Club Treasurer’s ManualA part of the Club Officers’ Kit220-EN—(309)

This is the 2009 edition of the Club Treasurer’s Manual (220). It is intendedfor use by club treasurers holding office in 2010-11, 2011-12, and 2012-13.The information contained in this publication is based on the Constitutionand Bylaws of Rotary International, the Standard Rotary Club Constitution,the Rotary Code of Policies, and The Rotary Foundation Code of Policies.Please refer to those resources for exact guidelines. Changes to the documentslisted above by the 2010 Council on Legislation, the RI Board of Directors, orThe Rotary Foundation Trustees override policy as stated in this publication.

ContentsIntroduction11 Role and Responsibilities3Managing FundsCollecting and Submitting Dues and FeesReporting on the State of Your Club’s FinancesWorking with The Rotary FoundationDeveloping a BudgetPreparing Your SuccessorResources459101313132 Best Financial Practices15Risk ManagementFinancial Controls1516Appendixes1:2:3:4:Sample Board ReportBudget WorksheetBest Practices Checklist for TreasurersDiscussion Questions for the District on PlanClub Treasurer Case Study24252627

IntroductionAround the WorldThe 33,000 Rotaryclubs around the worldshare Rotary values butfunction within specific national and socialcontexts.The Club Treasurer’s Manual was developed to support Rotary club treasurers worldwide. Because treasurers’ individual responsibilities vary according to area laws, cultural practices, and established club procedures, youshould adapt the suggestions in this publication to fit your club’s needs.Culturally specific examples are highlighted throughout the manual in theAround the World boxes to illustrate how different the treasurer’s role canbe from club to club. General tips are offered in the Rotary Reminder boxes.This publication includes three sections. The first describes the majorresponsibilities of a club treasurer. The second presents a collection offinancial best practices. The appendixes in the back of the manual includea sample financial report to a club board, a budget worksheet, a checklist ofbest practices, and a list of discussion questions. Following the appendixesare the worksheets used at district assembly.You should use this manual to prepare for your term in office. Bring itwith you to the district assembly, and review its contents beforehand. Payparticular attention to the questions in appendix 4, which will help you getthe most out of the facilitated discussions at the meeting. After you havecompleted your training, this publication will serve as a resource as youwork with your fellow club officers and members.Your Rotary club is a member of Rotary International. Through this membership, it is linked to the 33,000 Rotary clubs worldwide and grantedaccess to the organization’s services and resources, including publicationsin nine languages, information at, grants from The RotaryFoundation, and staff support at world headquarters and the seven international offices.C LU B TR EA S U R ER ’ S M A N U A L1

Comments?For questions about your role as club treasurer, please contact your assistant governor, district finance committee, or RI finance or Club and DistrictSupport representative.If you have comments or questions about this manual, please directthem to:Leadership Education and Training DivisionRotary InternationalOne Rotary Center1560 Sherman AvenueEvanston, IL 60201-3698 USAE-mail: [email protected]: 847-866-3000Fax: 847-866-94462C L UB T R E AS UR E R ’S M ANUAL

C H A P T E R1 :Role and ResponsibilitiesOn 1 July, you officially take office as club treasurer. Your experience andworkload will depend on your club’s size and activity and your familiarity with Rotary and your new responsibilities. Your responsibilities as clubtreasurer include Managing funds Collecting and submitting dues and fees Reporting on the state of your club’s finances Working with The Rotary Foundation Developing a budget Preparing your successorTo prepare for your term, learn what will be expected of you by the club’sboard of directors and members, your district, and Rotary International. Itis recommended that you assist the outgoing club treasurer before takingoffice to better understand your role. Ask questions such as: How are the bank accounts set up? How do club members pay dues? Does the club have any outstanding debt? What is the budget for the coming year? How was it established? How are funds allotted for club committees? What kind of accounting system is in place for bookkeeping? How arefinancial records kept?Rotary ReminderYour district offerstraining at the districtassembly and supportduring the year from yourassistant governor andthe district financecommittee. What paperwork needs to be filed with the club board, district, RI, orlocal government (e.g., for changes to bylaws, taxes)?To further prepare, attend the treasurer training sessions at your district assembly. This meeting is a good place to network with Rotarians who couldassist you during your term, including your assistant governor and districtfinance committee members. Consult with incoming and outgoing treasurers in other clubs to compare your responsibilities, reporting requirements,and accounting procedures.C LU B TR EA S U R ER ’ S M A N U A L3

