ΜΒΨ Policy Library

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====== Finance Policy ======
Ratified: July 15, 2005

Amended: September 16, 2011

Last Amended: May 28, 2022 by Jackie Harms, AA Secretary

===== Article 1: Fiscal Year =====
The fiscal year end will be June 30.
===== Article 2: Accounts =====
  - Established accounts shall be the General Fund, Music Makers Fund, and Reserve Fund.
    - The General Fund shall be the primary operating account for the Alumni Association. All budgetary disbursements shall come from this account unless otherwise specified.
    - The Music Makers Fund shall be managed by the Music Makers Committee Policy
    - The Reserve Fund shall be utilized to manage and grow the Alumni Association’s reserved assets.
      - No investments or disbursements shall be executed when such an action would reduce the reserved assets in the fund’s primary bank account below $5,000.
      - Reserved assets in excess of $5,000 may be used to enter into investments by recommendation of the Alumni Executive Committee and a 2/3 majority vote of the Alumni Association meeting body.
      - Reserved assets in excess of $5,000 may be used to promote Mu Beta Psi Alumni Association or Mu Beta Psi National Honorary Musical Fraternity Inc. in accordance with disbursement rules set by this policy. Such uses include but are not limited to:
        * Scholarship contributions
        * Scholarship endowments
        * Faculty or facilities endowments
    - The Reserve Fund shall hold designated donations, except funds designated for the Music Makers Fund, until they can be appropriately disbursed. Designated donations shall not be considered reserve assets.
    - Funds may be transferred to or from the Reserve Fund by recommendation of the Alumni Executive Committee and a 2/3 majority vote of the Alumni Association meeting body.
    - Funds may be transferred from the General Fund to the Music Makers Fund with the approval of the Alumni Executive Committee.
  - At the end of every fiscal year, the Alumni Executive Committee will evaluate the General Fund and Reserve Fund balances and recommend to the Alumni Association meeting body whether or not to transfer money between funds, and if so how much.
===== Article 3: Dues and Fees =====
  - Dues and fees will be as follows:
    - National dues and per brother assessments will be as determined by the National Organization.
    - Chapter dues will be $25.00 for both Active and Associate Brothers.
      - $7 of Chapter dues shall be allotted to the Reserve Fund.
    - Chapter dues shall be waived for the first year for first time members.
    - Associate Brothers shall not be required to pay National Fraternity dues.
  - Dues will be payable as follows:
    - Mid-year Meeting: National dues/assessments and Chapter dues for all Brothers seeking active status during the period from Mid-year Meeting until the next Mid-year Meeting.
      - Should a Mid-year meeting not take place by the National Organization's deadline for National Dues, the Treasurer shall take appropriate steps to ensure the good standings of the Alumni Association and the active status of its members.
    - Convention Meeting: National dues/assessments and Chapter dues for all Brothers seeking active status during the period from the Convention Meeting to the next Mid-year Meeting.
  - The Treasurer will report the names, if any, of all Alumni Association members who are also National Officers, Committee Chairs, and/or members of the Board of Trustees of Mu Beta Psi, National Honorary Musical Fraternity to the National Secretary if those Brothers have not paid their Chapter dues by 1 September.
    - This report shall exclude Brothers whose Chapter dues have been waived per Section 3.1.3.
===== Article 4: Budget =====
  - The budget year shall be the same as the fiscal year.
  - The Treasurer shall write a budget to be presented at the Chapter’s Convention meeting.
  - Budget Composition
    - A budget for each fund listed in this policy shall be constructed to comprise a master budget for the Chapter. The budget for the Music Makers Fund shall be constructed with input from the Music Makers Fund Committee.
    - Each committee shall have a budgetary allocation proportionate to its expected needs and past usage. This allocation should be made with the committee’s input.
    - Each officer shall have a budgetary allocation proportionate to their expected needs and past usage. This allocation shall be made with their input.
  - Funds allocated by the Alumni Association meeting body must be spent within one (1) year of allocation.
===== Article 5: Gift Acceptance =====
  - All members of the Alumni Executive Committee or their duly appointed designees shall have the authority to solicit and/or accept gifts on behalf of the Alumni Association.
  - The Alumni Association reserves the right to decline any financial commitment, gift, or bequest, as well as the right to determine how a gift will be credited and/or recognized.
