
-
Grants from individuals, corporations, foundations, government agencies
-
Funds for scholarships
-
Program funds (i.e. ACT-SO, Back-to-school / Stay-in-school)
-
Bequests that are letter specific
Unrestricted funds generally include:
-
Membership dues
-
Direct Contributions to the NAACP Units
Proceeds from fund raising activities may be either restricted or unrestricted
depending upon the stated purpose of the fund raising activity.
9
•
Membership dues
Membership dues structure is set forth in Attachment 2.
The NAACP Unit shall remit to the National Office, the National Office’s share of
all membership fees within fifteen (15) days of their receipt. (NAACP Unit Bylaws,
Article IV, Section 12).
No NAACP Unit shall retain for the purposes of defraying operating
expenses the National Office’s share of membership dues and/or fund
raising proceeds without prior approval of the President and CEO and/ or
the CFO.
Other
•
Unrelated business income
Unrelated business income is income from a trade or business, regularly carried
on, which is not substantially related to the performance by the organization of its
exempt purpose or function.
An activity will be considered an unrelated business (and subject to UBIT) if it
meets the following three requirements: (1) it is a trade or business, (2) it is
regularly carried on, and (3) it is not substantially related to the furtherance of the
exempt purpose of the organization.
The activities that generate the income must contribute importantly to the
accomplishment of the organization’s exempt purposes (other than providing
profits to maintain the operations of the organization) to be substantially related.
Unrelated Business Income Tax is captured on IRS Form 990T, which must be
filed by the NAACP Unit if gross income from unrelated business activities,
exceeds $1,000 for any calendar year.
Examples include:
-
Advertising revenue
-
Commercial activities (i.e. operation of a bookstore or parking facility,
rental income, etc.)
Unrelated business income must be separately reported in the year-end financial report
filed by the NAACP Unit. However, the tax liability for unrelated business income
remains with the NAACP Unit at the applicable corporate tax rate.
10
Expenditures
•
Salary
“Staff may be employed by NAACP Units where the budget warrants such
employment, upon terms and conditions approved by the National President and
CEO. Such staff shall be elected by the Executive Committee of the NAACP
Unit.” (NAACP Unit Bylaws, Article VI, Section 1b)
The Executive Committee of the NAACP Unit should approve salaries annually.
Employee v. independent contractor
The key distinction between “employees” and “independent contractors” is the
element of control. An employer-employee relationship exists when the NAACP
Unit has the right to control what work an individual does and how the work gets
done (See Attachment 3).
The IRS has audited several NAACP Units and assessed significant fines
($10,000) upon each NAACP Unit for their failure to properly classify workers as
employees.
NAACP Units must withhold payroll taxes from employee salaries and remit the taxes,
along with the employer portion, to the IRS on a scheduled basis.
NAACP Units must also file quarterly employment tax returns (IRS Form 941) and an
annual employment tax return (IRS Form 940). Payroll taxes are “trust fund taxes” and
as such, NAACP Unit officers and directors could incur a personal liability for
nonpayment to the IRS.
Form W-2 (issued to employees) and W-3 (summary sheet) must be sent to:
Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001
Form W-2 must be issued to each employee no later than January 31st.
IRS Form 1099 (issued to non-employees) must also be filed by January 31st. The
summary sheet (IRS Form 1096) must be postmarked to the local IRS Processing
Center no later than February 28th. (See Attachment 4)
11
Documentation
•
Proper supporting documentation must be maintained for each transaction. Proper
documentation includes:
Revenue
-
Member or donor correspondence
-
Check remittance advice
-
Check photocopy
-
Conference registration / ticket sales logs
Expenses
-
Approved purchase requisitions signed by President and Secretary
-
Approval should be received in advance of placing order for goods or
services
-
Vendor invoices
-
Payment approval
-
Canceled check
Year End Financial Reports
•
Purpose
Annual report of NAACP Unit financial activities provides information needed by
the National Office for the completion of the Federal group tax return filed on
behalf of all NAACP Units.
-
Failure to submit a year-end financial report will result in the NAACP Unit
being omitted from the Group Tax Return.
•
Review of Annual Financial Report (See Attachment 5)
•
Must be remitted to the Finance Department of the National Office by March 1
following the fiscal year end. Failure to submit the annual financial report will result
in a $100.00 late fee.
The Annual Financial Report can be obtained from the NAACP website.
12
Section 4: TAX STATUS OF NAACP UNITS
All NAACP Units have been designated 501(c) (4) organizations
Only the National Office is a 501 (c) (3) organization
A 501(c) (4) organization is a nonprofit corporation operated exclusively for the
promotion of social justice. Exemption under this Section does not confer deductibility
of contributions by donors to the corporation, but may enable the non-profit corporation
to avoid the restrictions of private foundation status, and the restrictions on lobbying and
other political activity.
Definition of Social Justice
NAACP Units are strategically designed to operate exclusively as 501(c) (4) entities for
the promotion of social justice, primarily to further the common good and general
welfare of the people in their communities, such as bringing about civic betterment and
social improvement. In addition, a 501(c) (4) must benefit a community as a whole.
Thus, a corporation will not qualify under 501(c) (4) if its activities benefit only its
membership or a select group of individuals.
A 501(c) (4) corporation may not, as its primary activity, conduct business with the
general public in a commercial manner. Any earnings of such an organization must be
devoted exclusively to charitable, educational or recreational and for our purposes, civil
rights.
A 501(c) (4) organization may engage in some social activities, some lobbying, and
some political activity.
NAACP units were specifically organized as 501(c)(4)
organizations so that they can (1) seek to increase registration and voting; (2) work for
the enactment of municipal, state and federal legislation designed to improve the
educational, political and economic status of minority groups; (3) seek the repeal of
racially discriminatory legislation; (4) work to improve the administration of justice; (5)
work to secure equal enforcement of the law; (6) keep the National Office informed of all
proposed legislation which affects minority groups.
NAACP Units shall be non-partisan and shall not endorse candidates for public office.
Contributions to 501(c) (4) organizations are not deductible for Federal income
tax purposes as charitable contributions
See Attachment 6 (Letter from President and CEO, Bruce Gordon, dated
December 2005)
13
SECTION 5: FUNDRAISING
General Solicitation of Donations
•
When soliciting donations, NAACP Units are required to disclose through an
express statement (in a conspicuous and easily recognizable format) that
contributions and gifts to the NAACP Unit are generally not deductible as
charitable contributions for federal income tax purposes.
•
Solicitations by mail, leaflet, or advertisement in a newspaper, magazine or other
print medium must meet the following IRS requirements:
•
•
-
Include the statement “Contributions or gifts to this NAACP Unit are
generally not deductible as charitable contributions for Federal income tax
purposes”;
-
The above statement must be in the same size type as the primary
message stated in the body of the letter, leaflet or ad;
-
The statement is included on the message side of any card or tear off
section that the contributor returns with the contribution; and
-
The statement is either the first sentence in a paragraph or itself
constitutes a paragraph.
Solicitations by telephone must meet the following IRS requirements:
-
Include the statement “Contributions or gifts to this NAACP Unit are
generally not deductible as charitable contributions for Federal income tax
purposes.”
-
The statement must be made in close proximity to the request for
contributions, during the same telephone call, by the telephone solicitor;
and
-
Any written confirmation or billing sent to a person pledging to contribute
during the telephone solicitation complies with the requirements for print
medium solicitations.
Solicitation by television must meet the following IRS requirements:
-
Include the statement “Contributions or gifts to this NAACP Unit are
generally not tax deductible”
-
If the statement is spoken, it should be in close proximity to the request for
contributions; if the statement appears on the television screen, it must be
14
in large, easily readable type and must appear on the screen for at least
five seconds.
•
Solicitation by Radio must meet the following IRS requirements:
-
Include the statement “Contributions or gifts to this NAACP Unit are
generally not deductible as charitable contributions for Federal income tax
purposes”
-
The statement is made in close proximity to the request for contributions
during the same radio solicitation announcement.
Corporate and Foundation Contributions
•
Corporate and foundation contributions should be directed to the National Office if
the donor wants an acknowledgment for income tax purposes. Otherwise,
contributions or gifts made directly to a NAACP Unit generally do not qualify as
charitable contributions.
The National Office will facilitate the receipt of contributions made by
corporations and or foundations for specific qualifying programs such as ACTSO, BTS / SIS and Board approved Scholarships.
Contributors must specify in the award letter that the use of the funds is restricted
to the designated (approved) program as administered by the NAACP Unit in a
specific geographical area.
The National Office will not provide letters of acknowledgement for a
contribution or gift given directly to a NAACP Unit. Such contributions may not
be treated as charitable contributions.
Whenever in doubt, please call the National Office for further directions.
•
Freedom Fund Dinner and all fundraising events
NAACP Units must inform donors that contributions to the NAACP Units are not
deductible as charitable contributions
Only the portion that is remitted to the National Office qualifies as a charitable
deduction by the donor
Calculation of portion, which qualifies as a charitable deduction (i.e. 25%) of net
proceeds):
-
Cost of ticket to fundraising event
15
-
Less “per person cost” of event (includes cost of meal, entertainment,
facility rental, etc.)
-
Multiplied by 25%
Organizations that contribute donations to Units to support fundraising
events are able to deduct the total contribution as an ordinary business
expense, which can be designated as advertising or promotional.
“Advertising” versus “Sponsorship” Payments
See Attachment 7
16
Section 6: POLICIES
I. Duties of the Treasurer
•
See Attachment 8 (NAACP unit Bylaws, Article VII, Section 4)
II. Propriety of Financial Records
All NAACP Unit records are the property of the NAACP and must be properly filed and
safeguarded. The Unit requires the records to be transferred upon change in
leadership/administration. The records should be transferred within sixty (60) calendar
days. This requirement is critical to ensuring that records are retained in accordance
with applicable laws and regulations. Failure to respond and return the aforementioned
documentation to the Unit within the stipulated timeframe will result in suspension of the
offending officer(s) membership until the Unit receives a response.
