Finances & Accounting
A. Tax Status
What is AMCP’s tax status?
AMCP is classified as a 501(c)6 exempt organization by the IRS.
What is the Affiliate’s tax status?
AMCP Affiliates as unincorporated subordinate groups under AMCP and therefore do not have their own tax status.
Are donations to the Affiliate tax deductible?
Typically donations to a 501(c)6 organization are not tax deductible by individuals; however, any donor or potential donor should check with his/her tax advisor.
Does the Affiliate have to pay sales tax?
This determination does not apply to sales tax. AMCP and its Affiliates must pay sales tax.
B. Tax Filing
What is the Academy’s Fiscal Year (FY)?
The Academy is on a January 1 fiscal year. As a subordinate group of the Academy, the Affiliate’s financial records will follow the same fiscal year reporting.
Does the Affiliate have to file a tax return with the IRS?
No. AMCP includes the Affiliates in its annual tax return unless the Affiliate maintains its own bank account. If the Affiliate chooses to hold its finances, it will be required to secure a tax ID number (EIN) and it will be required to file the 990N postcard annual filing with the IRS.
Does the Affiliate have to file any paperwork with AMCP for the IRS?
No, since AMCP manages the affiliate finances, you do not need to file anything with the IRS.
C. Funding Requests and Contracting
We want to secure funding for a program, can we say it is for AMCP?
No! Per the Affiliation Agreement (Section V), the Affiliate may not give the funding source the impression that the request is on behalf of the Academy. The Affiliate must make it clear that the request is on behalf of the Affiliate.
Who is responsible for payment of a contract or agreement?
Per the Affiliation Agreement (Section V), the Affiliate is not allowed to enter into any contract on behalf of AMCP. Contracts must be in the name of the Affiliate. The Affiliate and the individual signing the contract are responsible for the payment of the contract/agreement.
D. Account Records
Since AMCP holds the Affiliate’s monies, how do we know the account balance?
AMCP will send quarterly statements to each affiliate.
E. Payment of Invoices & Reimbursements
AMCP has the Affiliates money, how do we pay bills or get reimbursed for individual’s expenses?
AMCP will pay invoices for the Affiliate or reimburse approved individual expenses from the Affiliate’s account. There must be adequate funds in the account to cover the invoice or reimbursement. The Academy cannot advance the Affiliate to cover the requested reimbursement/invoices.
AMCP requires that all invoices be accompanied by an Affiliate Check Request/Cash Disbursement Form. This form must be completed in full – including the vendor’s tax ID number. If it is not complete, it will be returned to the Affiliate for missing information. Invoices will not be processed without the completed form. Allow at least two weeks for a check to be issued. A Check Request/Cash Disbursement Form can be found under the Affiliate-specific area in Section II of this e-Manual. All requests for reimbursement must include receipts - scanned copies are acceptable.
AMCP has the Affiliates money, how do we deposit to the account?
As with disbursements, all deposits (event fees, dues, support funds) must be accompanied by a Deposit Form. Each check and credit card form must be individually listed on the Deposit Form. Deposits will not be made without the accompanying form. A Deposit Form can be found under the Affiliate-specific area in Section II of this e-Manual.
Affiliates should use AMCP's registration system for any meetings with registration fees to ensure monies are processed quickly and privacy laws are followed in regards to finances.
G. Credit Card Acceptable for Payments
AMCP has the Affiliates money. How do we accept credit card payments?
If the Affiliate chooses, it can accept credit card payment using the form developed specific to the Affiliate. The completed credit card form, along with a Deposit Form, is sent to the Academy for processing. AMCP’s Finance Department will process each credit card form and deposit the money into the Affiliate’s account. The credit card transaction fee that is incurred by the Academy will be deducted from the Affiliate’s account. NOTE: If for any reason the credit card transaction is denied, the form will be returned to the Affiliate for its action. No money will be transferred into the Affiliate’s account if the credit card is denied. A Credit Card Form can be found under the Affiliate-specific area in Section II of this e-Manual.
NOTE! MasterCard and Visa have instituted new requirements for its processors when handling credit card information. Affiliates are required to destroy all credit card information after the forms are sent to AMCP. Do not request credit card information via email. If an Affiliate does not comply with this requirement, AMCP will not be able to process credit card payments for the Affiliate.