Important Financial Reporting Information

Note to 4-H parents and leaders: You should become familiar with the information in this section to help your club or group treasurer with the required forms and financial reporting. More specific information on 4-H financial reporting requirements appears in The 4-H Name and Emblem and Tax-Exempt Status of 4H Organizations Authorized to Use the 4-H Name and Emblem, which are available from your local/county Massachusetts 4-H office.

Financial Guidelines for Massachusetts 4-H Clubs or Groups
Under U.S. Department of Agriculture and University guidelines, the local UMass State Extension office is required to keep track of all transactions related to finances in 4-H groups. It's extremely important that all 4-H groups show the source of any money they have raised and how it is disbursed.

Since Massachusetts clubs and groups do not pay county, state or national membership fees, local 4-H groups may choose to raise money for their goals through fund-raising or dues or both. A group treasury is optional but necessary if funds are maintained for group use. Fund-raising should be done for the good of the total group and should be consistent with the county/local 4-H fund-raising policies. Fund-raising should not be the main focus of group activities nor exclude any individual from participation. Groups are expected to support the financial needs of the total group and when possible, to assist with participant costs in county, state, national and international programs. Groups should keep their local/county Extension Educator informed as to when the fundraising is to be conducted in order to avoid running fundraisers that compete with one another (http://www.mass4h.org/volunteers/volunteer_forms/treasurers_forms/
excel_forms/FundraisingPlan.xls).

The following guidelines are in effect to help groups fulfill their responsibilities for handling funds:

1. Every 4-H group that has a checking or savings account is required to have an Employer Identification Number (EIN). 4-H groups with money in a bank need to apply for an EIN from the Internal Revenue Service using Form SS-4. A copy is provided on page 13 and county/local UMass Extension offices also have it. Be sure to put "4-H" as the first word of your group name on the form and on your group bank accounts. This will speed up
the application process and help ensure that the IRS grants your group nonprofit status. The group needs to report its EIN to the bank and the county/local UMass Extension office. Groups can be fined $50 by the IRS for failure to report an EIN (http://www. mass4h.org/volunteers/volunteer_forms/treasurers_forms/fss4.pdf).

There are several different ways to apply for an EIN.

a) You may complete the Form SS-4 and mail it to: EIN Operation, Holtsville, NY 00501. You will obtain the EIN in 4 to 5 weeeks.

b) You may complete the Form SS-4 and fax it to: 631-447-8960. Using the FAX-TIN, you can obtain the EIN within 4 working days.

c) You may obtain an EIN immediately by telephone, Monday through Friday, 7:30 AM to 5:30 PM, by calling the IRS at 800-829-4933.

d) Or you may apply on-line through the IRS Internet Web site. Go to http://www.irs.gov/businesses/small/article/0,,id=102767,00.html for filing information and the on-line application.

2. 4-H groups now need to obtain their own state sales tax exemption number. The University of Massachusetts tax exempt number can no longer be used. Contact your Massachusetts 4-H Extension Educator for the IRS determination letter and the group's official approval of a 4-H unit letter that must be signed by the Educator. Both forms will be needed to be included with your TA-1 form to apply for your 4-H group's tax exempt number. You will also need to supply your EIN number in order to complete the TA-1 form, so be sure that you have obtained that number first.

Links to these forms may be downloaded in the Massachusetts 4-H Treasurer's Resources Listing on-line at http://www.mass4h.org/volunteers/treasurers_resources.html.

3. The group treasurer can copy the forms in this book, the Massachusetts 4-H Treasurer's Book, and use them to show cash received, where the money came from and payments made, complete with check number, date and purpose. If the group does not have a checking account but does have a savings account,