CLUB  

TREASURER’S  MANUAL 

A part of the Club Officers’ Kit 

220-EN—(512)

NEW INVOICE PROCESS 

AFFECTS ALL CLUBS 

What’s changing? 

Your dues invoice will take a new form beginning in January. You will now  receive a simple, one-page invoice. Rotary will calculate your balance based on  the membership information your club has submitted to RI no later than 1  January. You no longer need to make calculations or adjustments — just make  sure your member list is current no later than 1 January. Once your invoice is generated, adjustments to the balance can no longer be made. 

What parts of my manual should I disregard? 

Because club invoices are changing, some important information in your training  manuals is no longer correct. The necessary updates are summarized below.

NO LONGER CORRECT

Club Secretary’s Manual:  ∙ “Semiannual Report” section, including “Termination and  Reinstatement” on pages 12-13  Club Treasurer’s Manual:  ∙ “Semiannual Report” section on page 6  ∙ The sample semiannual dues invoice on page 7  ∙ Termination and Reinstatement section on page 8  Club President’s Manual:  ∙ “Semiannual Report” section on page 40  ∙ “Termination and Reinstatement” section on pages 40-41

NEW INFORMATION

Club invoice  ∙ What was called the Semiannual Report (SAR) packet is now called the  club invoice and will be only one page.  ∙ Your club invoice will be sent twice a year, no later than mid-July and  mid-January.  ∙ The balance on your invoice will reflect your club’s membership list in RI’s database on 1 January and 1 July.  ∙ There is no longer a worksheet or any need to make calculations. ∙ The invoice balance is due in full, and the amount cannot be changed.

 

SEPTEMBER 2014 

Termination and reinstatement  ∙ Clubs with unpaid RI dues will be terminated 4 months after the 1 July  and 1 January invoice dates instead of 6 months after.  ∙ Clubs can be reinstated within 150 days after termination instead of 365  days.  ∙ To reinstate, a club must pay its accrued balance in full, including a  reinstatement fee of $30 per member instead of $10 (penalty fee) or $15 (re-charter fee).  Member reporting  ∙ The club secretary is responsible for updating membership information. ∙ Add new members’ information within 30 days.  ∙ Remove terminated members from your list within 30 days. ∙ All updates must be submitted no later than 1 January or 1 July to ensure  that the invoice balance reflects actual membership.  ∙ If you send your membership changes by fax or mail or use Member Data  Integration, they must be received before the deadlines of 1 July and 1  January.  ∙ Clubs that participate in the data integration initiative must follow the  steps above within their own local databases.  General  ∙ Replace all references to Member Access with My Rotary.  ∙ Club secretaries must also report incoming club officers by 1 February.

 

How do I update my club’s member list and pay dues online? 

Club secretaries, presidents, treasurers, membership chairs, Foundation chairs,  and executive secretaries can edit membership lists by signing in to My Rotary. If  you don’t have an account, create one today. 

Once you sign in, go to the Manage section, and then to Club Administration.  There you can add, edit, or remove a member’s information and pay your invoice  balance. 

What if I don’t use My Rotary to report membership changes? 

If your club uses Member Data Integration, you can update membership information through your software provider or local database. Or you can  complete the Member Data Form and email it to [email protected]. 

Where can I find more information? 

Your main source for up-to-date information about your club invoice is the Club  Invoice page of Rotary.org. Email questions to [email protected] or to your  Club and District Support or Financial representative.

SEPTEMBER 2014 

Contents 

 Introduction 

1 Role and Responsibilities………………………………………………………………………………………………………………….2 Managing Funds……………………………………………………………………………………………………………………………………………………..3 Collecting and Submitting Dues and Fees………………………………………………………………………..4 Reporting on the State of Your Club’s Finances……………………………………………………….9 Working with The Rotary Foundation…………………………………………………………………………………….9 Developing a Budget……………………………………………………………………………………………………………………………………12 Preparing Your Successor……………………………………………………………………………………………………………………12 Resources……………………………………………………………………………………………………………………………………………………………………..12 

2 Financial Practices……………………………………………………………………………………………………………………………………….14 Risk Management…………………………………………………………………………………………………………………………………………….14 Financial Controls…………………………………………………………………………………………………………………………………………….15 Appendixes 

1: Best Practices Checklist for Club Treasurers………………………………………………17 2: Sample Budget……………………………………………………………………………………………………………………………………………18 3: Sample Board Report……………………………………………………………………………………………………………………….21 4: Discussion Questions for the District Assembly………………………………………23 

District Assembly Worksheets……………………………………………………………………………………………………………24 

This is the 2012 edition of the Club Treasurer’s Manual (220). It is intended for use by club  treasurers holding office in 2013-14, 2014-15, and 2015-16. The information contained in this  publication is based on the Constitution and 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 these documents by the triennial Council  on Legislation, the RI Board of Directors, or The Rotary Foundation Board of Trustees override  policy as stated in this publication.  

Photos: Alyce Henson and Monika Lozinska-Lee

Introduction 

The Club Treasurer’s Manual was developed to support Rotary club  treasurers worldwide. Because treasurers’ individual responsibilities  vary according to local laws, cultural practices, and established club  procedures, you should adapt the suggestions in this publication to  your club’s needs. General tips are offered throughout the manual. 

