Chapter Financial Policies

CF-1        Chapter Budget Approval
CF-2        Chapter Budget Forms
CF-3        Chapter Budget Guidelines to Protect Non-Profit Status (“80/20”)
CF-4        Chapter Budget Chart of Accounts
CF-5        Chapter Financial Management Rules
CF-6        Chapter Banking Transactions Rules
CF-7        Chapter Banking Signature Card
CF-8        Chapter Debit Cards Guidelines
CF-9        Chapter Financial Accounts Transition Schedule
CF-10      Chapter Treasurer Responsibilities
CF-11      Chapter Accounting Procedures Requirements
CF-12      Chapter Receipts Requirements
CF-13      Chapter Deposits Requirements
CF-14      Chapter Cash Transactions Tracking Requirements
CF-15      Chapter Check Writing Requirements
CF-16      Chapter Audit Requirements
CF-17      Chapter Financial Transactions Documentation Requirements
CF-18      Chapter Monthly Review of Financial Accounting Forms
CF-19      Chapter IRS Tax Reporting Forms 990 & 990-PF
CF-20      Chapter Savings, CDs and Assets
CF-21      Chapter Dues Revenue Sharing for Existing Chapters
CF-22      Chapter Sponsorship of National Education Conference (Eliminated)
CF-23      Chapter Purchases of Gift Cards (and form) 

Chapter Budget Approval

Section: Chapter Finances

Policy No: CF-1

Date of Origin: September 2009

Revised: October 2009

Reaffirmed:

PURPOSE

Chapter budgeting will direct the spending of funds to be properly allocated based on anticipated incoming revenue.

POLICY

All Chapters are required to produce an annual budget. The budget will be based upon a 12 month fiscal year, starting July 1 and ending June 30 of the following year. Prior to each fiscal year beginning July 1, the Chapter Treasurer and Chapter President should lead the entire Chapter Board in the development of the fiscal year budget. The chapter is required to use and submit its budget on one the standard Excel accounting form provided by SGMP.

All chapter budgets must be approved by the Chapter Board. The yearly due date for submission is July 31. Chapter Treasurers are required to have their approved chapter budgets to SGMP Headquarters by this date. SGMP Headquarters and the National Treasurer will review each chapter’s budget for final approval to ensure all IRS mandated non-profit organization guidelines are being properly followed.

With respect to chapter budgets, SGMP will categorize chapters into two categories—large chapters and regular chapters—because of IRS filing stipulations and guidelines. Large chapters are defined as chapters that have an annual gross income of more than $25,000 per year over a three-year period; all other chapters will be considered as Regular chapters.

Chapter Budget Forms

Section: Chapter Finances

Policy No: CF-2

Date of Origin: September 2008

Revised:

Reaffirmed:

PURPOSE

The institution of standardized budget forms will provide clear, concise reporting that is consistent among all chapters and provide better information for filing 990 forms.

POLICY

All chapters are required to use the standardized budget form provided by SGMP.

The SGMP Treasurer’s Template is the standardized form for all chapters. These forms are required as of July 1, 2009, and replaced any other chapter budget forms that may have been in use prior to June 30, 2009.

Note - Please see the Chapter Toolkit for the current budget forms.

Chapter Budget Guidelines to Protect Non-Profit Status (The 80/20 Rule)

Section: Chapter Finances

Policy No: CF-3

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

For all SGMP chapters to meet IRS requirements for non-profit organizations income allocation.

POLICY

Each chapter is required to meet the financial obligations of a non-profit organization as determined by the United States Internal Revenue Service. The basic premise to adhere to in the chapter budgeting process is the 80/20 Rule. This means that 80 percent of the chapter’s annual budgeted income must be allocated to the education mission of the Society; these funds must be used in conjunction with or provide education to SGMP members. The remaining 20 percent of the chapter’s annual budgeted income can be allocated to the annual operation of the chapter.

These funds are used for the administration of the chapter. Please refer to the Chart of Accounts for a detailed description of how the income and expense transaction will be coded.

FORMS

Chart of Accounts

Chapter Budget Chart of Accounts

Section: Chapter Finances

Policy No: CF-4

Date of Origin: September 2008

Revised: March 2009; October 2009

Reaffirmed:

PURPOSE

To standardize accounting procedures and codes.

POLICY

All chapters are required to use the standard Chart of Accounts in their annual budget.

