Alcoholics Anonymous South Africa

Group Treasurer’s Workshop

Contents

1. Preamble

2. Introduction

3. Treasury Work in A.A.

4. Literature and Guidelines for Treasurers

5. Contributions and expenses

6. Prudent reserve

7. Literature control

8. Reporting back to the Group

9. Contributing to service structures

10. Bank accounts and statutory

11. Special events, special contributions and limits

12. General information of interest

Preamble

A.A. Preamble

Alcoholics Anonymous is a fellowship of men and women who share their experience,

strength and hope with each other that they may solve their common problem and help

others to recover from alcoholism.

• The only requirement for membership is a desire to stop drinking. There are no dues

or fees for A.A. membership; we are self-supporting through our own contributions.

• A.A. is not allied with any sect, denomination, politics, organization or institution;

does not wish to engage in any controversy, neither endorses nor opposes any causes.

• Our primary purpose is to stay sober and help other alcoholics to achieve sobriety.

Copyright by The A.A. Grapevine, Inc.;

reprinted with permission

Introduction

Money has never been a requirement for membership in AA. We are supported by our own contributions. This principle is one of the key foundations of the fellowship and one we need to respect and cherish. Funds are however required by Groups in order to fulfill their primary purpose. It is thus unavoidable that Groups need funds and consequently a trusted servant to manage these funds. This service position is essential for the functioning of any Group. Most Groups in South Africa do have this position filled. The changing environment in South Africa with regard to the banking system, the revenue authorities as well as the legal frame work, have required AA to review its structures such as area assemblies etc. This, together with experiences gained over the years and similar guides published in other countries have been brought together to ensure that each Group and their trusted servants have a guide for the financial affairs of a Group. While the work of the group treasurer often involves many details, it is important to remember that the money the treasurer oversees serves a spiritual purpose : it enables each group to fulfill its primary purpose of carrying the A.A. message to the alcoholic who still suffers. This is the fundamental work of A.A., and to continue it the group must keep its doors open. The group treasurer is an important part of this Twelfth Step work. The purpose of this workshop is to provide guidance and information, and to answer questions that treasurers may have regarding their role in the efficient functioning of groups. The workshop is not prescriptive and we would welcome any suggestions or additions to improve communications within the fellowship.

Treasury Work in A.A.

The group treasurer oversees the contributions received and expenses paid in a group. The

treasurer will also report back to the group regularly on the financial movements and

current status of the group’s finances. In this manner, all group members can stay informed

about the financial health of the group and make group conscience decisions about how the

funds should be spent.

As we know, lack of knowledge can lead to mistrust, and this will lead to lower contributions

from group members. Many members are unaware that groups have expenses such as rent,

coffee, milk, etc. The job of the treasurer is to collect the financial information and present

it in an understandable from for the group members to digest.

There are also treasury functions performed by trusted servants at Area offices and at GSO.

The results of these can be seen in the periodic reports issued by these offices. These

reports are usually incorporated in the monthly meeting minutes, and can also be obtained

from group General Service Representatives, District Committee Members or Delegates.

These reports show the financial health of your service structures, and this information

should be made available to group members who have an interest.

Newcomers are often told that they are not alone. Likewise, treasurers are not alone, they

have a wealth of experience within the fellowship to provide guidance and advice on how to

deal with the finances of a group. Should you come across unusual circumstances, you can

always rely on the treasurers within your service structure to help and offer advice.

Other Treasurers and notes :

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Literature and Guidelines for Treasurers

Reading literature is a way of improving the service that you are able to offer your group,

and the fellowship as a whole. This is a list of the material available and where to find it.

The Group Treasurer’s Notebook Area Offices

SA Publication from Conference 2007

The AA Group Treasurer Area Offices

Flyer F-96

Self Support : Where Money and Spirituality Mix Area Offices

Pamphlet F-3

The AA Group (p19) Area Offices

Pamphlet P-16

A.A. Guidelines – Finance www.aa.org

Other literature and notes :

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http://www.aa.org/

Contributions and expenses

“The Paradox of A.A. is that financial independence and the support of our fellowship by

alcoholics and alcoholics alone not only enhance A.A.’s importance to each of us, but

stimulates our engagement in our own recovery . . . A.A. is “our thing,” from our group’s

treasury to the balance sheets at the General Service Office.”

Money has never been a requirement for A.A. membership, and to keep it that way all of

A.A.’s trusted servants have an ongoing obligation to inform groups and individuals about

the value of self-support and the need for voluntary contributions throughout the

Fellowship.

