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 Society” Line 10 Check “Banking Purpose” and specify “Open checking account” Line 11 The date your chapter was founded (ask your Member Experience Manager) 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 rd 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 www.irs.gov. 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 YEAR TO REFLECT CHANGES IN OFFICERS IN ORDER TO AVOID CONFUSION AND THE POTENTIAL LOSS OF CHAPTER FUNDS. 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.
Pages to are hidden for
"Check Legitimacy of Non-Profit Organization in Kentucky - PDF"Please download to view full document