MN Digital Sales Tax and Affordable Health Care Act

MSAE's Financial & Accounting Networking Group met last November to discuss the MN Digital Sales Tax and Affordable Health Care Act.  Here are the top takeaways from the meeting:

• Health care is a moving target, no firm plans to change.
• It was not legislative intent to tax on demand education, dealing with how to handle it now.
• Can't have tax that is discriminatory (some taxed) - in-state vs. out-state.
• To change the MN Digital Sales Tax, we need a coordinated effort - stay tuned for updates and contact your congressperson.

These issues are sure to come up again, we'll keep you posted as we learn more.  

Reimbursing Members & Policies

MSAE's Financial Networking Group met today to discuss reimbursement policies and procedures - what works, what doesn't and how we can be more efficient.  Here are the top takeaways:

• Have your cancellation and expense policies in writing - and be specific on what can be expensed and what can not - for example, first class airfare, limo transportation, spouse travel, specific date for cancellation, etc.  
• Sample Expense Reimbursement Policy from the MN Attorney General's Office
• Receipts, Receipts, Receipts - Require Them! 

Networking Group Day

60 members joined MSAE for our first-ever Networking Group Day on 1/31. It was a great way to kick off 2013, showcase and participate in MSAE's six networking groups, connect with members and share ideas. Here are the top takeaways from each Networking Group discussion:

Allied Networking Group

Marketing Sales Techniques

• “Cold calling” / prospecting – utilize resources like LinkedIn, Google search and Facebook; rethinking preferred method – email; send subtle follow up.
• Concessions – comp stay “secret shopper” evaluations with video testimonials; making sure both parties are benefitting.
• Building the relationship / creating the experience.

Creative Approaches to Close the Sale

• My competition doesn’t have “me” – the relationship is the close.
• The authentic close – engaged and aware of their needs. Listen.
• Simple gestures go a long way and sometimes inexpensive gestures go further and mean more to the clients.

Communications Networking Group

Google Apps & the Cloud

• Utilize Google Alerts to have specific web content delivered to you via email on the regular basis you specify.
• Use the "trick" of searching a specific website right from Google's homepage by typing into the search bar: "search term" site:[website domain]. Example: "communications" site:msae.com
• Consider the potential issue of "Who owns the data?" when it comes to cloud applications.

2013 Communication Trends

• The idea that we are no longer in the "information age" - we are in the "attention age" - you must communicate to get people's attention and then keep it!
• Websites are the primary source of communication today and "responsive web design" is a trend to watch - part of the evolving conversation of what it means to "go mobile."
• Infographics are a new communications tactic that you can use to deliver information in a visually interesting, easily digestible way. Reconsider "stock" print collateral like membership brochures, annual reports and holiday cards to see if infographics could be employed to better deliver this content.

Financial & Accounting Networking Group

Budgets & Project Allocation

• Consider line item for reserve line item.
• Project allocation – consistency and look at big picture time allocation from software.
• Need detail to produce good reports and good association management software to provide accurate information.

Controls & Fraud

• Separation of duties, multiple people review purchases and statements.
• Credit card controls protect from unauthorized access.
• Financial audit is not fraud investigation. 

Meeting Management & Education Networking Group

Special Events

• Serve meal without dessert and auction off desserts.
• Incorporate community/charity outreach projects within events.
• Hold an event at a high-end car dealership.

Great Meeting Ideas

• Social Media Bar to train and increase social media presence.
• Ignite sessions – igniteshow.com.
• Experience – people want an experience at meetings/committee meetings.

Membership Networking Group

Increasing Dues and Revenue Streams

• Affinity programs / partnerships.
• Establish ROI – professionally and personally for members.
• Proprietary packaging brings in money.

Member Engagement

• To create an experience for everyone to take away.
• Engagement is about feelings; if you can create positive feelings in all events, communications, etc., you’ll be creating engaging experiences.
• Take join OFF your website; you’re not joining, you’re connecting.
• Have fun!

Young Professionals Networking Group

Generations in the Workplace

• Using a “mentor” to go to about advice / approaches with different generations can help in challenging situations.
• Important to find right communication styles between generations – will help working relationships.
• Build mutual respect is key.

Managing Relationships

• “It’s not who you know, it’s who knows you.”
• Follow up after initial contact with something light to maintain your relationship with the planner.
• Find a mentor.