In an effort to streamline and standardize each chapter’s accounting procedure, and to adhere to IRS Form 990, Form 990-PF (electronic), and the 80/20 Rule, SGMP will require all chapters to use a standard Chart of Accounts. Chapter Treasurers are responsible for the accurate and proper coding of income and expenses to the appropriate account on the chapter’s budget.

Large chapters, with income greater than $25,000, shall use the 990-N form. All other chapters, with income less than $25,000, shall use the 990-EZ form.

The standard List of Budget Accounts has been created for all chapters. It has been outlined and organized in CBF-1, the Chapter Budget Forms. There are itemized categories in the List of Budget Accounts, and all transactions will be categorized into one of the four transaction types:

Assets
Assets are those items the chapter owns and which have value. Assets can include cash, accounts receivable (amounts owed to the chapter by customers), inventory, supplies, and equipment, such as a laptop or camera.

Liabilities
Liabilities are amounts owed by the chapter. Liabilities include items payable, accrued national fees, legal fees, tax fees, liens, or debts that are assessed to the chapter.

Expenses
Expense is the money the chapter pays for charges, such as monthly meeting expenses, speakers, chapter board travel, bank charges, or management fees.

Income
Income is the money the chapter brings in from events, raffles, registrations, memberships, and fundraisers. 

Chapter Financial Management Rules

Section: Chapter Finances

Policy No: CF-5

Date of Origin: September 2008

Revised: October 2009; April 2011; June 2014

Reaffirmed: 

PURPOSE

To provide expected guidelines in the allocation and spending of chapter funds that meet SGMP guidelines and ethics practices.

POLICY

All chapters are required to use the standard Chart of Accounts in their annual budget.

1. The chapter must ensure that the chapter expenses are separate from any board member’s personal expenses and that chapter funds are never included or held with member’s personal funds.
2. The chapter is required to provide sufficient documentation for all chapter financial transactions.
3. All chapter members requesting chapter funds for official purposes must always produce a receipt.
4. The chapter may never loan any chapter funds to anyone at any time for any reason.
5. The chapter is not allowed to pay for or refund a member’s annual membership dues in full or in part with chapter funds.
6. The chapter must ensure that chapter funds are used for authorized and legitimate expenses, which adhere to the Society’s mission (the 80/20 Rule).
7. The chapter is not allowed to use chapter funds to pay for or refund members’ fees for any certification costs (full or partial) other than the “CGMP” certification.
8. The chapter is not allowed to use chapter funds for donations and personal gifts for any reason. Community service donations backed by funds collected are exempt from this policy.

Chapter Banking Transactions Rules

Section: Chapter Finances

Policy No: CF-6

Date of Origin: September 2008

Revised: October 2009; July 2018

Reaffirmed:

PURPOSE

To establish requirements for the housing of chapter funds and procedures for banking transactions.

POLICY

All chapters are required to maintain chapter funds in a local bank insured by the Federal Deposit Insurance Corporation. The Treasurer is responsible for ensuring all spending transactions are properly approved.

Chapters are required to maintain a local bank operating account that is in the name of the chapter, which is co-owned by the Society of Government Meeting Professionals. The business address on file with the bank must be the official Post Office Box of the chapter that is on record with SGMP Headquarters.

All transactions involving chapter funds to be spent for official use must be approved by the Chapter Treasurer or by a majority Chapter Board vote. Amounts under $500 for Regular chapters and amounts under $1,500 for large chapters may be approved by the Treasurer or by the Chapter President, in the absence of the Chapter Treasurer. For expenditures above these thresholds, the Chapter Treasurer must seek and obtain approval from a majority of the Chapter Board.

Access to the chapter’s financial accounts will be restricted to the Chapter Treasurer, the Chapter President and the SGMP National Executive Director. They must be on the bank signature card. If the Chapter Treasurer’s or Chapter President’s Board position is vacant, an additional Chapter Board member may be granted access to the chapter’s financial accounts, with approval from the National Treasurer or SGMP National Executive Director. A copy of the signature card must be sent to SGMP Headquarters to be kept on file.

Chapter Treasurer approval threshold levels:

• Large Chapters up to $1,500 without Chapter Board approval.
• Regular Chapters up to $500 without Chapter Board approval.

Chapter Bank Signature Card

Section: Chapter Finances

Policy No: CF-7

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To provide guidelines for the bank signature card.