The Sarbanes-Oxley Act imposes significant fines and penalties, including
imprisonment, if records are not adequately maintained. This law, passed in 2002,
requires each entity to adopt a record retention and destruction policy that incorporates
sound business practice as well as guidelines set by federal and local government
agencies.
III. Record Retention
•
Annual Financial Reports
Documents Supporting
•
Convention assessments
•
Disbursements
•
Fixed Assets
•
Fund raising activities
•
Personnel records
•
Receipts
In an effort to minimize the mis-posting of NAACP Unit remittances, we request that
NAACP Unit personnel clearly indicate the purpose of each remittance on the face of
the check, preferably in the “memo” section. The memo section should include the
fiscal year the payment relates to, the appropriate payment code (see below), and the
NAACP Unit number. Payment codes should be reflected as follows:
17
MD = Membership Dues (include life, regular, youth, corporate and all others)
BA = NAACP Unit Assessments (include specific year’s board approved assessment)
YA = Youth Assessments (include specific year’s board approved assessment)
FF = Freedom Fund Assessments (include all fundraising assessments)
OL = Organizational Literature (includes all payments for literature)
BQ = National’s Portion of Bequests
CA = Convention Assessments (if sent with other payment types attach a letter)
GD = General Donation (any contribution into the National Treasury)
AU = All Unclassified remittances (if your remittance does not indicate any of the above
categories, the National Office will put it into this category)
Sample Remittance Check to the National Office for NAACP Unit
Assessments
7-163/520
101
Big Unit-NAACP
123 Main Street
Any Town, USA 11111
Pay to the
Order of
__________20__
$I
NAACP-National Office
I
Dollars
YOUR STATE
.
First signature
For 20XX/BA/1000
.
Second signature
I
052001633 I
206
694
18
4372
1229
IV. NAACP Unit Audits
•
Absolute right of National Office (NAACP Unit Bylaws – Article V, Section 19)
Mandate by the National Board of Directors
•
Basis of selection
Random
Targeted - Discretion of the President and CEO, National Board of Directors and
the National Office
Size of Unit – Including amount of revenue earned, expenses incurred and
number of members
Delinquency in filing Annual Financial Reports and errors or inconsistencies in
Annual Financial Reports filed
•
Policy pertaining to NAACP Unit audits has been adopted by the Board of
Directors of the National Office and the Committee on Branches.
There have been several audits performed to date including Branches and State
Conferences. Consistent audit findings and violations are as follows:
•
Documents supporting cash receipts and disbursements are missing.
•
Cash receipts are not deposited timely.
•
Bank reconciliations are not prepared timely.
•
Unit maintains an excessive number of bank accounts
•
Variances exist between amounts reported on the Annual Financial Report and
internal Unit records.
•
Unit does not maintain a list of property and equipment owned.
•
Membership dues are not accurately maintained.
•
Unit does not properly disclose their tax status as a 501 (c) 4 entity when
soliciting contribution from donors.
•
Unit does not timely remit annual assessments to the National Office.
•
Expense vouchers do not exist to support cash disbursements.
19
•
Checks are made payable to cash.
•
Expenses are paid with a Unit ATM or credit card.
•
Checks are disbursed without the signature of the Treasurer.
•
Checks are signed by the Secretary.
•
Funds disbursed from restricted ACT-SO and BTS/SIS accounts which do not
relate to the programs.
•
No uniform filing system exists for storing Unit records.
V. Grant Proposals and Requests for Approval by the National Office
•
National Office must approve all grants for which the grantor will seek to claim a tax
deduction for a charitable contribution prior to NAACP Unit acceptance.
•
Procedures for obtaining National Office adoption of local program (pertains to all
programs for which restricted funds are to be used):
•
-
ACT-SO and Back-to-School/Stay-in-School (formally adopted by the
National Office)
-
Scholarships (must be formally adopted)
-
Other community based programs (must be formally adopted)
Written proposals must be submitted to the National Office to the attention of the
Chief of Field Operations.
Proposals must include:
-
Objectives and goals of program must demonstrate how the program will
further the tax exempt purpose of NAACP (i.e. promotion of civil rights)
-
Targeted beneficiaries of the program
-
Program sponsor
-
Period of program duration
-
Method by which program is to be implemented
20
-
Name, address and qualification of individuals responsible for the
implementation of the program
-
Projected annual program expenditures (also total expenditures for nonrecurring programs)
-
Proposed program funding sources-must include proforma financial
statements.
-
Reporting requirements and individual responsible for preparing and filing
reports.
21
NOTES:
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22
ATTACHMENTS
23
PART I
AT T AC H M E N T 1
M O N T H L Y F IN A N C IA L R E P O R T
IN C O M E :
M o n th 1
M o n th 2
M o n th 3
Q -T -D T o ta ls
M E M B E R S H IP S :
C o rp o ra te
L ife
R e g u la r
W IN
Y o u th
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
C o n trib u tio n s
B e q u e s ts
In te re s t o n D e p o s its
G ra n ts
V o te r E m p o w e rm e n t
A C T -S O
B T S /S IS
S c h o la rs h ip s
R e n ta l In c o m e
A d ve rtis in g
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
F U N D R A IS IN G :
F re e d o m F u n d B a n q u e t/G a la
Y o u th B a n q u e t/G a la
M L K B re a k fa s t/B a n q u e t
P ic n ic /B a k e S a le s /R a ffle s /T -S h irts
J u b ile e
M o th e r/W o m a n -o f-th e -Y e a r
M e m b e rs h ip B a n q u e t/G a la
S ta te C o n fe re n c e F u n d ra is e rs
O th e r fu n d ra is in g e ve n ts :
O th e r in c o m e :
T O T A L IN C O M E
PART II
ATTACHM ENT 1
MONTHLY FINANCIAL REPORT
REMITTANCES TO NATIO NAL OFFICE:
Month 1
Month 2
Month 3
Q-T-D Totals
Corporate Membership
$
$
$
$
Life Membership
$
$
$
$
Regular Membership
$
$
$
$
W IN Membership
$
$
$
$
2005 Freedom Fund Assessm ent
$
$
$
$
2005 Unit Fund Assessment
$
$
$
$
2004 Freedom Fund Assessm ent Paid in 2005
$
$
$
$
2003 Freedom Fund Assessm ent Paid in 2005
$
$
$
$
2002 Freedom Fund Assessm ent Paid in 2005
$
$
$
$
Mem bership Literature (envelopes, etc.)
$
$
$
$
Late Filing Fee ($100)
$
$
$
$
Mem bership Banquet/Gala
$
$
$
$
National's Portion of Bequest
$
$
$
$
Youth Banquet/Gala
$
$
$
$
MLK Breakfast/Banquet G ala
$
$
$
$
Picnic/Bake Sales/Raffles/T-Shirts
$
$
$
$
Jubilee
$
$
$
$
Mother/W oman-of-the-Year
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Youth Membership
O THER:
O ther fundraising events:
Total Rem ittances to National O ffice
P A R T III
AT T AC H M E N T 1
M O N T H L Y F IN A N C IA L R E P O R T
S P E C IAL E V E N T E X P E N S E S :
M o n th 1
M o n th 2
M o n th 3
Q -T -D T o ta ls
N AT IO N AL C O N V E N T IO N
20 0 5 N atio n al C on ve ntio n A ss es sm e nt
$
$
$
$
E ve n t T ic k e ts
$
$
$
$
R eg is tratio n F e e s
$
$
$
$
D eleg a te T ra ve l E xp en s es
$
$
$
$
D eleg a te G ro u nd T ra n sp orta tion
$
$
$
$
D eleg a te L o dg in g
$
$
$
$
A C T -S O C o m pe titio n E xp e n se s
$
$
$
$
N atio na l C on ven tio n H o s tin g E xp e ns e s
$
$
$
$
T o ta l N atio na l C on ven tion E x p en se s
$
$
$
$
$
$
$
$
R E G IO N AL C O N F E R E N C E
20 0 5 R eg io n a l C o nferen c e A s se s sm en ts
E ve n t T ic k e ts
$
$
$
$
R eg is tratio n F e e s
$
$
$
$
D eleg a te T ra ve l E xp en s es
$
$
$
$
D eleg a te G ro u nd T ra n sp orta tion
$
$
$
$
D eleg a te L o dg in g
$
$
$
$
A C T -S O C o m pe titio n E xp e n se s
$
$
$
$
R eg io n al C o nferen ce H o s tin g E xp e ns e s
$
$
$
$
T o ta l R eg io n al C o nfe re n ce E x pe n se s
$
$
$
$
$
$
$
$
S T AT E C O N F E R E N C E
20 0 5 S ta te C o nferen ce A s se s sm en ts
E ve n t T ic k e ts
$
$
$
$
R eg is tratio n F e e s
$
$
$
$
D eleg a te T ra ve l E xp en s es
$
$
$
$
D eleg a te G ro u nd T ra n sp orta tion