For more information on MSAE's Networking Groups, visit www.msae.com.

Health Insurance and Benefits

At the October Financial & Accounting Networking Group meeting, we discussed health insurance and benefits.  Some of the items covered were HSA's, self-insured portion, Obamacare, public/private exchanges, small business health insurance credit, tax provisions for 2014 and more.  Here are the top takeaways:

• Be more aware of what you are offering (programs, etc.) and look at it annually.  Individuals being insured need to be aware of plan - communicate costs to association with your employees.
• There are a wide variety of options out there - not one size fits all, you will pay if not aware. 
• Stay on top of new changes to the law.  

Budgeting & UBIT

MSAE's Financial & Accounting Networking Group met recently to discuss budgeting for associations and UBIT (unrelated business income tax), as it relates to the financial side of business.  Below are the top takeaways from the meeting:

• Rolling Forecast - seeing more nonprofits use this type of budgeting, there is no set budget but the organization is constantly looking at numbers (for example, 12 months ahead at all times, vs. one calendar year).
• UBIT - the group talked about the difference between sponsorships (no qualitative statement about product or service), endorsements (hands on activity or call to action for preferred vendor) and royalties (excluded from UBIT).  
• Always remember that profit is good and if UBIT is required, it's still profit

The group will meet next on Tuesday, October 2 to discuss Health Insurance & Benefits. To register, visit www.msae.com/calendar.

New Trends in Trade Shows/Exhibits/Expo and Sponsorships/UBIT

At our recent Meeting Management Education Council meeting, the group had a lively discussion on sponsorships & UBIT (Unrelated Business Income Tax) and new trends for trade shows. Here are some of the takeaways:

Sponsorship

• First and Foremost - always consult your legal and tax personnel for more details and advice. The information provided below was taken from our meeting and is not meant to be used as tax or legal advice.
  
• Some of the big changes with UBIT relate to ads - the words marketing, advertising, ads, advertisements make the sponsorship dollars taxable, need to acknowledge sponsors instead of advertise for them - use words like sponsorship recognition, alternated recognition (instead of rotating ad), etc. in your sponsorship programs
• Sponsorship Q&A Article from Moore, Costello & Hart
• Create more opportunities for sponsors - conference and association apps are popular right now, some of our members have paid $6,000 and up to have a professional app created, free app builders are available too, like ibuildapp.com and guidebook.com.
  

New Trade Show Trends

• Open format with exhibitors around the perimeter; food, big sponsors and sessions in the middle
  
• Provide a session for exhibitors to train them how to make most of experience (benefit if register early, at event or prior add-on)
• Beer & Wine Tour to check out all areas of the trade show floor (have drawings, tastings, etc.)
  

Form 990 & Internal Control

MSAE's Financial & Accounting Networking Group met today to discuss Form 990 and learn from each other's experiences. Below are the top takeaways from the meeting:

1. Changes to Form 990 for 2011
   
2. Visit GuideStar online to view Form 990's - it's all online and easily accessible.
   
3. If board member recommends friend/family member for service, probably in best interest to avoid due to conflict of interest policy.
4. "It's okay to be on the leading edge, not the bleeding edge"

The group will meet again on May 10 at The Harrington Company to discuss budgeting and UBIT, visit MSAE's Calendar of Events to register.

Board Orientation Best Practices

MSAE's Financial & Accounting Networking Group recently met to discuss board orientation best practices, from a fiduciary perspective. Here are the top takeaways from the meeting:

1. Include a confidentiality section as part of your board orientation and policies.
2. Post minutes, board packets and policies online - it will save you time and money!
   
3. You must have D&O insurance and make sure check what it covers - limits, etc.

The group will be meeting again in 2012 - stay tuned for meeting dates.

Taxes for Online sales starting to look possible

Jim Puzzanghera from the Los Angeles Times reported that lawmakers, looking to help cash strapped local governments, are coalescing around legislation aimed at letting states require most online retailers to collect sales taxes from customers.

http://lat.ms/rMseg5

Mobile bill-pay could carry high costs

From the Minneapolis Star Tribune.  Info on tips and safe mobile payment practices.
http://bit.ly/lkAWRK

Cash vs. Accrual Accounting for Associations

The MSAE Financial Networking Group met on May 11th and discussed the pros/cons of cash and accrual accounting systems, as well as tips to make the process easier. Here a few of the takeaways from the meeting:

1. The definition of Cash & Accrual Accounting:

• Cash Accounting: An accounting system that recognizes income when it is actually received as cash and expenses when they are actually paid rather than when they are earned or incurred. Pros/Cons: Generally easier, less time consuming, harder to know where you are throughout the year.
  

