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Field Finance Manual

(As of August 2010)

Topics
(Arranged Alphabetically)

Accounting and Finance Contacts


(link to Staff Resources only)
Advances or Campership Returns
Athons
Auctions
Bank Accounts
Bank of America Works System
Cycles
Banquet
Benevolence Funds
Budgeting
Camp
Capital Purchases
Cash Expenses
Cell Phones
Contests
Contracted Services
Corporate Information
Credit Cards
Deficit Policy
Donations
Education Expenses
Expenses
Fraud
Fundraising Events (Operating)
Golf
Grants
Honorariums Received by Staff
Income Processing Forms
Individual Expense Reimbursements
Insurance

Internal Transfers
Land & Buildings
Loans
Memorials
Mission Unit
Money Market Accounts
Multicultural/Urban Program
Non-Cash Contributions
Payment Revenue
PARs (Personnel Action Request)
Payroll
P Card Procedures Overview
P Card Coding Corrections
P Card Training and Instructional
Guides
(link to Staff Resources only)
Personal Gifts to Staff
Petty Cash Policy
Prizes
Products and Resources Orders
Raffles
Record Retention
Reports
RTD Staff
Service Charge
Stock Gifts
Tax Information
Use of Young Life Funds/Property
Vehicles
Volunteer Areas
Young Life Foundation

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

ADVANCES OR CAMPERSHIP RETURNS (March 08)


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When a cardholder needs additional funds for an upcoming event, such as a banquet,
golf tournament, capital purchase, or to pay a bus bill for camp, they can obtain an
increase on their P Card for these additional expenses. This is done by using the
Purchase Request in the Bank of America Works System.
After the cardholder submits the request and the approver has reviewed and approved
the request the cardholders card is immediately loaded with the additional funds
requested. The cardholder can then make the necessary purchases for their event.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

ATHONS (March 08)


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An Athon event is one in which participants sign up sponsors to give a fixed amount per
segment of activity, such as a bike-Athon, rock-Athon, basketball/volleyball-Athon, trash-Athon
(per bag of trash), or walk/run-Athon. The participants can be anyone: kids, leaders or
committee.
Do not pay anyone to conduct Athons. Fundraising sales conducted by volunteers, on an
irregular basis, are typically exempt from unrelated business income tax.

Revenue from Athons


The donor can consider an Athon gift as a donation. However, if the donor receives goods or
services (like a work-Athon) valued at more than $10, reduce the 100% Donation Form (YL2201) by the value of the goods or services. Do not deposit Athon donations into a
personal account or use a personal check to send funds to the Service Center.
All funds collected must be sent to the Service Center for processing, whether donations or
payments. Do not deposit Athon donations into a personal account or use a personal check to
send funds to the Service Center. Any cash collected needs to be converted into a money
order prior to sending to the Service Center. The fundraising payment revenue is sent with
clear instructions on the 100% Payment Form (YL-2202) that all are operating payment
revenue and are to be credited to your Mission Units operating account. You must include
the type of fundraising event the funds are from (auction proceeds, t-shirt sales, etc.). If you
have fundraising donations, use the 100% Donation Form (YL-2201). For any checks that are
split donations and payments, use the Split Revenue Form (YL-2203).

Athon Expenses
Use your P Card to pay for Athon expenses. Code expenses for these events to 6410
Fundraising if they are operating fundraisers. Athon events to raise money for campership
should be coded to 6255.

Athon Funds Used for Campership


In order for Athon funds to be a tax-deductible donation to the donor, funds must be pooled,
available fairly to all participants, and Young Life must control the funds. Thus, the donor may
not pledge to send a certain kid to camp, but rather a group of kids of which the Athon
participant is one. There may be no direct link between the donor and the recipient or between
the amounts of funds raised by a participant and the amount of funds they receive. You may
use Athon proceeds to offset camp fees. Because the funds are pooled, rather than
channeled directly to kids, donations from relatives are welcome. You may not give any
participant cash or return proceeds if he or she does not go to camp.
The fair distribution made to campers may involve criteria such as need or energy expended
on the project, but not on the amount of funds raised by the individual participant. You can
give recognition, including limited non-monetary prizes, to the best participants.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

AUCTIONS (April 09)


*Before holding an auction, please contact the Young Life Tax Accountant at the
Service Center
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Items Donated
Young Life is precluded by IRS regulation 170(f)(8)(B) and by the Evangelical Council for
Financial Accountability Standard 7.10 from valuing non-cash items given to Young Life. The
donor is responsible for establishing the value of an item with the IRS that has been donated to
be sold at an auction. For items donated, please complete the 2053 - Non-Cash Contribution
Form and submit it to ip@sc.younglife.org, so that we may properly receipt these donors.

Proceeds from Auctions


The amount a person pays for an auction item is split between payment and contribution
based on the value of the item purchased. For instance, if an item is purchased for $1,000 and
the market value assigned by the original donor of the item is $300, then the contribution
portion would be $700. All funds collected must be sent to the Service Center for processing
using the 2203 - Split Revenue Form and marked as auction payments. Any cash collected
needs to be converted into a money order prior to sending to the Service Center. The
fundraising revenue is to be credited to your Mission Units operating account. For further ideas
on how to organize and conduct an effective auction please see the Golf Manual.

Garage Sale Type Auctions


In certain situations, areas hold an auction of items donated from individuals in the community.
These events are somewhat similar to a garage sale in that the items are generally used, and
have a vague or unknown market value. For these scenarios, the amount a person pays for an
auction item is 100% payment revenue, as the payment price approximates the value of the
item. All funds collected must be sent to the Service Center for processing using the 100%
Payment Form (YL-2202) and marked as auction payments.

Sales Tax
Some states require the collection of sales tax when selling auction items. Please refer to your
states sales tax law or contact the Young Life Tax Accountant.
Note: Young Life is not responsible for any liabilities from the use of services purchased by
donors or participants at the auction.
Young Life does not allow Young Life Staff or Committee to take out a personal loan for
an item to be auctioned off.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

BANK ACCOUNTS (Dec 04)


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Policy
Legally, Young Life is one corporate entity with many area branch offices. The corporate
officers of Young Life are responsible for all Young Life bank accounts.
No area may have a local bank account. Local area savings, investment accounts or
foundations are not permitted.
An exception to the bank account policy occurs when separate accounting is required by a
government or foundation grant. A bank account may be opened to track the specific grant
activity. Contact the Treasury Accountant for consideration.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

BANK OF AMERICA WORKS SYSTEM CYCLES (March 08)


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To access the all P Card instructional and training documents, click here.
The cycle end date for the Bank of America Works System is the 15th of each month. Although
the cardholder and approver can sign off on transaction anytime during the month, the
following must happen for accountings month end close.

The cardholder must have all P Card transactions submitted by the 20th for approval for
the month.
The approver must review and approve all P Card transaction by the 25th
At the end of this time all transactions are swept into the Accounting Department (this
includes all transactions whether completed and approved) to process for month end
close and to prepare payment to Bank of America.
For transactions that havent been submitted by the cardholder or approved by the
approver, users will still be able to view these and must complete their process as soon
as possible. If the expense account needs to be changed, it cant be done through the
system. Please see the Corrections on Coding section for further explanation.
Every card has a predetermined spending limit. The amount of the purchase is
replenished each time a cardholder signs off a transaction. If transactions are
not signed off, then the amount of un-submitted transactions will not be
replenished to your P Card until the transactions are signed off. Therefore, you
may run out of funds on your P Card and your card may be declined when trying
to make future purchases. For example, you have a $1,000 limit on your P Card
and spend $800 during the month. If you have not signed off your transactions
through the Bank of America Works System, you will have only $200 available
before your card declines.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

BANQUET (March 08)


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A banquet is defined as:

A major dinner or dessert for at least 25 people, for which guests do not pay to
participate.
One central location such as a meeting hall.
Donations are collected. Because donations are voluntary, they are fully deductible.

Smaller dinners and appreciation desserts, which guests do not pay to attend, are considered
Fundraising activities and not Banquets. Charge these expenses to 6410.
If tickets are sold, this is not considered a Banquet but a Fundraising activity. Charge these
expenses to 6410, and send all fees collected to the Service Center as payment revenue.
For prizes awarded please see Prizes.

Donations

Complete one 100% Donation Form (YL-2201) for all donor checks requiring identical
processing. To ensure smooth processing of the 100% Donation Form (YL-2201), write
the donor number on the top of the check, if known, and ensure the check includes a
complete donor address. Prepare a 100% Donation Form (YL-2201) for each bundle of
50 or fewer checks. Be sure to mark or write the event type on the form if this is
something the area wishes to track. Attach the form to the checks and send to the
Service Center. Any checks attached to a particular form will be processed as the form
states; if you have different processing instructions please use a new form for each
type.

Expenses

Charge all banquet expenses to the Banquet Expense Account 6430.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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BENEVOLENCE FUNDS (March 08)


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Area benevolence or deacon funds are not allowed. Young Life has established a missionwide benevolence fund. Contact the Human Resources Department for more information.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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BUDGETING (March 08)


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Budget Responsibility
Area budgets are the joint responsibility of the Area Director, Regional Director and the local
Committee. The signature of the Committee chair indicates committee approval of the budget
and agreement to abide by Young Life policies.
An annual budget is required to be submitted by the required due date by all active Areas,
Regions and Divisional accounts with paid staff. Volunteer areas are strongly encouraged to
submit an annual budget.

Budget Categories
Refer to the appropriate budget for preparation directions (blank budget forms may be
obtained on the Young Life website). The budget is made up of four major categories:

Staff Compensation includes salary scales and benefits established by the Young Life
Board of Trustees. Individual salary decisions, within Young Life job range limitations, are
made by Regional Directors.

Pension should be budgeted for any employee who (1) is full-time or works more than
1,000 hours per year and (2) has completed one year of service (1,000 hours in a
consecutive 12 month period).

Field expenses are all other operating and fundraising expenses. These expenses are
controlled at the local level according to Young Life policies. See EXPENSES.

For budgeting purposes, field expenses include charges to cover regional, as well as
Mission Leadership and Support Services. Each area pays a share of these service costs.
See SERVICE CHARGE.

Internal Transfers are transfers to or from areas, regions or divisions. Include all budgeted
internal transfers to or from another Young Life entity.

Other Non-operating Expenses:


o Camp
o Capital

Monthly Budget
Your annual budget is automatically divided into even twelfths, to determine the monthly
budget.

Submitting Completed Budgets

Complete your area budget using the appropriate form available on the Young Life
website.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.
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Do not use a prior year form as relevant costs may have changed.
Keep one copy for your files.
In addition to mailing the original, signed by the Area Director and Committee chair, to
the Regional Director for approval and signature, e-mail the budget form to the Regional
Office as well. The Regional Director will e-mail the budget to the Service Center and
retain the original for regional files.
Due dates are established in the annual Budget Timeline which is posted on the Young
Life Staff Resources website.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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CAMP (January 09)


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To be considered a camp expense for accounting purposes, an event must have ALL of the
following characteristics. Camp expenses are not assessed service charge. (Please note that
the definition of camp for statistical purposes varies slightly from this definition)

Kids and students known as campers or guests or leaders in training for camp
recruitment, counseling and follow up.
At least one night or multi-day event with no overnight stay.
A relationship between a Young Life leader and participants at the event.
Proclamation of the gospel or discipleship events to Christian youth, adults, or families
(outreach, discipleship, leader training camps, or leadership weekends including
volunteers and staff).
A program that is directed by Young Life staff or volunteers.
Collection of fees from participants. This can include scholarships and fundraisers.

Area camp funds must be used for kids at camp, preparing leaders for their role at camp, or
the cost associated with leaders serving at camp.
The following are some examples of events that are not considered camp for accounting
purposes, but may be considered camp for statistical purposes. For more explanation on
leadership meeting expenses, please refer to LEADERSHIP MEETING expenses.
1. Committee Weekends: 6750/leadership meetings - would generally be a time of training
and fellowship for the committee
2. Spiritual retreats for staff, volunteers, and committee: 6750/leadership meetings purpose is individual growth
3. Mission trips attended by individual kids: 6210/program expense- one kid/one leader
4. Lock-ins: 6210/program expense - purpose is contact work
5. Adult guest program: 6410/fundraising expense
6. Regional/Divisional meetings: 6750/leadership meetings - purpose is training and
fellowship

When Using the Purchase Card:

All expenses for camp in the Bank of America Works System will be coded to 6255
(Camp).
Camp fundraising expenses are also charged to 6255.
Any Assignment Team expenses, except mileage reimbursement, can be coded to
6255 and the property will reimburse the area to this account. Mileage Reimbursement
expense (such as gas) should not be put on the card, but reimbursed from the camp to
the individual staff person.
If a cardholder needs additional funds for a camp trip (previously know as Return of
Campership Funds) submit a request to the approver for an increase on the P Card.
This is done by using a Purchase Request in the Bank of America Works System.
After the approver has reviewed and approved the request the cardholders card is
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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immediately loaded with the additional funds requested. The cardholder can then make
the necessary purchases.
You may charge camp fees to your campership account at the Service Center when you
present your camp registration sheet at the camp. If transfers or returns produce a
deficit in your campership account, funds will be transferred from your operating
account (camp loss 6250) to cover the campership deficit. You will receive a letter
from the Service Center letting you know when this loss will be transferred.

