Update on the Chapter Banking Situation, and a Follow Up Question on Getting a Tax ID Number

[Debra Bethard-Caplick]

Hi all,

Well, the banking account issue has gotten exponentially more complicated, to the point where we are giving up and shutting it down completely. Several years ago the Registered Student Organization Office (RSO) pushed the responsibility for handling student group funds onto the individual groups, so each group had to open their own accounts. 

The existing chapter account is attached to the personal Social Security number of a former advisor we can't identify, and the IRS won't talk to us unless we find out who has that SS#. The bank can't tell us, and it doesn't appear on the statements. The original paperwork was lost at some point along the way. In trying to track this down we discovered that the name on the account is now in violation of university brand policy, and the bank can't change the name without the tax ID number...that we don't have.

 We've decided to just scrap the existing account and start fresh, but to get a tax ID number that isn't attached to someone's personal SS#, we need to select a category, which is where I'm stuck. Are we considered a social group? Or do we choose PTA/PTO/Other School Group? We're thinking that's incorrect because the description says that it's groups controlled by the school, like the marching band. I've asked around but my sources haven't come up with an answer yet. I've attached a screenshot of the potential categories.

Any thoughts would be greatly, greatly  appreciated!

Debra

[Ken Hagihara]

Hi Debra,

 

At California State University, Fullerton, (CSUF PRSSA) we have the Associated Students, Inc., (ASI) which, among a lot of other responsibilities, manages the funding of campus organizations. This is a 501(c)3 nonprofit organization and is an auxiliary organization of the university.

 

ASI maintains an account for the CSUF PRSSA chapter so any funds that come into our chapter (donations, sponsorships, membership dues, revenue from fundraisers, etc.) are deposited into our ASI account and when we need to spend funds, ASI cuts the checks for us.  When we have to provide a W-9 for tax purposes, we use the EIN for ASI.  They handle the legal and tax issues of running a nonprofit and we just run our funds through them.  It seems like establishing your own EIN for your chapter is going to come with a lot of additional administrative issues (i.e. establishing the nonprofit entity, tax filings, reporting, etc.). 

 

Do all of your student organizations have to establish themselves as separate nonprofit entities in order to operate their clubs?  If this is your only option at the university, I’m wondering if it would be possible for your local PRSA chapter to somehow sponsor your chapter under their organization?

 

If it were me, I would talk with an accountant before I establish a EIN for your chapter and start that whole IRS process.  

 

I don’t know if that helps…

 

Best regards,

 

Ken

 

 

Ken Hagihara, APR, Fellow PRSA

National PRSSA Faculty Adviser

California State University, Fullerton, PRSSA Faculty Adviser

Board Member, Universal Accreditation Board

 

California State University Fullerton

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