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Draft Financial Procedures

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<p class=western align=center style='margin-bottom:12.0pt;text-align:center'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>FINAL DRAFT<br>
Responsibilities and Procedures<br>
Finance Committee and Treasurer<br>
</span></font></b>May 5, 2007</p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Finance Committee Responsibilities</span></font></b> </p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>1. Oversees
the Meeting's financial resources and procedures</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>2. Arranges
for regular reports to the Business Meeting on the Meeting's finances</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>3. Proposes
the new annual budget at the November Business Meeting</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>4. Oversees
the work of the Treasurer and Collection Team </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>5.� Informs
members and attenders about making donations�for example, where to leave cash,
where to mail checks, how to earmark contributions, how to initiate automatic
bank payments, and which contributions are tax-deductible (see �Deductible
Contributions� below)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>6. Insures
that only those contributions that meet IRS requirements for tax deductions are
acknowledged by the Meeting as tax deductible (see �Deductible Contributions�
below)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>7. Arranges
for annual internal audits of the Treasurer�s and the Collection Team�s records
and the Meeting�s financial procedures (and external audits if necessary)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>8. Arranges
for preparation of the annual tax return, if required.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>9.� Meetings
of the Finance Committee will be held only as necessary.</span></font></p>

<ol style='margin-top:0in' start=1 type=a>
 <li class=MsoNormal><font size=3 color=black face="Times New Roman"><span
     style='font-size:12.0pt'>Minutes of each meeting will be produced and kept
     by the clerk of the Finance Committee.</span></font></li>
 <li class=MsoNormal><font size=3 color=black face="Times New Roman"><span
     style='font-size:12.0pt'>A report based on the minutes will be given to
     the subsequent Business Meeting, with requests for action as necessary.</span></font></li>
</ol>

<h3 style='margin-left:0in'><b><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black;font-weight:normal'>&nbsp;</span></font></b></h3>

<h3 style='margin-left:0in'><b><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:normal'>10.� Structure of Finance Committee</span></font></b></h3>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>a.<font size=1
face="Times New Roman"><span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span></font></span></font>The Finance Committee will consist of the Treasurer
and at least two other members.</p>

<ol style='margin-top:0in' start=2 type=a>
 <li class=MsoNormal><font size=3 color=black face="Times New Roman"><span
     style='font-size:12.0pt'>A member, not the Treasurer, will serve as clerk
     of the committee.</span></font></li>
</ol>

<p class=MsoNormal style='margin-left:.25in'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Treasurer Responsibilities</span></font></b> </p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>1. Prepares
monthly financial reports for the Finance Committee; provides brief monthly and
full quarterly reports to the Business Meeting; makes the final annual report
to the February Business Meeting.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>2. Writes all
checks and pays all Meeting bills after determining that the funds are budgeted
and the payment has been authorized; (if the Treasurer will be out of town or
otherwise unable to write checks within 30 days, the Treasurer will arrange
with another signer to pay bills, using checks specifically provided by the
Treasurer for this purpose)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>3.� Refers
requests for scholarship requests and other activities of Quaker concern to
Clerk of Meeting and/or Convener of Ministry and Oversight, and writes checks
as approved.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>4. Maintains
safe deposit box with records for the Meeting House, and the liability and
property insurance for the Meeting </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>5. Maintains
the Meeting's financial records (bank account records, invoices, and other
expense receipts); maintains a chart of accounts; regularly backs up any
electronic files of financial records �(all older records should be stored as
directed by the Archivist in case of an IRS audit)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>6. With the
assistance of the internal auditors, closes out by March 15 the expenditure and
revenue accounts for the previous fiscal year</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>7. Manages
the cash held by the Meeting, insuring that there is sufficient cash available
in the checking account to pay bills, and that excess cash is kept in
interest-bearing accounts</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>8. Maintains
the accounts for all restricted Funds, and writes disbursement checks on
request from their respective oversight committees or the Business Meeting</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>9. Obtains a
Form W-9 from each unincorporated contractor providing services likely to cost
over $600 in the fiscal year and submits a Form 1099-MISC for any contractor
paid over $600.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Collection Team Responsibilities</span></font></b> </p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>The Finance
Committee designates two persons � preferably members of the committee -- to be
the Collection Team. Other members of Finance or the Meeting serve as backup
when one or both members of the Collection Team is absent from Meeting. When a
member of the Collection Team is unable to be at Meeting, they should notify
the other team member in advance so that arrangements can be made with the
backup members of the Finance Committee to help with the collection. The
Collection Team:</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>1. Manages
all aspects of collecting and depositing contributions to the Meeting and
maintaining the weekly collection records</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>3. Records
cash and check donations collected at Meeting each Sunday, including Guest
Apartment and Meeting House use receipts, in a Weekly Collection Record showing
the amount of donations and receipts by purpose (i. e., unrestricted or
restricted categories, such as Sufferings) and fund</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>4. Checks
from donors are recorded on the Weekly Collection Record by the check signer�s
name and purpose of the donation</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>5. Cash from
identified donors is recorded by the donor�s name on the Weekly Collection
Record</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>6. A Collection
Team member signs the Weekly Collection Record </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>7. The Weekly
Collection Record is sent to the Donation Recorder, who maintains them until
the annual audit has been conducted</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>8. The bank
deposit is prepared and made ASAP; the deposit may be mailed if no cash is
involved</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>9. All money
received or mailed during December should be deposited, recorded, and reported
to the Treasurer by January 15 to facilitate the year end closing of accounts</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>10. Donations
received before January 1 � including checks mailed before January 1 but
received after the new year begins -- are recorded as being made by the end of
the year; donations received or mailed on or after January 1 are recorded as
made in the new year (this is an IRS requirement for acknowledgments) </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Donation Recorder Responsibilities, currently handled by the
treasurer</span></font></b><span style='background:yellow'> </span></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>The Finance
Committee designates one person�preferably a member of the committee�to be the
Donation recorder.� At present the Treasurer functions as the Donation
Recorder.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>1. Using the
Weekly Collection Record, records all donations in the DONATION program</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>2. (If the
Donation recorder and Treasurer are not the same person) Notifies the treasurer
of the amount of the bank deposit and the amounts allocated to each fund or
purpose as recorded on the Weekly Donation Record</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>3. Provides
an annual report to each contributor by email unless the contributor requests a
paper acknowledgment (the IRS accepts email acknowledgments and requires
documentation only for contributions over $250, but the Meeting has decided to
acknowledge all identifiable donations)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>4. Maintains
copies of the Weekly Collection Record until the annual audit has been conducted</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>&nbsp;</span></font></b></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Business Meeting Responsibilities</span></font></b></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Authorize all
Meeting bank accounts and signers.� Treasurer, Clerk of Finance and Clerk of
Meeting were designated as signers at the Business Meeting of October 15, 2006,
as well as the immediate past Treasurer.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>&nbsp;</span></font></b></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Timeline for Finance Committee and the Treasurer</span></font></b>:</p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>1. Reports</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>a. Treasurer prepares Quarterly Reports for the quarter ending in
March, June, September, December</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>b. Treasurer and Finance Committee prepare End of the Year Report and
closing of the years� books in January</span></font></p>

