Check Legitimacy of Non-Profit Organization in Kentucky - PDF by xzg98350


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									Establishing a Bank Account
Through Your School
Many campuses provide bank accounts for registered student organizations. If your school offers such a
system, this is the way to go, although there are two important concerns when using a campus account:
First, some campus accounts can only be used to store money from campus organizations, which means
that chapter checks won’t have anywhere that they can be deposited. Second, some campus accounts
(mostly those that only accept campus funds) are set to zero at the end of the year. Be aware of this and
plan accordingly, as failing to do so may put your chapter at risk of losing funds. Check with your
Office of Student Involvement (or equivalent) for details and instructions on how to set up a bank
account through your school.

Through a Bank
Ask your Office of Student Involvement (or equivalent) what banks they recommend. In some cases,
schools have partnerships with local banks specifically to handle club accounts. Additionally, if there’s
a bank branch on your campus, they’re where you want to set up your account, since they’re probably
the most familiar with your school’s infrastructure. If there’s no branch on campus, pick a bank that
has a branch within walking distance from campus, if possible.

Tax ID
A Tax ID establishes your chapter of NSCS as a non-profit organization with the IRS, and thereby
allows you to maintain a bank account under your chapter’s name. Chapters with bank accounts that
are managed by the school can skip this section. Once established, a chapter’s Tax ID remains the
same as long as the chapter continues to be a registered campus organization.

To apply for a Tax ID, fill out the SS-4 form on the next page, following these instructions:
                Line 1        “The National Society of Collegiate Scholars at [School Name]”
                Line 2        blank
                Line 3        Chapter contact, preferably your advisor.
                Lines 4a,b Campus address of the above contact
                Line 5        blank
                Line 6        County and state of your campus
                Lines 7,8     blank
                Line 9        Check “Other nonprofit organization” and specify “College Honor
                Line 10       Check “Banking Purpose” and specify “Open checking account”
                Line 11       The date your chapter was founded (ask your Member Experience
                Lines 12-15 blank
                Line 16       same as line 9
                Line 17       Describe your chapter, e.g. “Recognize achievement among college
                              freshmen and sophomores, and engage members in community service”
                Line 18       Complete based on whether your chapter’s had prior Tax IDs
                3 Party       blank
Once completed, mail the form to the IRS office for your state:

Connecticut, Delaware, District of Columbia,   Illinois, Indiana, Kentucky, Michigan   Alabama, Alaska, Arizona, Arkansas,
Florida, Georgia, Maine, Maryland,                                                     California, Colorado, Hawaii, Idaho, Iowa,
Massachusetts, New Hampshire, New Jersey,                                              Kansas, Louisiana, Minnesota, Mississippi,
New York, North Carolina, Ohio,                                                        Missouri, Montana, Nebraska, Nevada, New
Pennsylvania, Rhode Island, South Carolina,                                            Mexico, North Dakota, Oklahoma, Oregon,
Vermont, Virginia, West Virginia                                                       South Dakota, Tennessee, Texas, Utah,
                                                                                       Washington, Wisconsin, Wyoming
Internal Revenue Service                       Internal Revenue Service                Internal Revenue Service
Attn: EIN Operation                            Attn: EIN Operation                     Attn: EIN Operation
Holtsville, KY 11742                           Cincinnati, OH 45999                    Philadelphia, PA 19255

Tax Exempt Status
If your chapter’s bank account pays interest, or if your chapter accumulates more than $5000 in total funds from all sources
(e.g. chapter checks, fundraising, funds from student government, donations, etc.) in a year, your chapter will need to file for
tax exempt status from the IRS; otherwise, your chapter will be required to file a tax return. To file for tax exempt status,
your chapter must complete an IRS form 1023. The form is too lengthy to include here, but can be downloaded at For assistance in completing the form, contact your Manager, or the Scholar Ambassadors.

Setting Up the Account
First, decide who should co-sign on the account (two signatories are required for all NSCS chapter accounts).
Typically, the signatories are the Treasurer and the chapter Advisor, so that there’s guaranteed access to the
chapter’s finances year-round, and from year to year. THIS INFORMATION MUST BE TRANSITIONED EACH

In many cases, the next step is simply for the two signatories to appear at the bank with the chapter’s Tax ID, and
open an account under the name “NSCS at [school name]” or something similar. Generally, this goes without a
hitch, though sometimes the bank will refuse to open an account until the chapter and its officers are verified as
legitimate. In such a case, contact your Member Experience Manager, who will send an official letter to the bank
confirming your chapter’s legitimacy. Similarly, some banks require proof of NSCS’ tax-exempt status. Likewise,
contact your Manager, and they will forward the relevant information to the bank.

Using the Account
Every transaction made using the chapter bank account needs to be documented, and the receipts kept for
verification purposes. Chapter bank accounts may NOT be used for personal expenditures, or for investment
purposes (that is, the entire chapter’s funds must be accessible at all times). For more information on NSCS
policies regarding chapter funds and banking, see the Chapter Fund Policy.

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