$
$
$
$
D eleg a te L o dg in g
$
$
$
$
A C T -S O C o m pe titio n E xp e n se s
$
$
$
$
S ta te C o nfe re n ce H o stin g E xp e ns e s
$
$
$
$
T o ta l S ta te C o nfe re n ce E x pe n se s
$
$
$
$
TO TAL S P E C IAL E V E N TS
$
$
$
$
P A R T IV
AT T AC H M EN T 1
M O N T H L Y F IN A N C IA L R E P O R T
F U N C T IO N A L E X P E N S E S :
M o n th 1
M o n th 2
M o n th 3
Q -T -D T o ta ls
1 S a la ry
$
$
$
$
2 P a yro ll T a x e s
$
$
$
$
3 O th e r T a x e s
$
$
$
$
4 F a c ility R e n t
$
$
$
$
5 In s u ra n c e
$
$
$
$
6 F a c ility R e p a irs & M a in te n a n c e
$
$
$
$
7 P o s t O ffic e B o x R e n t
$
$
$
$
8 O ffic e S u p p lie s
$
$
$
$
9 O ffic e E q u ip m e n t
$
$
$
$
1 0 E q u ip m e n t R e n ta l
$
$
$
$
1 1 E q u ip m e n t R e p a irs & M a in te n a n c e
$
$
$
$
1 2 P o s ta g e /S ta m p s /M e s s e n g e r/S h ip p in g
$
$
$
$
1 3 T e le p h o n e /M e s s a g e S e rvic e /In te rn e t
$
$
$
$
1 4 B a n k S e rvic e C h a rg e s
$
$
$
$
1 5 A d ve rtis e m e n t
$
$
$
$
1 6 U tilitie s (in c lu d e g a s /e le c tric /w a te r)
$
$
$
$
1 7 C ity B u s in e s s L ic e n s e s a n d F e e s
$
$
$
$
1 8 F in a n c e C h a rg e s /In te re s t E x p e n s e
$
$
$
$
1 9 L e g a l F e e s /C o u rt C o s ts
$
$
$
$
2 0 O th e r P ro fe s s io n a l F e e s
$
$
$
$
2 1 M e m b e rs h ip D rive
$
$
$
$
2 2 C o m m u n ity S e rvic e s
$
$
$
$
2 3 V o te r E d u c a tio n /R e g is tra tio n
$
$
$
$
2 4 P rin tin g /P u b lic a tio n s /S u b s c rip tio n s
$
$
$
$
2 5 A w a rd s /G ra n ts /G ift/F lo ra l/C a rd s
$
$
$
$
2 6 A C T -S O
$
$
$
$
2 7 B T S /S IS
$
$
$
$
2 8 S c h o la rs h ip s
$
$
$
$
2 9 C o n trib u tio n s a n d D o n a tio n s
$
$
$
$
3 0 Y o u th O rie n te d S e rvic e s
$
$
$
$
3 1 C le ric a l & O th e r T e m p o ra ry H e lp
$
$
$
$
3 2 D e p re c ia tio n E x p e n s e
$
$
$
$
3 3 F u n d ra is in g E x p e n s e s
$
$
$
$
3 4 E m p lo ye e R e la te d B e n e fits
$
$
$
$
3 5 T ra n s p o rta tio n /L o c a l C a r A llo w a n c e
$
$
$
$
3 6 E x e c u tive C o m m itte e E x p e n s e s
$
$
$
$
3 7 M a n d a to ry T ra in in g
$
$
$
$
39
$
$
$
$
40
$
$
$
$
$
$
$
$
$
$
$
$
3 8 M is c e lla n e o u s E x p e n s e s :
41
42
T O T A L F U N C T IO N A L E X P E N S E S
Attachment 2
N A A C P M e m b e r s h ip D u e s S h a r in g F o r m u la w ith C o d e s
M e m b e r s h ip T y p e
R e g u la r
Y o u t h w / C r i s is
Y o u t h w / o C r is i s
A m o u n t P a id
$ 3 0 .0 0
$ 1 5 .0 0
$ 1 0 .0 0
T o U n it
$ 1 1 .9 0
$ 4 .8 0
$ 3 .0 0
T o N a tio n a l
$ 1 8 .1 0
$ 1 0 .2 0
$ 7 .0 0
Code
R
T
U
M e m b e r s h ip T y p e
J u n io r L ife
(A g e s 1 3 a n d u n d e r)
P a y m e n t P la n
F u ll
4 Y e a rs
A m o u n t P a id
$ 1 0 0 .0 0
$ 2 5 .0 0
T o U n it
$ 4 0 .0 0
$ 1 0 .0 0
T o N a tio n a l
$ 6 0 .0 0
$ 1 5 .0 0
Code
K
L
T e e n L ife
(A g e s 1 4 to 2 0 )
(o ld r a te )
F u ll
5 Y e a rs
$ 2 5 0 .0 0
$ 5 0 .0 0
$ 1 0 0 .0 0
$ 2 0 .0 0
$ 1 5 0 .0 0
$ 3 0 .0 0
Y
Z
B r o n z e L if e
(A g e s 1 4 to 2 0 )
F u ll
5 Y e a rs
$ 4 0 0 .0 0
$ 8 0 .0 0
$ 1 6 0 .0 0
$ 3 2 .0 0
$ 2 4 0 .0 0
$ 4 8 .0 0
0
1
L ife M e m b e r s h ip
(o ld r a te )
F u ll
5 Y e a rs
1 0 Y e a rs
$ 5 0 0 .0 0
$ 1 0 0 .0 0
$ 5 0 .0 0
$ 2 0 0 .0 0
$ 4 0 .0 0
$ 2 0 .0 0
$ 3 0 0 .0 0
$ 6 0 .0 0
$ 3 0 .0 0
G
H
H
S ilv e r L if e
F u ll
5 Y e a rs
1 0 Y e a rs
$ 7 5 0 .0 0
$ 1 5 0 .0 0
$ 7 5 .0 0
$ 3 0 0 .0 0
$ 6 0 .0 0
$ 3 0 .0 0
$ 4 5 0 .0 0
$ 9 0 .0 0
$ 4 5 .0 0
3
4
4
G o ld e n H e r it a g e
(o ld r a te )
F u ll
5 Y e a rs
1 0 Y e a rs
$ 1 ,0 0 0 .0 0
$ 2 0 0 .0 0
$ 1 0 0 .0 0
$ 4 0 0 .0 0
$ 8 0 .0 0
$ 4 0 .0 0
$ 6 0 0 .0 0
$ 1 2 0 .0 0
$ 6 0 .0 0
A
B
B
G o ld L if e
F u ll
5 Y e a rs
1 0 Y e a rs
$ 1 ,5 0 0 .0 0
$ 3 0 0 .0 0
$ 1 5 0 .0 0
$ 6 0 0 .0 0
$ 1 2 0 .0 0
$ 6 0 .0 0
$ 9 0 0 .0 0
$ 1 8 0 .0 0
$ 9 0 .0 0
5
6
6
D ia m o n d L if e
F u ll
5 Y e a rs
1 0 Y e a rs
$ 2 ,5 0 0 .0 0
$ 5 0 0 .0 0
$ 2 5 0 .0 0
$ 1 ,0 0 0 .0 0
$ 2 0 0 .0 0
$ 1 0 0 .0 0
$ 1 ,5 0 0 .0 0
$ 3 0 0 .0 0
$ 1 5 0 .0 0
7
8
8
Attachment 3
THE IRS’S 20 FACTORS USED TO DETERMINE EMPLOYMENT STATUS
The traditional tests to determine whether a worker is an employee or independent
contractor involve the concept of control: Are the services of the worker subject to the
Taxpayer’s will and control over what must be done and how it must be done? In
Revenue Ruling 87-41, 1987-1 CB 296, the IRS developed 20 factors used to determine
whether a worker is an independent contractor under the common law. Remember: the
burden of proof is on the taxpayer; therefore, in general, at least 11 of these factors must
show independent contractor status under the common law tests.
For the following questions, a “yes” answer means the worker is an employee.
1. Does the principal provide instructions to the worker about when, where, and
how he or she is to perform the work?
2. Does the principal provide training to the worker?
3. Are the services provided by the worker integrated into the principal’s
business operations?
4. Must the services be rendered personally by the worker?
5. Does the principal hire, supervise and pay assistants to the worker?
6. Is there a continuing relationship between the principal and the worker?
7. Does the principal set the work hours and schedule?
8. Does the worker devote substantially full time to the business of the principal?
9. Is the work performed on the principal’s premises?
10. Is the worker required to perform the services in an order or sequence set by
the principal?
11. Is the worker required to submit oral or written reports to the principal?
12. Is the worker paid by the hour, week, or month?
13. Does the principal have the right to discharge the worker at will?
14. Can the worker terminate his or her relationship with the principal anytime he
or she wishes without incurring liability to the principal?
15. Does the principal pay the business or traveling expenses of the worker?
16. Does the worker furnish significant tools, materials and equipment?
17. Does the worker have a significant investment in facilities?
18. Can the worker realize a profit or loss as a result of his or her services?
19. Does the worker provide services for more than one firm at a time?
20. Does the worker make his or her services available to the general public?
ATTACHMENT 4
Filing Forms 1099
Non profit organizations must file with the IRS a Form 1099 for any individual or
incorporated business to whom they paid $600, or more, for any type of service ( but not
for the purpose of goods.) Typical examples are payments for accounting, legal,
computer consultant fees; prizes, awards, and honoraria; rent maintenance, and
contractual labor.
A three tier penalty applies for failing to file correct information returns with the IRS.
The penalty system applies to (1) failure to file on or before the required filing date, (2)
failure to include required information on the form, and (3) reporting of incorrect
information. To encourage prompt filings and to remedy errors or omissions, the per
return penalties become progressively higher as time passes.
Frequently Asked Questions:
Q:
A:
Q:
A:
We paid $1,000 to a consulting firm during the past year. Should a Form 1099 be
filed?
A Form 1099-Misc should be filed for payments of $600 or more, unless the
consulting firm is a corporation.
We purchased office supplies from a business that is not incorporated. Should we
issue a 1099?
No. Payments for goods and merchandise are exempted. However, you are
required to obtain a Form W-9 on record for the vendor.
Q:
A:
What do we do when we don’t have a Social Security or Employer ID number?
Send the payee a Form W-9 requesting the identification number. Meanwhile,
file the 1099’s without the ID number and amend the returns as soon as the
number is received to minimize the penalties. Finally, adopt a policy that no
payments will be made in the future until a payee provides an identification
number.
Q:
Does the IRS really try to match up the amounts reported on 1099’s with those
reported on recipients’ returns?
Yes. The 1099 copies sent to the IRS are entered into the IRS’s compliance
computer system for tracing to recipients’ returns. Recipients receive notices if
the matching is not successful.