The group treasurer is usually the person responsible for paying the group’s routine bills and

for keeping accurate records of the group’s funds. The treasurer needs to be well informed

about how the group’s money is spent and should have addresses and contact details for all

A.A. service entities that the group contributes to.

The group treasurer should ensure that the group’s basic needs are met by providing for

rent, literature, refreshments and insurance. Many groups provide financial support for

transport expenses of their GSR attending service meetings. In some regions it is prudent to

pay for car guards to look after member’s cars during meetings. Generally speaking, any

doubt about whether an expense should be paid should be aired at a group conscience

meeting.

Other examples of group expenses and notes :

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Prudent reserve

“We view with much concern those A.A. treasuries which continue, beyond prudent reserves, to accumulate funds for no stated A.A. purpose”

A group, or for that matter, any structure in AA, should not have more funds than the

prudent reserve. This reserve should cover the running expenses of a group. It is suggested

that a group's prudent reserve should not be more than 3 months expenses of the Group.

This would entail the rent, coffee, teas etc. We also believe that this prudent reserve does

not need to be held in cash exclusively but also in literature inventories.

To illustrate this point let us assume that the group has a rental expense of R200 per month

and refreshments costs on average about R300. This would mean the prudent reserve

should be R1 500. (R200 plus R300 times 3 months). The group also has a literature stock of

on average about R1 000. This stock would count towards the prudent reserve and thus the

group would need to keep cash of R500.

We suggest that cash should be kept at a minimum as this may lead to unnecessary

temptations as well as exposing the Group to other risks. Any funds over and above this

prudent reserve should be transferred to AA structures where it can be used for the primary

purpose of AA as a whole.

Calculation of your group’s prudent reserve :

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Literature control

The group treasurer needs to work closely with the group librarian to maintain adequate

stock of the type of literature required by the group. Particularly, welcome booklets are

imperative at all groups, but a good stock should be held by groups that usually have many

newcomers.

Sales of literature should be recorded separately, so that these funds can be used to re-

stock where necessary. The control of literature can be effectively managed using an

existing spreadsheet which has been set up and is available from your Area office. The

librarian should count the stock of literature regularly, as the valuation of this will be

required for the calculation of the prudent reserve from time to time.

Many groups use a receipt book to record literature sales, and in most instances this is an

adequate method of controlling stock.

Literature Control and Notes :

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Reporting back to the Group

Keeping the records of all the financial transaction of an AA Group is probably the most important job of a treasurer. There is no prescribed way how this needs to happen as long as it does. We have however devised a "simple" report which is annexed to this document. The detail to which each Treasurer goes is certainly up to the individual with the general advice that the more detail that is recorded the better.

The treasurer should report back to the Group regularly. There are various ways that this may be done. Some Groups prefer to deal with this at a business meeting outside of the regular AA meetings held by the Group; others give feed back after discussing it at the business meeting while some report directly to the meeting. We suggest that whatever the form is that the group thinks is appropriate in its particular circumstances should be taken into account and that the Group conscience should guide the Group.

The way and manner we report is not as important but rather that we do on a regular basis. We suggest that the Group should be informed at least on a quarterly basis. A treasurer should also welcome questions from any regular member of the group regarding the finances. We believe that if we are transparent about this aspect of the group we leave no room for speculation and unnecessary concerns that may lead to strife within your group. It should not be under estimated how important this part of a treasurers job is. It is also suggested that the treasurer's report be signed off by the treasurer and by a third party. This could be the chairman of the meeting or some other person considered to be competent by the Group. This enhances the transparency and is considered a good practice.

Reporting Back and notes :

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Contributing to service structures

Contributions to Area offices An Area office is vital to the functioning of A.A. Without the support for 12 Step calls, the provision of literature and other services provided, our primary purpose as a fellowship could not be fulfilled. It is thus essential that these offices do function and are funded appropriately. As the area office complies with the same traditions as a Group they can not solicit funds from outsiders and thus have to rely on the groups belonging to the area for their funding. It is recommended that 70% of the group's surplus funds should be contributed to the area offices. Surplus Funds is that amount of Cash available after the prudent reserve has been taken into account. In the example earlier we had a prudent reserve of R1 500. If the Group has literature of say R1 000 and cash of say R2 500 the Surplus funds are calculated as R2 000. (R1 000 plus R2 500 less prudent reserve of R1 500). We would thus recommend that R1 400 (70% of R2 000) be paid into the bank account of the area assembly. Contributions to GS0 The GSO or General Service Office is one of the services arms of the fellowship that is required in order to ensure that A.A. is able to fulfill its primary purpose. This service does require funding and funds can only be generated from within the fellowship as we all know. GSO funds about a third of it's annual budget from the margin generated by the sale of conference approved literature. The balance of the expenses are covered by contributions that GSO receives from groups throughout the country. It is recommended that each Group should contribute 30% of the surplus funds to GSO. In the example above this would mean R600 (R2 000 surplus funds x 30%).

