Finances

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We need to make sure all of our finances are in order.

This page is out of date.

This page should serve to document how we keep track of finances at AHA.

For Staff

So you want to help? You are awesome!

1) Get access to the following documents:

2) Check out the instructions

3) This is all done (primarily) on the HP Touchscreen Computer currently located by the Craft Section!

Reimbursement

<$25 expenses

  • Purchase Supplies (Paper Towels, Toilet Paper, etc., stuff the shop needs.
  • Get Receipt.
  • Put your Name, Date, total amount you were reimbursed for, and the Company (if it's not easily visible) on the receipt.
  • Put receipt in manila filing folder located behind desk/next to glass case labeled "2014 Receipts"
  • Take money from register that you are being reimbursed for.

>$25 expenses (or more than we have money in the register for)

  • Everything is the same as above except reimbursement has come via Paypal or Check to the person being reimbursed.
  • * This has largely been handled by Josh or current acting treasurer.

Expenses

Recurring Bills

This is not a complete list!

  1. Rent: $1,311.28 Check written out to MTBU, to be delivered by the 3rd of every month to University Towers at 536 S Forest Ave, Ann Arbor, MI 48104
    1. That amount will increase every year. The amount of $1,311.28 is valid from ~June of 2014 to ~May of 2015. Please see a copy of our lease for payment schedules.
    2. Dena Isley is our point of contact there. She can be reached via: (734) 761-2680
  2. iQguys: $247.02 Check written out to iQguys, to be delivered by the 7th of every month to Ryan Dibble, 228 Nickels Arcade, Ann Arbor, MI 48104
    1. This amount is paid until we have fully paid iQguys off, please see the purchase agreement for Digital Ops to find out when that is.
    2. Ryan Dibble is our primary contact: ryan dot dibble at gmail dot com if you need to contact them.
  3. Comcast: Automatically paid from our bank account
  4. Insurance: Automatically paid from our bank account on a quarterly basis

Income

Monthly Financial Reports

  1. Our Finances, updated monthly!

Where does money typically come from?

  1. Credit/Debit Payments at the shop
    1. Tracked via Square
  2. Cash at the shop
    1. Tracked via Square
  3. Paypal: One time payments
    1. Tracked via Paypal
  4. Paypal: Recurring payments
    1. Tracked via Paypal
  5. Checks
    1. Tracked via Square (previously was tracked at time of TCF deposit)

What are people usually buying/paying for?

  1. Membership
  2. Workshops / Classes
  3. Concessions (Snacks/Beverages)
  4. Donations
  5. Arduino Kits

Old information below

Result / Status of meeting

She Recommended

  1. Immediately find a corporate / tax attorney so that we can:
    • Review Purchase Agreement, primarily for the purpose of making sure our accounting methods are kosher w/501c3 desires.desires
    • Make sure that we are kosher with current status of State & Federal Filings
      • Our Articles of Incorporation were accepted on January 10th, 2010, according to the stamp (see link at bottom)
  2. Immediately begin work on filling out IRS 501c3 Forms
    • She did say it's better to file properly the first time. Don't rush & send in something shitty.
    • She is willing to help out with this - probably cost $
  3. Get D&O Insurance figured out
  4. Make sure we have basic accounting information for 2010, 2011, 2012. (Pretty solid on 2011 and 2012)


A fun conundrum

  • We are in a limbo spot of actually being a for profit corporation, with the intent of become a 501c3 Non profit. The IRS gives you ~3 years to figure this out.
  • If we file annual income tax forms right now, we would be filing them as a for profit corporation
    • Filing annual income tax forms as a for profit corporation makes it much harder to then apply to become a non profit 501c3.
  • If we don't file any annual income tax forms within 3 years from our initial incorporation date (January 2010), the IRS gets upset.
  • Turnaround time for 501c3 forms is typically >6 months from when we submit it to the IRS.
  • If our intent is to become a 501c3 Non Profit, we need to get the submission process started ASAP, and turned in within the next couple weeks.
  • If our intent is to become a <some regular for profit corporation>, we need to file annual income forms & more ASAP.


Responsibilities we need filled yesterday

  1. Someone to find a reputable Corporate/Tax Attorney to communicate our situation with
  2. Someone to start trudging through the IRS 501c3 Application Process: http://www.irs.gov/charities/article/0,,id=96109,00.html
  3. Someone to put together 2010, 2011, and 2011 P&L / income vs. expenses, bank statements, etc.


Notes setup prior to meeting

She requests

  1. Existing financial records
    • 2012 - We can provide access to Quickbooks Online
    • 2011 - Basic breakdown listed below
    • 2010 - Unknown
  2. Strategic documents that would be helpful in defining how we set up your accounting records
    • Income
      • Memberships
      • Classes / Workshops
      • Donations
      • Time on PCs (Starting June 1st)
    • Expenses
      • Rent
      • Utilities
      • Physical Space Improvements
      • Staff (Independent Contractors at the moment)
      • Tools
    • Fiscal Sponsorship
      • Provided by The School Factory
      • One donation of $1,000 in 2011? The School Factory takes 10%, we received $900.

