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N A A C P (G R O U P ) N A A C P (G R O U P )
2005 A N N U A L F IN A N C IA L R E P O R T
(M u st b e filed w ith N atio n al O ffice b y M arch 1, 2006)
(G roup T ax R eturn due to be filed by the N ational O ffice to the IR S by M ay 15, 2006)
C H E C K L IS T O F T H E IT E M S T O B E S U B M IT T E D T O T H E N AT IO N AL O F F IC E B Y E AC H U N IT
C o v er L etter (D o n o t retu rn to th e N atio n al O ffice)
An n u al F in an cial R ep o rt In stru ctio n s (P lease read an d fo llo w v ery carefu lly). K eep in
th e U n it's files fo r referen ce. D o n o t retu rn to th e N atio n al O ffice.
X
U nit Inform ation and A ttes tation (P lease com plete w ith appropriate signatures). T he P resident
and T reasurer of every U nit m ust sign the R eport to be subm itted, even w hen a P aid P reparer
is us ed to com plete the A nnual F inancial R eport. P aid P reparers should sign P art V .
X
S chedule A & Q uestionnaire for related inc om e (S upport P art I and m ust be com pleted
before com pleting P art I)
X
S chedule B & Q uestionnaire for related expenses (S upport P art II and m ust be com pleted
before com pleting P art II)
X
S chedule C Lis t of C ontributors
X
P art I - Incom e (m us t be categorized as the form indicates )
X
P art II - R em ittances to the N ational O ffice (list by c ategory)
X
P art III - S pecial E vent E xpenses (captures N ational C onvention, R egional & S tate C onferences )
X
P art IV - F unctional E xpenses (c aptures adm inistrative and program expenses)
X
P art V - N et A ss et/F und B alance A nalysis
M AIL C O M P L E T E D AN N U AL F IN AN C IAL R E P O R T T O :
N A A C P - N A T IO N A L O F F IC E
4 8 0 5 M T . H O P E D R IV E
B A L T IM O R E , M A R Y L A N D 2 1 2 1 5
A T T N : F IN A N C E D E P A R T M E N T (A F R )
FINANCE DEPARTM ENT
NATIONAL ASSOCIATIO N FOR THE ADVANCEM ENT OF COLORED PEO PLE
4805 M OUNT HO PE DRIVE BALTIM ORE, M ARYLAND 21215 TEL # 410-580-5716
Re: 2005 ANNUAL FINANCIAL REPORT
(M ust be filed w ith the National Office by M arch 1, 2006)
Dear Sir/M adam:
The National Office of the NAACP is charged with the fiduciary responsibility of ensuring that all
NAACP Units conduct their activities in an efficient and effective manner. In executing this
responsibility, the National Office provides guidance to each Unit in the form of consultation,
memoranda and training. In addition, a Unit Financial Bookkeeping Guide is prepared and
disseminated annually to each Unit. This guide outlines established financial and accounting policies to
be followed by each unit. Non-compliance with these policies and procedures jeopardizes the fiscal
integrity of the Unit as well as the National Office tax-exempt status. To ensure compliance with
policies and procedures and assist the National Office in preparing the Group Information Return (IRS
Form 990) to be filed annually with the Internal Revenue Service, each Unit must complete and
submit an Annual Financial Report by M arch 1, 2006.
The Annual Financial Report is formatted to meet generally accepted accounting principles and income
tax accounting requirements. This format allows us to capture all aspects of the Units activities when
preparing the Annual Group Tax Return. It also impels Units to maintain complete and accurate
records.
According to the Internal Revenue Service instructions on preparing the Group Information Return
(Form 990) every year, each local organization m ust authorize the central organization in writing
to include it in the group return and m ust declare , under penalty of perjury, that the authorization
and the inform ation it subm its to be included in the group return are true and com plete.
W e strongly advise every preparer to read and follow the instructions provided because any
incom plete or im proper categorization shall result in the report being returned to the Unit and the
Unit excluded from the Group Inform ation Return.
W e thank you for your consideration and look forward to your full cooperation. Remember that we are
here to serve you, please call us if assistance is needed.
Sincerely,
J. Linloy Cox
Chief Financial Officer
N A A C P (GROUP)
2005 ANNUAL FINANCIAL REPORT INSTRUCTIONS
ALL SEGMENTS OF THIS ANNUAL REPORT MUST BE COMPLETED
STEP #1
PLEASE VERIFY THAT YOU HAVE RECEIVED ALL THE REQUIRED SHEETS. THE SIGNATURE PAGE, SCHEDULES A&B AND
PARTS 1 THROUGH 5 MUST BE RETURNED TO THE NATIONAL OFFICE.
