Financial Guidelines for Local Ministry Groups
(Councils & Chapters)
There are two pots of money that need consideration. If a local council has a hired area director or associate staff, that council will need funds for his/her salary and benefits as well as funds for his/her proposed programs. These funds are provided by the local doctors and sent to CMDA.
A council can also collect donations to cover council activities that are not covered by the area director’s budget. Council activities for which these funds can be used include banquets, meeting refreshments, mailings, and speaker reimbursements that have adequate receipts (if these are not covered in the area director budget). This does not include paying salaries, contract labor costs, providing scholarships, or paying honorariums to speakers. These activities fall under many IRS rules and guidelines and require proper reporting to IRS. If the need to make such payments arises, please discuss this with the controller of CMDA or the Chief Financial Officer.
The council usually handles its own finances not falling under the budgeted monies of area directors. These local funds should be accessed only by the officers and not the local CMDA field staff. In order for an organized CMDA council to have its own checking account, an officer must request that the controller of CMDA (at the National Service Center in Bristol, TN) apply on their behalf for a Taxpayer Identification Number. After receiving their number, the council can open an account at a local bank. The CMDA field staff should not be able to sign on the council account.
A council can issue receipts for donations it receives if the receipts are in compliance with IRS regulations. The receipt should state that no goods or services were received for the donation. A donation receipt cannot be issued for registrations, banquets, trips, etc., for which a benefit was received. If the amount given is for benefits received, but also has a donation included, a receipt can be given as follows: a receipt is given for the entire amount that clearly designates only the amount for which no goods or services were received as the donation amount. If in question, please call the CMDA controller or CFO at 423-844-1000 or toll free 1-888-230-2637.
Groups with $50,000 in annual receipts must file a form 990. It is rare for a council to have financial activity of $50,000 or more. Projects involving substantial finances should be approved by the VP of Campus and Community Ministries. Those councils with less than $50,000 in annual activity should complete a ReConnect form that will ask for updated information concerning ministry and financial activity during that year.
A council may not make a commitment or contract on behalf of Christian Medical & Dental Associations (above the council level) without the approval of either the Executive Director or Associate Director and the Chief Financial Officer. Contracts binding CMDA as an organization shall be signed by one of these three persons as the official representative of CMDA.
IMPORTANT NOTE: Each council should keep the VP of Campus and Community Ministries informed of new officers and their addresses.