<p class=MsoBodyTextIndent style='margin-left:0in'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p>

<p class=MsoBodyTextIndent style='margin-left:.5in'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>c. Early in the new year
the Finance Committee prepares a Financial State of the Meeting Summary,
detailing the commitments approved by the Meeting for both General and
Maintenance Funds for the coming year and reminding members/attenders of the
need to come up with those funds.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>2. Budget</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>a. Finance Committee contacts committees with budgets in early
September for budget requests for the next fiscal year</span></font></p>

<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>&nbsp;</span></font></p>

<p class=MsoNormal style='margin-left:.5in'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt'>b. Finance Committee
receives recommendations of Good Works Committee for changes, additions and
deletions to recipient groups in the Good Works budget.� Response needed before
October Finance Committee meeting.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>c. Final Review by Finance Committee at October committee meeting
(Former Treasurer invited to participate as needed).</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>d. 1st reading at November Business Meeting</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>e. 2nd reading at December Business Meeting</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>3. Letter of
acknowledgment and thanks sent by January 31 to all contributors to Meeting</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>4. Annual
Audit</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>a. Assemble audit committee in January</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>b. Review books in February</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>c. Final report of audit committee to Finance in March</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>5.
Contributions to Quaker and Non Quaker Organizations</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>a. Overall total determined in budget</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
.5in'><font size=3 color=black face="Times New Roman"><span style='font-size:
12.0pt'>b. Decision by Business Meeting on recipients and amounts as part of
budget� </span></font></p>

<p class=western style='margin-top:5.0pt;margin-right:0in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-indent:.25in'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>c. Checks
written throughout the year as finance Committee determines funds are
available.</span></font></p>

<p class=western style='margin-top:5.0pt;margin-right:0in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;</span></font></p>

