District 5840

Treasurer FAQ

 
Q:  What are District Dues?
A:
 
District Dues are the fees that district charges each club on a per member basis, based on Rotary International membership roster. The 2017-2018 District Due fee is $35 per member based on Rotary International's 30 June 2017 membership roster, which will be released after 15 August 2017.
   
Q:  What do District Dues cover?
A:
 
The majority of the fees are used to cover the cost of your President-Elect’s registration at PETS in March. It doesn’t cover their hotel or transportation just the PE’s registration for PETS. In addition, the fees are used to pay for District-level leaders training at PETS and other Rotary trainings. In addition, they are also used to defray general operating expenses of the district.
   
Q: When are they due and where do I send my payment?
A:
 
District Dues are payable to: Rotary District 5840 and should be mailed to the District Treasurer by 01 October. This year, 2017-18, your check should be mailed to: District 5840 Treasurer, PO Box 13, Boerne, TX 78006.
   
Q: What other DISTRICT FEES should our club budget for?
A:
 
 
 
Clubs should budget for at least 2 participants for RYLA (Rotary Youth Leadership Awards). Clubs located in the San Antonio area are automatically charged for two RYLA students. These students are picked from the San Antonio high schools by the RYLA committee and the various school districts. This is to avoid multiple clubs competing for the same students from the same high schools, which was an issue in the past. The cost for 2016-17 is $200 per RYLA attendee. Clubs are encouraged to send more than two students and should budget accordingly. You should include the RYLA fees in your dues check, payable to Rotary District 5840. If you decide to send more students after the dues check has been mailed, please inform the District Treasurer (d5840treasurer@gmail.com) and an invoice will be emailed to you.
   
Q:
Is District 5840 sales tax exempt? If so, what is the process for not being charged sales tax?
A:
 
 
 
Yes, District 5840 is sales tax exempt. A sales tax certificate needs to be given to the vendor in order to avoid being charged sales tax. The sales tax certificate is available on the District 5840 website under About Us tab, then under the Treasury link. Only the second page of the document must be given to the vendor. Ignore the first page of the document. Present this certificate to vendors when purchasing items on behalf of District 5840. Note that the District is not exempt from the hotel occupancy tax. In 2016-17, requests for reimbursement of sales taxes on items purchased for District 5840 use will not be reimbursed, unless the sales taxes are minimal, under $10. The District is also registered with WalMart International and Office Depot/Office Max as sales tax exempt.
   
Q: 
What is the difference between 501(c)3 and 501(c)4 organizations, and are both types automatically sales tax exempt?
A: 
The Internal Revenue Service (IRS) issues Federal Tax exemption through various classifications. Two of the most popular classifications for Rotary Clubs are IRC 501(c)3 and 501(c)4. One of the differences between the two classifications is that charitable donations from individuals to IRC 501(c)3 organizations may be tax deductible on the donor's tax return. Charitable donations to IRC 501(c)4 organizations are not tax deductible.  There are many requirements that must be met by a 501(c)3 organizations, including issuing tax receipt letters to donors and using the donated funds for the humanitarian purpose of the 501(c)3 organization. I recommend visiting the irs.gov website to read the necessary details. Click here for the link. Also download and read the IRS document Exempt Organizations.
 
Under the State of Texas, both IRC 501(c)3 and (c)4 organizations qualify for sales tax exemption, and franchise tax exemption. However, the organizations must request such status with the Texas State Comptroller's Office. Click here for the link. 
   
Q: What documentation is needed to have my expenses reimbursed by the district?
A:
First, you must seek approval of your committee chair, and/or the District Governor for budget approval of anticipated expense. Budgets are prepared in February for the upcoming year, and your committee chairs have been asked to submit their budget request. 
 
Once approval of the anticipated expenditure has been obtained, submit an expense report form (available on the District 5840 website under About Us tab, then under the Treasury link), complete with all data requested, and signed and dated. Attach all receipts, including a zero balance hotel folio, an itemized meal receipt, and other receipts as needed to support your expenses. Credit card statements are not acceptable evidence of expenditure. Adult beverages (beer, wine, or other alcoholic beverages) will not be reimbursed. Send the signed and dated expense report form along with the appropriate receipts electronically to d5840treasurer@gmail.com or mail them to Rotary District 5840, PO Box 13, Boerne, TX 78006. Reimbursement will be via a check within 2-4 weeks depending on the time of the year.
 
For air travel, members are encouraged to purchase tickets at least 21 days in advance to obtain the lowest fares. Lodging rates are usually preferential rates for Rotarians, but at times lower rates can be obtained by booking directly with the hotel. Remember that these reimbursed funds are coming from our members and we want to be efficient and effective in the spending of these funds.