POLICY

All chapters are required to maintain a current and accurate signature card at the bank where chapter funds are held.

The bank signature card must always be current and up to date with the proper authorized signatures. All bank signature card changes must be completed no later than 30 days after any change has occurred with the Chapter Board, so that the most current banking information is on file.

SGMP Headquarters must be notified in writing of all changes to the banking signature card and/or records, and the written notice must be accompanied by a copy of the new bank signature card.

Chapter Debit Card Guidelines

Section: Chapter Finances

Policy No: CF-8

Date of Origin: September 2008

Revised: October 2009; September 2013

Reaffirmed:

PURPOSE

To provide accepted guidelines for the usage of chapter bank debit cards.

POLICY

All chapters are required to provide debit information to SGMP Headquarters and all debit card transactions must be reviewed twice a month.

Debit cards may be issued to only the Chapter Treasurer and Chapter President as listed on the bank signature card. The bank account should be restricted; no more than two debit cards may be issued. A photocopy of the debit card and government issued identification card of the cardholder must be kept on file at SGMP Headquarters.

The Chapter Treasurer and Chapter Board must review all debit card transactions, including ATM withdrawals. The Chapter Treasurer and Chapter President should view the chapter’s bank account online (or at the branch) at least two times per month to review the activity of the chapter’s checking account. If there are any questionable charges, the Chapter Treasurer or Chapter President has the fiduciary responsibility to follow up on the validity of the charge and its approval for use of chapter funds.

Chapter Financial Accounts Transition Schedule

Section: Chapter Finances

Policy No: CF-9

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To ensure chapters properly and in a timely manner address the transition of financial matters.

POLICY

Starting July 1 of each fiscal year, whenever a change occurs in the office of Chapter Treasurer and/or Chapter President, chapters will have 30 business days in which to change all financial accounts, passwords and PINs.

The outgoing treasurer and president must hand over the debit cards linked to the chapter’s bank account, and said debit cards should be destroyed in the presence of the previous cardholder.

Chapter Treasurer Responsibilities

Section: Chapter Finances

Policy No: CF-10

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To clearly state the fiduciary responsibilities of the Chapter Treasurer.

POLICY

The Chapter Treasurer is charged with the responsibility and custody of the chapter’s bank accounts and assets.

The treasurer must accurately account for all transactions that take place within the chapter’s financial accounts. Deposits and disbursements from all of the chapter’s financial accounts must be accounted for on the month end report.

The treasurer will be responsible to provide the Chapter Board with a monthly detailed account of all chapter transactions. Those monthly reports will be submitted at the end of each fiscal year to SGMP Headquarters along with the year-end financial reports.

The monthly report to the Chapter Board will include a copy of the previous month’s bank statement with all receipts or documents attached as back-up for the transactions on the bank statement.

The treasurer is obligated to strictly follow all of SGMP’s policies and procedures in regards to record retention, financial reporting, bank account management, and asset management.

The treasurers must follow the policies and procedures in order to maintain accurate and accountable records to operate under the obligations as set forth by the IRS and to ensure SGMP’s nonprofit status remains in good standing.

Chapter Accounting Procedures Requirements

Section: Chapter Finances

Policy No: CF-11

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To provide expected guidelines on keeping the financial records for the chapter.

POLICY

The Chapter Treasurer must maintain accurate records of the chapter’s income and expenses on a monthly basis.

Accurate records for all chapter income and expense transactions must be kept in an orderly fashion and must be reconciled with the chapter bank statement each month. All transactions must be accounted for by the treasurer.

All income and expense transactions on the chapter’s bank statement must be accounted for and accompanied by a receipt or deposit slip.

The treasurer will maintain a Treasurer’s Log, which will consist of, but not be limited to, all cash transactions, deposits, chapter expenses, asset information, and copies of all contracts for the chapter.

Chapter Receipts Requirements

Section: Chapter Finances

Policy No: CF-12

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To maintain due diligence in the practice of providing receipts for chapter expenses.

POLICY

The Chapter Treasurer must ensure that all chapter expenses are accompanied by receipts.

Receipts must accompany all expense disbursements from the chapter financial accounts. The receipts must be presented to the Chapter Board monthly and also sent to the SGMP Headquarters, with the Chapter Treasurer’s year-end financial report. In addition to the receipts, the year-end report would also include the Treasurer’s Log for that fiscal year.

