LATE BLOOMERS GARDEN CLUB FINANCIAL POLICIES (revised 8/20/24)

Purpose:
The Financial Policies establish guidelines for standards and procedures to be applied when developing financial goals and objectives, making financial decisions, and reporting the financial status of Late Bloomers Garden Club (also known as LBGC ) and allow for transparent and sound management of the organization’s funds.

Financial Statement:
The fiscal year of Late Bloomers Garden Club will be July 1st to June 30th. Financial statements shall be prepared on the cash basis of accounting in accordance with Generally Accepted Accounting Principles. Late Bloomers Garden Club will meet all external regulations such as those reflected in the IRS form 990 and accounting standards stated by the FASB.

Financial Responsibilities and Operations:
The Executive Committee oversees the general financial administration of LBGC and relies on the Finance Committee and Treasurer for day-to-day operations and the execution of the approved budget. All activity and transactions of the organization may be reviewed at the direction of the Executive Committee.

Budgeting Process:
The Finance Committee will present a proposed budget to the Executive Committee at the beginning of each fiscal year. Upon approval, the proposed budget will be presented to the membership for approval at the first Membership Meeting of the year. Decisions related to the proposed budget include the allocation of cash reserves and designated funds.
The Finance Committee is authorized to incur expenses within the approved budget. When a budgeted expense is anticipated to exceed its approved amount or when an unbudgeted expense is proposed, the Treasurer will notify the Executive Committee for discussion and approval/rejection. The Executive Committee may approve such operational expenses up to $1,000. All funds given to outside organizations through grants, scholarships, and donations must be approved by the membership.

Internal Financial Reporting:
Financial statements will be compiled monthly, as bank statements are reconciled, and presented quarterly, or as directed, to the Executive Committee. These reports will show monthly and year-to-date revenues and expenditures as well as a balance sheet.

Contracts:
Contracts within the approved budget must be reviewed by the President or Treasurer.

Contracts under $500 may be signed by the Committee Chair.

Contracts above $500 must be signed by the President or Treasurer.
Contracts not included in the approved budget must be brought to the Executive Committee for discussion. If approved, the same signature requirements apply.

Gift Acceptance:
Late Bloomers Garden Club accepts gifts that are consistent with its mission and support its core programs and projects. Upon approval by the Executive Committee, gifts will generally be accepted from individuals, partnerships, corporations, foundations, or other entities.
All unrestricted gifts will be used to support LBGC general operations.
Gifts to an existing restricted fund or to an existing designated fund may be accepted without further review.
Gifts for a new restricted purpose must be approved by the membership before acceptance including all GCA grants.

Acknowledgment of Gifts:
Late Bloomers Garden Club will acknowledge in writing all gifts of $250 or greater. If a donor wishes to be publicly acknowledged, Late Bloomers Garden Club will recognize the name and gift amount in the yearbook.

Use of Tax-Exempt Certificate and Club Expenditures:
The Florida Department of Revenue (https:://floridarevenue.com/taxes/businesses/Pages/nonprofit.aspx) states:

“Organizations holding a Florida ‘Consumer’s Certificate of Exemption’ may present a copy of the certificate to a selling dealer to purchase or rent taxable items tax-exempt as authorized by Florida law. Payment for the purchase must be made with the organization’s funds. When payment is made with the personal funds of an authorized representative, the purchase is subject to tax, even if the representative is subsequently reimbursed with the organization’s funds.”

Best practices for the payment of goods and services for the organization are as follows: In every instance possible, the club will pay vendors directly with a check or electronic funds transfer, after providing the certificate of exemption.

In the rare instance when a member, acting as an agent for the club, makes a purchase with her own funds, she may not use the certificate of exemption and is thus responsible for paying any sales tax associated with that purchase. She is entitled to reimbursement from the club for the purchase but not the sales tax. These types of expenditures must not exceed $500.

Investments
The Executive Committee has the fiduciary responsibility to oversee the assets of Late Bloomers Garden Club. This stewardship includes 1. protecting the value of the assets, 2. growing the assets, and 3. maintaining access to the assets. Late Bloomers Garden Club’s assets may be

invested in accordance with sound investment practices. Investment objectives must clearly define risk tolerance and liquidity needs.

The Finance Committee will research and propose investment options to the Executive Committee for approval. Investment strategies will be reviewed annually or at the direction of the Executive Committee.

Additionally, any conflict of interest by a member of either the Finance or Executive Committee with regard to where club assets are invested will be disclosed.

WHOLESALE FLORISTS

Late Bloomers Garden Club has accounts with two floral wholesalers, Pennock and D-Kay. The club buys flowers and supplies for floral programs at meetings, special workshops, end-of-year awards, and flower shows. These purchases are paid for by the club, either directly or through reimbursement, because they relate to the purposes and operations of the club. Late Bloomers is a 501(c)(3) organization, and therefore these purchases are tax-exempt. Both wholesalers currently allow members of Late Bloomers to shop individually, whether one buys flowers for an entry in a GCA show, for example, or for personal use. We all understand and appreciate the value of comprehensive access to beautiful flowers and supplies. We celebrate our members immersing themselves into the world of floral design! But these purchases are always taxable because they are for the benefit of the member.

The Finance Committee has approved the following clarifications for shopping at the wholesalers.

We are asking each of you to help the club by following proper tax protocol.

Pennock:

We have two accounts, each with a specific name. Both require payment, prepaid or at the point of sale.

1. “Late Bloomers Garden Club” This is our primary club account. It is set up as a tax-exempt account, and it is only to be used for purchases directly related to activities of the club. Because Pennock will not bill the club, the person representing the club for the transaction must pay and then be reimbursed by the treasurer.

2. “Late Bloomers Members Account” This is a second account for members to use when making individual purchases. It is set up as a taxable account. Please use this account whether ordering online or buying directly at Pennock.

User name: LateBloomers Password: Magnolia1990

D-Kay:
We have one account for the club. D-Kay offers billing to the club. Individuals pay at the point of sale. All purchases on behalf of the club for direct club activity are tax-exempt and should be charged. D-Kay will send the invoice to the club treasurer for payment. Any purchase made by a member for individual/private use is taxable. The transaction is paid at the register.
Please explain clearly to the person at the register which type of purchase this is so that the correct procedure is followed.

One final note. Please never commingle Late Bloomer club purchases with personal purchases. Thank you for taking the time and effort to understand and follow these measures. If you have any questions or concerns, please do not hesitate to contact a member of the Finance Committee or the Executive Committee.