4-H Financial Update
Helpful Answers to Timely Questions
4-H Programming Dollars vs Council Income
- There are certain types of income for 4-H Councils -- fundraising efforts, small grants and donations are all acceptable.
Because 4-H educational programs are part of the University of Nebraska, these fees will be deposited in a university cost object. They will be assessed the 5% so budget accordingly. All programming dollars should run through a Cost Object. This includes county assistants. Tracking for assistant's dollars should be done within an Educator's cost object through the shadow system (Quicken/Excel). Housing programming funds in a 4-H Council is inappropriately mingling public and private funds and is a violation of University policy that would constitute misuse of funds. Those involved would face the resulting consequences.
If a volunteer is teaching programming we may have more flexibility as to location of dollars. Volunteers are working on behalf of the university (they are covered by our liability insurance), so we see them as staff. However, we know there are instances where we need a little flexibility which is why we won’t draw a hard line in the sand as to whether this money is ran through the Council or a cost object, the latter is preferred.
Councils can still provide funding to programming efforts and pay for expenses directly to the store, etc.
- Enrollment fees are the one “type” of programming fee that is still allowed in either a CO or a Council account. Livestock sale money and livestock pass through money should not run through the account.
P Cards - Per University Regulations:
- P Cards cannot be shared
- Assistants CAN GET “P Cards” - The primary approving official would be the Unit Leader and the secondary would be another Educator (Both Educators must have taken required training to approve).
It is also unacceptable to buy stuff for the Council using a P-Card.
General Exemption Date Reminders - For Clubs/Councils covered by NE 4-H Foundation
- January 31st - Club/Council Reports Due to County Offices
- May 15th - Filing Requirement with the IRS (Following this Deadline we will collect information about clubs you were unable to file)
- July 1st - Subordinate Spreadsheet Update Due
What to do when Clubs/Councils get donations
- When gifts of any amount are received by a 4-H Club or Council, the donor should receive a thank you letter acknowledging their gift. The amount of the gift should be stated in the letter. This letter will serve as the donor’s proof of the gift and can be used for tax purposes.
- For gifts of $250 or more, the thank you letter needs to be sent on official stationary of the Club/ Council. The logo needs to appear somewhere on the thank you letter.
- A business may also request the 501c3 letter as proof they are making a gift to a non-profit. This will be their proof that their gift is tax deductible. Most businesses will ask for the 501c3 letter. That’s pretty standard when they are wanting the tax deduction or need proof that we are a registered 501c3 organization. We have the letter available for counties to use, contact Lisa Kaslon or see the financial section of the 4-H website for the letter.
Debit & Credit Cards for Clubs/Councils
- Debit and Credit Cards are NOT allowed. They allow too much risk because purchases can happen without dual approval. We suggest that if a purchase needs to occur at an establishment that will not accept checks, that someone pays personally for the expense and request reimbursement from the 4-H Club/Council. That way we ensure there is dual signature. Another option is to have a direct billing process set up with vendors.
- It is required by 2018 to create a CWF Trip cost center account under UNL and run the deposit/fundraisers/contracts through the account. CWF trips are granted the return of the 5% assessment.
- UNL group travel credit card is available for use so Extension personnel don’t have to use personal funds.
- Sales tax for fund raising activities is processed by UNL. Contracts/agreements are written on between “Board of Regents and Nebraska Extension CWF in “X” and reviewed and signed by UNL Procurement.
- Depending on the request of the CWF leader, balance left in the account at the end of the trip can be refunded to the parents/youth, used for an “after trip” activity/banquet, or a small balance carried forward to offset the next trip activities.
- Because CWF is an educational program, these dollars are run through UNL accounting. This also ensures more rigorous accountability of this potentially large revenue source.
- For more information, contact Pat Nebin or Lisa Hastings.
Extension Boards & 4-H Councils
- There is no oversight from the Extension Board of the 4-H Council. Because the Nebraska 4-H Foundation is the financial umbrella to the 4-H Councils under the new GEN, that is where the fiscal oversight would come from in addition to the IRS! Program oversight would come from Nebraska Extension. The financial handbook asks that Councils give an annual report of finances to the Extension Board as a way to show how they are spending their money on the local 4-H program but there is not approval needed.