A:
N A A C P (G R O U P )
2 0 0 5 A N N U A L F IN A N C IA L R E P O R T
(M u s t b e file d w ith N a tio n a l O ffic e b y M a rc h 1 , 2 0 0 6 )
(G ro u p T a x R e tu rn d u e to b e file d b y th e N a tio n a l O ffic e to th e IR S b y M a y 1 5 , 2 0 0 6 )
C H E C K L IS T O F T H E IT E M S T O B E S U B M IT T E D T O T H E N A T IO N A L O F F IC E B Y E A C H U N IT
C o v e r L e tte r (D o n o t re tu rn to th e N a tio n a l O ffic e )
A n n u a l F in a n c ia l R e p o rt In s tru c tio n s (P le a s e re a d a n d fo llo w v e r y c a re fu lly ). K e e p in
th e U n it's file s fo r re fe r e n c e . D o n o t re tu rn to th e N a tio n a l O ffic e .
X
U n it In fo rm a tio n a n d A tte s ta tio n (P le a s e c o m p le te w ith a p p ro p ria te s ig n a tu re s ). T h e P re s id e n t
a n d T re a s u re r o f e v e ry U n it m u s t s ig n th e R e p o rt to b e s u b m itte d , e v e n w h e n a P a id P re p a re r
is u s e d to c o m p le te th e A n n u a l F in a n c ia l R e p o rt. P a id P re p a re rs s h o u ld s ig n P a rt V .
X
S c h e d u le A & Q u e s tio n n a ire fo r re la te d in c o m e (S u p p o rt P a rt I a n d m u s t b e c o m p le te d
b e fo re c o m p le tin g P a rt I)
X
S c h e d u le B & Q u e s tio n n a ire fo r re la te d e x p e n s e s (S u p p o rt P a rt II a n d m u s t b e c o m p le te d
b e fo re c o m p le tin g P a rt II)
X
P a rt I - In c o m e (m u s t b e c a te g o riz e d a s th e fo rm in d ic a te s )
X
P a rt II - R e m itta n c e s to th e N a tio n a l O ffic e (lis t b y c a te g o ry)
X
P a rt III - S p e c ia l E v e n t E x p e n s e s (c a p tu re s N a tio n a l C o n v e n tio n , R e g io n a l & S ta te C o n fe re n c e s )
X
P a rt IV - F u n c tio n a l E x p e n s e s (c a p tu re s a d m in is tra tiv e a n d p ro g ra m e x p e n s e s )
X
P a rt V - N e t A s s e t/F u n d B a la n c e A n a lys is
M A IL C O M P L E T E D A N N U A L F IN A N C IA L R E P O R T T O :
N A A CP - N A TIO N A L O FFICE
4805 M T. H O PE D RIVE
B A LTIM O R E, M A R Y LA N D 21215
A TT N : FIN A N C E D EP A R TM EN T (A FR )
FINANCE DEPARTM ENT
NATIO NAL ASSO CIATIO N FO R TH E ADVANCEM ENT O F CO LO RED PEO PLE
4805 M O UNT H O PE DRIVE BALTIM O RE, M ARY LAND 21215 TEL # 410-580-5716
Re: 2005 ANNUAL FINANCIAL REPO RT
(M ust be filed w ith the National O ffice by M arch 1, 2006)
Dear Sir/M adam :
The National Office of the NAACP is charged with the fiduciary responsibility of ensuring that all
NAACP Units conduct their activities in an efficient and effective m anner. In executing this
responsibility, the National Office provides guidance to each Unit in the form of consultation,
m em oranda and training. In addition, a “ Unit Financial Bookkeeping Guide” is prepared and
dissem inated annually to each Unit. This guide outlines established financial and accounting policies to
be followed by each unit. Non-com pliance with these policies and procedures jeopardizes the fiscal
integrity of the Unit as well as the National Office tax-exem pt status. To ensure com pliance with
policies and procedures and assist the National Office in preparing the Group Inform ation Return (IRS
Form 990) to be filed annually with the Internal Revenue Service, each Unit must complete and
submit an Annual Financial Report by M arch 1, 2006.
The Annual Financial Report is form atted to m eet generally accepted accounting principles and incom e
tax accounting requirem ents. This form at allows us to capture all aspects of the Unit’s activities when
preparing the Annual Group Tax Return. It also im pels Units to m aintain com plete and accurate
records.
According to the Internal Revenue Service instructions on preparing the Group Inform ation Return
(Form 990) “every year, each local organization m ust authorize the central organization in writing
to include it in the group return and m ust declare , under penalty of perjury, that the authorization
and the inform ation it subm its to be included in the group return are true and com plete.”
W e strongly advise every preparer to read and follow the instructions provided because any
incom plete or im proper categorization shall result in the report being returned to the Unit and the
Unit excluded from the Group Inform ation Return.
W e thank you for your consideration and look forward to your full cooperation. Rem em ber that we are
here to serve you, please call us if assistance is needed.
Sincerely,
J. Linloy Cox
Chief Financial Officer
N A A C P (GROUP)
2005 ANNUAL FINANCIAL REPORT INSTRUCTIONS
ALL SEGMENTS OF THIS ANNUAL REPORT MUST BE COMPLETED
STEP #1
PLEASE VERIFY THAT YOU HAVE RECEIVED ALL THE REQUIRED SHEETS. THE SIGNATURE PAGE, SCHEDULES A&B AND
PARTS 1 THROUGH 5 MUST BE RETURNED TO THE NATIONAL OFFICE.
IF YOU DO NOT RETURN THE ANNUAL REPORT IN THIS FORMAT WE WILL BE UNABLE TO ACKNOWLEDGE THE RECEIPT OF
YOUR UNIT'S 2005 ANNUAL FINANCIAL REPORT. THIS MAY AFFECT YOUR PARTICIPATION PRIVILEGES AT THE NATIONAL
CONVENTION.
PLEASE MAKE A COPY OF ALL THE ATTACHED SHEETS BEFORE YOU BEGIN THE PROCESS.
USE A PENCIL TO COMPLETE THE PHOTOCOPY, THIS WILL ENABLE YOU TO CORRECT MISTAKES.
STEP #2
PLEASE START BY COMPLETING THE ATTACHED SCHEDULES A & B
SCHEDULE A HAS FIVE (5) SECTIONS.
SECTION 1 is requesting information regarding Grant Receipts. Please complete as needed if the Unit received any grant(s) in 2005.
If not, please go directly to Section 2.
SECTION 2 is requesting information about Scholarship or program funds received by the Unit. If an individual or an organization
made a contribution that was specifically designated for Scholarships, the Unit needs to complete this part. This type of contribution
to an organization is known as restricted income. Therefore, it is program specific income and must be spent on that program's activities
only. Additionally, recordkeeping for such funds is different from funds received for general unrestricted support.
SECTION 3 is requesting information from Rental activities. We are trying to capture activities that may be considered unrelated to the
NAACP's exempt purpose. If the Unit had any rental income other than space rental on the day of a fundraising affair, please complete this
section.
SECTION 4 is requesting information about Advertising income. Our intention here is to capture, as above, activities that might be
considered unrelated to the NAACP's exempt purpose. There are particular tax consequences for such income. The National Office would
like to capture our tax liability exposures on such activities and submit the necessary Form 990T along with the taxes due. Please remember
that the ultimate tax liability for such unrelated business income tax lies on the Unit.
SECTION 5 is requesting information about fundraising activities. The National Office wants to track fundraising affairs by its Units.
We would like to gather for statistical purposes Unit compliance records. Moreover, we want to be able to track the exact net proceeds for
the National Office's 25% assessment on the Unit.
Please follow the instructions very carefully. Report the amount raised and all related expenses on Schedule A. The Unit can
report gross income from fundraising on Part I lines 12(a) through 12(k). The expenses can be reported on Part IV line 33 of the 2004
Annual Financial Report.
STEP #3
Schedule B has Five (5) sections just as Schedule A. The purpose of Schedule B is to capture the Unit's functional expenses for the year
which might carry additional liability, particularly in the areas of payroll, independent contracting and compliance matters if undetected.
SECTION 1 captures all payroll activities to ensure that Units are in compliance with all reporting agency requirements.
Therefore, if this Unit has employees, you must complete and submit all of the copies requested on Schedule B. If you have problems with
the required filings, please feel free to call the National Office for instructions.
SECTION 2 captures every Unit's Scholarship Awards. If there were donations or contributions specifically given for Scholarship Awards,
the National Office would like to be able to track the expenses awards) against the income. This does not mean that funds which were
not designated as Scholarship funds can not be used to award scholarships to deserving students. We are merely tracking the Unit's
restricted funds to ensure that they are not used for activities other than the donor's expressed purpose.
SECTION 3 is designed to capture the indebtedness of each Unit. For all Units that reported rental income, the National Office
would like to have accurate balance sheet information, especially if there is a mortgage involved. For example, the cost of the building and the
purchase date and depreciation schedule should be disclosed here.
SECTION 4 If the Unit's answer is yes, please itemize all Depreciable Property in Section 5.
The National Office is trying to find out if Units with depreciable property should and/or are required to file Personal Property Tax Returns
with their State Agencies. Please see depreciation calculation examples for further instruction.
N A A C P (GROUP)
2005 ANNUAL FINANCIAL REPORT INSTRUCTIONS
ALL SEGMENTS OF THIS ANNUAL REPORT MUST BE COMPLETED
PART I
LINES 1 through 4 are very clear, so complete them accordingly from your data.
LINES 5 & 6>>>>>>>ENTER TOTAL FROM SCHEDULE A SECTION 1
LINES 7, 8 and 9>>>>>>>ENTER TOTAL FROM SCHEDULE A SECTION 2
LINE 10>>>>>>>ENTER TOTAL FROM SCHEDULE A SECTION 3
LINE 11>>>>>>>ENTER TOTAL FROM SCHEDULE A SECTION 4
LINE 12(l)>>>>>>ENTER TOTAL FROM SCHEDULE A SECTION 5
LINE 12(n)>>>>>>ENTER RECEIPTS FOR THE YEAR SUCH AS REFUNDS (RECEIVED) ETC.