You should use this manual to prepare for your term in office. Bring  it to the district assembly, and review its contents beforehand. Pay  particular attention to the questions in appendix 4, which will help you  get the most out of the facilitated discussions at the meeting. After  you have completed your training, this publication will serve as a  resource during your year as club treasurer. 

Your club is a member of Rotary International. Through this  membership, it is linked to the 34,000 Rotary clubs worldwide and  granted access to the organization’s services and resources, including  publications in nine languages, information at www.rotary.org,  grants from The Rotary Foundation, and staff support at RI World  Headquarters and the international offices.  

Comments? 

For questions about your role as club treasurer, contact your assistant  governor, district finance committee, or RI financial or Club and  District Support representative.  

Direct comments or questions about this manual to: 

Leadership Education and Training Division 

Rotary International 

One Rotary Center 

1560 Sherman Avenue 

Evanston, IL 60201-3698 

USA 

Email: [email protected] 

Phone: +1-847-866-3000 

Fax: +1-847-866-9446

Club Treasurer’s Manual 1 INTRODUCTION 

1 

Role and  

Responsibilities 

On 1 July, you officially take office as club treasurer. Your  

experience in office will depend on your club’s size and activity, and  your familiarity with Rotary and your new responsibilities. Your  responsibilities as club treasurer 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 successor 

To prepare for your term, learn what will be expected of you by the  club’s board of directors and members, your district, and Rotary  International. It is recommended that you assist the outgoing club  treasurer before taking office to enable you 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? 

Club Treasurer’s Manual 2 Role and Responsibilities

Your district  offers training  at the district  assembly, and  support during  the year from  your assistant  governor and  district finance  committee.

• What is the budget for the coming year? How was it established? •  How are funds allocated for club committees? 
• What kind of accounting system is in place for bookkeeping? How  are financial records kept? 
• What paperwork needs to be filed with the club board, district, RI,  and local 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 might be able to assist you during your term, including  your assistant governor and district finance committee members.  Consult with incoming and outgoing treasurers in other clubs to  compare your responsibilities, reporting requirements, and accounting  procedures. Refer to appendix 1 for a best practices checklist.  

Managing Funds 

When you begin your term, you will be responsible for adhering to  the budget 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 funds 

Outgoing 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 fees 

Ensure that all collected funds and expenses are accurately docu mented. Provide members with receipts for their dues and donations,  and record any transactions, including club purchases, in a ledger. If  exceeding the budget is 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 out which software is used, if any. If you’re selecting a new  program, choose one that you’re comfortable with and that meets your  club’s needs.  

Club Treasurer’s Manual 3 Role and Responsibilities 

If your club  

collects weekly  donations or  fines, be sure to  document them. 

Standard accounting practice calls for separating a club’s charitable  and operational funds to ensure that proceeds from fundraisers are  used to support charitable activities. If fundraisers are intended to  benefit specific service efforts, you may also want to create separate  project accounts. Refer to Appendix 2: Sample Budget. 

If you are the treasurer of an e-club, this manual applies to you.  Please note the separate sections for each type of club in the  Standard Rotary Club Constitution. For more information, refer  to What You Need to Know about Rotary E-Clubs or contact your  Club and District Support representative. 

Collecting and Submitting Dues and Fees 

Rotarians are required to pay dues to their club, district (where  applicable), and RI. As treasurer, it is important that you understand  what you need to collect from members and what you must pay on  behalf of your club. RI dues are prorated for new members depending  on when they joined. For example, John Smith was admitted to his  local Rotary club on 4 January. On 1 July, his club must pay five  months’ worth of dues to RI to cover the period from February  through June. Note: Dues only apply to a full month of membership. 

WHAT TO COLLECT WHAT TO PAY 

Around the  World  

Clubs in Great  

• Club dues 
• Admission fees •  District dues •  RI per capita  dues 
• RI fees 
• District dues 
• Semiannual dues invoice − RI per capita dues 

− New-member prorated dues − RI fees: magazine costs,  Council on Legislation fees − Outstanding balance (if any) 

Britain and  

Ireland have  a different  

dues structure.  Treasurers  

of these  

clubs should  consult Rotary  International  in Great Britain  and Ireland with  questions about  their dues.

Club dues. Club dues can be collected on a weekly, monthly, or  quarterly basis, as determined by your club, and their amount is set  each year. These dues, 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, as determined by the club. The admission fee is waived  for transferring or former members of another club, provided they  submit proof confirming their membership with their previous club.  Honorary members and Rotaractors who ceased to be a member of  Rotaract within the preceding two years are also exempt from the  admission fee. See the Standard Rotary Club Constitution, articles 11  and 7, for more details. 

Club Treasurer’s Manual 4 Role and Responsibilities 

Around the  

World  

Clubs in Australia  are subject to  a goods and  

services tax  

for RI, district,  and club dues,  as well as for  their regional  magazine  

subscriptions.

District dues. Many districts have funds for financing district sponsored projects and supporting the local administration and  development of Rotary. 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.  

RI per capita dues. Twice a year, clubs are charged per capita dues,  or dues for each club member. The rate for the 2013-14 Rotary year is  US$26.50 per member per half year.1 All dues, including prorated dues,  are payable on 1 July and 1 January. (A sample invoice is included on  page 7.) For each new member admitted within a semiannual period,  the club must pay prorated per capita dues to Rotary International; the  amount payable for each full month of membership is one-twelfth of  the annual per capita dues.  