<p class=western align=center style='margin-bottom:0in;margin-bottom:.0001pt;
text-align:center'><b><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>Financial Procedures and Records</span></font></b>
</p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Overview</span></font></b></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>The Meeting
uses the calendar year as its fiscal year. It uses cash basis accounting and will
consider using a software program for bookkeeping. </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>All receipts
are credited to the fiscal year in which they are received and recorded by the
Collection Team, no matter when they are deposited. All disbursements are made
by check except for the two petty cash funds managed by the Resident. No presigned
checks or checks made out to �cash� are allowed.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Meeting
receipts are initially recorded in the Weekly Collection Record (maintained by
the Collection Team). </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Checking and
Money Market Accounts - all Meeting funds (including restricted funds) are kept
in checking and money market accounts (currently at Guadalupe Credit Union).
All accounts require only one signature to withdraw funds. Authorized signers
are designated by the Business Meeting as required to insure that the Meeting�s
bills may be paid when the treasurer is unavailable. </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Cash
Management � The treasurer maintains sufficient cash in the checking account to
cover anticipated expenses. The remaining cash is kept in MM accounts or CDs. </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Restricted
Funds � The Meeting has established a number of funds for specific purposes
(see the Chart of Meeting Accounts). These restricted funds are assumed to have
an indefinite life, so the balance in a fund at the end of the fiscal year is
carried over into the new fiscal year.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Disbursements
and Invoices - All payments are normally made against a written request for
reimbursement invoice, if available. Invoices are filed chronologically, and by
year, with the check number and date noted on the invoice. See also �Open Accounts�
and �Petty Cash.�</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Open Accounts
- Certain persons make purchases from these accounts and the Treasurer receives
the monthly bills directly from the vendor (currently the only open account is
for printing)</span></font></p>

<p class=western><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>Petty Cash - The treasurer provides the resident with
a check (currently $180) at the beginning of each quarter which is used as a
petty cash fund to cover ongoing expenses and supplies for the Meeting
(beverages, paper, cleaning supplies and other non-specified items).� The
resident maintains a record of the actual expenses during the quarter.� The
treasurer also provides the resident with a petty cash fund of $50 to provide
emergency assistance to someone who may need immediate help if other resources
for help are not available.� The resident maintains a record of the
disbursements from the fund and requests replenishment from the treasurer as
required.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Annual Tax
Return - As a church we are not required to file a Form 990 tax return (see
Publication 1828 (Rev. 7-02), Tax Guide for Churches and Religious
Organizations). However, if the Meeting has more than $1,000 of �unrelated
business income,� we must file a 990T. According to the IRS definition, the
money we receive for the Guest Apartment and use of Meeting House is not
considered unrelated income (see �Sec. 513. Unrelated trade or business� of IRS
rules). The IRS advises that tax-related records should be kept for �at least
four years� after filing the tax return.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>The IRS
requires that we maintain income, expense, and payroll records for at least
four years.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Insurance �
The Meeting has a church property and liability policy with Church Mutual.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Investments �
The Meeting currently has no investments.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Purchasing and Reimbursement</span></font></b></p>

<p class=western><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>1. Each committee with a budget will designate a
person to authorize expenditures and notify the Treasurer (there could be more
than one person if the committee believes they need that flexibility, but the
committee must let the Treasurer know who has the authority). The authorized
person may consult the treasurer to determine whether a purchase might be
tax-exempt (see the New Mexico Taxation and Revenue pamphlet �501(c)(3)
Nonprofit Groups &amp; New Mexico�s Gross Receipts Tax�; the Meeting does not
have a 501(c)(3) designation and is unincorporated, but the state has provided
tax exemption certificates to the Meeting).</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>2. To get a
reimbursement or have an invoice paid, the authorized person would give the
Treasurer a note showing to whom to make out the check, where to mail it, and
what budget category to charge. The authorized person would either attach an
invoice or state that an invoice is not available (submitting the request without
an invoice should be a rare exception). .</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>3. If the
vendor mails the invoice, it should be sent to the attention of the committee
authorizer, so we will know who to give the invoice to. </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>4. When the
purchase is made on an open account -- such as for printing -- the authorized
person should immediately send the Treasurer the payment request with the
information he'll need to pay the monthly invoice. (The Treasurer may accept an
email message that has the required information.)</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>5. The
Treasurer will have two weeks after receiving a payment authorization to write
and mail a check. Persons who need reimbursements or payments more quickly --
such as a deposit for contracted services -- would need to arrange it with the
Treasurer in advance. However, advance arrangements shouldn't become routine,
as special arrangements increase the burden on the Treasurer.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Deductible Contributions</span></font></b></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>IRS
Publication 526 describes deductible and non-deductible contributions, as well
as requirements for documentation.</span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><b><font
size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;
font-weight:bold'>Meeting Policy on Tax-Deductible Solicitations</span></font></b>
</p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>The IRS
provides this advice on contributions, which applies to any Meeting benevolence
project: �You cannot deduct contributions to specific individuals, including: </span></font></p>

<p class=western style='margin-bottom:0in;margin-bottom:.0001pt'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt'>Contributions
to individuals who are needy or worthy. This includes contributions to a
qualified organization if you indicate that your contribution is for a specific
person. But you can deduct a contribution that you give to a qualified
organization that in turn helps needy or worthy individuals if you do not
indicate that your contribution is for a specific person. Example: You can
deduct contributions earmarked for flood relief, hurricane relief, or other
disaster relief to a qualified organization. However, you cannot deduct
contributions earmarked for relief of a particular individual or family.�</span></font></p>

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