LINE 13>>>>>>>ENTER TOTAL FROM ALL OF THE ABOVE
PART II
Each Unit is advised to properly categorize all remittances to the National Office for calendar year 2005. If the numbers are incorrect, it
makes reconciliation very difficult and problematic for the Unit. Please do not include monies sent to the National Office for
Convention purposes because Part III is especially for that purpose.
PART III
This part of the Annual Financial Report was designed to capture the Unit's expenses with respect to special events. Special Events
are events that are not branch-specific. For example, most Units send delegates to the National Convention, Regional and State
conferences. The delegates' expenditures should be captured separately as special event expenses.
Part III Lines 1(h), 2(h) and 3(h) were added to help Units attribute hosting expenses if they hosted a convention and /or conference.
PART IV
This part of the Annual Report is supported by Schedule B which you completed in the beginning of this exercise.
LINES 1 & 2>>>> Enter your Totals from SECTION 1 of SCHEDULE B.
LINE 3>>>> Enter your Total from SECTION 1 & SECTION 5 both of SCHEDULE B (Other Taxes).
LINES 9 & 32>>>>Enter your Total from SCHEDULE B SECTION 5 Breakdown.
LINES 26, 27 and 28 >>>> Enter your Total from SCHOLARSHIPS AWARDED/PAID in SCHEDULE B SECTION 2.
LINE 29>>>>> Enter your Total of Amounts paid to individuals ('i.e. non employees) in SCHEDULE B
Section 1.
The rest of the Lines are quite simple to complete. Simply enter the Unit's amount for each category.
PART V
PART V is the summary of the year's activities. It must show what the Unit began the year with, its income for the year, expenses and
the ending balance for the year.
LINE 1 >>>>Every Unit must complete this line even if the Unit started the year with a negative or zero balance.
PLEASE ENTER THAT AMOUNT IN THE SPACE PROVIDED.
LINE 2>>>>Enter the Unit's Income for the Year (This is PART I LINE 13).
LINE 3>>>>Enter the Unit's Remittances to The National Office (also considered Unit expenses), Report your Total of Part II Line 4.
LINE 4>>>>Enter the Unit's Expenses for Special Events, report your Total of PART III LINE 4.
LINE 5>>>>Enter the Unit's Functional Expenses, please report your Total of PART IV LINE 42.
LINE 6>>>>Enter your Total Expenses - the sum of LINES 3, 4, & 5 OF PART V.
N A A C P (GROUP)
2005 ANNUAL FINANCIAL REPORT INSTRUCTIONS
ALL SEGMENTS OF THIS ANNUAL REPORT MUST BE COMPLETED
LINE 7>>>>Unit's Net for the Year, you simply need to subtract Line 6 from Line 2.
LINE 8>>>>Enter Unit's depreciation expense for the year if recorded on Part IV Line 32.
LINE 9>>>>Cash Balance on Hand as of December 31, 2005, is the sum of LINES 1 ,7 & 8.
LINE 10>>>> Provide the composition of line 9 - (Is any part of line 9 restricted for ACT-SO, Back to School/Stay-in-School, Voter
Empowerment, etc?)
IF A PAID PREPARER WAS USED TO COMPLETE THIS REPORT, THE PREPARER MUST SIGN THE ANNUAL
REPORT IN THE SPACE PROVIDED. THIS DOES NOT ELIMINATE THE NECESSITY FOR THE PRESIDENT'S AND
TREASURER'S SIGNATURES.
FINALLY, PLEASE TAKE THE TIME TO REVIEW THE ENTIRE ANNUAL REPORT FOR ERRORS AND CORRECT
THEM BEFORE TRANSCRIBING TO THE ORIGINAL.
WHEN THE REPORT IS FINALLY READY, PLEASE MAKE TWO (2) COPIES OF THE REPORT; RETAIN ONE ON FILE,
SEND ONE TO YOUR STATE CONFERENCE OFFICE AND SEND THE DULY SIGNED ORIGINAL BY CERTIFIED
MAIL TO THE FINANCE DEPARTMENT OF THE NATIONAL OFFICE FOR PROCESSING.
N A A C P (G R O U P )
2005 A N N U A L F IN A N C IA L R E P O R T
S C H E D U L E C IN S T R U C T IO N S
A L L S E G M E N T S O F T H IS S C H E D U L E M U S T B E C O M P L E T E D
STEP # 1
P LE A S E V E R IF Y T H A T Y O U H A V E R E C E IV E D A LL T H E R E Q U IR E D S H E E T S . T H E
S IG N A T U R E P A G E , S C H E D U LE C P A R T S 1 A N D 2 M U S T B E R E T U R N E D T O T H E
N A T IO N A L O F F IC E . IF Y O U D O N O T R E T U R N S C H E D U L E C IN T H IS F O R M A T W E
W ILL B E U N A B LE T O A C K N O W L E D G E T H E R E C E IP T O F Y O U R U N IT 'S 2005 A N N U A L
F IN A N C IA L R E P O R T . T H IS M A Y A F F E C T Y O U R P A R T IC IP A T IO N P R IV ILE G E S A T T H E
N A T IO N A L C O N V E N T IO N .
P LE A S E M A K E A C O P Y O F A LL T H E A T T A C H E D S H E E T S B E F O R E Y O U B E G IN
THE PROCESS.
U S E A P E N C IL T O C O M P L E T E T H E P H O T O C O P Y , T H IS W ILL E N A B LE Y O U T O
C O R R E C T M IS T A K E S .
S TE P #2
P LE A S E S T A R T B Y C O M P LE T IN G T H E A T T A C H E D S C H E D U LE C P A R T 1 & 2
S C H E D U LE 1 LIS T A LL C O N T R IB U T IO N T Y P E S - G reater th an $ 5,0 00
P A R T 1 is req uesting inform ation reg a rding the type o f contribution, nam e and a ddress
o f contribu tor, and a m ount o f th e contrib ution.
S C H E D U LE 2 LIS T A LL N O N C A S H C O N T R IB U T IO N T Y P E S - G reater th a n $ 5,00 0
P A R T 2 is req uesting inform ation de scribin g the typ e of nonca sh con tribution , fa ir m ark et
value , and date of contrib ution.
P lease com ple te as ne eded if th e U nit re ceive d any contribu tion(s) in 2005 . If n ot, please
sig n the U nit Inform a tion she et and p lace N /A in pa rt (a) of P art 1 & 2.
*** C o n trib u to r - in clu d es in d iv id u als , fid u ciaries, p artn ersh ip s, c o rp o ratio n s, asso ciatio n s,
tru sts an d exem p t o rg an izatio n s.
R epo rt the value o f noncash contributions at the tim e of the d onation . F o r exa m p le, report the
gro ss value of a donated car at the tim e th e car w as re ceived as a donation .
D o n o t in clu d e as a co n trib u tio n (s) th e valu e o f services d o n ated to th e U n it, o r item s su ch as
th e free u se o f m aterials, eq u ip m en t o r facilities .
N A A C P
(G R O U P )
2 0 0 5 A N N U A L F IN A N C IA L R E P O R T ( IN S T R U C T IO N S )
F U N D R A IS IN G A C T IV IT IE S C A L C U L A T IO N E X A M P L E
IN C O M E
EXPENSES
$
1 0 ,0 0 0
5 ,0 0 0
N E T IN C O M E
$
5 ,0 0 0
N A T IO N A L O F F IC E P O R T IO N ( 2 5 % )
P R O F IT
$
N A T IO N A L O F F IC E ( 2 5 % )
5 ,0 0 0
0 .2 5
A M O U N T D U E N A T IO N A L O F F IC E
1 ,2 5 0
$
P L E A S E IN C L U D E A L L P U R C H A S E D A T E S F O R P R O P E R C A L C U L A T IO N
D E P R E C IA T IO N C A L C U L A T IO N
O f f ic e A u t o m o b ile
P U R C H A S E P R IC E
T O T A L Y E A R S T O D E P R E C IA T E
$
1 4 ,0 0 0
7
D E P R E C IA B L E A M O U N T
PER YEAR
$
2 ,0 0 0
* * * ( O f f ic e a u t o m o b ile ( s ) is d e p r e c ia t e d o v e r 7 y e a r s o n ly )
O f f ic e B u ild in g
P U R C H A S E P R IC E
T O T A L Y E A R S T O D E P R E C IA T E
$
3 0 ,0 0 0
30
D E P R E C IA B L E A M O U N T
PER YEAR
$
1 ,0 0 0
* * * ( O f f ic e b u ild in g s a r e d e p r e c ia t e d o v e r 3 0 y e a r s o n ly )
O f f ic e C o m p u t e r
P U R C H A S E P R IC E
T O T A L Y E A R S T O D E P R E C IA T E
$
1 ,0 0 0
3
D E P R E C IA B L E A M O U N T
PER YEAR
$
333
* * * ( O f f ic e c o m p u t e r ( s ) is d e p r e c ia t e d o v e r 3 y e a r s o n ly )
O f f ic e E q u ip m e n t a n d F u r n it u r e
P U R C H A S E P R IC E
T O T A L Y E A R S T O D E P R E C IA T E
$
500
5
D E P R E C IA B L E A M O U N T
PER YEAR
$
100
* * * ( O f f ic e e q u ip m e n t , f u r n it u r e a n d o t h e r s a r e d e p r e c ia t e d o v e r 5 y e a r s o n ly )
R ev ised 11/05
F IN AN C E D EPAR T M EN T
N AT IO N AL ASSO C IAT IO N F O R T H E AD VAN C E M EN T O F C O L O R ED PEO P L E
4805 M O U N T H O PE D R IVE, B AL T IM O R E, M AR Y L AN D 21215 T EL #410-580-5716
2005 AN N U AL F IN AN C IAL R EP O R T
(M ust be filed w ith N ational O ffice by M arch 1, 2006)
R E G IO N I
R E G IO N II
R E G IO N III
R E G IO N IV
R E G IO N V
R E G IO N V I
R E G IO N V II
U n it N am e (B ran ch , Y o uth an d Y o u n g Ad u lt C o u n cil, C o lleg e C h ap ter o r S tate C o n feren ce)
F ed eral Id en tificatio n N u m b er______________________
U n it N u m b er
(* DO N O T US E FE D E RA L ID E N TIFICA TIO N N U M B E R O F NA TIO N AL O FFICE )
U n it Ad d ress___________________________________________________________________
C ity_____________________________________
State
Zip C o d e
N am e o f B an k:
(o p eratin g acco u n t)
B an k Ad d ress:
T elep h o n e N u m b er:
Please attach a listin g o f all ad d itio n al b an k acco u n ts m ain tain ed b y th e U n it alo n g
w ith co p ies o f all b an k statem en ts fo r th e p eriod 1/1/05 th ro u g h 12/31/05.
