Finances
Banking
As a registered student organization, you get access to apply for University funding and store and access organizational funds through the internal University Accounting System, managed by the Dean of Students Accountant. All organizational funds housed within the University Accounting System must comply with UT policies and procedures, including restrictions on spending.
You may also choose* to open a checking/savings account with an external, local financial institution (UT Federal Credit Union, Huntington, etc.). In order to do this you will need to apply for an Employer Identification Number (EIN) through the IRS website. Click here for detailed instructions.
*Majorly funded student organizations are not allowed to open external accounts. Not sure if your organization is majorly funded? Consult the Dean of Students Accountant.
When comparing your options for financial arrangements, please consider the pros and cons of each option:
Internal Account |
External Account(UT Federal Credit Union, Huntington, etc.) |
|
|---|---|---|
| Check or cash through the Dean of Students Accountant |
Deposits |
Check or cash deposits at a branch. Able to link to online and credit card systems. |
| Must reserve purchasing card (p-card) or arrange for a check to be cut. NO CASH. |
WithdrawaLs |
Can write check, use debit card, withdraw cash, etc. Same as any consumer account. |
| Must comply with all state and University guidelines that govern spending. |
Spending Restrictions |
Self-imposed by organization. UT recommends requiring dual signatures. |
| University ensures paper trail and legal use of funds. Helps to protect the organization and members. |
Protections |
Organization responsible for policing its own spending and holding individuals accountable for use of organizational monies. |
| Purchases are tax exempt and use UT's tax ID number. |
tax exempt |
Purchases are not tax exempt unless the organization applies for and uses its own ID number (see below). |
Tax Exempt Status
Though student organizations gain access to many benefits by being registered, they are not an official part of the University and cannot use the University's tax exempt status for purchases made with external account funds. If students are allocated SAC special funding or an annual budget, they are allowed to use UT's tax ID number. Click here for more information.
To gain tax-exempt status as a student organization, you will need to first apply for an Employer Identification Number (EIN) through the IRS website. Click here for detailed instructions. Employer Identification Numbers are issued for the purpose of tax administration.
In order to maintain tax-exempt status, your organization may have to file taxes through
the IRS or complete other renewal responsibilities. If your status expires, you may
have to complete additional paperwork or re-apply. Consult the IRS website for more information.
It's important to note that granting nonprofit status is done by the state while applying
for tax-exempt designation (such as 501(c)(3), the charitable tax-exemption) is granted
by the federal government in the form of the IRS as stated above. Information regarding
nonprofit organizations in the state of Ohio can be found on the Ohio Attorney General's website.
If you choose to apply for an Employer Identification Number (EIN) and/or tax exempt status, please ensure that your organization is considering the administrative costs and requirements in pursuing and maintaining such a status, understanding that the University is unable to provide advice or assistance. Also, consider the ongoing responsibilities of the organization to remain in compliance with IRS requirements both now and in the future.
Membership dues
Student organizations may charge membership dues to registered or voting members of the organization. If dues are charged, it must be stated in the organization’s constitution and members have a right to know exactly what the dues will be spent on. Funds raised through dues must be clearly documented. A written receipt must be given to anyone paying dues and deposited within an approved account before spending.
need money?
1. Reach out to the Student Allocation Committee via a special funding request.
2. Host a fundraiser for your organization.