Banking for your Student Organization
University recognized student organizations are allowed to bank anywhere they wish. Organization bank accounts continue to be a problem for many groups. Banks are increasingly reluctant to start new accounts or even continue old ones when organizations do not have an employer ID number, Internal Revenue Service Section 501(c) (registered charitable organization) status and/or are not incorporated. Contributors to groups often want 501(c) numbers for their tax records.
When organizations do their banking off campus we see fairly substantial account balances (some with hundreds of dollars) lost or closed (funds revert to the State Treasury in Sacramento) as leadership changes occur over the semesters or when a group ceases to exist. Organizations and their advisors are encouraged to develop good internal accounting systems.
Some groups have accounts with the AS Business Office on the second floor of the BMU in room 219. This service solves all of the problems listed above and offers the ease and security of having an account on campus.
Recently the charge for these accounts has increased from $2 per month to a 2 percent of expenditures charge. Many organizations will find a bank the more fiscally sound choice.
If your group receives a gift and your donor wants a charitable tax identification number for his or her tax records, our office can help. We will assist you in setting up an annual fund account with the university. Your donor gets the proper paperwork and you get the money or property.