Revenue/Fees:
Never deposit cash collected into a personal bank account or use a personal check to
send funds to the Service Center.

Campership Donations All donations must be sent to the Service Center for
processing. Complete a 100% Donation Form (YL-2201) for individual donations
received locally. Fill out one form for 50 or fewer checks as long as they are to be
processed identically. Any checks attached to a particular form will be processed as the
form states. If you have different processing instructions, please use a new form for
each type.
In order for funds to be a tax-deductible donation to the donor, funds must be pooled,
available fairly to all participants, and Young Life must control the funds. Thus, the
donor may not pledge to send a certain kid to camp (this would be considered a noncontribution payment). There may be no direct link between the donor and the recipient
or between the amounts of funds raised by a participant and the amount of funds they
receive. Because the funds are pooled, rather than channeled directly to kids,
donations from relatives are welcome. You may not give any participant cash or return
proceeds if he or she does not go to camp.
Camp Fundraisers All funds collected must be sent to the Service Center for
processing. Any cash collected needs to be converted into a money order or cashiers
check prior to sending to the Service Center. The camp fundraiser proceeds are sent
with clear instructions on the 100% Payment Form (YL-2202) that all are camp
payment revenue and are to be credited to your Mission Units campership account.
Camp Fees - All camp fees collected for trips must be sent to the Service Center for
processing. All cash collected needs to be converted into a money order or cashiers
check prior to sending to the Service Center. The camp fees are sent to the Service
Center along with clear instructions on the 100% Payment Form (YL-2202) that all are
camp fees and are to be credited to your Mission Units campership account.
Any camp fees collected on the way to camp may be mailed to the Service Center from
the Young Life camp office.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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Leadership Weekends
Revenue:

All payments collected must be sent to the Service Center, code these to the
regions/areas 4335 account (Non-Contribution Camp).
Internal Transfers can be done from the area to the region and should be coded
9430/9430.

Expenses

The region would code all expenses relating to the event to 6255 (Camp).

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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CAPITAL PURCHASES (March 08)


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Purchase of Land, Buildings, Vehicles, Equipment and Furniture


Acquisitions of all capital items (land, vehicles, furniture and equipment costing or worth more
than $1,000 with a useful life greater than one year) must be approved using the Capital
Acquisition Form (YL-2908). Code these transactions to 2420 in the Works System.
Young Life may accept title to a building to be used as an office, training or program house,
particularly buildings with capabilities to support handicap needs. A complete list of criteria is
contained in the Young Life Real Estate Policy on the Acquisition and Disposition of Real
Property on the Young Life website.
Young Life will not accept title to a building that is to be used as a staffs personal residence.
1. Surplus operating funds or special capital donations must be used for the purchase.
2. Send the completed Capital Acquisition Form (YL-2908) to Properties Accounting at the
Service Center, along with a copy of the receipt or invoice.
3. If purchasing a vehicle, send a copy of the purchase invoice along with the original title
in Young Lifes name to the Insurance Department.
4. If purchasing a building or land, send a copy of the closing statement to Properties
Accounting.
5. Operating costs incurred while owning capital assets are area expenses (example
repairs, tires, etc.), and may not be included with capital expenses.
When determining whether operating costs are capital or operating, use the following
guidelines:
o Did we extend the useful life of an item? For example, a new engine is purchased
for a Suburban. That new engine is a major repair and will extend the useful life of the
vehicle. Because of the new engine, we may get an additional 100,000 miles out of the
Suburban. Therefore, the new engine would be capitalized and would be coded to
expense account 2420 in the Works System. However, if the radiator needed to be
replaced and it cost the area $1000 to do so, that will not necessarily extend the life of
the Suburban. Consequently, this would be considered an operating expense and
would be coded to the appropriate expense account in the Works System.
o Did we make it better? For this example, the Suburban does not have air conditioning
and we want to add it. If the addition of the air conditioner were over the $1000
threshold, we would capitalize this expense and code it to expense account 2420 in the
Works System. However, if you repainted your office and it was over $1,000, it is
considered a repair and would not make the office better so we would not capitalize it.
Consequently, this would be considered an operating expense and would be coded to
the appropriate expense account in the Works System.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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6. Areas may not take out loans from any other institutions to purchase a capital asset.
The use and need for the asset, the effect on operating expenses and the funds
available must be considered before acquisition is requested.

When Using the Purchase Card

When a Mission Unit needs to make a capital purchase the cardholder will submit a
request to their approver for an increase on their P Card. This is done by using a
Purchase Request in the Bank of America Works System.
After the approver has reviewed and approved the request, the cardholders card is
immediately loaded with the additional funds requested. The cardholder can then make
the approved capital purchase. The cardholder must fax copies of the Purchase Card
Capital Authorization Form along with receipts to Properties Accounting at the Service
Center for processing (fax# 719-867-3501).
This transaction is coded to the cardholders Mission Unit and 2420 (US Field Capital
Purchases) on their online statement.

When Using the Bank of America Works System Check Request (done within the
Purchase Request option)

The user will go to Bank of America Works System and complete the Create A
Purchase Request online form. This request is coded to the users Mission Unit and
2420.
After this is completed and submitted the request is reviewed and approved by the
approver.
This check request is paid out of the Service Center and mailed directly to the vendor.
Copies of the receipts must be sent to Properties Accounting at the Service Center.

Recording and Disposing of Capital Assets




Young Life is required by accounting regulation to record all acquisition and disposal of
capital assets.

The asset must be sold at fair market value and may not be given away or bought by
staff at below market cost.

Be sure to promptly notify Properties Accounting at the Service Center when an asset is
sold or disposed of.

See the Young Life Real Estate Policy on proposed gifts of land and buildings to be sold or
used.

Transfer to Operating Fund or Campership Fund


If a donor gave a gift for the purchase of a particular capital item and after this purchase is
made there is a surplus, it may be transferred to your campership or operating account.
Contact Properties Accounting at the Service Center indicating your needs.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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CASH EXPENSES (March 08)


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You can withdraw cash from an ATM with your P-Card. It will cost your area 2.5% of the total
withdrawn plus any ATM fees that the machine charges. The cash withdrawal will show on
your online P-Card expense report, and you will code it as you would other expenses. These
receipts may be requested by Field Accounting to be sent to the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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Cell Phone Policy (August 2009)


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Field staff is not allowed to obtain a cell phone account under a Young Life name; they must
open a personal cell phone account. The staff person pays the entire cell phone bill out of
pocket and submits the YL portion as a Reimbursement Request through The Works system
or they can pay the YL portion with their P Card.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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Contests (September 09)


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Games of skill are events that offer someone a chance to win a prize by participating in
an activity where the person with the most skill in that event has the greatest chance of
winning (golf putt, basketball shootout, etc.).

When tickets are purchased for a game of skill which could result in a prize, all funds
collected must be sent to the Service Center for processing using the 100% Payment
Form (YL-2202). Participants will not receive a tax-deductible receipt.

Due to multiple federal tax implications, Young Life does not permit Raffles or
other games of chance. See Raffles for further information.

Before awarding any prize to the winner of the contest, please review the Prizes
section for further information.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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CONTRACTED SERVICES (March 08)


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Contract service payments are payments to an independent contractor for services rendered
(i.e. catering, cleaning, photography, bus driving, entertainment, construction, speakers, etc.),
rental of property or facilities, and prizewinners. An independent contractor may be a person
or business.
Young Life prohibits paying a salary to any worker through a personal bank account or a P
Card. All salaries must be paid through the Service Center Payroll department. Part-time or
temporary office workers are considered to be Young Life employees and not independent
contractors. You must complete a Personnel Action Request (PAR) for these types of
employees. Contact the Payroll department for assistance in distinguishing between employee
and contractor status. Tax penalties may occur for treating an employee as a contractor.
Payments made to corporations are exempt from reporting, except payments made to law
firms, whether incorporated or not. Stiff penalties may be levied by the IRS for late reports,
errors in reporting, or failure to report payments.
Young Life is required to report all payments made to an independent contractor to the IRS.
The amount reported depends on the type of payment and on the documents on file at the
Service Center. If payment has been made to reimburse expenses incurred by the contractor,
and actual invoice copies are on file, then these amounts are excluded from the amount
reported. However, if documentation is not provided, the entire payment must be reported as
income.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

22

CORPORATE INFORMATION (March 08)


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Young Life is a single legal entity administratively organized into a number of national and
international offices. It was founded in the State of Texas in 1940 and incorporated in the
State of Texas in October 1941.

Young Lifes Federal Identification Number is 84-0385934. You can access the Young
Lifes IRS Determination Letter on Staff Resources or request a copy by contacting Mission
Assistance or calling (719) 381-1800.

Area and regional staff are representatives of Young Life, but are not corporate officers and
are not authorized to sign legal or tax forms as Secretary, Treasurer, etc. For a list of
current corporate officers, contact Mission Assistance or call (719) 381-1800.

Young Life is governed by a Board of Trustees. Members of area committees are


volunteer representatives of Young Life in their communities who have covenanted among
themselves to support Young Life staff and ministry initiatives through prayer, mentoring
and fundraising activities. These men and women on whom Young Life relies for local
leadership in the exercise of their spiritual gifts in the furtherance of the mission and its
various activities are nevertheless not empowered as officers or directors of the
corporation.

Form 990, Form 990T, audited financial statements, and the annual report are completed
and filed, as required, on an annual basis. Copies of these forms and reports may be
obtained by contacting Accounting.

Young Life is a charter member of the Evangelical Council for Financial Accountability
(ECFA). ECFAs phone number is 800-3BE-WISE or their web site is www.ecfa.org.

Young Life is in good standing with Dunn and Bradstreet. Young Lifes Dunn and
Bradstreet identification number is 05-024-5331. Dunn and Bradstreet may be reached at
1-800-333-0505 or ww.dnb.com.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

23

CREDIT CARDS (March 08)


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An area may not obtain any credit card in Young Lifes name.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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DEFICIT POLICY (March 08)


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Salary Reduction and Reinstatement


Under the Young Life Deficit Policy staff will be placed on reduced salary or financial leave of
absence (FLOA) in the following situations:

Current operating balance is in deficit and meets criteria under the Young Life Deficit
Policy.
Reductions and salary restoration under the policy are automatic, effective on the 1st day
of the month, and do not require submission of a PAR.
Staff may continue to perform their regular Young Life duties while on reduced salary @
50%.
All Young Life benefits continue while on reduced salary. Staff will remain on reduced
salary until criteria are met under the policy allowing them to return to full salary.
Back pay may be paid for periods on reduced salary at the discretion of the supervisor, and
only if an area/region is in surplus. A PAR is required for back pay.

Financial Leave of Absence

If an area or region meets criteria under the policy to be placed on financial leave of
absence, it will be effective on the 15th of the month.
Staff may remain on FLOA for a maximum of 3 months, during which time Young Life
benefits will continue at the areas expense.
After 3 months, the supervisor should submit a PAR to terminate the staff member;
otherwise the staff member will be placed on personal leave of absence under the policy.
Reinstatement to paid status will automatically occur when the area or region meets criteria
under the policy.
Staff is not eligible for back pay during periods of FLOA under the Young Life Deficit Policy.
Staff may not perform their Young Life duties, except fundraising, while on non-paid leave
of absence.

A Regional Director may make salary reductions, financial leave decisions, or take more
stringent action outside of the Deficit Policy by submitting a PAR. In this case, a PAR would
be required to restore the salaries back to normal.

Personal Leave of Absence


A staff person may choose to take a personal leave of absence. In that case, the staff person
pays his or her own group health insurance premium. Contact the Human Resources
Department for more information on criteria for personal leave.

