All about finances
Why Does Money Matter?
- When dealing with money, youth learn record keeping, budgeting and managing financial resources; important life skills. Youth must be involved in meaningful financial roles, such as treasurer, making decisions on how money should be earned and spent.
- 4-H Money = Public Funds. All money received by a 4-H club is public money since 4-H is a public organization. Money received from dues, fundraising, donations and other sources are owned by 4-H, and to be used for the benefit of all members. The money is not owned by any one member, leader or person.
- Educational Purpose. Fundraising activities using the 4-H name or emblem may be carried out for educational purposes. Fundraising activities must have the approval from your county University of Nevada Cooperative Extension office. Also see The 4-H Name and Emblem: Guidelines for Authorized Use.
- Accountability. Every 4-H club or group must maintain a record of its activities and contributions received, prepare and keep a record of financial transactions, apply for and keep on file an Employer Identification Number, file all necessary state and federal forms, and submit an annual report to the county 4-H staff.
- Review Activities. The 4-H staff member responsible for the county 4-H program must review each 4-H organization's activities to determine that it meets the 4-H objectives, the 4-H name and emblem are used in accordance with the statute and financial forms are completed annually.
Managing 4-H Money:
- All 4-H groups handling funds should establish a checking account at a bank. The account should bear the 4-H name.
- 4-H groups are required to have an Employer Identification Number (EIN) to open a checking or savings account.
- Do not use a personal social security number to open a 4-H group checking or savings account.
- A checking account must have two signatures on the account.
How to Apply for an EIN:
- To apply for an EIN from the Internal Revenue Service, use Form SS-4 from your local bank or the IRS. Clubs can apply for the EIN online. Follow the National 4-H Headquarter's instructions for completing the SS-4 form.
- When you receive your EIN, keep the information with your club finances. Give a copy to your county 4-H staff member.
Annual Review/Audit of 4-H Club Finances:
- Any 4-H club or group that collects or pays out money must have a review or audit each year.
- The review or audit checks and verifies the 4-H group's accounts and financial activities at the end of the year or when a new treasurer takes office.
- The review/audit prevents misunderstandings and protects the outgoing and incoming treasurers.
- It's a good idea to form an audit committee comprised of both youth and adults. At least one person, an adult not related to the treasurer and not directly involved with the group's finances, must review/audit the club's financial records each year.
- The 4-H Club Annual Financial Reporting Form sums up your club's financial activities for the year.
What happens when a club disbands or no longer meets?
Upon dissolution of the club, any assets (ie. monies, funds, equipment, supplies, etc.) remaining shall be conveyed to the county Leaders' Council or the local UNCE 4-H Youth Development program.
Follow these tips to ensure the best practices for money handling:
- Ensure the 4-H club treasurer position is a youth position.
- Write a receipt for all monies received. The receipt should include the amount, source from where it came (i.e. car wash), the date and the name of the person making payment. Receipts are backup records for bank deposits made and should be part of the club financial files.
- Deposit all money into the bank account promptly.
- Allow members to approve payments.
- Financial records should be kept up-to-date and reported by the treasurer at each club meeting.
The 4-H Club Annual Financial Reporting Form must be submitted on time each year to the University of Nevada Cooperative Extension office.
- Money raised in the name of 4-H must be used for 4-H purposes.
- Fundraising activities should meet a club educational goal.
- Money raised during the year should be spent that same year.
- Discuss and submit fundraising plans to your local county 4-H staff member.
- Check with your 4-H staff member before putting the 4-H name or clover on any items you plan to sell.
Discuss Money with Your Club:
- Members should decide if fundraising is needed to earn funds for their planned activities.
- Members should approve a budget.
- Members should vote on dues each year.
- Members should approve all payments.
- A financial report (treasurer's report) should be shared with members at each meeting.