Per capita dues pay for RI’s general operating expenses, including  those for producing publications in multiple languages; providing club,  district, and project support; offering training guidance and resources  for incoming club leaders; and maintaining the RI website.  

RI fees. In addition to dues, Rotarians are charged for required  magazine subscriptions, Council on Legislation fees, and other  expenses. Payments for The Rotarian or the regional magazine Revista  Rotaria should be submitted with semiannual dues. All other regional  magazine subscription payments should be sent directly to the  appropriate magazine editor. Note that two Rotarians residing at the  same address have the option of subscribing jointly to The Rotarian. 

Tracking system. To track club, district, and RI dues, consider using  an invoicing system. Send each member an invoice that details recent  payments and any dues owed, along with additional charges for  items such as meals. Include an updated balance and deadline on the  invoices, and distribute them in a timely manner. Send reminders  to members who have not paid on time, or notify the club secretary.  Make sure all members understand the payment process and know the  deadline before invoices are distributed.  

1 Dues are determined by the triennial Council on Legislation. 

Club Treasurer’s Manual 5 Role and Responsibilities 

In some  

Sample Dues Collection and Payment Calendar  (based on quarterly collection cycle) 

Dues collection Dues payment 

countries,  

changes to club  bylaws (e.g., dues  increases) must  be registered  with the  

government.

July 

August 

September 

October 

November December 

January 

February March 

April 

May 

June 

Collect club dues Send reminders Send invoices 

Collect club dues Send reminders Send invoices 

Collect club dues Send reminders Send invoices 

Collect club dues Send reminders Send invoices 

Pay SAR invoice Pay district dues Pay SAR invoice Pay district dues 

Note that  

two Rotarians  residing at the  same address  have the option  of subscribing  jointly to the  official magazine. 

Semiannual report. RI sends a semiannual report (SAR) packet to  each Rotary club secretary in late June for the July billing and in late  December for the January billing. The packet consists of two parts: •  Club membership list based on RI records, which serves as the basis  

for the estimated billing. This list should be updated by the club  secretary.  

• Invoice for RI per capita and prorated dues, Council on Legislation  fees, and magazine subscriptions. The treasurer is responsible for  this portion and should recalculate what is owed using the SAR  worksheet provided in the packet (see sample on page 7). 

Encourage the club secretary to keep the club membership list  current through Member Access, to ensure the accuracy of your club’s  per capita billing. Your club’s balance may be paid by credit card  through Member Access by you, your club secretary, or your club  president. Clubs with fewer than 10 members are required to pay for  10 members. 

If you do not receive the SAR packet by the end of July or January,  you may print a copy from Member Access or request one by  contacting [email protected] or your international office. 

Club Treasurer’s Manual 6 Role and Responsibilities 

SEMI-ANNUAL DUES INVOICE-SAMPLE 

METHOD OF PAYMENT (please tick) 

Check/Draft –Remit to Local RI Office/ Fiscal Agent. 

Payable to ROTARY INTERNATIONAL 

By credit card – https://riweb.rotaryintl.org/ Bank/Electronic Transfer Made to Below Bank Payment Ref: XXXXXX 

Acct. No: XXXX 

Acct. Name: ROTARY INTERNATIONAL Swift Code: XXXX 

Sort/IBAN: (Your bank’s mailing information here) Address line 1 

Address line 2 

Country 

Invoice Number: SAR-XXXXXXXXXX Club Number: CXXXXXXXXX Club Name: Rotary Club X 

Issue Date: (DD-MM-YYYY) 06-06-2011 Due Date: (DD-MM-YYYY) 01-07-2011 

TOTAL AMOUNT DUE: XXXX.XX 

This reflects your club bank  

information as it appears in  

RI records 1 week before. 

PLEASE DETACH ABOVE PORTION AND RETURN ORIGINAL WITH YOUR PAYMENT AND SAR MEMBERSHIP LIST 

Rotary International Europe and Africa Office Witikonerstrasse 15 

CH-8032 Zurich 

Your regional  Rotary office  address will  

ROTARY CLUB OF X Club Number: C0000XX 

Switzerland 

MON stands for  monthly and  MBR stands  

for member. 

appear here.

Club Name: Rotary Club X District: XXXX Issue Date: (06-06-2011) Due Date: (01-07-2011) 

NUMBER UNIT OF MEASURE DESCRPTION UNIT PRICE (YOUR CURRENCY) TOTAL 01 MON Pro-Rata Dues 3.92 3.92 04 MON Pro-Rata Dues 3.92 15.68 35 MBR Semi-Annual Dues 25.00 875.00 35 MBR Council On Legislation Levy 1.00 35.00 

35 MBR The Rotarian Magazine – 

Intl. 

Amounts will be shown in USD and in your 

local currency. Use exchange rate current 

12.00 420.00 

Amounts  

shown here  

SEMI-ANNUAL DUES 

at the time of payment. y. 

1349.60 

are sample  amounts. 

