Spending Local Funds on Holiday Gift Cards Appropriately

The holiday season always brings inquiries from local and state officers who contemplate distributing gift cards to their members. While there is no prohibition against spending local funds on gift cards
for the membership, there are considerations to be made by local officers when making or considering
motions to expend union funds. The non-profit status of labor unions is based on the principle that unions carry out activities and functions that benefit society.
This benefit is deemed to be one where the public-at-large, or a substantial segment of the public, receives benefits from the functions and activities of the entity. Simply put, taking money out of the treasury to give to members would not qualify as a public benefit provided by the labor union. However, if your local offers gift cards as part of an organizing drive to increase union membership, that would be more in line with the mission of organizing workers for effective representation. Local officers should consider the following when considering the distribution of gift cards:

• What are your plans and needs for the representation of your members, and how will this
  expenditure affects the local’s ability to perform its primary function, which is to represent the
  membership or your local?
• Were the gift cards budgeted? It would be improper to deplete the locals’ treasury for gift cards.
• Will the local be able to sustain these kinds of gifts?
  If your local decides to distribute gift cards, never issue cash payments or any gift that may be redeemed for cash. A properly adopted motion is required, and the gift cards must be documented appropriately and carefully tracked, with full accounting of all funds used, including receipts of all purchases made.

Preparing for the New Year!

The Secretary-Treasurer’s Department is committed to providing tools and resources for officers in
leadership positions to fulfill their responsibilities and remain in compliance with applicable regulations and laws. Providing in-person Secretary-Treasurer’s and QuickBooks training, as well as virtual Fiduciary Responsibility training, meets the needs of newly elected officers and officers who need a refresher course. We recommend that local presidents and treasurers attend at least one training a year. When planning for 2026, be on the lookout for virtual labor-management (LM) report training with the Department of Labor (DOL). This virtual training has been very helpful for local and state officers
to assist with preparing the March 2026 LM report filing for those locals with a fiscal year that ends Dec. 31, 2025.
November and December is a great time to prepare for the incoming year. Local presidents and treasurers should remember to take care of important housekeeping tasks in preparation for the New Year.
Here is a quick reminder:

• Review the 2025 budget and prepare a fiscal year 2026 budget.
• Shred financial records prior to 2020 (Remember, you must keep financial records for five years, including the current year.
• Audit financial records, which must be done at least once a year;
• Update the local asset inventory and properly dispose of items and furniture that belong to the union with a properly approved motion.
• Archive membership and executive board meetings minutes for 2025;
• Prepare a calendar of activities and deadlines for 2026.
• Prepare to file DOL LM report and IRS 990 reports electronically and by the required due date!
  

Locals that need assistance should contact the APWU Secretary-Treasurer’s office at (202) 842-4215, or Executive Assistant to the Secretary-Treasurer Annette August at: aaugust@apwu.org.

Thank You For Your Leadership, President Dimondstein!

Thank you, President Dimondstein, for a job well done during your tenure, and I wish you the best during your retirement.
Happy Holidays from Secretary-Treasurer Elizabeth
‘Liz’ Powell and all of the staff of the Secretary-Treasurer’s Department