IF YOU DO NOT RETURN THE ANNUAL REPORT IN THIS FORMAT WE WILL BE UNABLE TO ACKNOWLEDGE THE RECEIPT OF
YOUR UNIT'S 2005 ANNUAL FINANCIAL REPORT. THIS MAY AFFECT YOUR PARTICIPATION PRIVILEGES AT THE NATIONAL
CONVENTION.
PLEASE MAKE A COPY OF ALL THE ATTACHED SHEETS BEFORE YOU BEGIN THE PROCESS.
USE A PENCIL TO COMPLETE THE PHOTOCOPY, THIS WILL ENABLE YOU TO CORRECT MISTAKES.
STEP #2
PLEASE START BY COMPLETING THE ATTACHED SCHEDULES A & B
SCHEDULE A HAS FIVE (5) SECTIONS.
SECTION 1 is requesting information regarding Grant Receipts. Please complete as needed if the Unit received any grant(s) in 2005.
If not, please go directly to Section 2.
SECTION 2 is requesting information about Scholarship or program funds received by the Unit. If an individual or an organization
made a contribution that was specifically designated for Scholarships, the Unit needs to complete this part. This type of contribution
to an organization is known as restricted income. Therefore, it is program specific income and must be spent on that program's activities
only. Additionally, recordkeeping for such funds is different from funds received for general unrestricted support.
SECTION 3 is requesting information from Rental activities. We are trying to capture activities that may be considered unrelated to the
NAACP's exempt purpose. If the Unit had any rental income other than space rental on the day of a fundraising affair, please complete this
section.
SECTION 4 is requesting information about Advertising income. Our intention here is to capture, as above, activities that might be
considered unrelated to the NAACP's exempt purpose. There are particular tax consequences for such income. The National Office would
like to capture our tax liability exposures on such activities and submit the necessary Form 990T along with the taxes due. Please remember
that the ultimate tax liability for such unrelated business income tax lies on the Unit.
SECTION 5 is requesting information about fundraising activities. The National Office wants to track fundraising affairs by its Units.
We would like to gather for statistical purposes Unit compliance records. Moreover, we want to be able to track the exact net proceeds for
the National Office's 25% assessment on the Unit.
Please follow the instructions very carefully. Report the amount raised and all related expenses on Schedule A. The Unit can
report gross income from fundraising on Part I lines 12(a) through 12(k). The expenses can be reported on Part IV line 33 of the 2004
Annual Financial Report.
STEP #3
Schedule B has Five (5) sections just as Schedule A. The purpose of Schedule B is to capture the Unit's functional expenses for the year
which might carry additional liability, particularly in the areas of payroll, independent contracting and compliance matters if undetected.
SECTION 1 captures all payroll activities to ensure that Units are in compliance with all reporting agency requirements.
Therefore, if this Unit has employees, you must complete and submit all of the copies requested on Schedule B. If you have problems with
the required filings, please feel free to call the National Office for instructions.
SECTION 2 captures every Unit's Scholarship Awards. If there were donations or contributions specifically given for Scholarship Awards,
the National Office would like to be able to track the expenses awards) against the income. This does not mean that funds which were
not designated as Scholarship funds can not be used to award scholarships to deserving students. We are merely tracking the Unit's
restricted funds to ensure that they are not used for activities other than the donor's expressed purpose.
SECTION 3 is designed to capture the indebtedness of each Unit. For all Units that reported rental income, the National Office
would like to have accurate balance sheet information, especially if there is a mortgage involved. For example, the cost of the building and the
purchase date and depreciation schedule should be disclosed here.
SECTION 4 If the Unit's answer is yes, please itemize all Depreciable Property in Section 5.
The National Office is trying to find out if Units with depreciable property should and/or are required to file Personal Property Tax Returns
with their State Agencies. Please see depreciation calculation examples for further instruction.




N A A C P (GROUP)
2005 ANNUAL FINANCIAL REPORT INSTRUCTIONS
ALL SEGMENTS OF THIS ANNUAL REPORT MUST BE COMPLETED
PART I
LINES 1 through 4 are very clear, so complete them accordingly from your data.
LINES 5 & 6>