Contributing to service structures and notes :

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Bank accounts and statutory

Various Groups have or have had Bank accounts. We strongly suggest that groups do not

operate bank accounts at all. The introduction of FICA and other banking related legislation

such as the National Credit Act etc. have made it next to impossible for groups to operate

bank accounts as intended by our A.A. traditions.

In some groups the bank account is held in the name of the Treasurer or the Chairperson

which should be avoided for obvious reasons. Should a Group however wish to operate

Bank accounts we suggest that the Area Assembly be consulted in order to ensure that the

Group finds an appropriate legal persona under which the Group could operate.

Area Offices generally operate under a constitution, created for their entity. This

constitution could be modified and used as a constitution for a group. Once the constitution

is established, a bank account could be opened. Care should be exercised to ensure that the

costs of operating the bank account do not overwhelm the funds available to the group.

The name used by any group as a legal persona should not include the words A.A. or

Alcoholics Anonymous.

Bank accounts and statutory and notes :

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Special events, special contributions and limits

Special events Some Groups or combination of Groups hold rallies or other special events in the area. The Rally Committees often roll forward the funds from one year to the next and keep special bank accounts for these purposes. We strongly suggest that these funds should be "parked" in the Area Assembly bank account and not in bank accounts of individuals as sometimes this appears to be the case. The other alternative is to find a legal persona under which such an event can be organized and which would then comply with the laws of South Africa. In this regard we suggest that Groups should contact their Area Assembly. These events sometimes have their own treasurer and should be seen as an activity outside of the Group. It is also recommended that funds raised at these events should be split 70% GSO and 30% Area. This is the same split as for the Annual Convention which is the biggest of these special events and is run by an Area Office on behalf of GSO. Special contributions Sometimes individuals want to make special contributions to GSO and may ask the treasurer of the Group for guidance in this regard. The first principle is that contributions are limited to R35 000 per annum per A.A. member. The current limit which applies to members who wish to bequest an amount to the fellowship is R150 000. We cannot and will not accept more than this amount, even though the bequest may be higher. There is also the concept of Birthday contributions to GSO. The idea is to multiply your years of sobriety by a Rand amount (say R10) and send the funds to GSO as a token of gratitude. Again, the overall yearly limit should be kept in mind.

General information of interest

South Africa

Number of active Groups 373

Number of active Members 4348

New groups this year 21

Groups closed or recessed 13

Big Book Meetings 39

Newcomer meetings 24

Step/Tradition meetings 57

Meetings per week 429

Open meetings per week 295

GSO Contributions received (2012 Actual) R 52.55 per Group per month

R 4.51 per Member per month

GSO total expenses (2013 Budget) R117.92 per Group per month

R 10.12 per Member per month

United States and Canada estimate

1 AA member = 25 alcoholics drinking and dying

World average estimate

1 AA member = 339 alcoholics drinking and dying

Q What is a “prudent reserve”?

A Any suggested prudent reserve for a group should be dependent on local needs. A

suggested prudent reserve for central offices, inter-groups, and area committees could be

one to twelve months’ operating expenses, depending on local needs.

Q Does the General Service Office have a “prudent reserve”?

A In 2008 A.A. South Africa’s Board of Trustees established a prudent reserve whose

principal purpose is to provide the financial resources necessary to continue the essential

services of G.S.O. for up to six months in the event of an unexpected and substantial

reduction in the normal revenues of the organization.

Q Is there a limit on how much an individual can donate to G.S.O.?

A Yes. That limit is published in issues of the AA in SA bulletin, and is 5% of GSO’s most

recent gross annual receipts. Currently the amount would be R 43 120.00 per annum.

Annual changes to this figure can be obtained from G.S.O.

Q Can people leave money to A.A. in their wills?

A Bequests in wills are acceptable only from A.A. members on a one-time basis, and not in

perpetuity. Although there is no limit, acceptance of any bequest will be at the AA Board’s

discretion in accordance with concept 3.

Q Can a group have too much money?

