Protecting the Treasurer
How does HGOL protect the treasurer?
By clearly defining the roles of the group and of the treasurer, the terms and conditions establish a separation of the group and treasurer. Contractually, the treasurer is acting in concert with HGOL on behalf of the group. At no time is the treasurer placing cash or electronic money into their personal account, therefore, their Tax ID or Social Security Number is not required.
However, just using an account with Homegroup.Online does not absolve the group from the tax law. Removing the Tax ID from the transaction doesn’t negate the transaction itself. First, HGOL helps the treasurer by establishing them as a transaction agent and not a holder of funds, and second, HGOL provides basic resources for the group to understand the legalities of collecting and distributing group funds.
How does HGOL provide CHASE, Zelle, Venmo, and PayPal within one account?
The power of automation and shared resources provides a platform where “We can do together what we cannot do alone.” HGOL is an automated tracking system where all groups share the accounts and HGOL separates the individual transactions and deposits them to their specific group. Without HGOL, collecting 7th contributions through electronic means requires a minimum of two accounts; a processing account and its associated bank account, both requiring a Tax ID or Social Security number.
The automation goes further, and old school becomes new school. When your group deposits cash into the ATM, a detailed record is made, and the transaction appears in your HGOL account. Seventh tradition Paper Checks can be deposited through the ATM or mailed directly to HGOL for deposit, enabling members to use their personal Bill Pay feature from their own bank.
Each transaction, cash and electronic, into and out of the HGOL account, is recorded with details such as transaction numbers, gross amounts, processing fees and other particulars your treasurer can use to track income, fees, totals, etc. The HGOL account is then used to create payments to the programs, offices, people, and facilities with whom your group does business with. Your treasurer simply designates an amount and recipient, and a check will be mailed to them with your group’s information at the top of the check specifying your group as the payee. Literature and milestone tokens can also be purchased through the account.
What should the group know about collecting and distributing money?
Most group transactions meet the threshold for non-reporting, but only if they organize and declare that with the IRS. Legal entities can file for non-reporting or tax-exempt status for several reasons, bringing in less than $5000 annually, performing charity or community service, or running as a non-profit. Most groups satisfy at least one of these. However, without becoming a legal, organized entity, the threshold for non-reporting is only $600 annually. Unorganized groups that bring in over $600 annually, without reporting it, may be in violation of the law.
As a matter of course, the IRS does not require HGOL to disclose details of members, groups, or individual transactions. However, HGOL may release information when we believe release is appropriate to comply with the law. Since HGOL does not require Tax ID numbers, HGOL would not have that information to release.
Currently, Homegroup.Online provides resources for groups to officially organize as well as providing links to the necessary tax forms. The process is relatively easy and inexpensive. HGOL provides the most up-to-date resources and non-legal advice that points groups in the right direction.
Homegroup.Online will be offering services to automate the group’s responsibility to the taxing authority. HGOL will soon be able to act on behalf of the group, file for organization, complete and file initial and annual tax filings with the IRS, and more!