Regular Evaluation of Area Cash Position


For ongoing financial stability, an area should maintain sufficient operating reserves. Young
Life recommends three months (one quarter) of the annual budget. If an areas cash position
(operating balance plus money market, if any) falls below a level acceptable to the Regional
Director, Area Staff and Committee members, the salary of staff members may be reduced by
their Regional Director or the staff person may elect to be placed on financial leave.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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See the Deficit Policy on the Young Life website for further details.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

26

DONATIONS (March 08)


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Send all Young Life donations, except Athons, with a completed 100% Donation Form (YL2201), to the Service Center for processing, recording and receipting, even if the donor does
not wish to receive a receipt. Include all information that will assist Income Processing in
determining the correct recording of the funds. Donations to support Young Life should not be
given to another nonprofit organization then transferred to Young Life.
Do not deposit donation checks into a personal bank account, use a personal check to send
funds to the Service Center, or issue a receipt to a donor from the local area or region.
Centrally processing donor gifts at the Service Center not only assures accurate donor
records, but also protects the integrity of our receipting process and accuracy of accounting for
donations on financial statements. These factors affect the tax deductibility of donations to
Young Life.
Note: Donations of $25 or less are receipted unless they are related to an Athon. Send all
checks to Income Processing with a 100% Donation Form (YL-2201) and designate on the
form the event these checks are for.
For a gift to be tax-deductible, the IRS requires that the organization has full control of the
funds and discretion as to their use. Donations given with the expectation that the funds be
passed through for the benefit of a staff member in excess of their salary are not permitted
under IRS regulations.
A donor may restrict a donation for a particular purpose (i.e. capital gifts), but may not make a
gift contingent upon a specified future and uncertain event. Donations designated for support
of a certain staff person or project are considered to be funds of Young Life and will not be
returned if the staff person leaves or the project is discontinued. A donation may be returned
to the donor if the donor requests a refund from Income Processing.
If the donor receives any direct benefit associated with a donation, the donation is not fully taxdeductible. The donor must reduce the reported amount of the donation by the fair market
value of the direct benefit received. Its Young Lifes responsibility to correctly notify donors of
the estimated fair market value of any direct benefit received. Failure to do so may lead to
fines and jeopardize Young Lifes tax-exempt status.
Send all donations to the Service Center. It is most efficient for the donor to send a donation,
with the remittance portion from the previous receipt, directly to the Service Center rather than
to the area office. This eliminates duplicate mail time, minimizes delays in providing donor
receipts and reduces opportunities for administrative error. Exceptions are first-time donations
and banquet donations, which should be processed by the area office and then forwarded to
Income Processing.
Timing of recording: In order for donations to be recorded in the current month, they must be
received by the Service Center no later than the close of business on the last working day of
the month. If there is a concern that the funds will not arrive in time, overnight mail them to the
Service Center, at the Young Life street address.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

27

Permanent donation records are maintained for each donor for a period of five years. Records
are not maintained for small Athon checks that are $25 or less. Donor information can be
found in the website Giving Report. Direct additional donor questions to Mission Assistance or
call (719) 381-1800.

Athon DonationsSee ATHONS.


Banquet DonationsSee BANQUET.
Cash Donations
Cash donations need to be receipted by the Service Center. All cash collected needs to be
converted into a money order or cashiers check and then sent to Income Processing with a
completed 100% Donation Form (YL-2201) and a listing of the individual donor information to
Income Processing at the Service Center. Never deposit cash collected into a personal
bank account and use a personal check to send funds to the Service Center.

Camp Donations and FeesSee CAMP.


Electronic, Credit Card and Online Donations
Electronic donations are handled through the Service Center. Young Life policy prohibits
setting up an online giving system for gifts to your area (outside of the one set up by the
Service Center).

EFT donations (Preferred Method of Giving) can be initiated by completing an Electronic


Funds Transfer Form and Information Brochure (YL-2223) and sending it to the Service
Center. The donor can enroll on-line or by contacting Income Processing for an application
form(719) 381-1985.

Credit/debit card donations (EFT is preferred), single or recurring, may be made by calling
Income Processing, by using the on-line giving option on the Young Life web site, or
sending in a completed Credit Card Processing Information (YL-2204) form for one-time
credit card donations or the Electronic Funds Transfer Form and Information Brochure (YL2223) for recurring credit card donations to Income Processing at the Service Center.
Beginning October 1, 2006, donations and payments (auctions, golf fees, raffles, camp
fees, etc.) made on a credit/debit card will be charged a 2.25% fee on the amount of the
transaction. This fee will be seen by the area as a reduction of donations on their Revenue
and Expense report. Since it is being treated as a reduction in donations and not an
expense, it will not be service charged.

At Young Life we strive to treat donor information with the greatest level of sensitivity,
especially when it comes to financial information. In addition to our own concern, we are
also held to industry guidelines that address how we are to protect donor credit card
information. Based on these guidelines, we request that you submit credit card donation
forms via certified mail (or other tracked courier service). Completed forms should be
kept in a locked, secure location up until mailing and should be mailed to the Service
Center as soon as possible.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

28

Estate/Trust Gifts
If your area receives notice of a donation from an estate or trust of a deceased donor, please
notify the Director of Foundation Operations or the Director of Donor Services immediately. All
estate/trust documents must be reviewed and signed by an officer of Young Life/Young Life
Foundation.

Event Donations

For all donor checks from an event that require identical processing, complete one Income
Processing Form for each bundle of 50 or fewer checks. Indicate the fair market value of
the item received (such as a round of golf or cost of meal) on the form.

Record all checks that are 100% donation on a 100% Donation Form (YL-2201).

Record all checks that are 100% payments on a 100% Payment Form (YL-2202). Indicate
the fair market value of the item, good or service received (such as a round of golf or cost
of a meal) on the form.

Record all checks that are part donation and part payment on a Split Revenue Form (YL2203). For example, if the entry fee for each golfer is $120 and the fair market value of the
round of golf and awards dinner is $80, and then $40 of each entry fee represents a tax
deductible donation.

Indicate the event type on the form.

To ensure smooth processing of each Income Processing Form, write the donor number on
the top of the check (when submitting checks greater than $25), if known, and ensure each
check includes a complete donor address.

Paper clip (do not staple) the form to the checks and send to Income Processing at the
Service Center.

If a donation from an Athon, the donor will not be receipted. However, you still need to send
it to Income Processing per the instructions above. Write on the appropriate Income
Processing Form Checks $25 and underand then send the form(s) and
accompanying checks to Income Processing at the Service Center.

Special Project Donations


Gifts for special projects must be clearly consistent with Young Life programs and purposes.
Only donations relevant to Young Life objectives can be accepted. See NON-CASH
CONTRIBUTIONS for non-cash gifts excluded from deductibility.

Transfer of Donations
In the event that an error was made in processing a donation, either by the area to which the
funds were applied or by the Income Processing department, that area may request a transfer.
If the donor has restricted the donation, either on the actual check or any supporting
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

29

documentation provided with the check, the donation can only be transferred at the request of
the donor.
Transfer requests must be received within three months of the date the gift was posted.
Transfer requests that include donations posted prior to the last three months will have the last
three months transferred by Income Processing and the remainder transferred as a lump sum
by Field Accounting.
Please review your Giving Report regularly and contact Income Processing immediately with
any changes or corrections. All transfer requests received before the last three working days
of the month will be included in that months transaction.
E-mail transfer requests to Income Processing with the subject line Transfer Request or call
Income Processing at (719) 381-1985.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

30

EDUCATION EXPENSES (Dec 04)


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Young Lifes handling of educational reimbursements affects both deductibility of donations


and declaration of taxable income to the staff. Tax laws controlling funds received for
educational expenses are complicated.
Because of these considerations, Young Life has adopted the following policies:


Short job-related seminars and required job-related classes such as Apologetics may be
paid through the area account and charged to 5415. No other education expense may be
paid by the area.

Costs for spouses or part time staff to attend Young Life courses are charged to the area
account by the Service Center.

Tuition and other costs for optional academic training must be paid through the regional
training fund. Funds are pooled and distributed equitably to all participants. This
reimbursement may not be paid through the area.

Complete an Educational Expense Reimbursement Application for educational


reimbursement and forward this to the regional office, then to Continuing Education at the
Service Center before any distribution is made.

Refer to the Continuing Education Reimbursement Policy online for further information on
Education Expenses.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

31

EXPENSES (April 09)


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Operating expenses are budgeted and charged to specific accounts for tracking and reporting
purposes. The following accounts indicate the appropriate category to charge various
operating expenses.

Vehicle 5710

Young Life owned van expenses Actual costs (not mileage) to operate the van are
charged to this account. Typical expenses would be:
Gas
Oil
Maintenance
Tires
Insurance
Leased van expenses if used for camp these are considered camp expenses not
operating. See CAMP.
Mileage reimbursement for business use of personally owned vehicles at the Young Life
approved rate is set each year based on IRS regulations. A mileage log (YL-2618) must be
kept. See INDIVIDUAL EXPENSES.
The actual cost of oil and gas may be reimbursed rather than being reimbursed for mileage.
A mileage log (YL-2618) still needs to be kept as well as receipts.
Repairs may not be reimbursed.

Office 5810
This category includes:
Rent
Utilities
Supplies
Postage
Telephone expenses
Bank service charges
Miscellaneous office items, such as equipment repairs
Production and/or mailing of newsletters, brochures and calendars
Expenses associated with certain office-related materials purchased from the Service
Center, such as stationery orders
The purchase of office equipment under $1,000
Note: Items over $1,000 are considered Capital items and require different handling. See
CAPITAL.
It is Young Lifes preference to lease (rent) space for offices, clubs, outreach centers, etc. All
property leases must contain a set of required elements written into each contract. For
assistance with the lease, contact the Risk Manager at the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

32

Program 6210
Includes the kid cost of operating your program, such as:
Contact work expenses
Childcare fees
School functions
Club supplies
Leadership expenses
Committee expenses
Movie rentals
Business lunches, other than those with donors
Other non-fundraising promotions
Cost of program materials ordered from the Service Center, such as songbooks,
Campaigner materials, leadership materials
Field business insurance - Young Life obtains on behalf of areas. See Insurance.
The purchase of program equipment under $1,000
Note: Items over $1,000 are considered Capital items and require different handling. See
CAPITAL.

Camp Expenses - 6255


Multicultural/Urban Program 6230
After prior approval from the Multicultural and Urban Office, multicultural/urban areas may
include major ($1,000 or more per year) program expenses such as educational or tutorial
programs, basketball programs and van expenses. See MULTICULTURAL/URBAN.

Fundraising 6410
Includes all operating fundraising expenses except golf and banquet. This may include:
Promotional materials for fundraising, whether purchased locally or ordered from the
Service Center.

Donor Care 6415


Budget any expenses related to caring for donors in this account.
This includes meals with donors, meetings, thank you gifts, etc.
Operating Fundraisers 6425
Use this account for bake sales, candy sales, garage sales, auctions, etc. Not to be used for
Banquet or Golf expenses.

Banquet 6430
Use this account only for a major dinner or dessert. Include all costs for your banquet in this
account.
Minimum of 25 people
No charge to attend
Contributions are solicited
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

33

Golf Events 6440


Include all costs of the golf tournament in this account. See the Young Life Golf Manual and
the GOLF section of this manual for additional, important information relating to golf event
finances.

Travel and Conferences 6710

Include transportation, meals and lodging for travel and conferences outside your area.
Any costs incurred to attend regional staff conferences and area directors meetings for
which you pay the region on a prorated basis. Record any payment received from the
region as a reduction of the expense category charged.
Staff conferences: include the costs of attending regional, divisional, and mission wide
staff conferences.

Leadership Meetings 6750


Includes expenses for times of training or growth for leaders in preparing them for programrelated ministry. For meetings that prepare leaders for ministry at camp, please refer to CAMP
expense. Some examples of leadership meetings are:

Committee Weekends: would generally be a time of training and fellowship for the
committee
Spiritual retreats for staff, volunteers, and committee: purpose is individual growth
Regional/Divisional meetings: purpose is training and fellowship

Other 8690
Use this category only for miscellaneous expenses not covered in the other categories
mentioned here. A maximum total of $500 per year is allowed for these expenses. Please
explain on the budget form.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

34

FRAUD (March 08)


(877) FRAUD-YL or (877) 372-8395
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The Fraud Hotline is implemented as a means of supplementing established Young Life


policies which prevent or deter accounting irregularities and fraud. The hotline will be available
to all employees and volunteers that have concerns over the protection of Young Life assets.
Policies
1. Internal Audit shall be responsible for answering all hotline calls. If Internal Audit is not
available, calls will roll over to voicemail. All calls sent to voicemail shall be returned
within 2 business days.
2. A policy of strict confidentiality will be enforced on all hotline calls. The caller will not be
asked for identification. If the caller voluntarily forgoes confidentiality their personal
information will only be provided to the management and parties involved in the
complaint.
3. When a complaint is called in, the accusation will be investigated before being reported
to the necessary management, unless the misconduct is minor and only requires a
verbal warning.
All investigated calls indicating fraud will be reported to the Chief Financial
Officer, the Vice President of Human Resources, either the Director of Field or
the Assistant Director of Properties, and the immediate supervisor of the accused
employee. Management shall be responsible for taking corrective action once
the investigation is complete.
All investigated calls indicating accounting irregularities will be reported to the
Chief Financial Officer, either the Director of Field or the Assistant Director of
Properties, and the immediate supervisor of the accused employee.
Management shall be responsible for taking corrective action once the
investigation is complete.
All other calls, including harassment, discrimination, and safety violations will be
sent to Human Resources for investigation and corrective action.
4. If a complaint is authenticated, and Internal Audit Review will be conducted on the
relevant established internal controls to determine if all necessary preventive measures
are in place.
5. The availability of the hotline will be communicated to employees through the Young
Life Informer quarterly during the first year of operation and semi-annually thereafter.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

35

FUNDRAISING EVENTS (OPERATING) (March 08)


Previously D and F accounts on the ABARs.
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Use this account for operating fundraiser events, except for golf or banquet. If your banquet,
golf tournament or other fundraising event includes the sale of Young Life items (such as area
t-shirts, towels, etc.), the expenses directly related to that sale may be charged to this
account. Event types would include retreats/conferences that funds are collected from
participants to cover the expense, day trips with kids with funds collected, sale of books or tshirts, raffles, auctions, Christmas tree lots, etc.

