Threshold Choir: Affiliated Chapters & Virtual Accounts

Threshold Choir: Affiliated Chapters and Virtual Accounts

1. Policies
   • Affiliated Chapter Policy 10: Donations – Affiliated Chapters shall forward all donations to Threshold within two weeks of receipt.
   • Affiliated Chapter Policy 22: Virtual Accounts – Donations designated to a particular Affiliated Chapter are credited to a virtual account established in that chapter’s name. Funds in a chapter’s virtual account may be used only for legitimate chapter expenses.
2. Ownership of Funds – By virtue of the legal status of Affiliated Chapters (e.g., they are a part of the total Threshold Choir 501(c)(3) organization), all funds donated to an Affiliated Chapter are donated to the Threshold Choir organization. Donated funds that are designated for a specific Affiliated Chapter are credited to a virtual account that is established in the chapter’s name. In the event of the dissolution of a Threshold Choir chapter, any remaining funds in that chapter’s virtual account remain with the Threshold Choir organization.
3. Description – A virtual account is a bookkeeping device through which all income and expenses credited to an affiliated chapter are recorded. Chapters have access to all of the funds credited to their virtual account as long as funds are used for legitimate Threshold Choir expenses, such as office supplies, copies, postage, scholarships for gatherings and workshops.
4. Procedures –
   • Donations – Funds donated to an affiliated chapter must be sent to the Threshold Choir Home Office within two weeks of their receipt. The name and contact information for the donor must be included. The Home Office enters all income credited to a given affiliated chapter, including donor names, and sources such as memorial service or sponsor or gift, and sends the donor a thank you note and a receipt. Affiliated chapters should also thank the donor for the gift.
   • Expenses –
     • Direct Payment – Direct payments may be made for expenses such as rental of rehearsal space and individuals being paid for activities such as vocal coaching, teaching, and workshop presentations. Direct payments are expedited through the up-front provision of all information needed to make the payment, such as the name and address of the person receiving the payment, and the purpose, amount and frequency of the payment.
       1. All individuals being paid for presenting, teaching, or otherwise providing their time and expertise for the benefit of our members must file a W-9 at the time of the first invoice each year.
       2. Payments to individuals totaling $600 or more over the course of the year will be subject to personal income tax. These taxes are the responsibility of the payee, and Threshold Choir will provide them with a 1099 tax form at the end of the year.
     • Reimbursement – Expenses incurred for a legitimate chapter expense in excess of $25 will be reimbursed from the chapter’s virtual account. Expenses under $25 may be purchased using the chapter’s petty fund account.
       • Requests for reimbursement of expenses must include the date of the expense and what the money was used for. This request may be sent to [email protected].
       • The request must include the name and mailing address of the person to be reimbursed.
5. Record Keeping – Records on virtual account income and expenses are maintained by both the Threshold Choir Home Office and the Affiliated Chapter.
   • The Home Office provides chapters with their account balance twice a year; chapters can access the information any time by emailing [email protected].
   • Chapters should maintain records on virtual account donations and reimbursements and reconcile their records with the account balance maintained by the Home Office.
6. Petty Cash – Affiliated chapters may retain up to $100 in donated funds in a petty cash account. The purpose is to provide chapters with sufficient cash to cover expenditures that generally do not exceed $25.00, such as postage, office supplies, copies, etc.
   • The cash is kept in a box or envelope, and can provide reimbursement for expenses. Reimbursements require a receipt.
   • When the petty cash fund gets low, funds from the chapter’s virtual account can be used to replenish the fund up to $100.