Treasurers FAQs.pdf

A Club Treasurer's responsibilities include maintaining bank accounts, collecting money and paying bills, keeping written records of transactions, preparing financial statements, preparing a budget, obtaining and maintaining tax-exempt status, and filing required tax and information returns.

Records that should be kept include company/entity records, accounting and tax records, bank records, payroll and employment records, human resource records, donor and grant records, and legal, insurance, and safety records. A document retention policy should be established to ensure continuity when officers and board members change.

501(c)(3) organizations are generally exempt from paying income taxes, but may be required to pay sales tax on certain sales. In Massachusetts, sales tax exemption depends on the nature and volume of sales activities. Non-profits can have fundraisers without paying sales tax on a limited basis, but may be required to collect sales tax if engaged in business and making sales of taxable items or services.

A raffle permit is required in Massachusetts, and only certain organizations can hold raffles. Raffle proceeds must be used for educational, charitable, religious, fraternal, or civic purposes, and the organization must be registered with the Attorney General's office and have a Certificate of Solicitation.

Whether a non-profit needs an independent audit depends on the individual club's situation and bylaws. Some alternatives to an audit include an internal review of financial records, and the Board should consider what an audit does and does not do for a small organization.