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Affiliate Treasurer’s Guide

Starting Your Bank Account

Getting your bank account started is crucial for a new affiliate. You need to be an officially recognized affiliate before starting this process. After you are affiliated, the process is straightforward, though a slight bit tedious. The party’s Treasurer just needs to follow these steps.

It’s important to always use your party’s legal name on the paperwork.

  • For District Parties, your legal name is “Libertarian Party of Kentucky, ____ District” where the blank is your ordinal number (1st, 2nd, 3rd, 4th, 5th, or 6th).
  • For County Parties, your legal name is “Libertarian Party of ________ County, Kentucky”, where the blank is your county name. Example: Libertarian Party of Pendleton County, Kentucky.
  • Exceptions exist for Louisville/Jefferson/3rd and Lexington/Fayette because of merged county-city forms of government. Consult the State Party if you need assistance.

Obtaining an EIN

Visit the IRS website and follow the steps to get an EIN number for your party: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online (link last verified 2021-08-16)

Now you want to scroll down and find the “Apply Online Now” button …
A new window opens.  Choose “Begin Application”
Now choose “View Additional Types, Including Tax-Exempt and Governmental Organizations, and press “Continue”
Choose “Political Organization” and then press “Continue”…
Read and understand, and press “Continue”…
Choose “Banking purposes”, and then press “Continue”…
Fill in your information, and choose “I am a responsible and duly authorized officer…” and press “Continue”…

(the rest to be added later)

(remember to use your party’s legal name, as listed above)

Document your new EIN number, and provide the EIN number to the State Party Secretary and State Party Treasurer.

 

Finding A Bank

If you have a relationship with a bank already, often that is the easy way to go. You should talk to the bank about how we’re organized.  You will be considered an “unincorporated association”, and you need a business checking account that doesn’t earn interest. Find out the details of the account – monthly fees and whatnot. Don’t open the account yet. Make sure they’re going to be willing to work with you, and that the state party’s Constitution (what the bank will call governing documents or articles of incorporation), an EIN, and a completed KREF-010 form (stamped “received” by the state) will be acceptable for opening the account.  (See more under “Opening The Account, below.)

 

Filing Initial KREF Paperwork

Obtain form KREF-010 from https://www.kref.ky.gov/. Currently, this form is located at: https://kref.ky.gov/KREF%20Forms%20and%20Pubs/Political_Committee_Registration.pdf

Under “Committee Name”, place your legal party name.

Put the mailing address of your party. If you don’t have a PO Box, use the State Party’s address:   Libertarian Party of Kentucky, PO Box 432, Independence, KY 41051

Where funds come from: Libertarians.

The “From” Date is today’s date. Leave “To” Date blank. Checkbox the “Indefinite” box.

Do NOT mark any of the committee types. Instead, write “Political Party” under the “Indefinite” checkbox.

Fill in the information for the Chair and Treasurer of your affiliate. Place the information for the Treasurer of your affiliate in the “Official Contact Person”. (Yes, same information twice.)

Skip down to the “To be completed by all committees” and put your bank’s name and address on the appropriate lines.

Then the Chair and the Treasurer should sign and date the form.

Make a copy, and mail the completed form to: Kentucky Registry of Election Finance,140 Walnut Street, Frankfort, KY 40601-3240.

Wait about 5 business days and then call KREF and ask them for a copy of your paperwork, stamped received, as well as with your KREF Filer #. The KREF Filer # is very important. Document this, and send a copy to the State Party Secretary and Treasurer.

 

Opening The Account

You should have the following items with you when to go to open your affiliate’s bank account.

  • KREF filing for the county party stamped received (sent in, and a copy sent back to the county party)
  • TIN/EIN from the IRS
  • Articles of incorporation (which is our state party constitution)
  • Convention minutes to prove who was elected at the organizing convention
  • A letter from the affiliating organization (i.e. that state party, if you are opening an account of a district and the district party if you are affiliating a count)
    • A letter directly from the state party should also work

NOTE: Some banks have started requiring a physical address for the account.  If so, you can use LPKY’s headquarters at 1015 S 4th St, Louisville, KY 40203.

If the bank gives you any hassle over not being incorporated in KY, tell them that the state party is incorporated to protect the use of the name, but that all affiliates are to be considered an “unincorporated association”, like a youth baseball team.

Be sure to let the State Party Treasurer know you have completed this, and you have a bank account. Transferring money via ACH may become an option in the future.

Avoid Interest Bearing Accounts

There has been some debate regarding the legality of using an interest-bearing account.  The concern is that the interest can be construed as a corporate campaign contribution, which is illegal.  Since we tend to want our money working to guide people to liberty, there is little value in keeping the level of cash in the bank that would be required to make the interest worthwhile anyway.

Please bear in mind

This process is unusual to the bank employees and they’re trying to follow the rules so they don’t get fired. So be nice and work with them.  Be patient should they get a little mixed up, and work to keep them on your side as they work through the process.

Maintaining The Books

It is best practice to only pay with things by “physical instrument”, which is a check written against the bank account. Checks should be single-purpose so that later on there’s no question as to what was spent on what, how, and why.

Expenses are now supposed to be pre-approved. So be sure to throw a red flag on reimbursing an expense for which a motion was not passed before the expense was incurred.

Be sure to log what every check was written for, how much, and to whom. Ideally, there will be receipts for those expenses, as well. Keep all of this. It’s good bookkeeping.

 

KREF Filing

To be populated…

 

Got Questions?

If you’ve got questions, ASK! The IRS is actually helpful when you’re trying to get an EIN/TIN. KREF is extremely professional. And the State Party has institutional knowledge as well. If you have a problem, ask for help! There’s no reason to let your party get socked with fines from KREF. As Treasurer, you can be personally responsible for failing to do the job. So just ask for help when you need it!

 

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