When Using the Purchase Card:

All expenses for operating fundraisers in the Bank of America Works System will be
coded to 6425 (Operating Fundraisers Expense).
When a cardholder needs additional funds for a fundraiser (previously know as
Temporary Advance) they submit a request to their approver for an increase on their P
Card. This is done by using a Purchase Request in the Bank of America Works
System.
After the approver has reviewed and approved the request the cardholders card is
immediately loaded with the additional funds requested. The cardholder can then make
the necessary purchases for their event.

Revenue:

All funds collected must be sent to the Service Center for processing. Any cash
collected needs to be converted into a money order prior to sending to the Service
Center. The fundraising revenue is sent with clear instructions on the 100% Payment
Form (YL-2202) that all are operating payment revenue and are to be credited to your
Mission Units operating account. You must include the type of fundraising event the
funds are from (auction proceeds, t-shirt sales, etc.).

Never deposit cash collected into a personal bank account or use a personal check to
send funds to the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

36

GOLF (Sept 08)


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Golf tournaments are considered one of the major fundraising events for a Young Life field
area office. In non-profit accounting, a special fundraising event is one in which a direct
benefit is offered to the participants for a fee that includes the direct benefit plus a
significant donation.
A golf marathon is usually 100 holes of golf, played by participants who gather individual perhole sponsors. Golf marathons:

Involve no cost to the golfer to participate.


Money given by the various sponsors is fully deductible, and must be sent to Income
Processing to be receipted.
Expenses are handled in the same way as traditional golf tournaments.

Note: If the player decides to sponsor him or herself, the portion sponsored represents a direct
benefit and is not tax deductible.
Golf tournaments are operational activities; therefore charge all expenses to the golf expense
account (6440).
For prizes awarded please see Prizes.
For more assistance refer to the Young Life Golf Manual or contact Field Accounts Payable.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

37

GRANTS (March 08)


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There is a significant opportunity for Young Life to secure grants, either from foundations or, in
some cases, government entities (local, state, and federal). Note that some governmental
grants may contain restrictive clauses that are detrimental to Young Lifes ministry. Contact
the Young Life Grants Office at the Service Center for assistance with grants.
Grant applications may require a copy of:

Young Lifes Annual Report


Young Lifes audited financial statements
Young Lifes Form 990

Refer to Young Lifes Position Regarding Government Funding and the White Houses FaithBased Initiative for guidelines on applying for government grants.
Sometimes government entities and private foundations have special reporting requirements,
which may require separate accounting records. If required, contact the Accounting
Department at the Service Center or call 719-867-3500.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

38

HONORARIUMS RECEIVED BY STAFF (Dec 04)


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Honoraria for speaking within ones area of responsibility are not permitted. Staff may not
receive honorariums for summer camp assignments, staff conference speaking or other joint
area activity in which ones area is included.
Staff will occasionally receive honorarium for speaking engagements, performing weddings or
funerals, or performing other services attributable to their standing as a member of the Young
Life staff.

Check is made payable to the staff person: It is not a donation or gift, but compensation
for services rendered, and it must be declared on the staff persons personal income tax
return. If the staff person wishes to donate it to Young Life, he or she should deposit
the payment in their own bank account, record the income received, and write a
personal check as a donation. It still must be reported as income on their tax return;
however a charitable donation may be taken.

Check is made payable to Young Life: Send the check to Income processing at the
Service Center as payment revenue. This is not a donation from the payer or from the
staff person - it is a payment for services, therefore, no donation receipt may be issued.

Young Life staff may be paid for speaking or serving outside their areas.
Reimbursement for travel or other expenses (with required documentation) may be
made by check to the person, if they are to be paid personally, or to the area, if it was
charged to the area.

Because any payment other than the documented cost of the speakers travel is taxable
compensation, it must be reported within 30 days. See PERSONAL GIFTS TO STAFF. Send
the completed Report on Staff Honorarium Payments (YL-2612) to the Payroll Department at
the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

39

INCOME PROCESSING FORMS (Mar 08)


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These instructions are also listed on the back of each form.


Form 2201 100% Donation Form
Instructions:
Use this form for solely for donations, where no goods or services have been or
are to be received.
One Check: Complete Area Number, Submitted by, Telephone, Date and any
pertinent RT information, comments or special instructions. Complete any
relevant event information. The system default will be to donations for operating,
unless indicated otherwise.
Multiple Checks: Same as above, however, all donation information must be the
same for each check to use one form. All checks will be processed this way. If
any donation information is different, then a separate form must be used. The
checks may be of varying amounts. The maximum number of checks that may be
attached to one form is 50. The system default will be to donations for operating,
unless indicated otherwise.
Although we strongly prefer you order the forms, you can access a printable version of
the 100% Donation Form (YL-2201) on the web if it is a dire necessity.
Form 2202 100% Payment Form
Instructions:
Use this form solely for payments where goods or services have been or are to
be received.
One Check: Complete Area Number, Submitted by, Telephone, Date and any
pertinent comments or special instructions. Complete all payment information.
The system default will be to payments for operating, unless indicated otherwise.
Multiple Checks: Same as above, however, all payment information must be the
same for each check to use one form. All checks will be processed this way. If
any payment information is different, then a separate form must be used. The
checks may be of varying amounts. The maximum number of checks that may be
attached to one form is 50. The system default will be to payments for operating,
unless indicated otherwise.
Although we strongly prefer you order the forms, you can access a printable version of
the 100% Payment Form (YL 2202) on the web, if it is a dire necessity.
Form 2203 Split Revenue Form
Instructions:
Use for checks that are split partial donation and partial payment
Partial Payment Information should be on the left side ONLY.
Partial Donation Information should be on the right side ONLY.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

40

o Event types BQT (banquet), BQTS (banquet sponsor), GOM (golf


marathon), GOMS (golf marathon sponsor), GOT (golf tournament),
GOTS (golf tournament sponsor), blank box (your description, no special
acronyms)
One Check: Complete Area Number, Submitted by, Telephone, Date and any
pertinent comments. Indicate the dollar amount that is a payment on the left side
and fill in the event description. Complete any relevant information regarding the
donation side. The system will default to general operating with no event.
Multiple Checks: Same as above, however, the payment amount and any special
donation information must be the same for each check to use one form. All
checks will be processed this way. If either the payment amount or the special
donation information is different, then a separate form must be used. The checks
may be of varying amounts. The maximum number of checks that may be
attached to one form is 50.

Although we strongly prefer you order the forms, you can access a printable version of
the Split Revenue Form (YL-2203) on the web, if it is a dire necessity.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

41

INDIVIDUAL EXPENSE REIMBURSEMENTS (March 08)


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Young Life policy does not allow reimbursements for expenses older than 6 months
from the current date.
In the Bank of America Works System, there are two ways to submit an individual Expense
Reimbursement.
Purchase Request: This has two different functions in the system.
1. Check Request this is used when a purchase needs to be made but the vendor does
not accept a credit card.
2. Advance Request this option is used to increase the credit limit on the P Card.
Reimbursement Request: This option is for out-of-pocket expenses better known as an
Individual Expense Reimbursement.
To access the Check, Reimbursement and Advance Requests Training Document, click
here.
For mileage reimbursements, business use of personally owned vehicles is reimbursed at the
Young Life rate, which is set each year based on IRS regulations. Staff may be reimbursed at
a lower rate if an area chooses. Volunteer leaders may be reimbursed at no more than the IRS
rate for volunteers. The current rates are available on the Young Life website.

Reimbursing Personal Expenses for Cardholders:

Cardholders will use the Bank of America Works System by creating a Reimbursement
Request for their out of pocket expenses.
This is submitted by the cardholder then reviewed and approved by the approver.
Reimbursement is paid from the Service Center to the individual cardholder.

Reimbursing Personal Expenses for Non-Cardholders When P Card Cant be


Used:
When a non cardholder needs reimbursement for expenses or a P Card cannot be used there
are 3 options to use for this type of payment:
(1.) An online Purchase Request can be made to pay vendor/individual from the Service
Center; this would be submitted by the area director or administrator.
(2.) An online Reimbursement Request option can be made, this would allow the individual to
submit their own expenses through the Bank of America Works System and be paid by
the Service Center.
If available to a cardholder in the same Mission Unit, the cardholder could use the cash
advance option on their P Card to make small reimbursements to volunteers. This option will
cost 2.5% of the cash advance plus the cost of using the local ATM (typically an
additional $1 $2). Any unspent cash, should be kept in a secure location at the area office.
The cash advance option is not available to all, please discuss with your regional director if you
would like this option.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

42

Reimbursing Volunteers:

Volunteers who regularly have at least $150/month in reimbursable out-of-pocket


expenses are eligible to use the Bank of America Works System by creating a
Reimbursement Request for their out of pocket expenses. See Option 2 in the
Reimbursement for Non Cardholders.
Their request is submitted to the approver who reviews and approves the request. This
is paid from the Service Center to the volunteer.
Volunteers who spend less than $150/month will be reimbursed from the Service
Center. This request would be submitted by the area director or administrator through
the Bank of America Works System Purchase Request.

Expenses Not Permitted per YL Finance Policies:


These expenses are considered personal in nature and are not reimbursable by Young Life.
These include:

Health Club Dues/Fees: Under Young Life benefit policies, health club dues/fees are
processed through payroll. Contact the Human Resources Department at the Service
Center for information.
Rent for Office in Home: The IRS has set stringent requirements for the deductibility of an
office at home. Therefore no reimbursement will be made for use of ones home as an
office, including no portion of your utilities or other housing expense. Your particular
situation may allow you to claim these expenses as a tax-deductible business expense on
your federal income tax return. Consult a qualified tax advisor for assistance in evaluating
your personal circumstances.
Education Expenses: Expenses for short-term, job-related seminars may be paid for on
the P Card. However, expenses for academic classes that are not required, including
books, travel, and room and board may not be paid on the P Card. In order to comply with
IRS regulations, reimbursement, if any, must come from the regional training fund, upon
receipt of an education expense application.
Sabbatical Costs: Sabbatical costs are generally personal and may not be reimbursed by
Young Life. Young Life business expenses, such as speaking at a camp or attending a
short-term seminar during the sabbatical, may be reimbursed.
Home Internet: The cost of internet access at home is not a Young Life expense unless an
area does not have a separate office. In this case, if you are using your home internet
service for Young Life use as well as home use, you may submit a portion of the internet
cost for reimbursement. The reimbursable portion is the percentage of time your home
service is used for Young Life work.
College Scholarships: Do not pay college scholarships to any club kids or schools on
their behalf. Young Life does not have a qualified college scholarship program. Young Life
employees have a different benefit program related to their children.
Other Expenses that are personal and may not be reimbursed by Young Life:
 Annual fees on credit cards
 Interest, fines, or penalties
 Traffic tickets
 Pet-sitting
 House sitting
 Dry cleaning (unless this is incurred while traveling out of town on Young Life business.)
Questions? Contact the Accounting Department at accounting@sc.younglife.org.
43











Guitar lessons
Personal house cleaning
Personal sports equipment such as ski, camp, or golf equipment
Staff or volunteer car repair
Spouse travel (see Spouse Travel Policy)
Alcohol for use at a Young Life sponsored event
Childrens travel, meals and lodging (even if accompanying staff on a business trip)
Cameras, stereos, guitars, books, tapes, and CDs unless they are owned by, remain
with, and are available for general use in the local Young Life area.
Personal living expenses such as mortgage payments, rent, utilities, food for home,
clothing, tuxedo rentals, vacations.