• Accrual Accounting: An accounting system that recognizes income when it is earned and expenses when they are incurred, rather than when they are received or paid. Pros/Cons - Allows you to get a clear picture of where you are throughout the year, more time consuming than cash.
  

2. W-9's - Ask for W-9's from speakers before the check gets cut (if over $599), add to the speaker confirmation.

3. Dues/Renewals - If you have members who are continually paying dues late (more than 90 days), charge a processing (or rejoiners) fee to rejoin. Other ideas include: keeping the original start date (so they don't get three months free), give them a new start date (don't get to keep their original start date and longevity) or if late, they don't get included in the directory.

4. Don't record dues as AR, it depends on the situation.

Health Care Reform

Takeaways from the Financial Networking Group Meeting - 2/3/11

1. Be vigilant and stay informed
   
2. Find good resources, RJF Agencies offers free health care compliance updates
   
3. Right now, there are a lot of questions - there is much more to come!

Resources:

• Small Business Health Care Tax Credit for Employers with fewer than 25 employees
• Form 8941: Credit for Small Employer Health Insurance Premiums
  
• IRS Webinar on Small Business Health Care Tax Credit on 2/16/11
  

As if we don't have enough to do

Remember, if the 1099 legislation is not changed - we will have to send 1099s to all companies to whom we've paid more than $600. Start collecting tax ID numbers. And here's a tip...include your tax id number on invoices that you send out, people won't have to call you.

Collecting Bad Debt

Top Three Takeaways from the Financial Networking Group Meeting - 9.21.10

• Let staff know which invoices are outstanding - sounds simple but it works! Staff are much more likely to follow up on invoices when they know about them.
  
• Think about the value of statements - do they include dues, do members pay off them, are they working?
  
• Re-evaluate credit card fees - many times you can save lots of $$ here, do this often as rates tend to increase without your knowledge.

Cash Management & Reserves

Top Three Takeaways from the Financial Networking Group Meeting - 10.3.10

• Have a formal investment policy - Sample Investment Policy, Sample Investment Policy #2
  
• Check on bank and credit card fees - where can you save?
  
• Technology - use electronic storage, desktop imaging and other technologies to save you time - Nonprofit Operating Reserves Wiki

990s. file it.

IRS to offer relief to 990 filers.http://http://bit.ly/91FFLr

Credit cards -Legal essentials

If you take credit cards - it's important you read this article. All merchants MUST comply with the Payment Card Industry Data Security Standard. (PCI) Find out about the critical steps that you should be taking to protect your organization and your members.
http://bit.ly/afrERq

Non-activity fee?

Last week, John Stewart talked about the new banking/creditcard/transparency/fee/new regulation fiasco. Of course he told several funny stories about how people are enticed into using credit cards and then with interest fees, and finances charges, taking 11 years to pay off a $3,000 purchase, when just making minimum payments. There were stories about unannounced changes to payment due dates, which resulted in - what do you know, late fees. What's next he wondered, "having to pay a fee for not using the card?" Sounds funny, but recently I was charged a $40 non-activity fee for a small savings account that had been held at a bank for some 15 years. Want to know what I did with my account? I imagine you can guess. Morale of the story - consumer beware!

The economy

The economy is not in a good way. We all know that. So how to move forward? It's all about getting creative, adding value, generating new ideas, and harnessing the power of your members to help your organization grow and move into the future. Have you asked you members lately what they need and want? Scrap those projects that are struggling or don't provide any benefit. Throw your time, energy and resources on something that can make a difference. Show how your association does make THE difference.

Finally, Recession

Finally, it's called a recession. Most of us common folk knew that all along. Strange that it takes the government a year to figure it out. Makes one wonder doesn't it? It also makes me think, so what? Now that it has a name, what difference does it make? I attended a session this week to hear an economist from the Federal Reserve. His predictions for the upcoming year: increasing unemployment, decreasing housing starts, decreasing output of goods and services. Somber thoughts. Associations need to connect with their members and be certain they know what they want and need in these difficult times. Is there added value that can be worthwhile? Ask how you can help and then just do it.