Hello Comrades!
This month I am addressing Post Inspection Form Questions 19- 24 which involve the requirements of the Post QM, as specified in Section 218 (a) (5) of the National Bylaws.
Post Inspection Form Question 19 addresses some of the QM's responsibilities
Sections a through e address the QM ensuring books & records are legible and in uniform format, ensuring all monies such as membership dues, relief funds & committee funds, are handled in accordance with National Bylaws, and that transactions for the funds (including receipts & expenditures) are reported at Post meetings - aka the QM report.
Section f addresses proper filing of forms as required by federal, state & local statutes (i.e. taxes, non-profit status, charitable organization status, etc.) TN Secretary of State (SOS) & TN Dept. of Revenue both have requirements/forms which affect Posts
*TN SOS requires charitable organizations who solicit contributions from, or within, the State (i.e. a VFW Post) to register annually with the Division of Charitable Solicitations and Gaming. Annual registration is due within 6 months after fiscal year end. The VFW's tax year ends June 30th, therefore Posts must submit their annual registration by December 30th. For more information and forms, visit https://sos.tn.gov/businesses and https://sos.tn.gov/charities.
*Posts can apply for Certificate of Exemption from the TN Dept. of Revenue. This exemption applies to sales & use tax on products/services that the Post purchases for its use and consumption or to give away. Further information at https://www.tn.gov/Revenue
Section g & h deal with the IRS Annual Form 990 - required from a tax-exempt organization. IRS.gov states "An annual information return or notice is due by the 15th day of the fifth month following the end of an organization’s tax year." Since the VFW's tax year ends June 30th, this means Posts must file their return on or before November 15 each year.
Most Posts will file Form 990-EZ (Annual gross receipts < $200K/total assets on 6/30 < $500K) or Form 990-N (aka e-Postcard) if annual gross receipts are normally $50K or less. Failure to file for 3 consecutive years will automatically cause a Post's tax-exempt status to be revoked. For more information, see https://www.irs.gov/pub/irs-pdf/p4839.pdf
Post Inspection Form Question 20 asks for the Post's Federal Employee Identification Number (FEIN/EIN) *This is the equivalent of a SSN for an incorporated business or a non-profit organization. VFW Posts are required to be incorporated (Sec 708 of the National Bylaws) therefore every Post should have an EIN.
Post Inspection Form Question 21 verifies that all expenditures are voted on by the Post membership & approved by the Post Commander in accordance with Sec 218 (a) (1) f of the National Bylaws
Post Inspection Form Question 22 verifies that all expenditures from the relief fund are in accordance with Sec 219 of the National Bylaws *also in Sec 704*
Post Inspection Form Question 23 verifies that signature(s) authorizing disbursement of funds (persons signing the check) are in accordance with Post Bylaws *the use of dual signatures is one more way to internally control and manage the cash flow within your Post. A one-signature requirement means someone could potentially write checks improperly to themselves or another entity.*
Post Inspection Form Question 24 asks if checks are pre-signed by an authorized officer *checks should NEVER be pre-signed. Pre-signed checks can facilitate embezzlement & the bank could hold the Post responsible for the stolen funds *
Key Takeaway: A major factor in the success or failure of a Post is the ability & efficiency of the Quartermaster.
An honest, accountable officer never has to be forced to render a report & always welcomes an inspection of his records!
Respectfully,
Hannah Blurton
VFW Dept. of TN State Inspector
District 9 Sr. Vice Commander
Post 4780 Service Officer
Cell: 706-825-2918