CLUB BALANCE DUE INCLUDING THIS INVOICE (IN USD)…………………..1349.60 TOTAL AMOUNT DUE (IN YOUR CURRENCY) …….. 863.74 

——————————————————————————————————————————— DETAIL OF TOTAL AMOUNT DUE AS OF 01/07/11 

Member Name Admission Date Amount Billed No. of Months John Smith 28-05-2011 03.92 1 Jane Jones 13-02-2011 15.68 4 

Club Treasurer’s Manual 7 Role and Responsibilities 

Through Member  Access at  

www.rotary.org,  treasurers can  view Rotary  

Foundation and  semiannual  

reports, and  

pay semiannual  dues. The club  president or  

secretary must  activate your  access. 

Around the  

World  

Requirements  for record  

retention vary  from country to  country, with  some mandating  permanent  

retention and  others specifying  a number of  

years. Check  

local laws,  

and develop  

a document  

retention policy  that complies  with them.

Submitting dues on time to the district and RI guarantees your club’s  membership in and good financial standing with Rotary International,  as well as access to the organization’s resources. 

Termination and Reinstatement  

Any club that does not pay its dues and fees to RI will be terminated  and will not receive services from RI or the district. A club’s  membership can also be suspended or terminated if any of the club’s  members has misused funds from The Rotary Foundation. 

Termination 

• Six months after the 1 January or 1 July deadline, clubs with unpaid  per capita RI dues over US$250 will be terminated.  
• Clubs that have not fulfilled their entire financial responsibility  within 365 days of termination will lose their original charter and  will not be eligible for reinstatement.  

Reinstatement 

• Within 90 days of termination, the club must pay all financial  obligations to RI, including a $10-per-member reinstatement  fee. Clubs having fewer than 10 members will need to pay for a  minimum of 10 members.  
• More than 90 days but less than 365 days after termination, the club  must pay all financial obligations to RI, pay a 10-member minimum  reinstatement fee, complete a reinstatement application, and pay  an additional $15-per-member application fee. The application fee is  also subject to the minimum 10-member requirement.  

Member Termination 

Any member failing to pay dues within 30 days after the deadline  should be notified of the amount owed and of an absolute deadline in  writing by the club secretary. If the dues are not paid within 10 days  of the notification date, membership may be terminated, subject to the  discretion of the club’s board. The board may reinstate membership  upon a member’s petition and payment of all debts to the club. 

Clubs accepting a transferring or former Rotarian must first  secure a certificate from the former club confirming that person’s  membership, as well as verification that the member does not have  any outstanding debts to the club. A prospective member cannot  join a new club until all debts to the former club have been paid. 

Club Treasurer’s Manual 8 Role and Responsibilities 

Rotary clubs in  the United States  and Puerto Rico  are required  

to obtain an  

employer  

identification  number (similar  to an individual’s  Social Security  number) to use  when filing Form  990 with the  

Internal Revenue  Service. Failure  to do so can  

result in financial  penalties.

Reporting on the State of Your Club’s Finances 

Your duties include issuing monthly reports to your club’s board,  regular financial updates and a detailed annual report to club  members. At board meetings, present the club’s monthly expenses and  income, and indicate the status of fundraising efforts and the overall  budget. Though the exact nature of board reports will vary depending  on club size and activity, a sample is provided in appendix 3.  

As treasurer, you have primary responsibility for the accuracy of your  club’s financial records. It is important that board and club meeting  minutes list account balances and disbursements that match actual  financial activity. All records should be preserved in case the club has  to account for the use of funds during a specific period. Consult with  local authorities on laws pertaining to document retention. 

Your club’s financial activity should be reviewed annually by a  qualified accountant. In some cases, treasurers may be responsible  for filing taxes on behalf of the club. Be sure to learn your country’s  tax laws. There may be special requirements if your club has separate  funds for scholarships or foundations, or if it is incorporated. Consult  an expert in your club or community about specific tax questions.  

Working with The Rotary Foundation 

The Rotary Foundation (TRF) is the charitable arm of Rotary  International and is supported solely by voluntary contributions from  Rotarians and friends of the Foundation. Rotary Foundation grants  enable Rotarians to advance world understanding, goodwill, and peace  through the improvement of health, the support of education, and the  alleviation of poverty. As club treasurer, your interactions with the  Foundation will likely consist of submitting donations and helping  to apply for and monitor grants. For specific questions regarding  the Foundation, consult your club or district Rotary Foundation  committee.  

Contributions. Contributions to the Foundation are entirely separate  from dues paid to Rotary International. Both individuals and clubs  may donate at any time at www.rotary.org using a credit card, or  by sending a check, money order, traveler’s check, or wire transfer  made payable to The Rotary Foundation (not to Rotary International).  In some countries, donors may receive tax benefits. For questions,  consult your international office.  

All contributions sent to the Foundation should be accompanied by  the donor’s name and a clear gift designation (such as PolioPlus or  the Annual Fund). Direct donations can be made at www.rotary.org /contribute (preferred method) or with the TRF Contribution Form (123). Contributing directly through these methods enables the  

Foundation to process the donation faster and issue a receipt for the  donor’s records and tax-reporting needs.  

Club Treasurer’s Manual 9 Role and Responsibilities 

If multiple donations are sent together, donors should submit a  completed Multiple Donor Form (094) with their contributions. This  form should indicate gift designations and include all contributors’  names so that each receives a tax receipt and proper recognition. 