Chapters that grossed more than $25,000, reference Policy CF-16 for timeline guidelines.

Chapter Deposits Requirements

Section: Chapter Finances

Policy No: CF-13

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To establish the required guidelines for the documentation of bank deposits.

POLICY

Deposit slips or ATM receipts are required to support all deposit transactions in the chapter’s financial accounts.

The deposit slips must be presented to the Chapter Board monthly and also sent to the SGMP Headquarters, with the Chapter Treasurer’s year-end financial report. It should match the accompanying cash sign-off sheet signed by the volunteer members who collected the money.

In addition to the deposit slips, the year-end report would also include the Treasurer’s Log for that fiscal year.

Chapters that grossed more than $25,000, see Policy CF-16 for timeline guidelines.

Chapter Cash Transactions Tracking Requirements

Section: Chapter Finances

Policy No: CF-14

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To establish the required guidelines for the documentation of cash transactions.

POLICY

All cash transactions must be properly recorded and verified at all times. A receipt book for cash transactions should be used at all times.

• Two members (volunteers) should verify the cash and present to the Chapter Treasurer or Chapter Board member for deposit.
• All three should sign off on the transfer of cash funds to the treasurer or board member, in the absence of the Chapter Treasurer (sign-off sheet available online). It is preferred that the treasurer be present, if possible, for the collection of checks or cash.
• Member volunteers may assist the treasurer or board member in the collection of chapter funds, as long as safe accounting procedures are mandated and followed.
• Any cash collected on the chapter’s behalf should be put into a sealed envelope and deposited as collected. Chapter funds should never be stored or kept with personal funds or replaced by a personal check for deposit.
• Deposit of chapter funds should take place by the next available banking day after they are received by the treasurer or board member, in the absence of the treasurer.

Chapter Check Writing Requirements

Section: Chapter Finances

Policy No: CF-15

Date of Origin: September 2008

Revised: October 2009

Reaffirmed:

PURPOSE

To establish the required guidelines for the documentation of the writing and issuance of checks. This policy is based upon Sarbanes-Oxley Act legislation passed by the United States Congress.

POLICY

All chapter checks must have the appropriate accompanying documentation provided in the chapter financial month-end report.

Accompanying documentation includes, but is not limited to, invoices, banquet event order forms, bills, receipts, and official SGMP reimbursement form with proper documentation.

SGMP strictly forbids the Chapter Treasurer or Chapter President to write themselves reimbursement checks or to directly withdraw chapter funds via a debit card for the reimbursement of chapter funds.

Chapter Audit Requirements

Section: Chapter Finances

Policy No: CF-16

Date of Origin: September 2008

Revised: October 2009; March 2010; April 2011; August 2014

Reaffirmed:

PURPOSE

To establish the required guidelines independent audits of chapter funds. This policy is based upon Sarbanes-Oxley Act legislation passed by the United States Congress.

POLICY

SGMP mandates that, as of July 1, 2008, each of the affiliated chapters have a year-end financial audit by an independent accounting firm or a financial review by SGMP’s Financial Review Committee.

The Financial Review Committee will be comprised of the National Treasurer, SGMP’s Executive Director, and at least one additional National Board member.

The Financial Review Committee will review all Regular chapters that gross less than $25,000 per year. The Large chapters that gross more than $25,000 per year are required to use an independent audit firm.

The auditing firms should be changed every five years to maintain a truly independent audit.

SGMP headquarters must review all chapters’ annual fiscal year-end financial report with all of their financial documentation. The fee for this service, to be billed annually, is based on the size of the chapter:

Chapter Financial Transactions Documentation Requirements

Section: Chapter Finances

Policy No: CF-17

Date of Origin: September 2008

Revised: October 2009; January 2018

Reaffirmed:

PURPOSE

Using the Sarbanes-Oxley Act passed by the U.S. Congress for guidance, SGMP has determined that our nonprofit organization should have a written, mandatory document retention and periodic destruction policy. Such a policy will also help limit accidental or innocent document destruction.

Each chapter is required to maintain written document retention of all financial transactions; these documents will be housed by SGMP Headquarters. The following policies and procedures cover document retention, back-up retention procedures, archiving of documents, and regular check-ups of the reliability of the system. Chapters are advised that if an official investigation is underway, or even suspected to be underway, the nonprofit management of the chapter must stop any document purging in order to avoid criminal obstruction charges.