To access the Check, Reimbursement and Advance Requests Training Document, click
here.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

44

INSURANCE (Dec 04)


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Field Business Insurance-General Liability Insurance


Young Life obtains various insurance coverage's on behalf of the areas. These coverages are
included under the umbrella of Field Business Insurance and includes General and Umbrella
Liability insurance, Business Travel Accident, Depositors Forgery, Directors and Officers
coverage, as well as the two policies highlighted below. This cost is charged to the area as
Program Expense (6210).

Activity Insurance
In order for areas to have affordable, effective insurance, activity insurance for Young Life
sponsored events is a component of field business insurance. Additional snow sport coverage
should be obtained by completing a Snow Skiing, Boarding Enrollment Summary (YL-1733)
and sending it to the Insurance Benefits Department at the Service Center. The cost is
charged to Program Expense (6210).

Office Contents Insurance


Young Life self-insures its office equipment, furniture and fixtures and audio-visual equipment
to a limit of $5,000, with a $250 deductible. Effective 3/17/03, losses exceeding the $5,000 will
be processed under Property Insurance at the appropriate deduction. For example, there will
be a $5,000 deductible for property valued under $150,000 and a $10,000 deductible for
property valued over $150,000.
Personal property (property owned by staff, not by Young Life) used for business in Young Life
offices is also covered, but only in the case of a natural disaster to a limit of $5,000 and with a
$100 deductible. The cost to the area for insurance is included in field business insurance.
Additional coverage may be ordered for an additional charge.
Personal property that is not being used for Young Life business, but is at a Young Life
location may not be covered by existing insurance policies if stolen. Contact the Insurance
Benefits Department for additional information.

Vehicle Insurance
See VEHICLE.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

45

INTERNAL TRANSFERS (March 08)


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Internal Transfers are transfers to or from areas, regions or divisions.

Transfers In/Internal Credits (Account # 9290)


Transfers Out/Internal Charges (Account # 9190)

Include all budgeted internal transfers to or from another Young Life mission unit on the annual
budget form.
Transfers to an area or region in deficit that are expected to be repaid are considered a loan
and may not be repaid until area returns to surplus.
To request an internal transfer, complete the All Purpose Transfer Form (YL-2625). Submit
your request to Field Accounting at the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

46

LAND & BUILDINGS (Dec 04)


See CAPITAL.
Return to Top

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

47

LOANS (March 08)


Return to Top

External
Areas, field staff, and committee members may not borrow money in the name of Young Life
from a financial institution, individual or committee member.

Internal
Loans may not be made from Young Life accounts for personal or emergency use. This
includes salary loans to staff or expense advances.
Disregarding this policy can create serious problems with the IRS and may be grounds for
termination.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

48

MEMORIALS (March 08)


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Gifts given to Young Life in honor or in memory of a particular individual are donations and
should be sent to the Service Center along with a completed Memorial-Honorarium Gift
Transmittal Form (YL-2219). Fill out one form for 50 or fewer checks, as long as they are to be
processed identically. Any checks attached to a particular form will be processed as the form
states. If you have different processing instructions, please use a new form for each type. If
this is a payment to staff for services, see HONORARIUMS RECEIVED BY STAFF.
If you supply the name and address for the honoree or the name and address for the family of
the deceased, the Service Center will send an acknowledgement letter to the individual or to
the family the gift is honoring or memorializing.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

49

MISSION UNIT- (Area number) (Dec 04)


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U.S. Field Ministries - Areas and Regions


Young Lifes field ministries are divided into areas on the basis of geographical location.
Mission unit numbers are assigned according to the state in which an area is located followed
by a two or three digit number (i.e. Young Life Central Colorado Springs is CO19). Except for
International staff, mission units may not be assigned to an individual who is a part of a larger
geographical ministry. To add a new area, the Regional office should contact Field Accounting
at the Service Center for the Area Account Application and Change Form.
Regional accounts may be opened for supervision, training or development activities.
Regional account numbers begin with AF (regions) or AG (development) followed by a two or
three digit number. The Regional and Divisional Account Application Form must be completed
by and approved by the Field Senior Vice President and President before a Regional account
may be opened.

Recruit, Train and Deploy (RTD) StaffSee RTD STAFF.


Volunteer AreasSee VOLUNTEER AREA.
International Field Ministries
For new staff, an international area or region is set up at the request of the International Senior
Vice Presidents. International mission units begin with the letter X and are followed by a three
or four-digit number. International Regional accounts begin with the letters XR (regions) or XT
(development) and are followed by a three-digit number. Additional information is available
from the International Divisional Offices.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

50

MONEY MARKET ACCOUNTS (Dec 04)


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Local area savings, investment accounts or foundations are not permitted. Field money
market accounts and the Young Life Foundation were established to invest surplus area funds.

The minimum balance for a money market account is $5,000; contact Field Accounting for
more information.
The minimum balance for a Foundation account is $35,000; contact the Director of
Foundation Operations for further information.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

51

MULTICULTURAL/URBAN PROGRAM (March 08)


Return to Top

In order to charge expenses to this account:

Submit an application to the Field Ministries Office for approval by September 1.


Applications are approved for one year only; therefore, they must be resubmitted every
year during budget time.
When approval has been granted, record expenses in the Bank of America Works System
as 6230 for reimbursement.

Program expenses that qualify for this exemption are those that are SPECIAL and UNIQUE to
multicultural and urban ministry. The following items may qualify for this exemption:

Athletic equipment
Center operations
Choral/theater groups
College preparation
Dance/aerobics classes
Emergency assistance (giving money to families)
Gym rentals
Job preparation/training
Life skills classes
Meeting space rental
Parenting classes
Pregnant teen programs
Sports leagues tournaments
Summer childrens programs
Tutoring programs
Van operations, rental and insurance

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

52

NON-CASH CONTRIBUTIONS (August 10)


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A non-cash contribution is any donation that is not cash, check, credit card payment or
electronic transfer of funds. These would include stock, garage sale or auction items, vehicles,
etc.
It is Young Life policy to sell non-cash contributions (including gifts of stock or other
marketable securities) as soon as possible unless the gift is to be used by Young Life (e.g.:
computers, vans).

Receipting Non-cash Contributions


Young Life is precluded by IRS regulation 170(f)(8)(B) and by the Evangelical Council for
Financial Accountability Standard 7.10 from valuing non-cash contributions. Non-cash
contributions valued at more than $25, such as office equipment and promotional materials
must be recorded on Young Lifes corporate financial statements. If you write
acknowledgment notes, do not indicate any monetary value of the gifts received.
For processing, send a Non-Cash Contribution Form (YL-2053) for each donor. Garage sale
items must be listed to be receipted. Donors of non-cash contributions receive a letter from
the Young Life Service Center they may use for tax deductibility of the contribution
acknowledging receipt of the item, but not for the cash value of the item. Because the
receipting and mailing list process is costly, Young Life does not issue receipts for non-cash
contributions of $25 or less. Please note, the donor must provide the SC with their taxpayer
identification number in order to claim a deduction of more than $500.00 for a vehicle donation.
If the non-cash contribution has a value greater than $5,000 (and it is not publicly traded
stock), include two appraisals and a federal income tax Form 8283 (www.irs.gov) completed by
the donor with the Non-Cash Contribution Form (YL-2053). This form must be signed by
Young Lifes Corporate Officers.

Non-Cash Contributions that are Not Tax-Deductible


The IRS has ruled that the following types of non-cash contributions are not tax deductible.
Therefore, do not send the Service Center Non-Cash Contribution Form (YL-2053) to receipt
these gifts such as:
1. Cars, furniture, and goods for personal use of staff.
2. Services such as medical or dental care, painting, carpentry, training, etc.
3. Use of property, including free or reduced office rent, or use of vacation property.
Special caution is required to avoid situations in which Young Life pays for a service and the
service provider makes concurrent or subsequent cash donation in the same or similar
amount (for example: donating funds for an area to rent office space from the same donor).
Transactions of this nature are not receipted in order to preserve Young Lifes integrity in its
business dealings. Young Life and its donors both benefit when conflicts of interest are
avoided and the purchase of services are clearly distinguished from charitable donations.
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

53

OPERATING FUNDRAISING EVENTS (March 08)


Previously D and F accounts on the ABARs.
Return to Top

Use this account for operating fundraiser events, except for golf or banquet. If your banquet,
golf tournament or other fundraising event includes the sale of Young Life items (such as area
t-shirts, towels, etc.), the expenses directly related to that sale may be charged to this
account. Event types would include retreats/conferences that funds are collected from
participants to cover the expense, day trips with kids with funds collected, sale of books or tshirts, raffles, auctions, Christmas tree lots, etc.

When Using the Purchase Card:

All expenses for operating fundraisers in the Bank of America Works System will be
coded to 6425 (Operating Fundraisers Expense).
When a cardholder needs additional funds for a fundraiser (previously know as
Temporary Advance) they submit a request to their approver for an increase on their P
Card. This is done by using a Purchase Request in the Bank of America Works
System.
After the approver has reviewed and approved the request the cardholders card is
immediately loaded with the additional funds requested. The cardholder can then make
the necessary purchases for their event.

Revenue:

All funds collected must be sent to the Service Center for processing. Any cash
collected needs to be converted into a cashiers check or money order prior to sending
to the Service Center. The fundraising revenue is sent with clear instructions on the
100% Payment Form (YL-2202) that all are operating payment revenue and are to be
credited to your Mission Units operating account. You must include the type of
fundraising event the funds are from (auction proceeds, t-shirt sales, etc.).

Never deposit cash collected into a personal bank account or use a personal check to
send funds to the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

54

PAYMENT REVENUE (March 08)


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If a portion of a donation is a payment for services or goods, that portion is payment revenue
and may not be receipted as a donation. This is the portion of a donation that the donor
received a personal benefit from. Examples are: greens fees in a golf tournament, ticket price
of a fund raising dinner, miscellaneous items received at a Young Life function, etc.
When sending these to the Service Center, complete a 100% Payment Form (YL-2202) listing
the payment amount on the form along with a description. When a donor gives an amount that
includes both donation and payment revenue, Young Life must record both of these and the
receipt must show the break down. When sending in these types of checks, complete the Split
Revenue Form (YL-2203). See EVENT DONATIONS.

Beginning October 1, 2006, donations and payments (auctions, golf fees, raffles, camp
fees, etc.) made on a credit/debit card will be charged a 2.25% fee on the amount of the
transaction. This fee will be seen by the area as a reduction of donations on their Revenue
and Expense report. Since it is being treated as a reduction in donations and not an
expense, it will not be service charged.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

55

PARs (Personnel Action Request) (March 08)


Return to Top

All changes to an employees status or compensation must be submitted to the Human


Resources department on a Personnel Action Request (YL-2409). These will then be
forwarded to the Payroll department for appropriate processing. PARs are due by the 15th of
the month for action to be included in the month end payroll.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

56

PAYROLL (April 06)


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Adding a New Employee


Proper paperwork must be completed to add employees to Young Life staff. Download the
electronic version of the New Hire Packet from the Young Life web site and complete all
requirements. All forms must be at the Service Center by the 15th of the month to be included
in that month-end payroll.

Pay Dates
All field staff are paid on the last banking day of the month. Field hourly employees are paid for
all hours worked from the 16th of the previous month through the 15th of the current month
and must submit a timesheet documenting those hours. International staff are paid on the 15th
of the month. Salaried staff are paid for all hours worked during the month on the last
business day of the month.

Timesheets
Hourly field staff must submit a completed Timesheet Form (YL-2626) to the Payroll
department by the end of the last day of the pay period in order to be paid. The pay period
ends on the 15th of the month.

Direct Deposit
It is highly recommended that all staff have their paycheck deposited directly to their bank
account. It is the most cost-efficient method of payment and staff will not need to be
concerned about checks being delayed in the mail or lost or stolen. Complete an Authorization
Agreement for Automatic Deposits (YL-2402) and submit it to the Payroll department to initiate
the process. The set up process may take one to two cycles, so your first payment may be a
check.

Temporary Employees
Unless a temporary employee is hired through a staffing agency or is an independent
contractor (see CONTRACTED SERVICES), all payments for services must be made through
the Payroll department after the person is added as a new employee.

Gifts/Awards to Staff
Any gift or award with a value of $25 or greater to staff must be reported to the Payroll
department at the time of issuance. By law, this is considered taxable compensation to the
employee and must be accounted for within the payroll system. See HONORARIUMS
RECEIVED BY STAFF.
Examples of reportable payments:
Cash or check honorarium
Gift certificates
Briefcases, desk sets, or other non-cash contributions valued at $25 or more
All expenses associated with family participation in an event. See HONORARIUMS
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

57

RECEIVED BY STAFF.

Honorariums Received by StaffSee HONORARIUMS RECEIVED BY STAFF.