Club Treasurer’s Manual 10 Role and Responsibilities 

For questions,  contact the  

nearest  

international  office or RI fiscal  agents, located  in Bangladesh,  Chile, Colombia,  Nigeria, Pakistan,  Peru, South  

Africa, Sri Lanka,  Thailand, and  Venezuela. 

Around the  

World  

In India,  

clubs that are  registered under  the Foreign  

Contribution  

Regulation Act  will be less likely  to experience  delays in  

receiving Rotary  Foundation  

grants.

Forward contributions received from club members to the appropriate  address:2 

In the United States: 

The Rotary Foundation 

14280 Collections Center Drive  

Chicago, IL 60693 

In Canada: 

The Rotary Foundation (Canada)  

c/o 911600 

PO Box 4090 STN A 

Toronto, ON M5W 0E9 

Outside the United States and Canada: 

The international office or fiscal agent serving the clubs in your  country; see the Official Directory (007) for contact information. 

In addition to monetary gifts, contributions can include stock,  appreciated securities, life insurance policies, property, and bequests.  Contact The Rotary Foundation Gift Administration Department at  RI World Headquarters or your international office for assistance in  transmitting these types of contributions. 

Contributions to The Rotary Foundation must be received by 30 June  to be credited to the current Rotary year. Contributions received after  30 June will be counted in the next Rotary year. To be eligible for  tax benefits, donors must ensure that the Foundation receives their  contributions by the end of their country’s fiscal year. 

Reclassifying contributions. The Rotary Foundation no longer accepts  or processes gift designation corrections for contributions from prior  Rotary years. Corrections are made only within 90 calendar days of  the gift receipt date and within the same Rotary fiscal year.  

Grants. Rotary Foundation grants can help clubs finance service  projects that would not otherwise be possible. If your club receives  a grant, it is responsible for ensuring good stewardship of the funds  and following all reporting requirements specified in the Foundation’s  grant guidelines. Work with your club’s Rotary Foundation committee  to ensure that all requirements are met. 

Club foundations. If your club has or plans to set up a foundation, be  sure it adheres to local laws. Some countries require foundations to  register with the government or follow specific rules. For example,  clubs that accept contributions to their own foundations are often  expected to issue tax receipts from those foundations. Consult with  your local tax authority about reporting requirements.  

2 The addresses above are for monetary contributions only. Please do not send  correspondence or nonmonetary gifts to these addresses. 

Club Treasurer’s Manual 11 Role and Responsibilities 

Checks from a club foundation sent to The Rotary Foundation will  be processed as donations from that foundation. If names are sent  with the contributions, the individuals will receive the appropriate  

recognition points only; no tax receipt will be issued by The Rotary  Foundation, as this is the club foundation’s responsibility. 

Developing a Budget 

As a member of your club’s board, you will help develop a club  budget for the coming year. Before creating the budget, review the  club’s financial history to determine the likely sources of income and  areas of expense, and meet with incoming officers to discuss their  plans for the year. The income and expenses included in the budget  should be broken into two parts: club operations and charitable funds.  Additionally, establishing a reserve fund can help your club handle  unexpected expenses; some clubs base this fund on their annual  operating costs. 

Use the Sample Budget (appendix 2) when preparing your club’s  budget. The final budget must be approved by the board. 

Preparing Your Successor 

Once your successor is chosen, discuss the role so that he or she is  prepared to assume office on 1 July. Review recording and reporting  procedures, and share tips on budgeting and managing club funds.  If practical, allow the incoming treasurer to assist with your regular  responsibilities. After the last club meeting in June, turn over all  funds, accounting records, and any other related materials to your  successor. 

Resources 

The following resources can help you fulfill your role as club  treasurer: 

• www.rotary.org: Aimed at helping club leaders gather information  about effective club operations, including links to club administra tion, membership, public relations, service projects, and Rotary  Foundation information and to club-level resource pages.  
• Member Access: Helps Rotarians perform Rotary business. Create  an account for Member Access to view club information.  •  Recommended Rotary Club Bylaws: Recommended policies for club  finances and operations; should be adapted by clubs to meet their  own needs 
• Standard Rotary Club Constitution: The basic constitutional  document for all Rotary clubs 
• TRF Contribution Form (123) and Multiple Donor Form (094):  Official Rotary Foundation forms for submitting single or multiple  donations. Refer to www.rotary.org/contribute.

Club Treasurer’s Manual 12 Role and Responsibilities 

• RI Club and District Support or financial representative: Staff at RI  World Headquarters and international offices available to answer  administrative questions and direct other inquiries to appropriate  staff members 
• Contact Center: A team available to answer questions; can be  reached at [email protected] or toll-free (within USA and  Canada) at 866-9-ROTARY (866-976-8279). Rotarians outside North  America should continue to contact their international office. 
• District finance committee: Rotarian financial experts who  supervise district funds and work closely with the district governor  and area clubs 
• Assistant governor: Rotarian appointed to assist the district  governor with the administration of designated clubs 
• Current or past club treasurers and board members: Rotarians who  understand the treasurer’s role and know the club’s procedures and  history

Club Treasurer’s Manual 13 Role and Responsibilities 

2

Financial Practices 

During your year as treasurer, consider implementing the best  practices in this chapter to help protect your club’s assets and to shield  you and your club from liability. Consult with the outgoing treasurer  to learn which controls are already in place and which may need to be  established during your term. 