( P LE AS E R E AD C AR E FU LLY)
T he _______________________________________________________ B ran ch , Y o u th an d
Y o u n g A d u lt C o u n cil, C o lleg e C h ap ter o r S tate C o n feren ce o f th e N atio n al A sso ciatio n fo r
th e A d van cem en t o f C o lo red Peo p le, h ereb y req u ests an d au th orizes th e N atio n al O ffice o f th e
N A A C P to in clu d e th e in co m e and exp en ses o f th e U n it fo r calen d ar year 2005 in th e A n n u al
G ro u p R etu rn o f all ch artered U nits o f th e N A A C P, filed b y th e N atio n al O ffice.
W e h ereb y d eclare u n d er p en alties o f p erju ry th at th e 2005 A n n u al F in an cial R ep o rt h as
b een exam in ed b y u s an d to th e b est o f o u r kn o w led g e an d b elief is tru e, correct an d
co m p lete an d m ad e in g o o d faith .
P resident's S ignature
Treasurer's S ignature
P rint N am e
P rint N am e
A ddress
A ddress
C ity, S tate/Zip C ode
(
)
C ity, S tate/Zip C ode
(
Telephone N um ber
)
Telephone N um ber
IM P O R TAN T N O TIC E :
Please co m p lete all sectio n s as req u ested . An y p art o r lin e w h ich is n o t co m p leted w ill
cau se th e U n it's An n u al F in an cial R ep ort to b e retu rn ed to th e U n it. If yo u h av e any
q uestio n s ab o u t th is fo rm , p lease call u s at (410) 580-5716 an d ask fo r
Ajen e A. Atkin s.
NAACP (GROUP)
ANNUAL FINANCIAL REPORT
Revised 11/05
UNIT NUMBER
SCHEDULE A & QUESTIONNAIRE
2005
SECTION 1
CHECK ONE
GRANTS (Part I Lines 5 & 6)
YES
NO
DID THIS UNIT RECEIVE ANY GRANTS FOR THE TAX YEAR 2005?
(If no, go to section 2)
WAS THE GRANT FOR PROGRAMS THAT BENEFIT THE GENERAL PUBLIC?
DID THE GRANTOR BENEFIT DIRECTLY FROM THE PROGRAM(S)? (If yes, explain)
AMOUNT
WHAT/WHO WAS THE SOURCE OF THE GRANT? (Complete if Yes)
$
$
$
TOTAL GRANT FUNDS RECEIVED (Please enter on Lines 5 & 6 of Part 1)
-
SECTION 2
SCHOLARSHIPS (Part I Lines 7, 8 & 9)
DID THIS UNIT RECEIVE SPECIFIC MONIES DESIGNATED FOR SCHOLARSHIPS? If no, go to Section 3
Explain (If yes)
YES
NO
TYPE
ACT-SO
BTS/SIS
GENERAL
OTHER
TOTAL SCHOLARSHIPS RECEIVED (Please enter on Lines 7, 8 & 9 of Part 1)
$
$
$
$
$
-
SECTION 3
RENTAL INCOME (Part I Line 10)
DID THIS UNIT RECEIVE ANY RENTAL INCOME? (If No, Go to Section 4)
YES
NO
YES
NO
YES
NO
YES
NO
YES
NO
WAS THE RENTAL INCOME DEBT-FINANCE? (Call the National Office if yes)
SECTION 4
ADVERTISING INCOME (Part I Line 11)
DID THIS UNIT RECEIVE ADVERTISING INCOME NOT RELATED TO SOUVENIR BOOKLET?
WAS THE ADVERTISING INCOME PART OF A FUNDRAISING EFFORT? (if yes, identify fundraising type below)
SECTION 5
FUNDRAISING ACTIVITIES
FF
BANQUET
YOUTH
BANQUET
MLK BANQUET/
BREAKFAST
PICNIC/BAKE/
RAFFLES/OTHER
OTHER
FUNDRAISERS
$
$
$
$
$
TOTAL RAISED
$
$
$
$
$
TOTAL EXPENSES
$
$
$
$
$
NET PROCEEDS
Report Total Raised on Part I Line 12 (a)
Line12 (b)
Line 12 (c)
Line 12 (d)
Line 12 (e thru k)
Report Total Expenses on Part IV Line 33 (Please include all fundraising expenses as reflected above )
WAS ANY PORTION OF THE NET PROCEEDS SENT TO NATIONAL OFFICE?
IF SO, HOW MUCH?
$
$
$
Enter Amount Here $
$
The above amount(s) should represent only remittances intended to satisfy 25% assessment of 2005
Fundraising Net Proceeds.
WAS ANY STATE OR FEDERAL TAXES PAID FOR THE ABOVE AFFAIRS?
IF SO, HOW MUCH?
$
$
$
$
$
NAACP (GROUP)
ANNUAL FINANCIAL REPORT
Revised 11/05
UNIT NUMBER
SCHEDULE B & QUESTIONNAIRE
2005
SECTION 1
CHECK ONE
YES
NO
SALARY & PAYROLL TAXES
DID THIS UNIT REPORT ANY AMOUNT AS SALARY FOR THE TAX YEAR 2005?
HOW MANY EMPLOYEES DID THE UNIT HIRE?
(If no, go to section 2 | if yes, complete Section 1 and enter your information on Part IV Lines 1,2)
DID THIS UNIT PAY ALL PAYROLL TAXES & FILE ALL PAYROLL RELATED REPORTS FOR 2005?
941
940
W-3
W-2
ATTACHMENTS
(If no, please call the National Office| if yes, please submit copies of 941, 940, W-3 & W-2)
DID THIS UNIT PAY ANY OTHER TAXES? (If yes, explain & ENTER amount on Part IV Line 3)
OTHER
YES
DID THIS UNIT PAY ANY INDIVIDUAL WHO IS NOT AN EMPLOYEE MORE THAN $600?
DID THIS UNIT PROVIDE TIMELY 1099 FORMS TO QUALIFIED INDEPENDENT CONTRACTORS?
DID THIS UNIT RETAIN W-9 ON ALL VENDORS? If no, please explain your Independent Contractor list?
1099
1096
ATTACHMENTS
TOTAL PAYMENTS TO SUCH INDIVIDUALS (Please enter on Part IV Line 29)
NO
AMOUNT
$
$
-
LIST ALL SALARIED EMPLOYEES THAT RECEIVED $50, 000 OR MORE DURING THE TAX YEAR 2005.
SECTION 2
SCHOLARSHIPS (Part IV Lines 26, 27 & 28)
DID THIS UNIT GIVE SCHOLARSHIP AWARDS TO STUDENTS THIS YEAR? If no, go to Section 3
YES
Explain (If yes and enter total amounts awarded for each scholarship type)
NO
TYPE
ACT-SO
BTS/SIS
GENERAL
OTHER
TOTAL SCHOLARSHIPS PAID / AWARDED TO STUDENTS (Please enter on Part IV Lines 26, 27 & 28)
$
$
$
$
$
-
SECTION 3
DEBT-INSTRUMENTS (Part IV Line 18)
DOES THIS UNIT HOLD A MORTGAGE OR ANY OTHER DEBT-INSTRUMENTS? (If No, Go to Section 4)
YES
NO
YES
NO
YES
NO
HAS THE UNIT EVER REPORTED ANY RENTAL INCOME FROM THE ABOVE?
SECTION 4
DEPRECIATION (Part IV Line 32)
DOES THIS UNIT HAVE ANY DEPRECIABLE PROPERTY? (If yes, please itemize below on Section 5)
SECTION 5
FIXED ASSETS (DOES THIS UNIT HAVE ANY OF THE FOLLOWING)?
If yes, please
OFFICE
OFFICE
OFFICE
complete Section 5
BUILDING
EQUIPMENT
FURNITURE
DATE PURCHASED
BASIS/AMOUNT PAID
$
$
DEPRECIATION*
*Report Total Amount on Part IV Line 32)
-
$
-
OFFICE
AUTOMOBILE
$
-
ALL
OTHERS
$
If this Unit reported an amount on Part IV line 32 as instructed above, please add back same amount on Part V Line 8.
WAS THE UNIT REQUIRED TO FILE ANY STATE PERSONAL PROPERTY TAX REPORT?
If so, what State?
$
$
$
Enter Amount PAID $
YES
NO
YES
NO
$
Attach a copy of the Report and enter the Total Amount paid on Part IV Line 3
Does this Unit have other peculiar circumstances, of which the National Office needs to be aware?
If so, please explain
NAACP (GROUP)
ANNUAL FINANCIAL REPORT
Revised 11/05
UNIT NUMBER
SCHEDULE C LIST OF CONTRIBUTORS
2005
Unit Name (Branch, Youth and Young Adult Council, College Chapter or State Conference)
Federal Identification Number
Part I
(a)
No.