Personnel Action Request (PAR)See PARs

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

58

P CARD PROCEDURES OVERVIEW (March 08)


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To access the P Card US Field Accounting Procedures and the P Card Program
Policies, as well as other instructional and training documents, click here.
Cardholders have three different options to make purchases. They are able to use a Purchase
Card (P Card), Reimbursement Request (Individual Expense Reimbursement), or a Purchase
Request (check request to an outside vendor or individual).
P Cards will be used for the majority of expenses incurred in their Mission Unit. Cardholders
will use their P Card throughout the month for day to day expenses as well as for event
expenses (camp, banquet, etc.). These transactions will automatically post to the cardholders
home page in the Bank of America Works System. All types of transactions in the Bank of
America Works System will automatically be moved to the Approvers queue after the user has
reviewed and submitted the transaction. The Approver then reviews and approves the
transaction. In all cases, the transaction funds are automatically restored to the P Card after
the Cardholder signs off.
In some cases this may not be possible and a Reimbursement Request or a Purchase
Request may be necessary. This request is paid from the Service Center and the check is
mailed directly to the vendor/individual. Purchase Requests and Reimbursement Request
payments follow the same approval process as P Cards and are paid out at the Service
Center. See Purchase Requests or Reimbursement Requests for more information.

Bank Account Policy


Legally, Young Life is one corporate entity with many area branch offices. The corporate
officers of Young Life are responsible for all Young Life bank accounts.
No area may have a local bank account. Local area savings, investment accounts or
foundations are not permitted.
An exception to the bank account policy occurs when separate accounting is required by a
government or foundation grant. A bank account may be opened to track the specific grant
activity. Contact the Treasury Accountant for consideration.

Glossary
In the Bank of America Works System, the following terms are used frequently and may have a
different meaning than the current bank record system we are using. Please acquaint yourself
with them.
Purchase Request: This has two different functions in the system.
3. Check Request this is used when a purchase needs to be made but the vendor does
not accept a credit card.
4. Advance Request this option is used to increase the credit limit on the P Card.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

59

Reimbursement Request: This option is for out of pocket expenses better known as an
Individual Expense Reimbursement.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

60

P CARD CORRECTIONS ON CODING (March 08)


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To access the all P Card instructional and training documents, click here.
If something has been coded incorrectly in the Bank of America Works System, you can
request a correction be made. Complete the Expense Corrections form (Attachment 1) and
submit the form to a Program Administrator in Field Accounting at the Service Center. You
have 90 days from the date of the transaction to make the correction.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

61

PERSONAL GIFTS TO STAFF (March 08)


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Donors should be encouraged to give to Young Life. Staff should not solicit, directly or
indirectly, gifts from Young Life donors. Donors cannot claim personal gifts to staff as taxdeductible donations. If a personal gift from a friend is received, do not send it to the Service
Center for receipting.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

62

PETTY CASH POLICY (November 09)


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U.S. Field Petty Cash Box Policy


June 2007
The purpose of the petty cash box is to reimburse individuals for small expenses that
cannot wait for a check from the Service Center and to pay for small items at locations that
do not take the P Card. The petty cash box is not for holding additional cash.
1) Every area with staff gets a one-time advance up to $150 to establish their petty cash
fund. It will be made as an advance reimbursement to the Area Director or other
individual designated by the Area Director or Regional Director (if there is no Area
Director in place). This will be the only advance. If the petty cash box runs out of
money and the area has no more reimbursements to request, the area will need to find
another source to fund the box with.
2) The petty cash box should have one person who is responsible for the tracking of the
funds. At least monthly, they should ensure that the receipts/IOUs and remaining cash
equal $150.
3) When funds are taken out, a Petty Cash Form (PCF) should be filled out and left in the
box describing who took the funds and how much was taken. After the funds are
spent, the remaining cash and receipt(s) are returned to the box and the PCF is taken
out.
4) When needed, the box keeper turns these expenses in on his/her Individual Expense
Reimbursement form through the Bank of America Works system. This should be done
on an Reimbursement Request solely for the reimbursement of the petty cash box and
not with any other reimbursements. Since Reimbursement Requests are now
electronically deposited into the staff persons personal bank account, the staff person
will then need to remove that reimbursement from their personal account and replenish
the petty cash box with the cash.
5) The petty cash box must be locked and kept in a secure place.
6) The petty cash box is not for holding additional cash (like camp fees). There should
never be more than $150. If it is learned that there is more than $150, appropriate
action will be taken with the AD (or designee). All cash received still needs to be
changed to a money order and sent to the SC with a Revenue Contribution Form.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

63

PRIZES (May 09)


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Due to multiple federal tax implications, Young Life does not permit Raffles or other
games of chance. See Raffles for further information.

Federal tax regulations must be followed when awarding prizes. Depending on the
market value of the prize certain steps must be followed before awarding the prize.

All winners of prizes in excess of $600 will receive an IRS tax form 1099 showing the
amount of the prize and any applicable taxes withheld.

Minors may not win large prizes (ex: big screen televisions, vacation trips, etc.). You
cannot legally enter into a contract with a minor (under age of 18), so disputes may
arise over who actually won the prize (there are actual court cases). Young Lifes
reputation with parents may be put to the test if a minor spends a significant amount of
money attempting to win a large prize and fails. Contests involving t-shirts, hats or
other small prizes should not be an issue.

No Young Life staff or spouse, committee or volunteers involved with the contest may
participate by entering the contest or actually winning the prize.

Door prizes should be of minimal value and must not exceed $600.

If the fair market value of the prize is greater than $600 the person winning the prize
must be reported to the IRS (person will be reported on form 1099 filed by the Service
Center). Before awarding the prize you must obtain a W-9 Form (available on the Staff
Resources website) from the winner, and promptly send it to PCards@sc.younglife.org.
Contact the Tax Accountant at the Service Center for assistance if any of these
situations apply -- before awarding the prize.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

64

PRODUCTS AND RESOURCES ORDERS (March 08)


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Products and resources ordered from the Service Center are charged to the appropriate area
expense account. This internal charge appears on the Revenue and Expense Report and is
identified on the area Trial Balance report each month.
All publications produced by Young Life may be ordered by staff for personal use and use in
their ministry. They may not be resold except for a Young Life-sponsored Bible study or
leadership program. This includes songbooks, Bible studies, and notebooks. Staff should
reimburse their Young Life areas for purchases of Young Life publications intended only for
personal use.
Publications purchased from another publisher at a discounted price, may be resold to Young
Life-sponsored groups at cost. We are prohibited by distributorship laws from selling these
publications outside of Young Life activities and from selling them for a profit.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

65

RAFFLES (March 09)


*Due to multiple federal tax implications, Young Life does not permit Raffles or other
games of chance.
Return to Top

Games of chance are events that offer someone a chance to win a prize in a game that
does not involve any skill (raffles, bingo, golf ball drops, etc.).
Keep in mind that auctions, golf tournaments, etc. are not considered games of chance
and are therefore not affected by this policy.
If you have questions regarding whether or not a particular event is considered to be a
game of chance, please contact the Young Life tax accountant at the Service Center.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

66

RECORD RETENTION (March 08)


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File documents either by month paid or alphabetically by vendor. Maintain a permanent file of
Young Life policies and procedures.
Years
2
3

7 Indef

Payroll Time Cards/Sheets


Invoices & Receipts
Individual Expense Reports
Bank Statements, Deposit Slips & Cancelled
Checks
Area Bank Account Records (YL 2601, 2602, 2603)
Contracts, Leases or Agreements (after
expiration)
PARs (Personnel Action Request)
Revenue and Expense Reports
Giving Reports
Trial Balances (month end current activity)

P Card Record & Receipt Retention

All receipts, invoices/statements, and online Bank of America Works System statements
should be kept in the office for 6 years.
P Card Transactions - File printed copies of online statements with the corresponding
receipts in an envelope marked with the name of the cardholder, month and year of the
transactions.
Reimbursement Requests Receipts and/or mileage logs need to be matched with
these requests. These can be printed by selecting Reimbursement Requiring Sign Off
under the cardholder menu, then select Reimbursement Signed Off in the View field.
Select what you want printed and print.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

67

Purchase Requests/Check After you have completed the Purchase Request form and
click submit a WorksRequest Details screen appears, print this screen and keep this
with invoices/statements you have for this check request.

A
To Print Monthly Statements:

Go to Standard Reports (A),


Personal reports (B), My Memo
Statement (C).

Choose dates (D) and the


format that you want it to print in
(E - Download, PDF, or Excel).
Please include the printout with
your monthly financial backup,
i.e. receipts and mileage log.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

68

REPORTS (Dec 04)


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The Service Center posts reports on the Young Life website at the end of each regular work
day that summarize activity in your area. The Area Region Summary is updated monthly and
available for Regional offices only.
Area financial reports available online include:





Revenue and Expense Report (R&E)


Trial Balance
Area Region Summary
Giving (replaces the Donor Contribution Report)

Access to these reports is automatically given to paid staff with certain job classification when
they are hired. The area director may give access to other staff and committee member(s).
Discretion should be used when granting access, as there is confidential financial information
in these reports, such as donor names and amounts. If there is no area director, contact the
regional office for access.
Questions on report access that are technical issues should be addressed to the Young Life
Help Desk.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

69

Revenue and Expense Report (R & E)


The Revenue and Expense Report (R & Es) contains all revenue, expenses, and transfers in
and out of an area during the month. It is updated by the Accounting Department at the
Service Center at the end of each working day and posted on the Young Life website. Below
is a description of an R & E with numbered references to the sample R & E which follows.
How to Read the R & E
Column:
A: Actual: Amounts the area received in revenue or spent in expenses during the current
month.
B: Budget: Monthly budgeted figure for that category divided by 12.
C: Difference: Difference between the actual and budgeted amount by category. A number in
parenthesis ( ) indicates actual expenses are over budget in expenses or under budget in
revenue.
D: Year to Date Actual: Amounts the area received in revenue or spent in expenses during
the current year.
E: Annual Budget: Annual budgeted figure for that category.
F: YTD Actual as Percent of Budget: The percentage of the budget the area has spent or
raised this fiscal year. This will help in tracking the budgeted revenue and expense
amounts in comparison to the percentage of fiscal year.
G: Budget Remaining: Indicates the amount the area needs to raise or how much the area
has left to spend to stay within budget.
H: Actual Totals Year Ended: Actual revenue and expenses for the previous fiscal year.
How to Read the Detail R & E
Rows:
1. From Giving Reports for donations, cash and non-cash. Trial Balance Report for payment
revenue.
2. From Trial Balance report account number 9290.
3. Individual salaries for non-RTD staff are on the Monthly Area Payroll Report sent to your
region.
4. Individual salaries for RTD staff are on the Monthly Area Payroll Report sent to your region.
5. From Trial Balance Report.
6. Camp Summary: The five categories of camp revenue and expense are combined to show
the areas camp balances.
7. Giving Report shows current capital donations.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

70

8. When a capital purchase is recorded in operating, and the money was in capital to cover
the cost of the purchase, you will see a transaction here.
9. Restricted-all capital donations are considered restricted, which means that they have been
specified for capital by donor, and cannot be used for any other purpose without written
permission from donor.
10. Unrestricted-there are no unrestricted capital donations.
11. This line is no longer applicable.
12. This line is no longer applicable.
13. If the area has set up an internal money market account, the balance is reflected here.
Money Market Detail Reports are sent quarterly. Minimum amount for a money market
account is $5000.
14. Total amount set aside for Staff Conference 2012, monthly transfer based on the amount
the area budgeted for staff conference.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

71

Staff Resources

Home |

Revenue & Expense Reports for XZ06 - OCT 2004


SUMMARY R&E

Christmas County

My Account

Help Desk/Contact

ANNUAL

ACTUAL TOTALS

THIS MONTH

___________

YEAR TO DATE

BUDGET

DIFFERENCE

ACTUAL

$14,314.00

$13,250

$1,064.00

$14,314.00

$159,000

9.0

175.00

175.00

175.00

0.0

(175)

2,920

31,473.00

31,473.00

31,473.00

0.0

(31,473)

10,335

ACTUAL

| Log Out

YTD ACTUAL
___________

more w ebsites

(Closed)

20-10

October 31, 2004

Web Store

BUDGET

AS PERCENT
OF BUDGET

BUDGET

YEAR ENDED

REMAINING SEPT 30, 2004

REVENUE
Contributions
Contributions RTD
Other Revenue
Transfers In/Internal Credits

Total Revenue

$144,686

$144,716

0.00

0.00

0.00

0.0

13,400

___________

___________

___________

___________

___________

________

___________

___________

$45,962.00

$13,250

$32,712.00

$45,962.00

$159,000

28.9

$113,038

$171,371

EXPENSE
$5,154.96

$5,156

$1.04

$5,154.96

$61,872

8.3

$56,717

$58,527

Compensation RTD Staff

Compensation Other Than RTD

2,743.78

2,870

126.22

2,743.78

34,440

8.0

31,696

22,280

Other Operating Expense

7,829.40

3,369

7,829.40

40,428

19.4

32,599

72,719

___________

___________

___________

___________

________

___________

___________

Total Expense

$15,728.14

$11,395

$15,728.14

$136,740

11.5

$121,012

$153,526

REVENUE LESS EXPENSE

$30,233.86

$1,855

$30,233.86

$22,260

(4,460.40)
___________
$(4,333.14)

$17,845

Contact Field Accounting with questions on this section.