Risk Management 

Risk management is the process of planning, organizing, leading, and  controlling an organization’s activities to minimize the adverse effects  of accidental losses. As treasurer, you are in a position to minimize  risk and safeguard your club’s members, program participants, and  assets. Consider three basic questions when planning activities and  events:  

• What can go wrong?  
• If something goes wrong, how will I or the club respond?  
• How will any losses be paid for?  

Club Treasurer’s Manual 14 Financial Practices 

If there is a significant possibility that something will go wrong, you  can reduce risk by  

• Not conducting the activity or event 
• Modifying the activity or event to lessen the risk 
• Preparing a plan to address any potential problems  •  Finding another organization that will agree to participate and share  the risk 

Though conducting business with handshakes or verbal agreements  may be common, RI strongly recommends that your club use written  and signed contracts. When negotiating a contract, read it thoroughly  to understand what you are agreeing to. Retain legal documents for  several years after the event in case a claim is made.  

Clubs are urged to obtain the advice of legal and insurance counsel  regarding liability protection. Protection may come through the  incorporation of the club (or its activities) or the purchase of liability  insurance coverage.  

Clubs in the United States and its territories and possessions are  automatically covered by general liability and directors and officers/ employment practices liability insurance through a program arranged  by RI and paid for by all active U.S. clubs through the semiannual  dues report. Clubs outside the United States should consider acquiring  insurance if they do not already have it. See the Manual of Procedure (035) for more information. 

Financial Controls 

Financial controls help clubs function smoothly, ensure that funds  are managed properly, and help protect you and your club from  allegations of fund misuse. Establishing standard procedures for  ongoing duties will also simplify your job as treasurer. Consider  following these procedures if your club doesn’t already do so: •  Email reports to board members for review to ensure accuracy  

before presenting them. See appendix 3 for a sample report.  •  Include time for questions after presenting the monthly finance  report to the board. 

• Ask the club president to review all bank statements before giving  them to you. 
• Review monthly bank statements, and reconcile transactions with  club records. 
• Require more than one signature on all checks and withdrawals.  •  Update signature requirements as officer positions and other roles  change. 
• Divide financial responsibilities. For example, appoint different club  officers to reconcile bank accounts, maintain the general ledger and  review financial statements, sign checks, and deposit and withdraw  from accounts. 

Club Treasurer’s Manual 15 Financial Practices 

• Ask that the chair of an event sign for charitable expenses. •  Require board approval for operating expenditures over a certain  amount. 
• Establish a term limit for your club’s treasurer position. •  Create a process to ensure a smooth transition for an incoming  treasurer. 
• Stay current on local tax requirements and laws. 
• Appoint a finance committee to provide oversight and help with  succession planning.

Club Treasurer’s Manual 16 Financial Practices 

Appendix 1: Best Practices Checklist for  Club Treasurers 

Completing the items on this checklist can help you ensure transparent and professional  financial practices.  

Monthly 

Collect and record dues from club members to pay RI dues (twice a year) and club and  district dues (as set by the club and district).3 

Perform basic account maintenance — including reconciling bank statements, making  deposits, and paying bills — in a timely manner. 

Work with club committees to ensure that their expenses are within budget. Report on the status of club finances in relation to the budget at monthly club board  meetings. 

Annually 

Manage the budget developed by the previous treasurer and club board.  Prepare a budget for the following year. 

Set up separate club bank accounts for operating and charitable expenses, and assign two  signatories to each account. 

Make sure the club has a procedure for sending contributions to The Rotary Foundation and  dues to Rotary International. 

Be aware of local laws regarding donated funds, and make sure those laws are followed. Register the club with the government, if required.  

Submit club tax documentation, if required by the local or national tax code. Have the yearly financial report reviewed by a qualified accountant who is not involved with  the regular management of club funds. 

Make sure the club has an effective process for learning about financial best practices, and  that these practices are passed on to incoming officers. 

Ensure that if your club has a foundation, it is managed in accordance with local laws. Review the semiannual dues invoices with your club secretary, and make sure the balance is  paid by 1 July and 1 January. 

Review all paper and electronic files at the end of your term. Retain all necessary records  for your successor, and dispose of others. 

3 Dues can be collected weekly, monthly, quarterly, or semiannually, as decided by each club.

Club Treasurer’s Manual 17 Financial Practices 

Appendix 2: Sample Budget 

Rotary Club of  

Budget for fiscal year beginning 1 July  

Budgeted   Actual income   Amount over/  Estimated   INCOME  income last year  last year  (under) last year  income this year  OPERATIONS
Membership dues
Admission fees4
Income from visitors
Other income
Subtotal
CHARITABLE
Donations to club for  projects
Club fundraisers
Other income
Subtotal
TOTAL INCOME

 

