Club_Officers_Handbook_2016

District Finances

1. Sources of District Funds a. Effective January 1, 1998, each district receives 10 percent of national dues per member, per year, refund‑ ed from Ruritan National. b. District dues are optional. Each district may es‑ tablish its own district dues. The amount of dues per member of each club shall be determined by the district cabinet provided any increase in dues shall not become effective until approved by a 2/3 vote of the delegates at the next district convention. Notice of such proposed dues increase shall be sent to the president of each club in the district at least thirty (30) days prior to the start of said convention. 2. District Expenses Paid by Ruritan National a. One-half expenses of the district governor and the immediate past district governor to the Ruritan National convention, as specified on the back of the expense voucher form providing: (1) The district governor attends the District Gover‑ nors’ School at the national convention as well as substantially all the meetings of the convention, and, (2) The immediate past district governor attends the meeting of the national convention, and must have attended district officers leadership training in the fall unless otherwise excused by the Ruritan National President. (3) The district financial reports (Forms R-35 received at the National Office by November 10) (R-36 are re‑ ceived at the Ruritan National Office by February 10.) b. Lt. Governors must attend the Summer Leadership Conference unless absence is approved by the Ruritan National President. District governors are invited to attend the Summer Leadership Conference with the stipulation that expenses be reimbursed for one room and one travel per district, plus food (exceptions for distance and gender related problems). c. Expense vouchers should be submitted promptly. Expenses more than six months old cannot be paid without special approval of the Ruritan National Board of Directors.

Income Tax Exemption One of the values of Ruritan membership for clubs is income tax exemption. Each club affiliated with Ruritan National automatically has income tax exemp‑ tion under the blanket exemption issued to Ruritan National. The Ruritan National group exemption number is 1615. b. One-half of the expenses of the district governor and the immediate past district governor to the national convention. c. Committee meetings related to the district conven‑ tion. d. District convention expenses not otherwise met. e. Awards and recognition. f. Expenses to zone meetings. g. District supplies and equipment costs. h. Meetings other than Ruritan when representing the district. i. District newsletter, directory, or other publications. 3. Expenses Paid by the District These shall be determined by the district cabinet at its first meeting each year and may include: a.Travel, stationery, postage, and telephone expenses of the district governor, the lieutenant governor, the zone governors, the district secretary, the district trea‑ surer, growth and development chair, and the founda‑ tion chair.

District

All clubs should have an unique and individual Em‑ ployer Identification Number (EIN). This EIN number is obtained by filing form SS4 with the Internal Revenue Service. Ruritan National assists clubs who may have problems related to IRS. By contrast, unaffiliated clubs may have difficulty obtaining tax-ex‑ empt status and would receive no help in filing proper forms or in handling problems that might arise with the Internal Revenue Service . IRS Tax Form 990: All Clubs Must File Ruritan National and Ruritan Clubs are 501(c)4 organizations which means they are exempt from paying income tax on earnings but that no one making a donation receives a tax deduction. Beginning in 2008, small tax-exempt organizations like Ruritan clubs, that previously were not required to file re‑ turns, are required to file some form of the IRS Form 990. This may be simply the Form 990-N, Electronic Notice (e-Postcard) for it may be Form 990 or Form 990-EZ . This filing requirement applies to tax periods beginning after December 31, 2006. Organizations that do not file the notice will lose their tax-exempt status. With the enactment of the Pension Protection Act of 2006 (PPA), even small tax-exempt organizations with minimal income will now be required to file electronically Form 990-N, also known as the e-Postcard , with the IRS annually. According to the IRS, the form should be filed by the fifteenth day of the fifth month after the close of your tax year (for most Ruritan clubs that will be May 15th). If you have any questions, call Ruritan Service toll free at 877-787-8727 ext. 303 or email at service@ruritan.org.

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Revised 8/2016