Tax season
Money Matters by Keith Sessions, Chief Financial Officer
Happy New Year! With the new year, comes the most wonderful time of the year—tax season! I was recently asked about prepackaged accounting software for clubs. I do not have any personal experience with an off-the-shelf accounting program for clubs, but will list a few that I found. Throughout the years, I have held many positions with local clubs.
Accounting was originally done on actual paper ledgers. In later years, it moved to an Excel spreadsheet, which is what most clubs still use.
As a treasurer of your club, let’s review a few things that you need to keep in mind.
- Tax status. If your club has not filed for 501(c)7 status, you should look into this. It is a simple process and is detailed on the IRS website. There is also an article on the AMA website. This status allows a club to operate as a nonprofit organization. There are some requirements to be met such as the club is supported through dues and assessments and has minimal, if any, unrelated business income.
- You must account for all income (dues, event income, etc.) and expenses. A spreadsheet is sufficient. Checks and balances should be in place so that one person or a small group of people are not the only ones who have access to the financial information.
- You should limit the number of people who can access club funds. Although information should be shared, access should be limited to a handful of people. When clubs hold elections and officers change, one thing that is often overlooked are bank accounts. Please ensure that the signers listed at the bank match the current officers or delegated financial representatives.
- Tax filing with the IRS, state, and local governments is as important for organizations as it is for individuals. Most clubs will have income that is less than $50,000 and can file the 990-N. This is an electronic postcard filing. It must be done by the 15th day of the fifth month after the close of your tax year. If your tax year closes December 31, then it is due May 15. This is usually in the middle of Joe Nall Week, so do not procrastinate.
I am often asked about 501(c)3 status. 501(c)3 is much harder to obtain. Although it allows for donations to be tax deductible and a 501(c)7 does not, most clubs do not qualify. See the article on the AMA and on the IRS websites if you would like additional details.
States and local governments have their own filing requirements. Do not ignore these. I have seen a club face substantial penalties because it did not file properly with its state. As always, it is best to consult a local tax advisor.
Originally, I was asked about prepackaged account software. Here are a few I found that have potential:
- Quickbooks Nonprofit. Most of us are familiar with Quickbooks. This program is similar and has great customer support. It costs roughly $400, but can occasionally be found for less.
- Araize FastFund Account Standard. This program is approximately $300 and was designed by certified public accountants to help with reporting for nonprofit organizations. It has limited support and is probably more than what most clubs would need. There is a 30-day free trial.
- Big E-Z. This is a spreadsheet template to be used with Excel. It costs between $60 and $100 and there is a 7-day free trial.
- Accounts at www.software4nonprofits.com. This is roughly $120 and has a 60-day free trial. From my limited exploration, this software might be the best fit for someone who wants a prepackaged program.
As I previously stated, a simple spreadsheet is all you really need. I do not have an example to share. If your club uses one that you really like, please send it to me, and I will see that it is available for other clubs to utilize.
2018 AMA Election Results
Executive Vice President
Randy Cameron 9,807
Lawrence Tougas 5,962
Others 70
District III Vice President
Mark Radcliff 1,471
Others 27
District VII Vice President
Tim Jesky 1,539
Others 16
District XI Vice President
Bryan Wood 1,118
Others 5
2018 AMA Executive Council Meetings
January 8, 2018
Ontario CA
April 21-22, 2018
Muncie IN
July 14-15, 2018
Muncie IN
October 20-21, 2018
Muncie IN
Stay up to date on AMA Executive Council agendas, motions, and minutes at www.modelaircraft.org.