4 To be based on the estimated number of new members for the year.

Club Treasurer’s Manual 18 Financial Practices 

Budgeted   Estimated   expenses last   Actual expenses   Amount over/  expenses this   EXPENSES  year  last year  (under) last year  year  OPERATIONS
Secretary’s office
Badges/engraving
Postage and post box
Printing
Stationery
Phone/fax
Annual report
Website hosting
Rent
Miscellaneous   supplies
Other
Subtotal
District dues
Subtotal
Rotary International
Dues
Subscriptions
Liability insurance5
RI Convention
Council on Legislation
Other
Subtotal
Meeting expenses
Club meetings:   speaker gifts
Club meetings: other
Presidents-elect   training seminar
District conference
District assembly
Other
Subtotal

 

5 Where appropriate

Club Treasurer’s Manual 19 Financial Practices 

Budgeted   Estimated   expenses last   Actual expenses   Amount over/  expenses this   EXPENSES  year  last year  (under) last year  year  Committee expenses6
Administration
Club bulletin
Membership
Public relations
Service projects
The Rotary   Foundation
Subtotal
Miscellaneous
Bank or legal fees
Government fees
Flowers
Road signs
Subtotal
Other operational expenses
Subtotal
CHARITABLE
Donations to   The Rotary   Foundation
Club projects (list  each individually)
Committee expenses
Service projects
The Rotary   Foundation
Other charitable expenses
Subtotal
TOTAL EXPENSES

 

6 Committee expenses for managerial or clerical purposes are categorized as operational, whereas those  pertaining to service projects or activities are considered charitable.

Club Treasurer’s Manual 20 Financial Practices 

Appendix 3: Sample Board Report  

Appendix 1: Sample Board Report 

ROTARY CLUB X 

Sample Balance Sheet 

As of 30 June 20XX 

Assets 30 June 20XX Cash in bank for operational purposes $3,800 Cash in bank for charitable purposes 2,795 Cash in savings 4,300 SUBTOTAL $10,895 

Fixed Assets 

Laptop computer $2,325 LCD projector 875 Other – SUBTOTAL $3,200 

Total assets Liabilities 

$14,095

Liabilities payable for meetings: meals $300 Liabilities payable to The Rotary Foundation 300 TOTAL LIABILITIES $600 

Club equity 

Beginning equity $8,630 Net income for the year 4,865 ENDING EQUITY $13,495 

Total liabilities and club equity 

$14,095

Club Treasurer’s Manual 21 Financial Practices 

ROTARY CLUB X 

Sample Statement of Income/Expenses 

For the Year Ended 30 June 20XX 

For the Month Ended 30 June For the Year Ended 30 June

Over/(under) Over/(under) 

Actual Budgeted budget Actual Budgeted budget 

INCOME 

Operations 

Membership dues $1,300 $1,200 $100 $15,600 $14,400 $1,200 Income from visiting Rotarians $175 $167 $8 2,100 2,000 100 Admission fees 250 – 250 – 500 500 SUBTOTAL $1,725 $1,367 $358 $18,200 $16,400 $1,800 

Charitable 

Fundraisers $4,000 $800 $3,200 $10,000 $9,600 $400 Contributions received 300 300 $3,600 $3,600 – – Investment income 16 10 $180 $120 6 60 SUBTOTAL $4,316 $1,110 $3,206 $13,780 $13,320 $460 

TOTAL INCOME $6,041 $2,477 $3,564 $31,980 $29,720 $2,260 

EXPENSES 

Operations 

Meetings 

Meals $ 300 $ 292 $8 3,600 $ 3,500 $ $ 100 Other 15 16 (1) 180 200 (20) SUBTOTAL $ 315 $ 308 $ 3,780 7 $ 3,700 $ $ 80 Administrative costs 

Badges $ 10 $ 3 $7 $ 35 50 $ $ 15 Banners 35 15 20 200 180 20 Office supplies 30 33 (3) 360 400 (40) Web hosting 25 27 (2) 300 325 (25) SUBTOTAL $ 100 $ 78 $ 22 $ 940 910 $ $ (30) Club committees 

Administration 80 $ $ 30 $ 50 $ 360 325 $ $ (35) Membership 30 30 0 360 360 0 Public Relations 128 130 (2) 1,500 1,560 (60) Service Projects 110 120 (10) 1,320 1,440 (120) The Rotary Foundation 30 40 (10) 360 480 (120) Other 3 5 (2) 25 60 (35) SUBTOTAL $ 381 $ 355 $ 3,890 26 $ 4,260 $ $ (370) Rotary International 

Per capita dues $ 125 $ 104 $ 1,500 21 $ 1,250 $ $ 250 Magazine subscriptions 20 21 (1) 240 250 (10) Insurance 48 50 (2) 600 600 0 SUBTOTAL $ 193 $ 175 $ 2,340 18 $ 2,100 $ $ 240 RI and District Meeting  

RI Convention $ 1,200 $ 1,500 $ (300) $ 1,500 1,200 $ $ (300) District conference 175 17 158 175 200 (25) Presidents-elect training seminar 645 600 45 645 600 45 District assembly 75 4 71 75 50 25 Other 0 0 0 0 0 0 SUBTOTAL $ 2,095 $ 2,121 $ 2,095 (26) $ 2,350 $ $ (255) Miscellaneous 

Bank charges $ 5 $ 10 $ (5) $ 120 60 $ $ (60) Flowers 20 20 0 240 240 0 Gifts for retiring officers 125 10 115 125 120 5 Gifts for speakers 15 10 5 175 120 55 