Prior Year Surplus/(Deficit)

$8,011.45

Transfer into/out of Operating


CURRENT OPERATING BALANCE

Deficit Info (CM = Cash Mnths)

Refer to Deficit Policy for questions.

Budget

Current CM

$11,395

3.4

0.00

38,245.31

8,011

YTD Actual
Campership Balance
Capital Balance

$(9,834)

You may e-mail questions to


accounting@sc.younglife.org

$700.00
0.00

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

72

There is more Camp/Capital at the end of this report

DETAIL R&E
Numbers and letters correspond to
explanations on How to Read the R&E.

1
1
1
1
1
2

YTD ACTUAL
___________
ACTUAL

OPERATING REVENUE

B
THIS MONTH
BUDGET

___________

YEAR TO DATE

DIFFERENCE

ANNUAL

AS PERCENT

ACTUAL

BUDGET

OF BUDGET

ACTUAL TOTALS
BUDGET

YEAR ENDED

REMAINING SEPT 30, 2004

Contact Income Processing with questions about this section.

4110 Contributions
4112 RTD Contributions
4120 Contributions From Founda
4190 Noncash Contributions
4350 NonContribution Revenue
9290 Transfers In/Internal Cre

$14,314.00

$13,250

$1,064.00

$14,314.00

$159,000

9.0

175.00

175.00

175.00

0.0

0.00

0.00

0.00

0.0

0.00

0.00

0.00

0.0

31,473.00

31,473.00

31,473.00

0.0

0.00

0.00

0.00

0.0

Contact Field Accounting


with questions
on this section.
___________
___________
___________
___________

TOTAL OPERATING REVENUE

OPERATING EXPENSE

$45,962.00

$13,250

$32,712.00

$45,962.00

___________

________

$144,686
(175)
0
0
(31,473)
0
___________

$144,716
2,920
0
0
10,335
13,400
___________

$159,000

28.9

$113,038

$171,371

Contact Payroll with questions about compensation sections.

COMPENSATION OTHER THAN RTD

3
3
3
3
3
3

5110 Salaries

$3,235.00

$3,235

$0.00

$3,235.00

$38,820

8.3

$35,585

$37,680

445.88

447

1.12

445.88

5,364

8.3

4,918

4,493

1,090.00

1,090

0.00

1,090.00

13,080

8.3

11,990

11,880

5235 Benefits Supplement

97.12

97

(0.12)

97.12

1,164

8.3

1,067

1,131

5240 Workers Compensation

110.07

110

(0.07)

110.07

1,320

8.3

1,210

1,282

5250 Pension

176.89

177

0.11

176.89

2,124

8.3

1,947

2,061

5210 Social Security Taxes (FI


5230 Group Benefits

___________
TOTAL COMPENS OTHER THAN RTD

___________

___________

___________

___________

________

___________

___________

$5,154.96

$5,156

$1.04

$5,154.96

$61,872

8.3

$56,717

$58,527

$2,596.00

$2,596

$0.00

$2,596.00

$31,152

8.3

$28,556

$21,090

5261 RTD Social Security Tax (

0.00

0.00

0.00

0.0

5262 RTD Group Benefits

5.00

(5.00)

5.00

0.0

(5)

5264 RTD Benefits Supplement

77.88

78

0.12

77.88

936

8.3

858

633

5266 RTD Workers Compensation

64.90

88

23.10

64.90

1,056

6.1

991

527

0.00

108

108.00

0.00

1,296

0.0

1,296

COMPENSATION RTD STAFF

4
4
4
4
4
4

5160 RTD Salaries

5268 RTD Pension

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

0
30

73

___________
TOTAL COMPENSATION RTD STAFF

$2,743.78

Numbers and letters correspond to


explanations on How to Read the R&E.

$2,870

___________
$126.22

___________
$2,743.78

___________

________

___________

$34,440

8.0

$31,696

___________
$22,280

Contact Field Accounts Payable to start with all questions about


Other Operating Expenses (except RTD training.)

OTHER OPERATING EXPENSE

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

___________

5415 RTD Training

$0.00

$142

$142.00

$0.00

$1,704

0.0

$1,704

$3,300

0.00

0.00

0.00

0.0

684

4.82

333

328.18

4.82

3,996

0.1

3,991

3,318

225.75

603

377.25

225.75

7,236

3.1

7,010

5,419

6410 Fundraising

0.00

0.00

0.00

0.0

13,280

6415 Donor Care

0.00

0.00

0.00

0.0

6430 Banquet

0.00

0.00

0.00

0.0

6440 Golf Events

0.00

0.00

0.00

0.0

0
4,913

5710 Vehicle

Contact Training Office

5810 Office
6210 Program

6710 Travel and Conference

210.00

310

1,246.00

8690 Miscellaneous Expense

0.00

6250 Camp

0.00

1,472.78

1,387

631.19

594

9121 Urban Subsidy Credit

0.00

9122 RTD Subsidy Credit

0.00

38.86

4,000.00

8640 Estimated Expenses

9120 MLSS Service Charge


9130 Regional Service Charge

9170 Interest (Earned)/Paid


9190 Transfers Out/Internal Ch

___________
TOTAL OTHER OPERATING EXPENSE
TOTAL OPERATING EXPENSE

___________

100.00

210.00

3,720

5.6

3,510

1,246.00

0.0

(1,246)

0.00

0.00

0.0

500

0.00

0.00

0.0

145

(85.78)

1,472.78

16,644

8.8

15,171

22,773

(37.19)

631.19

7,128

8.9

6,497

0.00

0.00

0.0

0.00

0.00

0.0

(38.86)

38.86

0.0

(39)

85

(4,000.00)

4,000.00

0.0

(4,000)

18,300

(1,246.00)

___________

___________

___________

________

___________

___________

$7,829.40

$3,369

$(4,460.40)

$7,829.40

$40,428

19.4

$32,598

$72,717

$15,728.14

$11,395

$(4,333.14)

$15,728.14

$136,740

11.5

$121,011

$153,524

___________

___________

___________

___________

OPERATING REVENUE LESS EXPENSE

$30,233.86

______________________________

___________

___________

$1,855
___________

$30,233.86
___________

___________

________

___________

$22,260
___________

___________

$17,847
________

___________

___________

YTD Actual

CAMP SUMMARY

4130 Camp Contributions

$1,330.00

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

74

6
6
6
6

4335 NonContribution Camp

0.00

9430 Tranfrs into/out of Campe

Contact Campership Accountant by e-mail,


lfarmer@sc.younglife.org for questions about this section.

(1,530.00)

9460 Transfers from Area to a

0.00

Prior Year Surplus/(Deficit)

900.00
_____________

CAMP BALANCE
______________________________

700.00
___________

___________

___________

___________

___________

________

___________

___________

YTD Actual

CAPITAL SUMMARY

7 4150 Capital Contributions


8 9450 Transfers into/out of Cap
9 Prior Year Balance Unrestrict
10Prior Year Balance Restricted

$0.00
Contact Property Accountants by e-mail,
accounting@sc.younglife.org for questions about this
section.

0.00
0.00
0.00
_____________

CAPITAL BALANCE

______________________________

0.00

___________

___________

___________

___________

___________

________

___________

___________

Balance

CASH ADVANCES & SET ASIDES

11Local Bank Account Advance


12Local Capital Account Advance
13Internal Money Market
142008 Conference Set Aside

$2,000.00

Contact Field Accounts Payable with questions about the Local


Bank Account Advance.

0.00
0.00
(210.00)

Switch printer to Landscape for better printing


Back to Staff Resources

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

75

Trial Balance
This report is included on the Young Life website and updated daily (Monday-Friday) at the
end of the day. It is designed to provide additional information about financial activity in your
area during the month. The Trial Balance Report provides details or additional information
about numbers on the Revenue and Expense Report. This report is the best source for
questions about your expenses. An example of the Trial Balance follows on the next page.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

76

more w ebsites
Staff Resources

Home

Trial Balance Report for XZ06 - OCT 2004


Accounting Unit

XZ06

Christmas County

My Account

Web Store

Help Desk/Contact

Log Out

(Closed)

20-10

Transaction Description
Pd Posting SC
DEBIT
CREDIT
BALANCE
- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - Account
4350-0000
NonContribution Revenue
Begin Balance
0.00
POST 10/08/2004
01 10/08/04 IP
5,200.00
POST 10/21/2004
01 10/21/04 IP
130.00
VIS46952-L SMITH AUC PROC CC
01 10/21/04 XJ
993.00
AME3X054-C JONES AUC PROC CC
01 10/21/04 XJ
25,000.00
Auction proc ck# 3970
01 10/27/04 RP
150.00
Total Activity Account
31,473.00
31,473.00-

4350-0000
NonContribution Revenue
End Balance
31,473.00- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - Account
5810-0000
Office
Begin Balance
0.00
Postage
01 10/31/04 JE
4.82
Total Activity Account
4.82
0.00
4.82

5810-0000
Office
End Balance
4.82
- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - Account
6210-0000
Program
Begin Balance
0.00
Field business insurance
01 10/01/04 CA
119.70
Field Business Insurance RTD
01 10/01/04 CA
96.05
Music and Video License Fee
01 10/25/04 CA
10.00
Total Activity Account
225.75
0.00
225.75
6210-0000

Program

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

End Balance

225.75

77

- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - 2008 Conference Set Aside


Begin Balance
0.00
Account
6710-2008
Monthly 2008 Conference Charge 01 10/31/04 XJ
210.00
Total Activity Account
210.00
0.00
210.00
End Balance
210.00
6710-2008
2008 Conference Set Aside
- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - Account
8640-0000
Estimated Expenses
Begin Balance
0.00
Oct Estimated Expenses
01 10/31/04 JE
1,246.00
Total Activity Account
1,246.00
0.00
1,246.00
8640-0000

Estimated Expenses

End Balance

1,246.00

- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - Account
9190-0000
Transfers Out/Internal Charges
Begin Balance
0.00
XZ06 Subsidy
01 10/31/04 JE
4,000.00
Total Activity Account
4,000.00
0.00
4,000.00
9190-0000

Transfers Out/Internal Charges

End Balance

4,000.00

- - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - Account
9430-0000
Tranfrs into/out of Campership
Begin Balance
0.00
XZ06 CAMP FEES
01 10/30/04 JE
1,530.00
Total Activity Account
1,530.00
0.00
1,530.00
9430-0000

Tranfrs into/out of Campership

End Balance

1,530.00

==============================================================================================================================

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

78

Area Region Summary Report


This report is included on the Young Life website and updated monthly. The Area Region
Summary Report provides summary information about areas in a region for a particular month.
This report is available to regional offices only. An example of this report follows on the next
page.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

79

Staff Resources

Home

My Account

Web Store

more w ebsites

Help Desk/Contact

Log Out

Area/Region Summary Report for JP99 - OCT 2004


Sample Region
October 31, 2004

TRANSFERS
______THISMONTH________YEAR TODATE______PRIOR YEAR

IN/(OUT)

INCOME

EXPENSE

INCOME

EXPENSE

BALANCE OPERATING

BALANCE

12,427

15,794

12,427

28,003

JP99

Sample Region

15,794

AG02

Education/Sample Region

10,000

XZ00

Storyville

10,115

11,220

10,115

XZ01

Boom Town

5,747

14,041

XZ02

Oz VOL-C

4,408

6,911

XZ03

Blue County

180

6,157

180

6,157

XZ04

Fork Valley

57,425

28,930

57,425

28,930

XZ05

SpoonVille

18,890

10,369

18,890

10,369

(29,855)

XZ06

Christmas County

45,962

15,728

45,962

15,728

XZ07

Geese County

1,170

1,267

1,170

1,267

XZ08

Mt Lamp VOL-C

550

144

550

144

1,778

XZ09

Car County VOL-F

XZ10

Greater Bird VOL-F

XZ11

Hill Town VOL-F

(8)

CURR

BASE

CASH

LINE

LINE

BALANCE

MNTH

CM

DOLLARS

CURRENT CAMPERSHIP

(77)

31,293

5,593

2.4

0.0

5,086

15,094

0.0

0.0

11,220

(8,279)

(9,384)

(1,534)

(0.6)

0.0

5,747

14,041

45,372

37,078

1,000

1.9

0.0

4,408

6,911

20,543

18,040

1,565

3.6

0.0

7,551

1,574

(77)

0.2

0.0

(3,511)

24,984

(1,260)

1.7

0.0

(21,334)

(3,382)

(1.4)

0.0

8,011

38,245

3.4

0.0

11,310

11,213

6.2

0.0

2,184

0.0

0.0

10,000

(8)

700
(4,045)

BASE

50

(12)

50

(12)

15,239

15,301

100

0.0

0.0

(2)

(2)

1,952

1,954

0.0

0.0

25

(3)

25

(3)

3,727

3,755

0.0

0.0

________________________________________________________________________________________________________
Total

170,316

107,169

170,316

107,169

106,927

(77)

169,997

(1,340)

17.4

0.0

$0

Switch printer to Landscape for better printing


Back to Staff Resources

1995-2004. Young Life. All rights reserved.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

80

Giving Report
This report allows you to easily create flexible, custom reports by choosing parameters that will
determine what donations to list, what information about each donation and each donor to
include, and how to list them on the report. Giving will eventually replace the current online
Donor Contribution Report (DCR) and has many new features that the DCR does not have. It
allows you to choose a multiple month range, filter the kind of information you want to see and
even include or not include addresses. You can view or print the report in PDF or Word format
or export the data in Excel format. There is also a new feature that allows you to save your
query options for future use.
Go to the Giving application and follow the easy steps to create your own report. Remember
to use the help text by clicking on the ? in the upper right-hand corner or use the ToolTips for
a quick explanation of a specific item.
If you are unable to access Giving or are unable to access your mission unit, Area Directors
should call their Regional or Metro Director, Regional Directors should contact their Senior
Vice President, and all other staff should contact their supervisor.
If you have any questions, please contact the Help Desk at (877) YL-PCHELP (877-957-2435).

