When a new 4-H club (or affiliate) is in the formation phase, one of the more important decisions made is this: “Should we have a treasury?” Historically, this decision was a simple YES! Most clubs fundraised several hundred dollars a year and put those dollars toward a community service project, club events, and other club business. Having a treasury also gave an elected youth the opportunity to (safely) learn some basic financial management skills. Because 4-H clubs were previously covered by IRS Section 115 status, having a club treasury was easy.
Today, that decision is more complex. 4-H clubs no longer enjoy the ‘ease’ of IRS Section 115 status. Instead, clubs must now establish and maintain their own relationships with the Internal Revenue Service, without any staff support. This takes additional diligence and time. Because time is the most precious commodity a volunteer has, South Dakota 4-H encourages all clubs to consider the implications of this decision during the club formation phase. Simply stated, do you really need a treasury? This guide sheet exists to help club leaders make the best decision.
