Alabama 4-H Recommended Guidelines for Managing 4-H Club Accounts

Additional or customized reporting procedures may be established by a County Extension Advisory Committee as approved by the County Coordinator.

Any 4-H unit authorized to have a treasury or participate in fund-raising activities must be chartered and have by-laws concerning club finances. They must also meet the following requirements for good accountability:

• A 4-H unit that plans to maintain more than $25 in funds must establish its own savings and/or checking account. The County Extension Coordinator must authorize establishment of an account. Accounts should be set up so that they require two signatures from unrelated people.

• All bank accounts must be established with a federal identification number (EIN. See: www.gov-irs.com/main.php for the paper and online forms).

• Accounts must be reported to the County Extension Office. No account held in the name of 4-H should use the name of a 4-H member or leader nor should a Social Security number of an individual be used in lieu of the appropriate tax identification number. Any accounts currently operating under a Social Security number must be converted to comply with these requirements.

• If 4-H clubs have sub-accounts in the county Extension office checking accounts then the individual 4-H units within the county are not required to apply for individual identification numbers. Under these conditions the County Extension Office must maintain account procedures according to Extension policies.

• Account names must include the club name and “4-H Club.”

• Before beginning any type of 4-H fund-raising activities for the program year, the method of fund-raising and intended use of funds must be reviewed and approved by the County Extension Coordinator or appointed designee. Note: Raising funds with no specific 4-H program or purpose in mind is not permitted.

• If a 4-H unit intends to conduct a fund-raising event, they must submit a 4-H Funding Proposal (see 4-H 101) to the County Extension Coordinator or designee, indicating the type of activity and purpose for which the funds are being raised.

• Each time the 4-H unit conducts a regular business meeting, a written record of income and expenses should be reported.

• At the end of the 4-H year, the funds remaining in a club account should not be excessive. The maximum amount to be maintained should not exceed one year’s annual operating costs. Funds should not be accumulated for the sake of accumulating funds.

• If the club disbands, all funds and supporting documentation must be presented to the County Extension office to be used for 4-H programming.

• Club accounts are audited on an annual basis by the County Extension Coordinator or his or her designee as defined by 4-H policy.

Program Activity Fees

Auburn University Nonprofit Charitable Status

4-H Gift and Endowment Funds

• the intent is to make a charitable contribution
• the donor does not impose contractual requirements
• funds are awarded irrevocably

Nancy Alexander and Lindsay Kimbro, Regional Extension Agents, 4-H and Youth Development

For more information, contact your county Extension office. Visit http://www.aces.edu/counties or look in your telephone directory under your county's name to find contact information. Issued in furtherance of Cooperative Extension work in agriculture and home economics, Acts of May 8 and June 30, 1914, and other related acts, in cooperation with the U.S. Department of Agriculture. The Alabama Cooperative Extension System (Alabama A&M University and Auburn University) offers educational programs, materials, and equal opportunity employment to all people without regard to race, color, national origin, religion, sex, age, veteran status, or disability.