Contributors
(b)
Name, Address, and Zip + 4
Unit Number
(c)
Amount of Contributions
(d)
Type of Contribution
Person
$
Payroll
Noncash
Person
$
Payroll
Noncash
Person
$
Payroll
Noncash
Person
$
Payroll
Noncash
Person
$
Payroll
Noncash
Person
$
Payroll
Noncash
R e v is e d 1 1 /0 5
U N IT N U M B E R
N A A C P (G R O U P )
A N N U A L F IN A N C IA L R E P O R T
PART I
IN C O M E
2005
1 M E M B E R S H IP S :
a.
b.
c.
d.
e.
f.
g.
2
3
4
5
6
7
8
9
10
……
……
……
……
……
……
……
……
……
a.
11 … …
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
C o rp o ra te
$
L ife
$
R e g u la r
$
Y o u th
$
W IN
$
R e fu n d fro m N a tio n a l O ffic e
$
T o ta l M e m b e rs h ip (A d d lin e s a -f)........… … … … … … … … … … … … … … … … … $
-
C o n trib u tio n s
$
B e q u e s ts
$
In te re s t o n d e p o s its
$
G ra n ts (p le a s e c o m p le te S c h e d u le A )*
$
V o te r E m p o w e rm e n t (p le a s e c o m p le te S c h e d u le A )*
$
A C T -S O a n d B T S /S IS (p le a s e c o m p le te S c h e d u le A )*
$
S c h o la rs h ip s (O th e rs -p le a s e c o m p le te S c h e d u le A )*
$
R e n ta l In c o m e (p le a s e c o m p le te S c h e d u le A )*
$
A d ve rtis in g (p le a s e c o m p le te S c h e d u le A )*
$
A d d lin e s 2 th ro u g h 1 0 … … … … … … … … … … … … … … … … … … … … … …
$
-
$
-
$
-
F u n d R a is in g : (m u s t c o m p le te Q u e s tio n n a ire & S c h e d u le A )*
F re e d o m F u n d B a n q u e t/G a la *
Y o u th B a n q u e t/G a la *
M a rtin L u th e r K in g B re a k fa s t/B a n q u e t*
P ic n ic /B a k e S a le s /R a ffle s /T -S h irts *
J u b ile e *
M o th e r-o f-th e -Y e a r/W o m a n -o f-th e -Y e a r*
M e m b e rs h ip B a n q u e t/G a la *
S ta te C o n fe re n c e F u n d ra is e rs *
O th e r fu n d ra is in g e ve n ts (p le a s e s p e c ify)*
O th e r in c o m e (p le a s e s p e c ify)
$
$
$
$
$
$
$
$
$
$
$
$
$
T o ta l F u n d R a is in g a n d O th e r In c o m e … … … … … … … … … … … … … … .
1 2 … … T o ta l In c o m e (A d d lin e s 1 {g }, 1 0 {a }& 1 1 {n }).................................… … … .
T IP
*P L E AS E P R E P AR E S C H E D U L E A & T H E Q U E S T IO N N AIR E F O R AN Y AM O U N T R E P O R T E D O N L IN E S 5 T H R O U G H 1 2 (k ). P L E AS E
R E M E M B E R T H AT E V E R Y AS P E C T O F T H IS R E P O R T IS IM P O R T AN T , T H E R E F O R E M U S T B E C O M P L E T E D AS R E Q U IR E D .
N A A C P (G R O U P )
R e v is e d 1 1 /0 5
U N IT N U M B E R
A N N U A L F IN A N C IA L R E P O R T
P A R T II
R E M IT T A N C E S T O N A T IO N A L O F F IC E :
2005
M E M B E R S H IP S :
1
a
C o rp o ra te
$
b.
L ife
$
c.
R e g u la r
$
d.
Y o u th
$
e.
W IN
$
f.
2 0 0 5 F re e d o m F u n d A s s e s s m e n t
$
g.
2 0 0 5 U n it A s s e s s m e n t
$
h.
T o ta l lin e s (A d d lin e s 1 a -1 g )
$
-
3 … … T o ta l O th e r R e m itta n c e s Ite m iz e d (a d d 2 a th ro u g h 2 l)… … … … … … … … … .. $
-
4 T o ta l R e m itta n c e s to N a tio n a l O ffic e (p le a s e a d d 1 h & 3 ).… … … … … … … …
-
2 … … O T H E R … (D o n o t in c lu d e C o n v e n tio n re la te d re m itta n c e s to N a tio n a l O ffic e )
a
P rio r Y e a rs F re e d o m F u n d A s s e s s m e n t P d in 2 0 0 5
$
b.
M e m b e rs h ip L ite ra tu re s (E n ve lo p e s e tc .)
$
c.
L a te F ilin g F e e ($ 1 0 0 )
$
d.
M e m b e rs h ip B a n q u e t/G a la
$
e.
Y o u th B a n q u e t/G a la
f.
M a rtin L u th e r K in g B re a k fa s t/B a n q u e t
$
g.
P ic n ic /B a k e S a le s /R a ffle s /T -S h irts
$
h.
J u b ile e
$
i.
M o th e r-o f-th e -Y e a r/W o m a n -o f-th e -Y e a r
$
j.
O th e r fu n d ra is in g e ve n ts :
$
k.
$
l.
$
$
$
IM P O R T A N T N O T IC E :
P L E A S E N O T E T H A T Y O U A R E R E Q U IR E D T O P U T IN T H E P R O P E R C A T E G O R Y A L L R E M IT T A N C E S T O T H E N A T IO N A L O F F IC E .
FOR
T A X P U R P O S E S , T H E N A T IO N A L O F F IC E N E E D S T O R E C O N C IL E W H A T IT A C T U A L L Y R E C E IV E D A G A IN S T T H IS R E P O R T . T H E R E F O R E ,
W E S U G G E S T T H A T A N Y O N E P R E P A R IN G T H IS R E P O R T M U S T V E R IF Y A L L R E M IT T A N C E C L A IM S . N O T E T H A T L IN E 4 A B O V E M U S T
E Q U A L W H A T T H E U N IT A C T U A L L Y S E N T T O T H E N A T IO N A L O F F IC E .
Revised 11/05
UNIT NUMBER
NAACP (GROUP)
ANNUAL FINANCIAL REPORT
PART III
2005
SPECIAL EVENT EXPENSES (CONVENTION & CONFERENCES):
1
2
3
4
NATIONAL CONVENTION
a
2005 National Convention Assessments
$
b
Registration Fees and Event Tickets
$
c
Delegate Travel Expenses
$
d
Delegate Ground Transportation (please include Parking & Tolls)
$
e
Delegate Lodging (please include meals)..
$
f
National Convention Hosting Expenses
$
g
ACT-SO Competition Expenses
$
h
Total National Convention Expenses (add 1a through 1h)
$
-
$
-
$
-
$
-
REGIONAL CONFERENCE
a
2005 Regional Conference Assessments
$
b
Registration Fees and Event Tickets
$
c
Delegate Travel Expenses
$
d
Delegate Ground Transportation (please include Parking & Tolls)
$
e
Delegate Lodging (please include meals)..
$
f
Regional Conference Hosting Expenses
$
g
ACT-SO Competition Expenses
$
h
Total Regional Conference Expenses (add 2a through 2h)
STATE CONFERENCE
a
2005 State Conference Assessments
$
b
Registration Fees and Event Tickets
$
c
Delegate Travel Expenses
$
d
Delegate Ground Transportation (please include Parking & Tolls)
$
e
Delegate Lodging (please include meals)..
$
f
State Conference Hosting Expenses
$
g
ACT-SO Competition Expenses
$
h
Total State Conference Expenses (add 3a through 3h)
TOTAL SPECIAL EVENTS (Add Lines 1h, 2h & 3h)……………………..
NAACP (GROUP)
ANNUAL FINANCIAL REPORT
Revised 11/05
UNIT NUMBER
PART IV
2005
FUNCTIONAL EXPENSES:
1 Salary (complete Schedule B)**
$
2 Payroll Taxes (complete Schedule B)**
$
3 Other Taxes (please specify on Questionnaire)**
$
4 Facility Rent
$
5 Insurance
$
6 Facility Repairs & Maintenance
$
7 Post Office Box Rent
$
8 Office Supplies
$
9 Office Equipment (must complete Schedule B)
$
10 Equipment Rental
$
11 Equipment Repairs & Maintenance
$
12 Postage/Stamps/Messenger/Shipping
$
13 Telephone/Message Service/Internet
$
14 Bank Service Charges
$
15 Advertisement
$
16 Utilities (include gas/electric/water)
$
17 City Business Licenses and Fees
$
18 Finance Charges/Interest Expense
$
19 Legal Fees/Court Costs
$
20 Other Professional Fees (Do not include Event Speakers if related to Fundraising)
$
21 Membership Drive
$
22 Community Services
$
23 Voter Education/Registration
$
24 Printing/Publication/Subscriptions
$
25 Awards/Grants/Gift/Floral/Cards etc paid to others)
$
26 ACT-SO and BTS/SIS Scholarship Expenses
$
27 Scholarships (Other)
$
28 Contributions and Donations paid to others
$
29 Youth Oriented Services
$
30 Clerical & other Temporary Help (specify on Schedule B)**
$
31 Depreciation Expense (please complete Schedule B)**
$
................
