Should your non-profit organisation issue an invoice?

Recently, our non-profit organisation has been receiving requests from corporations who want to conduct CSR programmes with us and donate funds to us, for "invoices" corresponding to the donated amount.

When told that as a general rule, we do not issue invoices, the explanation given is that the "Accounts Department" won't approve payment unless our organisation is registered as a vendor on their procurement system, and an official "invoice" is issued.

This sort of response puts non-profit organisations in a rather precarious position, from a tax as well as an accounting perspective. By right, non-profit organisations should not have to register as "vendors" on any procurement portal. If the corporation is donating the funds, the non-profit organisation receiving the funds should not be treated as a supplier or vendor.

Non-profit organisations faced with such requests from corporations may wish to delve deeper into the underlying reasons. Perhaps, there could have been a misunderstanding between the marketing department and the accounts department. Either way, it's probably worth spending some time trying to get to the bottom of it instead of just acquiescing to the request to issue an invoice (if that is not your organisation's normal practice).

As a workaround, you could suggest coming up with a letter or other document which might address the corporation's internal requirements or SOP's.

Preparing for your registered society's AGM

If the financial year end for your registered non-profit organisation is 31^st December of every calendar year, then you would have a 6-month timeframe within which to convene your Annual General Meeting (AGM) and lodge the Annual Returns, with the Registrar of Societies (ROS). Ideally therefore, you should convene your AGM in or before, the month of May of the following year. This allows you an additional month, June, in which to compile your Annual Returns documentation for submission to ROS. 

Here are some tips on organising it:

1. First, fix a date for your AGM. Ensure that all your executive committee members, especially the office-bearers (President, Vice President, Secretary & Treasurer) are able to attend;

2. Select a cut-off date - for example, a month before the AGM - and work out how many registered and eligible members you have on your Register of Members as at the cut-off date. Eligible members are members whose subscriptions are fully paid up and are eligible to vote. Former members whose membership has lapsed as they have not renewed their subscription, should not be counted as eligible members. 

3. Check the number of attendees that are needed, in order to constitute quorum. The quorum requirement will be set out in the Constitution of your registered society.For example, the article might be worded as follows:

(1) The supreme authority of the Society is vested in a general meeting of the

members.  At least one-half of the voting membership of the Society or the voting

members present representing twice the total number of committee members,

whichever is the lesser, must be present at a general meeting for its proceedings to be valid and to

constitute a quorum.

4. Note that there is usually a time limit for the determination of quorum. For example, "within half an hour of the appointed time". This means that the prescribed number of eligible members must be present at the venue of the AGM, within half an hour of the time fixed for the meeting. 

5. Compile the documents that you need to send out to your members. You will need to draft a notice of agenda for the AGM, and attach documents such as the audited accounts, a report of the society's activities, and the signed minutes of the previous meeting. The best practice in this connection is to post all documents to members, no later than the deadline stipulated in the Constitution. However, with a view to conserving costs and manpower, a small non-profit with few members might be able to just email the documents in PDF, to the members. 

6. You may wish to prepare a script for the President to read out on the day of the AGM. While a script may not be needed, it's a good way to ensure that all agenda items are addressed in accordance with the notice of agenda. A script can also form the basis for the minutes of the AGM which will need to be prepared after the meeting. 

7. Set up a system to monitor and record requests from members to give notice of additional items to raise during the AGM under "Any Other Business". Such additional items should be included in the script so that they can be addressed during the meeting. 

8. Prepare an attendance sheet for the members must sign on the date of the AGM. 

9. Lastly, don't forget to call your members several days before the AGM, to remind them of the date, time and venue, to ensure that as many members as possible have the chance to attend the AGM.

Do you have a question or a suggestion for an article? Email me at spiralcom1701@gmail.com.