A As stated in the long form of Tradition Seven, “We view with much concern those A.A.

treasuries which continue, beyond prudent reserves, to accumulate funds for no stated A.A.

purpose. Experience has often warned us that nothing can so surely destroy our spiritual

heritage as futile disputes over property, money, and authority.”

Q Who manages G.S.O.’s share of your group contributions?

A The General Service Board’s Oversight Committee meets monthly to review and approve

G.S.O.’s expenditure. The G.S.O. budget and the audited financial accounts are reviewed

and approved at the Annual Delegates Conference.

The A.A. World Services Board meets month1v and maintains direct control of income and

expenditures.

The annual General Service Conference reviews finances through its own Finance

Committee.

A.A’s financial affairs are an “open” book. A summary is published in each Monthly

Treasurer’s Report and a full accounting is in the Final Conference Report. The account

books themselves are available at the General Service Office for scrutiny at any time.

Q Who manages the other portions of your group contributions?

A Intergroup or central office funds are generally administered by steering committees

composed of representatives of the groups they serve.

Areas and districts generally have volunteer treasurers who administer funds contributed by

groups.

Q How can an individual member contribute to G.S.O.?

A On your A.A. birthday: Contribute R 10.00 $1.00 for each year of sobriety — or as much as

you wish to give (up to the limit published in the AA in SA). You may request that your

contribution be shown under your group or as anonymous.

Q Are there other kinds of contributions?

A Special contributions: funds realized from rallies, conventions, conferences, dinners, area

get-togethers, etc. (no limitations on these contributions.)

Q Do all groups contribute to AA’s service entities?

A No. Contributions are strictly voluntary and some groups simply cannot afford additional

contributions after covering their basic needs. Additionally, there are groups who, for

whatever reasons, choose not to be a part of the self-support network. These groups,

nevertheless, will receive basic services from the district, area, and intergroup if they wish,

and are welcome to register with G.S.O, where they will receive the same basic services as

other groups. In 2009 and 2010, the percentage of all registered groups who contributed to

G.S.O. was 55.5% and 54.7 respectively.

Q What do contributions to G.S.O. cover?

A Of each rand contributed, 33 cents goes to cover Group Services (this includes the G.S.O.

office, literature distribution, audit fee, etc. ); 1 cents goes toward public information

activity; 2 cents toward cooperation with the professional community activity; 2 cents to

treatment facilities activities; 1 cents toward correctional facilities services; 2 cents

Loners/new groups ; 15 cents for the General Service Conference; 5 cents for World Service

Delegates; 3 cents for Archives; 7 cents to support the activities of the General Service

Board; 11 cents for the National helpline, website and database ; 18 cents for translations

and publications

Q How much does it cost, per group, for G.S.O. to supply basic services?

A At the end of 2010 , the annual cost of services per group was R 519.76 , while the

average contribution per group was R 113.46 . The shortfall between these two figures is

made up from income from A.A. publications, income from convention, and other

contributions.

Q My group doesn’t have a lot of money. Is it better not to send anything at all until we

can afford to make a sizeable contribution?

A In the spirit of participation, no contribution toward carrying the message can be too

small. Bill W. spoke about our collective obligation’ to support A.A. services, and if everyone

waited until they had a ‘sizeable” amount, it’s more than likely that A.A.’s bills would go

unpaid.

Q Does G.S.O. have any specific information for our group or group treasurer about how

to handle our group’s finances?

A Yes. There are two excellent publications available from G.S.O., A.A. Guidelines on Finance

and the pamphlet ‘The A.A. Group Treasurer,” that provide specific information to groups

regarding practical matters related to their group finances, such as setting up a group’s

constitution and bank accounts, and outlining the responsibilities of a group treasurer.

Q Doesn’t all A.A. money go into one pot? In other words, when our group contributes to

central office (intergroup), isn’t our money distributed to the area, district and G.S.O., as

well?

A No. Each A.A. entity — group, district, area, central office and G.S.O. — provides a specific

service and is autonomous. Each is separate from the other.

Examples of Group Contributions to A.A. Service Entities

70% to area or district office

30% to G.S.O.

Q Where should I send contributions?

A For contributions to G.S.O. please make electronic funds transfers to :

Alcoholics Anonymous South Africa NPC

Standard Bank Norwood Branch code 001405

Current account number 201641062

Cheques should be payable to Alcoholics Anonymous South Africa NPC and sent to:

General Service Office

P.O. Box 2770

Alberton 1450 Gauteng

For contributions to other AA service entities, contact your district committee, area

committee, and local intergroup/central office.