Managing FundsWhen you begin your term, you will be responsible for adhering to thebudget created in the previous Rotary year. This duty will involve managing and tracking incoming and outgoing funds.Incoming funds include but are not limited to Club dues payments Donations Money raised from club activities Rotary Foundation grants Sponsorship fundsOutgoing funds include but are not limited to District and RI dues payments Charitable expenses Office supply and equipment costs Meeting expenses (e.g., facilities, meals) Promotional expenses Committee activity costs Miscellaneous feesEnsure that all collected funds and expenses are accurately documented.Provide members with receipts for their dues and donations, and recordany transactions, including club purchases, in a ledger. If going over budgetis unavoidable, be sure to request the board’s approval.An electronic accounting program will automate many of the tasks associated with your position. Consult your club’s outgoing treasurer to find outwhich software is used, if any. If you’re selecting a new program, chooseone that you’re comfortable with and that meets your club’s needs.Standard accounting practice calls for separating a club’s charitable andoperational funds to ensure that proceeds from fundraisers are used tosupport charitable activities. If fundraisers are intended to benefit specificservice efforts, you may also want to consider creating separate projectaccounts.4C L UB T R E AS UR E R ’S M ANUAL

Club billsDistrict duesRI dues and feesMEMBERSTREASUREROUTGOING FUNDSCollecting and Submitting Dues and FeesRotarians are required to pay dues to their club, district (where applicable),and RI. As treasurer, it is important to understand the funds you need tocollect from members and the expenses you need to pay on behalf of yourclub.WHAT TO COLLECT Club dues Admission fees District dues RI per capitadues RI feesRotary ReminderIf your club collectsweekly donations orfines, make sure todocument them.Rotary ReminderRI dues are prorated fornew members depending on when they joined.Rotarian John Smith, forexample, was admittedto his local Rotary clubon 4 January. On 1 July,his club must pay fivemonths of prorated duesto RI to cover the periodfrom February throughJune.WHAT TO PAY District dues Semiannual dues invoice RI per capita dues New member pro rata dues RI feesMagazine costsCouncil on Legislation fees Outstanding balance (if any)Club dues. Club dues can be collected on a weekly, monthly, or quarterlybasis, as determined by your club, and their amount is set each year. Thesedues, which vary by club, generally fund operating expenses such as meetings, meals, speaker gifts, and supplies.Admission fees. Many clubs charge an admission fee for new members, asdetermined by the club. This fee does not apply to transferring or formermembers of other clubs or to Rotaractors.11See the Standard Rotary Club Constitution, article 11, for more details.C LU B TR EA S U R ER ’ S M A N U A L5

District dues. Many districts have funds for financing district-sponsoredprojects and supporting the local administration and development ofRotary. In these districts, each club contributes through per capita dues.The amount is approved each year at the district assembly, district conference, or presidents-elect training seminar.Around the WorldClubs in Great Britain andIreland have a differentdues structure. Theseclubs should consultRotary International inGreat Britain and Irelandwith questions abouttheir dues.RI per capita dues. Twice a year, clubs are charged per capita dues, or duesfor each club member. The rate for the 2010-11 Rotary year is US 25 permember per half year.2 All dues, including prorated dues based on a predetermined formula, are payable on 1 July and 1 January. (A sample invoice isincluded on page 8.) For each new member admitted within a semiannualperiod, the club must pay prorated per capita dues to Rotary International;the amount payable for each full month of membership is one-twelfth ofthe annual per capita dues.Per capita dues pay for the organization’s general operating expenses,including producing publications in multiple languages; providing club,district, and project support; offering training guidance and resources forincoming club leaders; and maintaining the RI Web site.RI fees. Besides dues, Rotarians are charged for required magazine subscriptions, Council on Legislation fees, and other expenses. Payments forThe Rotarian or the Revista Rotaria regional magazine should be submittedwith semiannual dues. All other regional magazine subscription paymentsshould be sent directly to the appropriate magazine editor.Around the WorldClubs in Australia aresubject to a goods andservices tax for RI,district, and club dues, aswell as for their regionalmagazine.Tracking system. To track club, district, and RI dues, consider using an invoicing system. Send each member an invoice that details recent paymentsand any dues owed, along with additional charges for items such as meals.Include an updated balance and deadline on the invoices, and distributethem in a timely manner. Send reminders to members who have not paidon time, or notify the club secretary. Make sure all members understand thepayment process and know the deadline before invoices are distributed.Consider creating a calendar to help you collect and submit dues paymentson time.26Dues are determined by the triennial Council on Legislation.C L UB T R E AS UR E R ’S M ANUAL