POLICY

SGMP requires the Chapter Treasurer to properly and accurately account for all financial transactions made by the chapter.

The treasurer is responsible to balance the chapter’s checking account each month, reconcile any discrepancies, and provide a detailed financial accounting to the Chapter Board and SGMP Headquarters. The Chapter Board has the ultimate fiduciary responsibility for reviewing and approving the chapter’s financial reports.

The chapter’s monthly bank statements and debit card statements should be reconciled immediately when they are received. If errors are found, they must be investigated and reconciled before submission of the month-end financial report.  The treasurer and Chapter Board must submit the month end report to SGMP Headquarters no later than the 10th of the month. (If the 10th of the month falls on a Saturday, Sunday or Federal Holiday the report will be due the next business day.)

SGMP will require the chapters to record all financial information on the official SGMP accounting forms. After the information on revenue, expenses, assets and liabilities equity has been collected, the treasurer must set aside time to put this information into the SGMP standard accounting forms.

Chapter Monthly Review of Financial Accounting Forms

Section: Chapter Finances

Policy No: CF-18

Date of Origin: September 2008

Revised: October 2009; January 2018

Reaffirmed: November 2010

PURPOSE

To establish the required guidelines for a Chapter Board to review and assess the chapter’s financial health.

POLICY

The Chapter Treasurer and Chapter President should review the financial accounting forms at least once a month. The treasurer, or president in the absence of the treasurer, must present the current and updated forms to the Chapter Board at least once a month. These forms are as follows:

Balance Sheet

The Balance Sheet shows the financial position of the chapter by comparing the chapter’s assets and liabilities.

Profit and Loss or Income Statement

The Profit and Loss Statement shows the chapter income and expenses for the month. The expenses will be listed with a percentage column, so the Chapter Board may analyze the chapter’s expenses in each category, to determine future spending and asset allocation. This will help the Chapter Board ensure that spending is in line with the approved budget.

Accounts Receivable Sheet

The treasurer and board should review the chapter’s accounts receivables to ensure proper and timely payment from members and vendors. The form should detail which members and vendors owe the chapter and how long these amounts have been unpaid. The treasurer and board should actively pursue any accounts receivable to ensure the chapter collects all outstanding monies due to the chapter. The goal of every chapter should be to have no outstanding accounts receivable on the books for longer than 30 days.

During review of all the financial reports, it is important for the treasurer and board to analyze and assess the financial status of the chapter’s operating budget. Here are some guidelines to help make sound financial decisions.

Are the chapter’s expenses increasing?

If any expenses are increasing as a percentage to budget, it might be a sign that your chapter is spending too much money in this area. For example, if award expenses increase, the chapter may need to hold back on spending in this area. Analyze the entire budget. Decreased spending in one category may enable certain categories to exceed the budgeted spending amount.

Are revenues decreasing?

Revenue fluctuates during the year; revenues will go up and down at certain times of the year. If the chapter comes to the realization that income is declining with no reasonable explanation, the treasurer and board have the fiduciary responsibility to investigate. The board should analyze the following areas to determine why revenue may be decreasing: membership drops, missing or erroneous deposits, underestimation of fundraising events, lack of attendees at monthly meetings, or any area that may not be reported on the standard accounting form.

Are liabilities increasing?

Should the treasurer and board determine the chapter’s liabilities are increasing at a more- than-expected rate, please contact the National Treasurer and SGMP Headquarters to discuss options with the chapter.

Chapter IRS Tax Reporting Forms 990 & 990-PF

Section: Chapter Finances

Policy No: CF-19

Date of Origin: September 2008

Revised: March 2009; October 2009; January 2018

Reaffirmed:

PURPOSE

To establish the required guidelines in reporting IRS 990 forms for tax nonprofit tax purposes.

POLICY

All chapters must submit a year-end financial report to SGMP Headquarters by August 10 of each year.

The chapters are required to complete the SGMP Treasurer’s Template as specified in Policy CF- 2 and submit all receipts, bank statements, and supporting backup information that have been recorded in the year-end report for the specified tax year. Chapters must retain all records for a particular tax year together in one secure location. Yearly records must be maintained for a seven-year period. These financial records will be kept permanently at SGMP Headquarters under the Chapter Records Retention Program.

