If your 4-H club has money in its treasury, it should be stored in a safe place (and that doesn’t mean under someone’s mattress!). It is a good idea, if your club hasn’t done so already, to open a bank account for the club’s treasury, keeping in mind the following:
- Don’t raise money just for the sake of raising money. Your club should have a purpose for raising money, such as a trip or a recognition dinner. All the money (receipts and expenses) should go through the treasurer. Try to establish a budget for the year.
- Your treasury should have a minimum carry-over from year to year. Those who raised the money should spend it.
- The treasurer should keep accurate records and a report should be given at each meeting.
- The treasury should be audited annually by a committee from your club.
- Withdrawals from the bank and payments of bills should be approved by the club.
- To open an account, your club will need an “Employee Identification Number” (EIN). Do not use a personal Social Security number on a 4-H club bank account. Your club must apply for an EIN with the Internal Revenue Service using IRS Form SS-4. These forms are available at local Social Security offices, banks, and IRS offices.
- If your club disbands, the funds in its treasury should be given to a worthy cause—for example: 4-H Committee, 4-H Camp Scholarship Fund, County 4-H Endowment, or another charity. If your club divides, the treasury should be divided based on membership with equal shares per member going to the respective club treasury.
- If your club’s gross receipts exceed $25,000 in the tax year, your club is obligated to file an Annual Information Return with the IRS.
Having a bank account will be a learning experience for the members of your club. It will teach them to reconcile bank statements and how to handle money responsibly.