SUBTOTAL $ 165 $ 50 $ 115 $ 600 600 $ $ – Charitable 

Contributions to charitable or civic activities $ 300 $ 600 $ (300) $ 7,200 7,400 $ $ 200 Contributions to The Rotary Foundation 0 300 (300) 3,700 3,600 100 Service projects 0 200 (200) 2,400 2,400 0 SUBTOTAL $ 300 $ 1,100 $ 13,500 (800) $ 13,200 $ $ 300 TOTAL EXPENSES $ 3,549 $ 4,187 $ 27,115 (638) $ 27,150 $ $ (35) 

NET INCOME $ 2,492 $ (1,710) $ 4,202 $ 2,570 4,865 $ $ 2,295 

Club Treasurer’s Manual 22 Financial Practices 

For District Assembly 

Appendix 4: Discussion Questions for the  District Assembly 

Review these questions before you attend the district assembly. Compare thoughts with  outgoing and incoming club leaders. 

What are the major responsibilities of the treasurer in your club?  

How can you prepare for your term as treasurer? 

What potential fundraising activities will your club hold this year, and how will you be involved  as treasurer? 

Who might be a resource to you in your club and district?  

How can you work with fellow club leaders and committees to manage club funds responsibly? 

What is one goal you will work toward in the coming year? How does this support your club’s  long-range goals? 

What problems might arise, and how could you address them?

Club Treasurer’s Manual 23 

For District Assembly 

Worksheet 1:  

Notes

 

Club Treasurer’s Manual 24 

For District Assembly 

Worksheet 2: Goals  

Use this worksheet to draft a long-range goal and annual goals for three years to reach the  long-range goal. Ensure that your goals are: 

Shared. Those who participate in setting a goal and developing strategies to achieve that  goal are committed to implementing it. 

Measurable. A goal should provide a tangible point to pursue. 

Challenging. A goal should be ambitious enough to go beyond what your club has  accomplished in the past. 

Achievable. Rotarians should be able to accomplish the goal with the resources available. Time specific. A goal should have a deadline or timeline.

Long-range goal (goal for your club three years from now):

Year 1 annual goal:

Year 2 annual goal:

Year 3 annual goal:

 

Club Treasurer’s Manual 25 

For District Assembly 

Worksheet 3: Action Plan 

In the space below, write one annual goal from your goals worksheet. Then, determine the  action steps that need to be taken to meet this goal. 

Annual Goal: 

Action Step 1. 

5.

Who will be  responsible? 

How long will this  step take? 

How will progress  be measured? 

What resources  are available? 

 

Resources needed:

 

Club Treasurer’s Manual 26 

For District Assembly 

Worksheet 4: Club Treasurer Case Studies 

Read each case study below and answer the questions. Create a plan using the case study  action plan worksheet on page 30.  

Case Study 1 

You are the new treasurer for the Rotary Club of Oakport. Your predecessor has been in  the position for the last four years. The club has one bank account with US$10,000 that has  been transferred to your name. You are the only name on the account. The last financial  review for the club was over five years ago.  

Would you conduct a financial review?  

What changes would you implement to how the club’s finances are handled?

Club Treasurer’s Manual 27 

For District Assembly 

Case Study 2 

The Rotary Club of Puerta Villa has traditionally been a small club. One member has  handled the responsibilities of the secretary and treasurer positions for several years.  However, this member recently left the club due to health issues. Your club is rarely open  to change, but you have a lot of innovative ideas you would like to see implemented. You  have shared these ideas with your club president-elect and several other members. The  club president-elect is skeptical, but the club members are excited.  

How will you convince your club president-elect to give your ideas a chance?  How could these changes affect the dynamics of your club? 

Case Study 3 

You have reviewed the semiannual dues invoices and would like to review them with the  club secretary before paying the balance by 1 January. You have tried to meet with the club  secretary several times before about other items, but she has not responded to your emails  or phone calls. Not only is the deadline quickly approaching, but you want to make sure you  have open communication between you and your club secretary.  

What do you do?

Club Treasurer’s Manual 28 

For District Assembly 

Case Study 4 

You have been the club treasurer for several years and this year will be your last. The club  president has asked that you develop a learning process for financial best practices to pass  on to future treasurers.  

What process for learning about financial management best practices will you recommend?  

What financial management practices does your club use that should continue and which  should be changed?

Club Treasurer’s Manual 29 

For District Assembly 

Case Study Action Plan 

Action Step 1. 

5.

Who will be  responsible? 

How long will this  step take? 

How will progress  be measured? 

What resources  are available? 

 

What did you learn that you can apply to your club?

 

Club Treasurer’s Manual 30 

For District Assembly 

Worksheet 5:  

Notes

 

Club Treasurer’s Manual 31 

For District Assembly 

Worksheet 6: Problem-solving Guide 

Use the Planning Guide for Effective Rotary Clubs and the goals worksheet from session 2 to  develop your problem-solving guide. Analyze your club’s goals, and think about potential  challenges to achieving them. Then, offer solutions to these challenges. 

What resources are  

available? 

Administration

Goal Potential Challenge 

 

Membership
Public Relations
Service Projects
Rotary Foundation
Other

 

Club Treasurer’s Manual 32 

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