32 Fundraising Expenses (Enter Section 5 Schedule A-Total Expenses-include all categories)
$
33 Employee Related Benefits (Please explain type________________________________)
$
34 Transportation-Local Car Allowance
$
35 Executive Committee Meeting Expenses
$
36 Mandatory Training
$
37 Miscellaneous Expense (Enter total on this line, explain below)……………………………………
$
38
$
39
$
40
$
41 Total Functional Expenses…(Add Lines 1 through 40)
**MUST COMPLETE SCHEDULE B & QUESTIONNAIRE
$
-
Revised 11/05
UNIT NUMBER
NAACP (GROUP)
ANNUAL FINANCIAL REPORT
PART V
2005
NET ASSET/FUND BALANCE ANALYSIS
STEPS
1
CASH BALANCE ON HAND AS AT THE END OF 2004 (I.e. Dec. 31, 2004 balance)
$
(There must be an entry on this line, please check your 2004 Annual Financial Report for this amount)
ADD :
2
2005 ANNUAL FINANCIAL REPORT INCOME (ENTER Part I Line 12)
SUBTRACT:
$
3
2005 ANNUAL FINANCIAL REPORT EXPENSES (ENTER Part II Line 4)
$
4
2005 ANNUAL FINANCIAL REPORT EXPENSES (ENTER Part III Line 4)
$
5
2005 ANNUAL FINANCIAL REPORT EXPENSES (ENTER Part IV Line 41)
$
6
TOTAL EXPENSES (Add Lines 3, 4 & 5 of this sheet)
7
NET INCOME/(LOSS) FOR 2005 (please subtract line 6 from line 2 above)
$
8
DEPRECIATION ADD BACK (Only if depreciation expense was taken on Part IV line 32)
$
9
CASH BALANCE ON HAND AS OF DECEMBER 31, 2005 (Add Lines 1, 7 & 8 of this page)
10
COMPOSITION OF CASH BALANCE AS OF DECEMBER 31, 2005.(Provide a Breakdown of Line 9)
$
*PLEASE ATTACH A COPY OF ALL BANK STATEMENTS FOR THE PERIOD 01/01/05 - 12/31/05.
-
$
RESTRICTED
$
$
IMPORTANT NOTICE
IF YOU HAVE QUESTIONS, PLEASE FEEL FREE TO CALL AJENE A ATKINS (410) 580-5716.
ADDITIONAL INFORMATION:
Please provide the following information of the Unit's Secretary.
Name:
Address:
Telephone Number:
REMARKS:
ALL PAID PREPARERS MUST COMPLETE BELOW
Date
(
Print Name
Firm's Name
)
Telephone #
UNRESTRICTED
PLEASE TAKE A FEW MINUTES TO REVIEW THE ENTIRE REPORT BEFORE SENDING IT TO THE NATIONAL OFFICE.
Paid Preparer's Signature
-
Address
AMOUNT PAID BY UNIT $
ATTACHMENT 6
To NAACP Unit Officers and Directors:
As you are aware the IRS has determined that NAACP Units are treated as 501(c)(4) organizations
under the Internal Revenue Code. As 501(c)(4) organizations, Units are generally exempt from
Federal income taxes. However, donations to Units may not be deducted as charitable contributions.
Under the Internal Revenue Code only donations made to 501(c)(3) organizations such as the
NAACP National Office qualify as charitable contributions.
We are aware that Units may solicit donations from individuals and organizations that seek letters of
acknowledgment stating that their contributions are tax deductible. Solicitations by Units must
disclose that the contributions are not deductible for income tax purposes or the individual Unit could
incur significant penalties. The National Office will not provide its tax identification number to Units to
facilitate general fund raising efforts.
Individuals and organizations wishing to make tax-deductible gifts to the NAACP must make their
checks payable to the NAACP or NAACP Special Contribution Fund and send them to the National
Office in Baltimore. Donors wishing to direct the use of their contribution by the National Office must
include a letter detailing how the funds are to be utilized. Restricted donations to Units will be
facilitated by the National Office only for programs that have been formally adopted by the National
Office such as the ACT-SO and Back-to-School/Stay-in-School programs. Donors should be
instructed to send their contributions directly to the National Office and specifically indicate the
program (ACT-SO or BTS/SIS) where the funds are to be used.
Units may continue to seek contributions in support of their Freedom Fund banquets, memberships
or other local fund raising activities. However, only that portion of the donor’s contribution which is
remitted to the National Office may be deducted as a charitable contribution. Guidelines developed
by the Office of General Counsel of the NAACP are enclosed for review and implementation.
Specific questions regarding this issue should be addressed in writing to Mrs. Paula Brown-Edme,
Chief of Field Operations.
The IRS previously performed an audit of Unit fund raising activities and has assessed penalties
upon several Units for their failure to comply with the Internal Revenue Code. We expect the IRS to
conduct future audits of Unit fund raising activities and recognize that the continued failure to comply
with IRS guidelines could result in adverse actions taken by the IRS against the local Units.
Finally several units have recently received correspondence from the IRS regarding their failure to file
a tax return. The National Office has made every effort to address such correspondence to the
satisfaction of both the IRS and the Unit. However, please be mindful that if your Unit does not
submit an Annual Financial Report the National Office will not be able to include your Unit in the
group return. Further, your Unit will be required to file its own IRS Form 990 and failure to file such a
return will result in significant fines and penalties. It is therefore imperative that each NAACP Unit file
its Annual Financial Report by the deadline date.
As always we appreciate your continued assistance and cooperation in ensuring that the Association
and all its Units comply with the rules and regulations to which we are bound.
Sincerely,
Bruce S. Gordon
President & CEO
ATTACMENT 7
ADVERTISING VERSUS QUALIFIED SPONSPORSHIP
PAYMENTS
The reverberations of the Taxpayers Relief Act of 1997 will further challenge the
long standing NAACP tradition of soliciting sponsorships to underwrite the
printing costs for “Event Brochures.” Units are particularly susceptible to liability
exposures if the IRS reclassifies revenue from “sponsorships” to “advertising”
revenue. The National Office strongly recommends that acknowledgments of
contributing sponsors specifically avoid the following:
¾ Commercial language
¾ Promotion of products
¾ Qualitative or comparative language concerning the sponsor’s product or
service
¾ Pricing information
¾ Indication of savings by using the product
¾ Direct endorsement of product
¾ Call to action or inducement to buy, sell or use a sponsor’s product or
service
Furthermore, the sponsorships may not be contingent upon providing
acknowledgment of the contribution in the organization’s regular publication,
such as a monthly newsletter.
Sponsorships may be contingent upon the actual occurring of the event and may
be contingent upon acknowledgement in a publication directly related to the
sponsored event. Such acknowledgment may include the sponsor’s logo or
motto.
The following language is deemed appropriate for acknowledgment of a
sponsorship:
XYZ Company, Inc.
777 Main Street
Any Town, USA Zip
XYZ Company, Inc. is a proud Platinum-$5,000 Corporate Sponsor
of the 95th Annual Freedom Fund Banquet
The (name) Branch NAACP is grateful for your sponsorship.
DISCLOSURE OF NON-DEDUCTIBILITY OF CONTRIBUTIONS
“THE SAFE HARBOR”
In an effort to show organizations what constitutes an acceptable disclosure notice,
the Treasury Department has set out the following guidelines.
For solicitation by mail, leaflet, or advertisement in a newspaper, magazine or other
print medium, there are four requirements.
¾
The solicitation includes whichever of the following statements the
organization deems appropriate:
“Contributions or gifts to this NAACP Unit are not deductible as
charitable contributions for Federal income tax purposes.”
“Contributions or gifts to this NAACP Unit are not tax deductible.”
“Contributions or gifts to this NAACP Unit are not deductible as
charitable contributions.”
¾
The statement is in at least the same size type as the primary
message stated in the body of the letter, leaflet or ad.
¾
The statement is included on the message side of any card or tear off
section that the contributor returns with the contribution.
¾
The statement is either the first sentence in a paragraph or itself
constitutes a paragraph.
For solicitation by television, if the statement is spoken, it must be in close proximity
to the request for contributions; if the statement appears on television screen, it must
be in large, easily readable tape and appears on the screen for at least five seconds.
FUNDRAISING ACTIVITIES:
501(c) 3 Organizations – Overview
A payment to a qualified charitable organization, such as the NAACP parent
organization, must be a gift in order to be deductible as a charitable contribution.
Where patrons of fund raising activities such as charity galas, bazaars, banquets,
and shows receive a privilege or benefit in connection with a payment to the
organization, the presumption is that the payment is not a gift. To over ride this
presumption, the taxpayer needs to show that the payment was in excess of the fair
market value of the item or admission purchased; this excess can then be construed
as a gift.
The charitable organization is responsible for notifying contributors whenever a gift is
being solicited in connection with a fund raising event. The organization is also
responsible for notifying the contributor of the amount of the gift being solicited.
ATTACHMENT 8
DUITES OF THE UNIT TREASURER
(Unit Bylaws, Article VII, Section 4)
The duties of the Treasurer shall be the following:
¾ To receive all monies of the Unit and promptly deposit the same in the
name of the Unit in a separate account or accounts in a responsible
bank or trust company. No money shall we withdrawn from any
account except by check signed by the Treasurer and countersigned
by the President, or in the absence, unavailability or disability of the
President, by the First Vice President.
¾ To act as chief financial officer of the Unit and chair person of the Finance
Committee.
¾ To make authorized disbursements upon requisitions signed by the
Secretary and countersigned by the President. Each requisition shall
recite the amount and purpose of the payment requested. Any requisition
in the amount of $100 or more must be approved by the Executive
Committee before a check therefore is issued. The Unit bylaws may
require that requisitions in smaller amounts be approved by the Executive
Committee.
¾ To remit through the Secretary to the National Office the portion of
membership fees to which the National Office is entitled, as hereinafter
provided, within 15 days after their receipt (Article IV, Section 12).
¾ To submit reports to the Unit and the Executive Committee at all regular
meetings, or whenever required by either body, covering the financial
condition of the Unit showing receipts and disbursements and outstanding
accounts unpaid since the last report; to submit an annual report to the
business of his/her office at the annual meeting of the Unit, to which
shall be appended a statement signed by the President and Secretary
that all funds by the Unit have been listed in the Treasurer’s report. A
copy of all reports by the Treasurer, when adopted by the Unit, shall be
forwarded to the National Office.
¾ The Unit may require the Treasurer to be bonded at the expense of the
Unit.