Sample Dues Collection and Payment Calendar(based on quarterly collection cycle)Rotary ReminderIn some countries,changes to club bylaws(e.g., dues increases)need to be registeredwith the government.Rotary ReminderThrough Member Accessat, clubtreasurers can nowview Rotary Foundationand semiannual reports(SAR), and pay semiannual dues online.The club president orsecretary must activateyour access.Dues collectionDues paymentJulyAugustSeptemberCollect club duesSend remindersSend invoicesPay SAR invoiceOctoberNovemberDecemberCollect club duesSend remindersSend invoicesPay district duesJanuaryFebruaryMarchCollect club duesSend remindersSend invoicesPay SAR invoiceAprilMayJuneCollect club duesSend remindersSend invoicesPay district duesSemiannual dues invoice. RI sends a semiannual dues invoice as part of aSAR package, to each Rotary club secretary in late June for the July billingand in late December for the January billing. The package also includes acurrent membership list, which serves as the basis for the estimated billing; a worksheet to calculate any necessary revisions; and instructions forcompleting the forms and sending the information and payment to RI or itsfiscal agents.The invoice (see the sample on page 8) charges clubs RI per capita dues andfees based on their most current membership list. (Clubs with fewer than10 members are required to pay for 10 members.) Encourage the club secretary keep this list up to date through Member Access on www.rotary.orgso your club’s per capita billing is accurate. Make sure your club number isincluded on all payments. Your club’s balance may also be paid by creditcard through Member Access at by you, your club secretary,or club president.If the secretary does not receive the SAR package by the end of July orJanuary, a copy can be requested by e-mail, fax, or mail by [email protected] or your international office, or printed from MemberAccess by you, your club secretary, or club president.Submitting dues to the district and RI guarantees your club’s membershipand good financial standing in Rotary International as well as access to theorganization’s resources.C LU B TR EA S U R ER ’ S M A N U A L7

SEMI-ANNUAL DUES INVOICE-SAMPLEMETHOD OF PAYMENT (please tick)Check/Draft –Remit to Local RI Office/ Fiscal Agent.Payable to ROTARY INTERNATIONALBy credit card – Transfer Made to Below BankPayment Ref: XXXXXXAcct. No: XXXXAcct. Name: ROTARY INTERNATIONALSwift Code: XXXXSort/IBAN: (Your bank’s mailing information here)Address line 1Address line 2CountryInvoice Number: SAR-XXXXXXXXXXClub Number: CXXXXXXXXXClub Name:Rotary Club XIssue Date: (DD-MM-YYYY) 06-06-2008Due Date: (DD-MM-YYYY) 01-07-2008TOTAL AMOUNT DUE:XXXX.XXThis reflects your club bankinformation as it appears inRI records 1 week before.PLEASE DETACH ABOVE PORTION AND RETURN ORIGINAL WITH YOUR PAYMENT AND SAR MEMBERSHIP LISTRotary International Europe and Africa OfficeWitikonerstrasse 15CH-8032 ZurichSwitzerlandMON stands formonthly andMBR standsfor member.NUMBER01043535

The Club Treasurer’s Manual was developed to support Rotary club treasur-ers worldwide. Because treasurers’ individual responsibilities vary accord-ing to area laws, cultural practices, and established club procedures, you should adapt the suggestions in this publication to fi t your club’s needs. Culturally specifi c examples are highlighted throughout the manual in the Around the .