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

81

RTD STAFF (March 08)


Return to Top

Field expenses for RTD staff are included with area expenses and are budgeted annually
during the normal budgeting process. Area Directors should complete an RTD Training
Registration (YL-5013) and send it to the Regional Director for approval. It is then sent to the
Training Department at the Service Center.
Send donations for an RTD staff member to the Service Center for processing. Complete a
100% Donation Form (YL-2201) and include the name of the RTD staff person and their area
number in the appropriate spaces.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

82

SERVICE CHARGE (March 08)


Return to Top

Mission Leadership and Support Services are services provided centrally by a team of
specialists serving all of Young Life at a lower cost with greater efficiency. These services
would be difficult and expensive to provide at the local level.
These functions include:
coordination of field leadership
communications and public relations
human resources administration
legal services
centralized finance and accounting
donation and mailing list processing
benefits and payroll processing
management information systems
Each area is assessed a service charge to cover the expense of the Regional and Mission
Leadership and Support Services provided. The service charge is 17% of an areas total
operating expenses (excluding transfers out).
Service charge is computed and charged on all operating expenses incurred during the month.
It is computed by dividing total operating expenses by 4.882353 or by multiplying by .204819.
Transfers Out (internal charges) are not subject to service charge and are excluded from the
computation. International expenses exempted under the International Expense Policy are
exempt from service charge.
Funds spent that meet the definitions of either Campership or Capital are not subject to service
charge.
Special subsidies are available for certain mission strategic initiatives. Currently subsidies for
qualifying RTD staff, urban program expenses, and international ministries are available. (For
further information, you can access the Service Charge Brochure online or order through
Mission Assistance).
Example:
Flat rate of 17% of all field operating expenses
Operating Expenses
Service Charge
Total Operating Budget

$ 83,000
83%
17,000
17%
$100,000
100%

Note: Service charge is assessed during the monthly close process and will not
be included on
the monthly R&E until the report indicates (closed) on it.
See Service Charge Procedure on the website for further details.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

83

STOCK GIFTS (April 06)


Return to Top

The stock donation process is as follows:


1. The donor, Area Director, or stockbroker advises the Young Life Stock Accountant (at
stockgifts@sc.younglife.org) of the gift including the:
Name & address of the donor
Identity of the stock
Number of shares
Designation for the gift
Note: Do NOT assume that the donor or their broker has communicated this
information to the Service Center.
2. The Young Life Stock Accountant notifies the broker, or donor, of the Young Life
stockbrokers account number to make a wire transfer of the securities.
3. The stock will be sold upon receipt when the donor is known; otherwise the Young Life
Stock Accountant will wait until information is received so that verification of the number of
shares can be made.
If the donor has a stock certificate, he or she may sign it over to Young Life, preferably by way
of a stock power, and send it certified mail to the Service Center, Attention: Stock Accountant.
Designation instructions identifying the intended beneficiary of the gift must be included with
the stock certificate.
For more information on stock gifts, see How to Give a Stock Gift" on the Young Life website
or contact the Young Life Stock Accountant at stockgifts@sc.younglife.org.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

84

TAX INFORMATION (March 08)


Return to Top

State Sales Tax Exemption


In many states, Young Life is exempt from paying state and local sales tax on the purchase of
goods and services used for exempt purposes. Copies of state sales tax exemption forms and
certificates are available from the Service Center, contact Accounting at (719) 381-1977. A list
of sales tax status by state is available on the Young Life website.

IRS Status
Young Life is recognized as a tax-exempt organization under the Federal rule 501(c)3. The
IRS determination (exemption) letter is available on the Young Life website.

Unrelated Business Income (UBIT)


Income received from advertising and from business activities not related to Young Lifes
exempt purpose, may be subject to corporate income tax. These rules are complicated and
failure to follow them may jeopardize Young Lifes non-profit status. Contact the Young Life
Tax Accountant at the Service Center for approval before embarking upon a business venture.

Situations Frequently Encountered with Tax Implications


1. Sale of Advertising
Advertising typically involves inducements to buy (discounts or coupons) or comparative
language (Joes Barbeque is the Best in Town). Avoid implying that Young Life endorses
a particular product or vendor.
Advertising, such as ad booklets or printing advertisements of products or services,
generally constitutes a form of taxable income.
Sponsorships of banquets or tournaments involving only the sponsors name address and
telephone number do not constitute advertising in terms of promoting products and
services. Payments for sponsorships should be handled as donations, not as advertising
revenue. Sponsorships are not a form of taxable income.
2. Affinity Programs
Young Life will not become involved with any multi-level marketing or affinity initiatives
regardless of type, product, or method offered. This would be creating a relationship with
another organization that could be construed as an endorsement of their activities by
Young Life. An example of this type of program would be selling phone cards.

Tax Deductibility of Donations


See DONATIONS.

Setting Up Another 501(c)3 Organization


Questions? Contact the Accounting Department at accounting@sc.younglife.org.

85

Young Lifes exempt status covers all Young Life locations. Applying for a separate exempt
status for a local area is not permitted. See YOUNG LIFE FOUNDATION.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

86

USE OF YOUNG LIFE FUNDS/PROPERTY (March 08)


Return to Top

IRS prohibits the use of Young Life funds for the personal benefit of anyone currently, formerly
or likely to be employed by Young Life. Young Life funds cannot be used to supplement a staff
persons income, provide for their housing expense(s), buy personal gifts, or pay personal bills
of any kind.
The Area Director is responsible for the use and reporting of the areas finances, although
he/she may delegate the day-to-day operation of the financial reporting to someone else. The
Area Director must always be aware of the status and activity of the areas financesthis
responsibility can not be delegated.
All expenses used for operating a Young Life area or region must be paid through a Young Life
account. Handling these through another nonprofit entity to avoid Young Life service charge or
procedures is not allowed.
When staff leaves an area or Young Life all together, any items purchased with Young Life
funds must remain in the area. They are property of Young Life, not the staff of the area.
Young Life cell phones and computers are for ministry purposes only. Not for personal use.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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VEHICLES (March 08)


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Purchase and Donation of Vehicles


Young Life limits its vehicle ownership to use of transporting kids to Young Life events.


The vehicle must have a minimum of seven passenger seats and each seat must be
equipped with a seat belt.

Young Life areas may not purchase or accept a donation of any vehicle larger than a
12-passenger seating capacity. Effective May 15th, 2003 Young Life does not allow the
use of 15-passenger vans to transport individuals for Young Life activities, due to safety
issues with the vehicles.

Young Life does not allow the area to own or lease (long-term) cars.

For information on purchasing a vehicle, see CAPITAL.


If a vehicle is donated, complete a Non-Cash Contribution Form (YL-2053).

Complete a Vehicle Information Questionnaire (YL-1703).

Send the original title once it is titled in Young Lifes name.

Send all of the above to the Properties Accountants at the Service Center. See NONCASH CONTRIBUTIONS.

Young Life will not accept title to a vehicle to be used as a personal staff vehicle.

Vehicle Insurance
Young Life-owned or leased vehicles (vans) are insured by Young Life. This coverage is
charged monthly (to vehicle expenses) to the area that owns the vehicle. Staff and volunteers
who use privately owned or leased vehicles to transport Young Life participants or staff must
carry personal, vehicle insurance with minimum insurance limits of $50,000 per person,
$100,000 per accident and $50,000 physical damage of the other persons vehicle. Privately
owned vehicles are covered by secondary liability insurance for Young Lifes protection. This
cost is charged to the area as part of field business insurance and charged to the areas 6210
account.

Reimbursement for Young Life-Owned Van Expenses




Pay actual operating expenses (rather than mileage) for vans owned by Young Life. See
CAPITAL.

The Young Life Van Mileage Report (YL-2624) must be completed for each use and filed in
the area office each month.

Any personal use of a Young Life van must be reimbursed by the person using the van at
Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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the IRS rate with a monthly check to the area. You may NOT reduce individual
reimbursement for other expenditures or offset the personal use by the purchase of gas.


Fines and traffic violations incurred in vans owned by Young Life are to be paid by the
person incurring the penalty and may not be reimbursed by Young Life.

Mileage Reimbursement
See INDIVIDUAL EXPENSES

Donated Vehicles to be Sold


o Any vehicle that seats less than seven may not be kept by the Young Life area.
o The title to a vehicle intended for sale must first be transferred to Young Life for receipting
purposes.
o The vehicle must be sold at fair market value, whether to staff, volunteers or on the open
market.
o After the vehicle is sold, complete Section B of the Vehicle Information Questionnaire (YL1703) and send to the Properties Accountants along with the proceeds from the sale of the
vehicle.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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VOLUNTEER AREAS (March 08)


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All new areas will be set up as volunteer, with no paid staff.

There are two types of volunteer areas:


VOL C:
A volunteer led area that has club.
VOL F:
A volunteer led area that does not have club, but is raising funds for the future.

Volunteer area expenses are assessed a service charge.

Volunteer areas pay or collect interest on balances and have access to regular reports and
area mailings.

Preparation of an annual budget is encouraged, but not required for volunteer areas. Do
not include salaries for future staff. When an area changes to active status a budget is
required.

To change the status of a VOL-F to a VOL-C area or to change a volunteer area to active,
the regional office should contact Field Accounting for the Area Account Application &
Change form, complete the Change in Status section, and e-mail or fax it to Field
Accounting.
Note: In order to change to active status, a volunteer area must have three months cash
on hand or documented donor pledges before incurring significant expenses, including
salaries.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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YOUNG LIFE FOUNDATION (March 08)


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The Young Life Foundation was created as a support organization for Young Life and holds
the longer-term investments, and it is governed by a Board of Directors. The Young Life
Foundation is a legal corporate entity, incorporated in the State of Colorado in 1961, and is
recognized as tax exempt under section 501(c)(3) of the Internal Revenue Code. The Young
Life Foundations Federal Identification Number is 84-6041371. Donations to the Young Life
Foundation are generally deductible for federal income tax purposes.
The minimum balance for a Foundation designated field fund is $35,000. The local area and
committee can choose one of five diversified investment strategies that range from very
conservative to aggressive. If you would like more information on an investment fund in the
Foundation, please contact Jeff Rudder or Brian Spindor.
Young Life ministries may only invest through the Young Life Foundation. Areas may not hold
Young Life funds at local community foundations nor raise money in the name of Young Life
for the community foundation. Young Life does not control these funds and therefore Young
Lifes name cannot be used in the promotion of or fund solicitation for community foundations.
Field ministry areas are not allowed to create their own foundations using the Young Life name
or solicit funds for any other foundation in the name of Young Life.
A list of current Young Life Foundation corporate officers is available on the website, or contact
Mission Assistance at mat@sc.younglife.org or call (719) 381-1800.
Young Life Foundations Financial Statements are consolidated into Young Lifes and audited
on an annual basis. A copy of the Young Life audited financial statements is posted on Staff
Resources. Young Life Foundation files an IRS Form 990 informational return annuallya
copy of this form is also available on Staff Resources.

Questions? Contact the Accounting Department at accounting@sc.younglife.org.

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