Money Handling and Fund Raising

The best FUNdraisers are educational experiences!

Because of the way 4-H is organized, fund raising is not usually a major issue for most 4-H clubs.

There are no county/city, state or national dues, but some 4-H units may charge a small fee to cover mailing, insurance and other costs. Some 4-H clubs may collect dues and use the money as they see fit. If dues are collected, the fee must not be so high as to exclude anyone from joining the club.

Clubs and 4-H members are not asked to raise money to support the 4-H Office or contribute to 4-H educator salaries. Clubs and members are asked to support county/city 4-H fundraisers as these activities generate money to cover program expenses including project ribbons and other awards, camp scholarships, volunteer training, special activities and more. Many 4-H units conduct one or two major fund drives each year.

Maryland 4-H Club Financial Guidelines (4-H 507) - This four-page booklet explains CD ROM everything a 4-H club needs to know about handling money. The guide is available from the 4-H Office and on the CD-ROM that accompanies this training unit.

Here are some of the highlights:
1. Bank Account - All club monies should be placed in a bank account in the name of the club/group. Many banks waive fees for non-profit groups.
2. Employer Identification Number (EIN) - Each club needs an EIN number from IRS to open a bank account. The 4-H Office will assist you in applying for your EIN.
3. Signatures - Club bank accounts must have two signatures. The club treasurer and an MCE Volunteer, who is not the parent of the treasurer, should be the signers.
4. Treasurer's Book - The club treasurer must use the free Maryland 4-H Treasurer's Guidebook (4-H 95) to keep club financial records. The treasurer's records become a permanent part of the club records.
5. Annual Financial Report - Every club is required to submit an annual financial report using the form that is found in the back of the treasurer's guidebook. Reports are usually due to the 4-H Office in February.
6. Sales Tax - When 4-H clubs sell tangible items such as cookbooks, calendars or candy, sales tax must be collected and remitted to the Maryland State Controller's Office (1 800 492-1752). Sales tax is not collected when the fundraiser provides a service such as a car wash. The Controller's Special Events Office can provide additional information.

Fund Raising - Most 4-H clubs limit fund raising to one or two projects per year. It is usually better to hold one large fund raiser than several small ones.

Here are some things to consider when planning a fundraiser.
1. Determine the purpose of the fundraiser and the amount of money needed.
2. Select a fundraiser that will yield the amount of money needed.
3. Request approval from the 4-H educator before commitments are made.
4. There's a file of fundraising "ideas" at the 4-H Office for volunteers to review.
5. Good planning and training makes fundraising a fun educational experience.
6. Consider providing prizes as incentives to encourage participation. Another option is to "credit" members with a portion of the profits which they can use to pay for their 4-H event registration and related expenses.

Safety Check! If the fundraiser involves selling items door-to-door, caution members to never go to homes of people they don't know, to always go with another person and to always tell their parents where they will be selling.

Volunteer Quick Reference

Learning Check

Club money should be kept in a bank account in the name of the club. Accurate record keeping is an important skill for members to learn. Knowing and following the Maryland 4-H policy on handling money is a good way for 4-Hers to learn this skill. Accounting properly for cash transactions is difficult and should be avoided. Most clubs open a checking account but some choose a savings account. What type of bank account does your club have and why did you choose that type?

An employee identification number will be needed to open a club account. The 4-H Office has forms and will assist you in getting your club's EIN. Do not use your social security number to open a club account. Club accounts opened with personal social security numbers make the club leader personally responsible for paying income and other taxes related to the account. What are the important issues to consider when opening a club account?

Clubs are required to submit a financial report annually. As an organization sponsored by the University of Maryland, 4-H is required to follow established policies for the proper handling and accounting of all money received and spent. 4-H Clubs are required to submit a brief annual financial report that shows major income and expenditure on a form found in the back of the Treasurer's Book. If you have helped prepare the club's financial report, what was your experience?

Online Learning Community

Raising and handling money is something nearly every 4-H club deals with. Share your thoughts about handling club money with other volunteers by clicking Online Learning Community to post a message. Respond to one of the above questions/comments or create your own. You must post a message to complete this lesson.

Password: 4-H Vol

Next Lesson

Click on Activities to move to the next lesson after you have posted a message to the Online Learning Community in response to a Learning Check question/comment above. Thanks!

For more information, contact Lisa Dennis

Last updated: 06/14/2009