  3. A list of skill sets and responsibilities that you and/or volunteers are in charge of
    • Jenn & Josh: Currently assign / categorize items into Quickbooks Online for General AHA Income
      • No accounting background.
    • Jess: currently updated Quickbooks Pro 2010 for Time on PC Income (Digital Ops)
      • No accounting background, but has been handling the Ops data entry for a few years now.


Our questions

  1. What forms should we be submitting to the:
    • City
    • State
    • Federal

  2. What payments should we be submitting to the:
    • City
    • State
    • Federal

  3. Should we have separate Bank Accounts for Gaming Center vs. Maker Income?

  4. Does out current QB Online process seem all right?
  5. What exemptions do we qualify for as a domestic nonprofit?
  6. How will filing requirements change if we pursue 501c3-ship?
  7. What standardized resource can we refer to in the future?

Information:

2010 P&L - Basic Breakdown

Income	$
Expense	$
	
Inc: Membrships	$2410  Income from Monthly Dues
Inc: BF2010    	$      Income from Classes taught by AHA outside of All Hands Active
Inc: Donations 	$      
Inc: Unknown	$      

Total Income:	$2410	
	

Exp: BF 2010	$      Bright Futures Classes (Independent Contractor Payouts)
Exp: Rent	$
Exp: Util	$
Exp: Unknown 2	$      (I believe these are from checks)
Exp: Improving  $      General Lowes, Meijer, Stadium Hardware purchases
Exp: Unknown	$      Ask Josh to see AHA 2011 Google Doc for better breakdown)
Exp: Electronic	$      Electronics - Sparkfun orders, Jameco, etc.
Exp: Insurance	$
Exp: Donation	$      GEMSI for Bilal
Exp: Web Host   $      Slicehost
Exp: Food	$      Food for volunteer events
Exp: Marketing	$      Kolossos, Kinkos, etc.
Exp: Subscrip.  $      Intuit, Amazon Prime, Events Manager for Web site
Exp: Gas	$
	
Total Expenses	$

Net Income:	$

2011 P&L - Basic Breakdown

Income	$20247.94
Expense	$17465.62
	
Inc: Membrships	$7016.28  Income from Monthly Dues
Inc: BF2011    	$9395     Income from Classes taught by AHA outside of All Hands Active
Inc: Donations 	$900      Nine Tuna Donation ($1,000, School Factory takes 10%)
Inc: Unknown	$2936.66  A lot of this is probably from other classes taught at AHA, unaccounted for membership income, possibly indiegogo ($610) fundraising etc.)

Total Income:	$20247.94	
	

Exp: BF 2011	$7500     Bright Futures Classes (Independent Contractor Payouts)
Exp: Rent	$3150
Exp: Util	$1750
Exp: Unknown 2	$1410     (I believe these are from checks)
Exp: Improving  $1054.98  General Lowes, Meijer, Stadium Hardware purchases
Exp: Unknown	$652.34   Ask Josh to see AHA 2011 Google Doc for better breakdown)
Exp: Electronic	$496.61   Electronics - Sparkfun orders, Jameco, etc.
Exp: Insurance	$330.5
Exp: Donation	$258      GEMSI for Bilal
Exp: Web Host   $240      Slicehost
Exp: Food	$227.2    Food for volunteer events
Exp: Marketing	$192.85   Kolossos, Kinkos, etc.
Exp: Subscrip.  $180.45   Intuit, Amazon Prime, Events Manager for Web site
Exp: Gas	$22.39
	
Total Expenses	$17465.32

Net Income:	$2782.32

2012 P&L - Basic Breakdown January 1st - April 30th

Income	
   Classes	237.27
      AHA Classes Income....... 4.942.52
      How to - 3D Print........ 71.30
      How to - Laser........... 47.33
      How to Arduino........... 104.09
      How to CNC............... 28.52
      Learn to Solder.......... 18.82
   Total Classes	$5.449.85
   Coffee Donations............ 5.00
   Laser Cutter Donations...... 13.00
   Membership Dues............. 2.641.46
   Misc Product Sales Income... 5.00
   Need to split............... 895.00
   Uncategorized Income........ 154.41
Total Income	$9.163.72
Gross Profit	$9.163.72

Expenses	
   Advertising................. 93.98
   AHA Class Contracting....... 100.00
   AHA Class Supplies.......... 24.33
   Board Meeting Expenditures.. 76.73
   Bright Futures Employees.... 2.207.91
   Bright Futures Supplies..... 47.83
   Bright Futures Transportation62.40
   Dues & Subscriptions........  29.95
   Food........................ 31.48
   Insurance................... 354.50
   LASER Budget - Rental....... 151.67
   Laser Budget - Repairs...... 179.48
   Maintenance................. 32.00
   Membership Expense.......... 18.29
   Rent or Lease............... 3.000.00
   Shogun Budget............... 1.284.51
   Shogun Contractor........... 400.00
   Treasurer Spending.......... 17.95
   Uncategorized Expense....... 228.54
   Utilities................... 1.442.16
Total Expenses	$9.783.71

Net Operating Income	-$619.99

Net Income	-$619.99
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