Funds Accountability Policy
Prudent, consistent and accurate recording of all income and expenses related to activities sponsored by the Pine Belt Pacers (PBP) is required to maintain fiscal responsibility and to ensure that PBP adheres to tax laws and maintain organizational integrity. This Funds Accountability Policy is established to set forth expectations to meet these goals. It is not intended to encompass all situations but to set fort minimum standards to which PBP as an organization and PBP members are expected to conduct their events and activities.
Federal Tax Filing Requirements:
PBP has been approved by Road Runners Club of America (RRCA) to utilize its Federal ID Number (05-0547796) under the RRCA Group Exemption Number (2702). RRCA has designated PBP as Club Number 1315. Accordingly, contributions to PBP are tax deductible to the person or entity making them as a Section 501 ( c ) ( 3) organization. Race entry fees are not deductible. The amount of membership dues that exceeds the value of benefits provided by club membership is also deductible. The value of goods, services or cash donations are generally to be considered fully deductible when such items go to support a PBP event such as a race or meet even though the donor’s name or logo may be displayed on PBP materials, promotional items, website, etc. Any value derived from the display of the donor’s name or logo on PBP materials or promotional items is nominal, indeterminable in nature and would be considered included on such items as a courtesy to the donor.
PBP is responsible to adhere to Federal Tax Filing Requirements. Currently, those requirements are:
Form 990 – Return of Organization Exempt from Income Tax (if applicable)
Form 990 – T – Exempt Organization Business Income Tax Return (if applicable).
Form 990 – N Annual Electronic Filing Requirements for Small Exempt Organizations (if applicable)
Form 990 must be filed annually if the PBP’s gross receipts normally exceed $25,000.
Form 990 – T must be filed annually if the PBP have gross receipts of $1,000 or more from an "unrelated trade or business."
Form 990 – N must be filed annually for if PBP have gross receipts are normally less than $25,000.
Tax Filing Requirements:
Pursuant to Miss. Code Ann. Section 79-11-505(1), certain organizations are exempt and not required to file an annual registration. A summary of these organizations include:
Accredited educational institutions and foundations associated therewith;
Fraternal, patriotic, social, educational, alumni organizations and historical societies who use only their memberships to solicit contributions;
Persons who are soliciting contributions for specified individuals in need, if the solicitations are made solely by persons who are unpaid;
Organizations which do not intend to solicit or receive and do not actually receive more than $25,000 per year in contributions;
Organizations which receive allocations from registered united funds or community chests and receive less than $25,000 from other sources;
All volunteer fire departments and rescue units which are chartered as non-profit organizations by the State of Mississippi;
Any humane society which contracts with counties or municipalities for the care and keeping of strays.
This exemption is granted under a very limited basis by Secretary of State rule or order only.
If there is any unrelated business income, it must be filed and reported with the Federal 990-T attached on the Mississippi corporate income tax return (Form 83-105).
PBP hosts many different events. These events may be social in nature, business meetings, banquets, races, meets or other types of competition. An event should be included in the PBP calendar of events and / or deemed a PBP sanctioned event by the membership or officers.
To further determine if an event is a club event in regards to the Funds Availability Policy, other factors can be considered. Those factors have been outlined by RRCA regarding liability coverage through RRCA. Some of those factors are (per December 2007, Inside Track, Quarterly Newsletter for Members of the RRCA):
Does the club identify the event as a club event by listing it on the club’s event calendar?
Does the PBP board meet to make decisions regarding the event?
Is the club involved with the event planning at each stage?
Is the event referred to in the club meeting minutes as a club owned event?
Does the club, in addition to managing all aspects of the event, train and supervise the volunteers on the course, at the aid stations, and at the finish line?
Do the words "organized by" (or similar wording) with the name of the club appear on the race entry form or promotional materials or items?
Do participants and sponsors make their checks payable to PBP?
Do the event proceeds go into the club’s checking account before being disbursed to vendors or charities?
Properly Remitting Receipts and Expenses:
In order for PBP to accurately determine its annual gross receipts it is imperative that all income derived from club activities are properly recorded on the books of PBP. The race director or event chair of any activity deemed to be a PBP activity shall be responsible for remitting all funds received to the PBP treasurer for proper recording. (see Club Events section to determine if questions exist that the event is a Club Event)
All expenses shall be paid directly to the service provider or receipts must be provided regardless of amount for reimbursement to a PBP member. Expenses should be of a reasonable amount and properly supported with documentation unless the expense is a normal, recurring expense for club operation such as insurance, rent, utilities, taxes, etc. Said normal, recurring expenses shall be tendered directly to the service provider or vendor. PBP officers (President, Vice-President, Secretary, and Treasurer) have the authority to determine if an expense incurred by a member who is requesting reimbursement is unreasonable or does not have sufficient documentation. Three of the four officers must determine that the expense is unreasonable or unsupported. No club member should pledge club funds for any purpose without similar approval from PBP officers or a club motion.
This policy is hereby approved and recorded in the minutes of the Pine Belt Pacers. It can be amended from time to time as determined necessary by vote.
Policy Approved:___________________ (date)