SGMP Headquarters will file the appropriate IRS 990 tax form for each chapter. Once the tax form has been filed, SGMP Headquarters will advise the chapter of its tax status, which will include a copy of the chapter’s Public Disclosure. Based on the chapter’s year-end tax status, and any associated service or filing fees, SGMP may have to advise the chapter in question that they will have to post a liability for the following fiscal year.

Large chapters, with income greater than $25,000, shall use the 990-N form. All other chapters, with income less than $25,000, shall use the 990-EZ form.

Chapter Savings, CDs, and Assets

Section: Chapter Finances

Policy No: CF-20

Date of Origin: April 2009

Revised: October 2009

Reaffirmed:

PURPOSE

For all SGMP Chapters to meet IRS requirements for non-profit organization income and savings allocation.

POLICY

All SGMP Chapters must obtain prior approval from the National Treasurer and the Executive Director before they can open and deposit any chapter funds into any type of savings account (examples of the types of accounts that must be approved are savings accounts, money market accounts, Certificates of Deposits and/or interest-bearing checking accounts, in addition to the chapter’s regular checking account).

A request for approval must be in writing and submitted to SGMP Headquarters, and written approval from the National Treasurer and the Executive Director must be received by the Chapter President before the savings account may be opened.

Chapter Dues Revenue Sharing for Existing Chapters

Section: Chapter Finances

Policy No: CF-21

Date of Origin: November 2008

Revised: October 2009; April 2011; August 2013

Reaffirmed:

PURPOSE

To establish the required guidelines for revenue sharing between SGMP (National) and the chapters. This excludes Educator/Student and Retiree members.

POLICY

The revenue share to chapters will be a flat rate of $25 per member (effective January 1, 2014).

Chapter Sponsorship of National Education Conference

Section: Chapter Finances

Policy No: CF-22

Date of Origin: November 2008

Revised: January 2009; October 2009; April 2011

Reaffirmed:

Eliminated: October 2013

Chapter Purchases of Gift Cards

Section: Chapter Finances

Policy No: CF-23

Date of Origin: January 2011

Revised:

Reaffirmed:

PURPOSE

To establish the required guidelines for the chapter’s purchase of gift cards.

POLICY

SGMP chapters are allowed to offer gift cards to members as awards or recognition (such as membership drives, chapter contests, committee involvement, etc.). Each member is only eligible to receive up to $25 per fiscal year. The chapter treasurer and chapter president must sign the SGMP gift card form at the time the gift card is purchased. That form must then be attached to the gift card and the member must sign it when it is received. A copy of that completed form must then be attached to the monthly financial report and submitted to SGMP headquarters for the month that the gift card was purchased.

The member who receives the gift card must sign-off on the form once they take possession of the gift card. The form with the member’s signature must be submitted with the financial documents in the month that the member takes possession of the gift card.

This policy is based upon the private inurement doctrine:

The doctrine of private inurement prohibits a tax-exempt organization from using its assets to benefit any individual or entity that has a close relationship to the organization (such as a director, officer, key employee), or other “insider” (such as members, volunteers and sponsors). The issue of private inurement often arises when an organization pays unreasonable compensation (more than the value of the services) to an insider, but the inurement prohibition is designed to reach any transaction through which an insider unduly benefits, either directly or indirectly, from his or her position in an organization using tax-exempt funds or assets.

Historically, the only sanction for a private inurement violation was revocation of the organization’s tax exempt status. However, the intermediate sanctions rules enacted in 1996 permit the IRS to impose an excise tax on individuals who improperly benefit from transactions using assets of a non-profit organization when that benefit does not conform to the non-profits primary mission. Also the managers of the organization who approved the benefit may also be assessed the excise tax.

Chapter Purchases of Gift Cards Form [CF-23]

SGMP chapters are allowed to offer gift cards to members as awards or recognition (such as membership drives, chapter contests, committee involvement, etc.). Each member is only eligible to receive up to $25 per fiscal year.

The chapter treasurer and chapter president must sign the SGMP gift card form at the time the gift card is purchased. That form must then be attached to the gift card and the member must sign it when it is received.

A copy of that completed form must then be attached to the monthly financial report and submitted to SGMP headquarters for the month that the gift card was purchased.

The member who receives the gift card must sign-off on the form once they take possession of the gift card. The form with the member’s signature must be submitted with the financial documents in the month that the member takes possession of the gift card.

Access a fillable Form CF-23