    - The Alumni Association shall at all times make a good faith effort to apply designated gifts towards their intended purpose, but donors shall consent that the Alumni Association has sole discretion and control over donations. Gifts contributed with this discretion specifically withheld are not eligible for a charitable deduction.
  - All information about donors and prospective donors shall be kept strictly confidential by the Alumni Association unless the donor or prospective donor grants permission to release such information. All requests for anonymity will be honored, except to the extent that the Alumni Association is legally required to disclose the identity of donors.
  - Unrestricted gifts shall be encouraged unless (1) the donor indicates that they are willing to make a designated gift only, or (2) the option of a designated gift will otherwise significantly increase the chances of obtaining a gift from the donor.
    - Unrestricted gifts shall be allocated to the General Fund.
  - All receipts from unrestricted bequests, annuities, charitable remainder trusts, or charitable lead trusts shall become a part of the General Fund.
  - Designated gifts shall be allocated to the appropriate Fund.
    - Gifts designated for the Music Makers Fund shall be allocated to the Music Makers Fund.
    - All other designated gifts shall be allocated to the Reserve Fund.
    - The Treasurer shall maintain a record of designated gifts that records date of donation, purpose of donation (designation), date of disbursement, and any other relevant information.
  - Prospective donors shall be responsible for their own legal, accounting, appraisal, transportation, and other fees related to their gift(s).
  - No member of the Alumni Association, regardless of status, shall provide legal or tax advice to any donor or prospective donor regarding their gift(s) to the Alumni Association.
  - Donors are responsible for obtaining their own appraisals of in-kind gifts for tax purposes. The Alumni Association reserves the right to obtain its own qualified appraisals of items being offered as a gift, at its own expense.
  - The Alumni Association will acknowledge receipt of gifts in accordance with Internal Revenue Service requirements, and will sign any documents necessary for the donor to obtain a tax deduction for such gifts, so long as such acknowledgment does not entail valuing the gift.
  - The President and Treasurer are authorized to enter into planned gift agreements on behalf of the Alumni Association and to execute any and all documents necessary or appropriate to consummate such agreements.
  - Exceptions to these Gift Acceptance policies may be made only in exceptional circumstances, on a case-by-case basis, and shall require a 2/3 majority vote of the Alumni Association meeting body.
===== Article 6: Reimbursements =====
  - Reimbursements will be processed with priority given to funds allocated in the budget for the current fiscal year, and then to funds approved separately by the Alumni Association. 
  - Expenditures over the budgeted/allocated amount must be approved by the Alumni Executive Committee.
  - Reimbursement requests must be submitted within thirty (30) days of the end of the budget year.  Requests submitted after this period will NOT be honored.
  - Reimbursements will only be processed upon presentation of proper receipts and upon completion of a reimbursement form.
    - The reimbursement form shall be maintained by the Treasurer.
  - Reimbursements for budgeted allocations or non-budgeted allocations shall be processed by the Treasurer and require no additional oversight. Reimbursements issued to the Treasurer shall require written approval from the Chapter President.
===== Article 7: Disbursements =====
  - Invoices may be paid directly from Alumni Association funds. 
  - Any budgeted allocation or portion thereof not disbursed by thirty (30) days after the end of the fiscal year shall be de-obligated.
  - A donation to Mu Beta Psi National Honorary Musical Fraternity, Inc. from the Reserve Fund shall be made at the end of each budget year equal to the amount collected by the Mu Beta Psi Alumni Association during that budget year for that purpose."
  - Disbursements of designated funds from the Reserve Fund shall be approved by the Alumni Executive Committee.
  - Disbursements of undesignated funds from the Reserve Fund shall be recommended by the Alumni Executive Committee and approved by a 2/3 majority vote of the Alumni Association meeting boyd.
===== Article 8: Government Compliance =====
The Treasurer shall file all applicable federal, state, and local tax forms within appropriate deadlines, and shall process any and all tax liabilities accordingly. The Treasurer shall notify the President in writing upon filing any and all tax forms.
===== Article 9: Policy =====
  - This policy shall be revised as necessary by the Alumni Association Executive Committee.
  - The revised policy shall be approved by a majority vote of the Alumni Association meeting body.
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